Winding Up FAQs
Winding Up: General
The Winding Up budget is to help meet the costs of completing MPs’ outstanding parliamentary functions when they leave Parliament. All costs incurred under the Scheme of MPs’ Business Costs and Expenses from 9 June to 8 August, will come from the Winding Up budget. Staff redundancy payments and rent for MPs’ accommodation are covered by the Contingency Fund.
The budget is available to MPs the day after the Election (9 June) up until 8 August. There will be an ‘EXPENSES: Winding Up form’ to submit claims on the online expenses system. The Winding Up budget is £57,150 for London Area MPs and £53,950 for Non-London Area MPs.
Winding Up costs may include:
- Salary, National Insurance and employer pension contribution costs for any staff who continue to work for the MP (for a maximum of two months after the MP leaves Parliament).
- Other contractual liabilities for staff in respect of the period after the date of the General Election or after the MP otherwise leaves Parliament, such as overtime worked, untaken leave and pay-in-lieu-of-notice.
- Any office and travel costs which remain necessary for the completion of the MP’s parliamentary functions, including any contractual liabilities, such as office rent, utility bills and equipment rental payments. There are certain exclusions to what can be claimed from the Winding Up budget. For example, IPSA will not pay claims for the purchase of any new office equipment, IT or furniture. If there is an exceptional need, the MP must apply for contingency funding.
- The costs, including removals, of leaving any office accommodation funded under the Scheme.
No, the budgets are for separate purposes.
The normal budget is to help MPs carry out their parliamentary duties. The Winding Up budget is for MPs to close their parliamentary affairs.
Claims can, however, still be made from the original budget within 90 days of the cost being incurred, if the cost was incurred before the Winding Up period began.
MPs cannot employ new staff or make increases to salaries during Winding Up. Other changes, such as reducing staff hours, are permitted.
Departing MPs will not receive a salary after the election. However, provided they are entitled to a loss of office payment, they may request that they are paid an amount in advance, up to their full salary for June. This will be deducted from their entitlement to a Loss of Office Payment. They must apply for this payment before IPSA’s payroll deadline for the month (see the FAQ below for more on Loss of Office Payments).
Assuming the incumbent MP was an MP on the day before dissolution and was a candidate for re-election in the same seat, they would be eligible to receive a Loss of Office Payment equal to twice their statutory redundancy entitlement. Statutory redundancy entitlement requires length of service to be two years or more and can be calculated by clicking here.
MPs can ask for their Loss of Office payment to be paid in advance, up to an amount equal to the salary they would have received for the remainder of June 2017 or the entirety of LOOP, whichever is lower. The rest of the Loss of Office Payment will then be paid to the MP once they have completed all business with IPSA.
If an MP owes money to IPSA, the MP can ask for this to be subtracted from the Loss of Office Payment they are due to receive.
If an MP’s staff member is made redundant, IPSA will send the staff member a P45 in the post. It is therefore important that staff members make sure IPSA has their correct address.
MPs’ staff will normally be entitled to a redundancy payment if they are an employee and have been working for their current employer for 2 years or more.
The amount of entitlement depends on whether the staff member is on an IPSA contract or not:
- If the staff member is not on an IPSA contract, they will receive their redundancy entitlement. If redundancy is not specified in their contract, they will receive their statutory redundancy entitlement.
- If a staff member is on an IPSA contract, they will be paid double their statutory redundancy entitlement.
Statutory redundancy entitlement is calculated as follows:
- half a week’s pay for each full year they were under 22;
- one week’s pay for each full year they were 22 or older, but under 41;
- one and half week’s pay for each full year they were 41 or older (length of service is capped at 20 years)
The statutory weekly pay is capped at £489. To calculate statutory redundancy payment, click here.
For further details on the redundancy process, please see the House of Commons Dissolution Guidance.
For advice on the process of making staff redundant, MPs should contact the Members’ HR service which provides HR advice to MPs in their role as employers (firstname.lastname@example.org or 020 7219 2080). There is also some guidance on the IPSA website about giving staff notice when it is the result of a General Election: http://www.theipsa.org.uk/ipsa-for-mps/guidance/.
MPs should give their staff notice of redundancy at a point which allows them to wind up their affairs effectively and minimises the cost of pay-in lieu-of-notice to the taxpayer.
The Payment Card will be turned off on the 20th July. This is the same date for accessing MP Trainline accounts. If an MP believes they have an exceptional need to retain either of these, they can contact their dedicated Account Manager. Direct Supplier accounts (Commercial, Banner, and XMA) are closed the day after the election.
Any repayments or refunds e.g. for rent over payment or annual costs such as council tax, should be returned by filling in the IPSA Repayment Form and making a BACS payment to IPSA. Deposit Loans for IPSA Accommodation or Constituency Offices must be returned in full, within 30 days after leaving the property.
Winding Up: Security
IPSA will continue to pay for necessary costs incurred during the two month Winding Up period, including security costs.
No. IPSA can only provide funding for MPs and will cover the costs of security and claims for parliamentary purposes during the two month Winding Up period. Former MPs should consult with the police if they have on-going security needs or concerns.
MPs should seek a refund from the service provider if possible and return the monies paid to IPSA.
Yes, IPSA will fund the costs incurred from the removal of security measures and any repairs needed as a result of removing the security measures to make good vacated offices and residential accommodation.
Winding Up: Training
No. The Winding Up budget is provided to pay for costs incurred by an MP when closing down their office and Winding Up their parliamentary business. IPSA cannot pay for staff retraining if an MP loses their seat.