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6 March 2012: Annual review of the MPs’ Scheme of Business Costs and Expenses

Following the annual review of the MPs’ Scheme of Business Costs and Expenses, IPSA is making some changes to support MPs further in their work, with a particular focus on MPs’ staff.


IPSA has increased the budget limit for staffing to £137,200 for non-London area MPs and £144,000 for London area MPs. This money can be paid directly to staff as salaries and related costs: it is not a personal expense available to the MP. IPSA will also revise the job descriptions of MPs’ staff, but pay ranges for staff remain unchanged.


The revised Scheme also sees the Office Costs Expenditure budget and the Accommodation Expenditure budget rise in line with inflation. The budget for mortgage interest has been reduced because that subsidy will not be claimable after August 2012. And, the guidance on party political activity has been strengthened.


IPSA has also introduced an interim resettlement payment for MPs which would be available if there is a general election held before 2015. A longer term arrangement will form part of our work reviewing MPs’ overall remuneration.  


Sir Ian Kennedy, IPSA’s chair, said today:


“The Scheme is stable and well established and so, as part of our annual review of it, we focused in-depth on one particular area: the staff needed to support MPs. Following the review, we have made a significant move to help MPs to staff their offices more effectively. This will help them in the service they provide to their constituents.


“Through our public consultation, I have seen some great examples of the skill, commitment and professionalism that MPs’ staff offer.  I think it is right for staff, MPs and, indeed, all people who look to their MPs for assistance, that we take these steps.”


Notes to editor:


  1. The previous staffing budget was £115,000 and the same for all MPs.
  2. The interim resettlement payment would be available to MPs who stand again at a general election, but who are not re-elected. The payment is one calendar month’s salary for each completed year of service up to a maximum of six month’s salary.
  3. The revised Scheme is available here: 


For more information, please contact IPSA's Press Office.