Consultation on the framework for setting MPs' budgets
This consultation seeks views on the principles that should guide IPSA’s budget decisions and whether the current framework for MPs’ budgets remains appropriate. It also explains how IPSA is governed, scrutinised and makes decisions, in the interests of transparency.
Your feedback will help shape IPSA’s future approach to funding democracy well while maintaining public confidence in how resources are allocated.
How to respond
Please read the consultation in full before responding. Below, there is further background information if you are interested to learn more about the way we currently set budgets, the make-up of our Board and the role of the Speaker's Committee for IPSA. We welcome your views on this consultation and invite you to respond online.
You can also submit information by email to consultation@theipsa.org.uk but please do not submit any responses by post.
Please send us your response by 11.59pm on 4 September 2026.
Background: process for setting MPs' budgets
IPSA provides funding to MPs for things that are necessary for them to do their job in both their constituency and London: running an office, working from two locations, employing staff, and travelling for parliamentary reasons. IPSA sets limits on what MPs can spend in a financial year on each category of costs.
The main budgets provided to MPs are:
| Budget | Detail |
| Staffing | The staffing budget is largely made up of payroll costs, including salary, which are paid directly to the staff MPs employ to assist them in carrying out their duties in Westminster and the constituency. The budget covers employment costs such as national insurance and pension contributions. It also covers pooled research services and costs for volunteers. |
| Staff development | The staff development budget provides funding for staff training and other costs that support staff in their roles, such as one-off health costs like eye tests and vouchers for flu jabs. |
| Office costs | The office costs budget provides funding for MPs to run their office and constituency surgeries. This includes costs to cover the rent and utility bills for an office as well as business rates, equipment and stationery. |
| Accommodation | The accommodation budget provides funding to cover the cost of overnight accommodation in either London or the constituency. This funding is required to enable MPs to work from two locations, Westminster and their constituencies. This can cover hotels, a rented property, or “associated costs”’ (utilities and other basic running costs, not including mortgage payments) for a property an MP owns. London-area MPs are not entitled to this budget. |
| Travel | The travel budget covers the cost of work-related travel for MPs between Westminster and their constituency, as well as travel within the constituency and elsewhere. It also covers hotel costs for MPs and their staff and subsistence (food and drink) costs only where they are required to stay overnight for work. The travel budget isn’t capped, because of the wide variation in travel requirements for MPs representing different constituencies across the UK. |
| Budget | Area/eligibility | 2019-20 budget | 2026-27 budget |
| Staffing costs | Constituency (outside London) | £155,930 | £276,540 |
| Staffing costs | London area | £166,930 | £296,080 |
| Office costs | Constituency (outside London) | £25,430 | £37,080 |
| Office costs | London area | £28,270 | £40,830 |
| Accommodation | Constituency (outside London) | £16,010 | £22,780 |
| Accommodation | London area | £22,920 | £33,840 |
IPSA decides on adjustments to MPs’ budgets for the following financial year. This normally starts in the autumn, taking an evidence-based approach, spending trends and how external market and economic forces might impact on the level of funding MPs need to continue to run their offices effectively.
As part of this process, staff representatives are invited to attend a Board meeting in September to share their perspectives on staffing-related budget issues affecting MPs’ offices and their members and colleagues. This engagement has been a well-established part of the budget-setting process for several years and provides an early opportunity to discuss emerging issues and pressures. Representatives are also invited to submit written evidence ahead of the November Board meeting, where it is considered alongside other sources of information used to inform budget decisions.
For all budgets, we look at spend against budget from the previous year and forecast spend for the current year, and we analyse trends and outliers across MPs’ offices and requests for additional funding. We use external data and commentary on inflation and forecast inflation. We consider feedback from MPs and their offices about budgetary challenges.
For staff salaries, which make up the largest part of the staffing budget and MPs’ funding overall, we track market data on pay in similar roles, National and Real Living Wage and official data on earnings. We consider Government recommendations to pay review bodies and other public sector pay policy and settlements, as well as submissions from unions and staff representatives about staff salaries and other staffing funding.
We look at information on recent and upcoming changes to other running costs, such as commercial and private rents, council tax, energy prices and rail fares.
Background: the role of the Speaker's Committee for IPSA
The Speaker’s Committee for the IPSA (SCIPSA) is a statutory committee established under the terms of the Parliamentary Standards Act 2009 (amended by the Constitutional Reform and Governance Act 2010.)
SCIPSA is made up of MPs and lay members and provides oversight of the resources requested by IPSA.
SCIPSA has several roles. It considers the candidates proposed by the Speaker, following fair and open competition, for the posts of Chair and members of IPSA’s Board. The candidates for these posts are then approved by the House of Commons and appointed by His Majesty the King.
The Committee also reviews IPSA's annual estimate of the resources it needs, to ensure the estimate is consistent with the efficient and cost-effective discharge of the IPSA's functions before the estimate is laid before the House by the Speaker. Before SCIPSA can consider our budget, it is shared with HM Treasury for their feedback on the proposed expenditure of public funds.
IPSA is independent of Parliament and Government. This is important for maintaining public trust in the way MPs’ pay and funding is set, namely that it is free from interference. SCIPSA’s scrutiny role is important to ensure that IPSA is accountable to Parliament and that there is oversight of IPSA’s decisions, on behalf of the public.
Background: IPSA's Board
Our Board consists of a Chair and four Board members.
Under the Parliamentary Standards Act 2009, our Board must consist of:
One member who has held high judicial office.
One member who is a qualified auditor, and
One member who is a former MP.
Members of the Board are appointed for fixed terms of up to five years. They can also be reappointed for a further term of up to three years. In 2023, IPSA conducted an external review of its governance arrangements. It was found that IPSA has an effective Board with clear strategic priorities that support the organisation’s long-term sustainable success.
You can see all IPSA’s Board members, and further information, on this page of our website.