Days are numbered for MPs’ £25 unreceipted allowance

The £25 per day subsistence allowance for MPs splashed across the front page of the Daily Telegraph today has been claimed by MPs since it appeared in the Green Book of expenses rules in March 2009.

But don’t expect it to last much longer. Sir Christopher Kelly’s Committee on Standards in Public Life produces its reforms in October. Party leaders have all but committed to signing up to its conclusions.

In his launch document for the inquiry on the principles that would govern his approach, Sir Christopher came out against unreceipted claims:

“13. Wherever reasonably possible, all claims for expenses should be backed up by receipts or other appropriate documentation, available to be produced if necessary”

That’s why the Prime Minister’s short-lived, YouTube-launched attempt to get a daily attendance allowance was so unpopular with the committee.

Here is an exchange from the 13 July inquiry evidence session between Sir Christopher Kelly and Don Touhig MP of the Members’ Estimates Committee… Sir Christopher does not appear to be a fan of the £25 daily allowance:

SIR CHRISTOPHER KELLY: …MPs are able to claim £25 a night in subsistence.  I understand under the guidelines you have issued even where an MP spends less than £25 on food they can still claim up to £25.  Why should it be possible to claim anything at all under this £25 thing?

DON TOUHIG: …I think it reflects a view that across the board in many organisations, public and private, there is a form of subsistence to meet basic needs that people have when they are working away from home.  This is a relatively new innovation that has been introduced.  It came in on 1 April when we brought in the new Green Book and it is there to try and help and be of assistance to colleagues.    I think if you look in the private sector too you will find that lots of organisations do have a similar facility…

SIR CHRISTOPHER KELLY: The argument you have just made is the one that is usually made.  I am not aware of many organisations where they provide for the cost of accommodation and also for subsistence on top of that.

The £25 subsistence allowance is a goner.