blog archive

Sunday, 5 December 2010

Despite strict new rules on expenses, MPs cash in on 'THIRD HOME ploy'

By Simon Walters and Chris Hastings
Last updated at 2:08 AM on 5th December 2010

MPs have been accused of exploiting rules intended to end the scandal of second-home expenses – by claiming taxpayers’ money for a third.

Some are earning thousands of pounds by letting out the second homes they bought with public funds, then moving into a rented third home nearby – and claiming Commons expenses on that instead.

The move also means they can dodge a new clawback measure that would force them to pay back up to £20,000 of profits made on the sale of second homes.

Clive Betts' expenses

David Crausby's expenses


The result is that some MPs can receive even more money under the new, supposedly foolproof expenses regime than under the old discredited one. The disclosure comes after the publication of the first set of MPs’ expenses since the May Election showed £3.1 million has been paid out in six months.

Abuse of MPs’ £24,000-a-year second-home allowances was at the centre of the controversy that rocked the political establishment last year.

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