Peers with London homes still claim

Tuesday, June 29, 2010

Nearly 170 members of the House of Lords have been claiming a £174 tax-free overnight allowance for staying in London even though they have a property in the capital, according to an analysis of the expenses system for peers.

The figures showed that of the 326 peers who claimed the allowance, 167 own properties in London and 113 of those are mortgage-free. The government is now looking to scrap the subsistence payment and implement a £300 a day payment for attending the House of Lords and peers are expected to attend 100 days out of 147, giving them an annual payment of around £30,000. The flat rate would take in the existing £86.50 day allowance for meals and taxis and £75-a-day allowance for office costs.

House of Lords leader Lord Strathclyde said: "Axing through the complex current structure of allowances would represent radical change. But I believe that would be right. It would be cheaper to run, less bureaucratic to comply with, simpler to police and far, far harder to abuse. We would sweep away the controversial rules on so-called 'second homes', which in my judgement have no logic in a House that is not elected. There will be no more addresses of convenience, no more juggling of utility bills and claims forms. If you come to Westminster and work in Parliament, you will be able to claim the allowance. If you do not, you will not."

Strathclyde went on: "The existing expenses regime is discredited. It lacks credibility and the public has no confidence in it. This new plan means the end of the second homes fiasco. It means the end of the old expenses regime. It means a new system that is direct, transparent and accountable. It means we are making a significant step towards winning the public's confidence again."