4.1 Accommodation Expenditure is designed to meet costs necessarily incurred on overnight accommodation which is required for the performance of an MP's parliamentary functions.

4.2 Accommodation Expenditure is not payable to MPs who:

a. are London Area MPs; or

b. by virtue of any particular office held, occupy 'grace and favour' accommodation.

4.3 MPs may only claim for Accommodation Expenditure in relation to a property at one location, which may be either:

a. in the London Area, or

b. within the MP's constituency, or within 20 miles of any point on the constituency boundary.

4.4 In exceptional circumstances and notwithstanding paragraph 4.3, IPSA may at its discretion allow an MP to claim for more than one property in the MP’s constituency.

 4.5 Where an MP is claiming Accommodation Expenditure under paragraph 4.8b, c or d, the MP must be routinely resident at the property supported by IPSA, and may not sublet this property.

4.6 Claims may only be made for Accommodation Expenditure (other than for hotel costs) once IPSA has approved the MP's rental contract, or mortgage agreement, or has been provided with proof of ownership, and agreed that such claims can be made.

IPSA will approve all rental contracts or mortgage agreements to ensure the eligibility criteria and conditions are met before any claims can be made. MPs should satisfy themselves that the conditions as set out in the Scheme are met.

4.7 MPs may rent accommodation from another MP, provided that the landlord MP is not a connected party. Only the tenant MP may claim the associated expenditure for that property.

4.8 Accommodation Expenditure may be claimed only for the following costs:

a. hotel accommodation; or

b. rental payments and associated expenditure as set out at paragraph 4.9; or

c. for MPs who own their property but who are not claiming mortgage interest subsidy under paragraph 4.8d, associated expenditure as set out at paragraph 4.9; or

d. exceptionally, in the case of MPs receiving payments for mortgage interest on 7 May 2010, continued payment of mortgage interest and associated expenditure as set out at paragraph 4.9 until 31 August 2012 or the date when the MP disposes of the property, whichever is the earlier.

4.9 Associated expenditure includes:

a. utility bills (gas, electricity, other fuel and water);

b. council tax;

c. ground rent and service charges;

d. home contents insurance;

e. in the case of MPs claiming under 4.8c or 4.8d, buildings insurance;

f. purchase, installation and maintenance of routine security measures;

g. installation of a landline telephone line, line rental and usage charges;

h. installation of a broadband connection and usage charges;

i. connection to a basic, free to air television broadcast package; and

j. the purchase of a television licence.

“Routine security measures” are security locks, alarms, or similar.

4.10 Associated expenditure shall not include and no claims will be paid for:

a. cleaning;

b. gardening; or

c. the purchase or maintenance of furniture.

4.11 Accommodation Expenditure may only be paid for hotel costs to non-London Area MPs who have informed IPSA of their intention not to claim for rental property, mortgage interest, associated expenditure under paragraph 4.9, or the London Area Living Payment.

Claiming for rental payments

4.12 For MPs claiming for rental payments in the London Area, the annual Accommodation Expenditure budget (including all associated expenditure as set out at paragraph 4.9) is £20,000.

4.13 For MPs claiming for rental payments within the MP's constituency, or within 20 miles of any point on the constituency boundary, IPSA may set out in guidance annual Accommodation Expenditure budgets with monthly rental payment limits, which may vary having regard to particular constituencies.

4.14 The budgets for particular constituencies are set out at Annex B.

MPs may enter into a rental agreement above the Accommodation Expenditure limit in the Scheme if they wish to do so. However, any rent or associated expenditure above this limit will not be met from the public purse.

IPSA has assessed that £2,600 per year is an appropriate amount for associated expenditure. MPs with low rental payments will be able to claim more than £2,600 per year in associated costs, provided they do not exceed the overall budget. However, they should have regard to the fact that £2,600 is built into the budget specifically for these costs.

4.15 The Accommodation Expenditure budget is designed to include the cost of drawing up any tenancy agreement and any agency fees incurred on entering into or extending contracts for rental accommodation.
 Removal costs for moving to new accommodation may be claimed from the Contingency Fund. No pre-approval is required.

MPs who own their own homes

4.16 For MPs claiming for mortgage interest or associated expenditure only, the annual Accommodation Expenditure budget (including all associated expenditure as set out at paragraph 4.9) is £8,850.
This budget comprises five months’ subsidy of £1,250 per month, until 31 August 2012 when the subsidy ends, and £2,600 for associated expenditure.

MPs who own their property but do not claim mortgage interest subsidy should have regard to the fact that £2,600 per year for associated expenditure is built into the accommodation budget for associated costs. This is IPSA’s estimate of a reasonable amount of cover for associated costs.

4.17 IPSA may recover the publicly subsidised element of any increase in the value of the property over the period for which mortgage interest payments are claimed. Additional rules on the procedures for reclamation are set out at Annex A. 

MPs who share rental accommodation

4.18 If two or more eligible MPs choose to share rental accommodation, that intention must be registered with IPSA when registering the property. In this case, the names of both MPs must be on the rental agreement as provided to IPSA.

4.19 Each MP will be entitled to the full Accommodation Expenditure budget and all costs claimed from Accommodation Expenditure by MPs who elect to share accommodation should be apportioned equally between those MPs.

Additional budgets for MPs with caring responsibilities

4.20 An MP who is eligible to claim Accommodation Expenditure for rental costs may have his or her budget limit increased by up to £2,425 in any financial year for any additional expenditure that may be required, for each person for whom that MP has caring responsibilities (known hereafter as the “dependant”), provided that he or she can certify that the dependant routinely resides at the rented accommodation.

MPs will become eligible for this additional expenditure once they register their dependant(s) with IPSA. If an MP is expecting a child or is in the process of adoption, and the MP wishes to secure new accommodation as a result, he or she should notify IPSA as soon as possible. Early notification will assist both the MP and IPSA in making the appropriate arrangements.

4.21 For the purposes of this Scheme MPs will be deemed to have caring responsibilities where they:

a. have parental responsibility for a dependent child of up to the age of 16, or up to the age of 18 if in full-time education; or

b. are the sole carer for a dependent child in full-time education, of up to the age of 21 years; or

c. are the primary carer for a family member in receipt of one of the following benefits:

i. Attendance Allowance;

ii. Disability Living Allowance at the middle or highest rate for personal care; or

iii. Constant Attendance Allowance at or above the maximum rate with an Industrial Injuries Disablement Benefit, or basic (full day) rate with a War Disablement Pension.

Full-time education means a course where the average time spent during term time receiving tuition, engaging in practical work or supervised study or taking examinations is more than 12 hours a week and is not linked to employment or any office held. It includes breaks taken as an integral part of the course, such as “sandwich years”.

Loans for deposits on rental properties

4.22 An MP who intends to claim Accommodation Expenditure for rental costs may apply to IPSA for a loan to cover any deposit payable at the commencement of a tenancy. This loan will not be deducted from the Accommodation Expenditure budget.

4.23 The value of any loan under paragraph 4.22 may not exceed:

a. the deposit which is stipulated in the rental agreement; or

b. one quarter of the appropriate annual Accommodation Expenditure budget for the location (i.e. London Area or the constituency),

whichever is the lower.

Applications for loans should be accompanied by a draft of the rental agreement, for IPSA to approve.

MPs will be asked to sign hard copies of loan agreements before funds are provided to them. The terms and conditions of the loan will be set out in these agreements.

No MP may hold more than one loan for a deposit on residential accommodation at any one time, except where IPSA agrees otherwise.

4.24 The MP is responsible for securing the return of the deposit and for repaying the amount in full to IPSA, no later than one month after the date on which the tenancy came to an end or when the MP leaves Parliament (whichever is earlier). Any shortfall between the deposit paid and the amount returned shall be the sole responsibility of the MP.

Conditions applicable to Accommodation Expenditure

4.25 An MP's entitlement to an uplift in his or her budget for Accommodation Expenditure attributable to caring responsibilities as set out at paragraph 4.20 shall cease under the following circumstances:

a. in the case of any dependant, when that person ceases to reside routinely at the property with the MP;

b. in the case of a dependent child under the age of 16 years, six months after the end of the financial year during which the child attains that age;

c. in the case of a dependent child in full-time education between the ages of 16 and 18 years, six months after the end of the financial year during which the child turns 18 or concludes full-time education whichever is the earlier;

d. in the case of a dependent child in full-time education between the ages of 18 and 21 years for whom the MP is the sole carer, six months after the end of the financial year during which the child turns 21 or concludes full-time education whichever is the earlier; or

e. in the case of any family member for whom the MP is the primary carer, who is in receipt of one of the benefits listed at paragraph 4.21c, six months after the end of any financial year during which the family member ceases to be in receipt of one of those benefits.

Hotel costs

4.26 Accommodation Expenditure may only be claimed in relation to hotel accommodation up to a maximum cost of £150 per night in the London Area, or £120 elsewhere in the United Kingdom.

4.27 If this cost includes breakfast, then it will also be reimbursed, provided it is included on the same receipt, and that the overall limit is not exceeded. These limits are inclusive of VAT.

MPs should note that the House of Commons Travel Office may be able to book hotels at a rate below these limits.

5.1 The London Area Living Payment is intended to contribute towards the additional expenses of living in the London Area or of commuting regularly to the London Area.

5.2 The London Area Living Payment may be claimed by:

a. London Area MPs, or

b. non-London Area MPs who have informed IPSA of their intention not to claim for Accommodation Expenditure.

5.3 The London Area Living Payment is limited to £3,760 per financial year, payable on a monthly basis.

5.4 MPs representing certain constituencies (detailed in Schedule 3) may claim an additional £1,330 per year in London Area Living Payment.

Conditions

5.5 The London Area Living Payment will not be payable in relation to any period before notification is given to IPSA that the MP has elected to claim it. 

Provided the MP applies before the payroll deadline for the month, IPSA will pay LALP for the current month in full. The payroll deadline is usually the 15th of the month (but will be earlier if the 15th falls on a bank holiday or weekend). If the MP applies after the deadline, LALP will not be paid until the following month.

5.6 The London Area Living Payment will not be payable to an MP who:

a. occupies any 'grace and favour' accommodation by virtue of any particular office held, or

b. receives payment for mortgage interest under paragraph 4.8d of this Scheme.:

5.7 If an MP in receipt of the London Area Living Payment subsequently elects to claim Accommodation Expenditure, the MP's entitlement to the London Area Living Payment will cease with effect from the day before Accommodation Expenditure is claimed.