Overview

The House of Commons Members’ Fund Bill aims to consolidate and update the laws governing the House of Commons Members’ Fund, a fund that provides financial assistance to former MPs and their dependents. The bill streamlines existing legislation, clarifies the fund's governance, and sets out the process for managing its finances.

Description

This bill replaces several older Acts of Parliament related to the Members' Fund. Key aspects include:

• The Fund's Purpose: The fund continues to provide grants to former Members of Parliament (MPs) and their dependents, based on financial need and the fund's available resources.
• Trustees: The House of Commons appoints up to seven trustees, with the possibility of including one former MP. The trustees manage the fund, make grant decisions, and determine their own procedures, subject to the bill's provisions.
• Funding: The fund is primarily financed by a levy on current MPs' salaries, capped at 0.2% annually. The House of Commons sets the specific levy amount each year. Trustees can temporarily suspend this levy if the fund has sufficient assets.
• Grant Allocation: Trustees consider applicants' financial circumstances and the fund's resources when awarding grants. Grants can be one-off payments or ongoing support.
• Transparency and Accountability: The bill mandates the publication of the fund's accounts, audited by the Comptroller and Auditor General or an external auditor, and requires the trustees to make arrangements to maintain the confidentiality of grant recipients.
• Legal Updates: The bill updates references to the fund in existing tax legislation.

Government Spending

The bill does not directly impact government spending. Instead, it manages a fund financed by a levy on MPs' salaries. While the exact annual amount deducted from MPs' salaries will vary depending on the House of Commons' resolution, the maximum contribution is set at 0.2% of each MP's salary. No specific figures are provided in the bill text.

Groups Affected

• Former MPs: May receive financial assistance from the fund if they meet the criteria.
• Dependents of former MPs: May also receive financial assistance.
• Current MPs: Will have a portion of their salaries deducted to contribute to the fund.
• The Treasury: Receives any surplus funds the trustees decide to return.
• The Comptroller and Auditor General and/or external auditors: Responsible for auditing the fund's accounts.

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