Overview

This bill amends the Parliamentary Standards Act 2009 to create a single "Members' Allowance" for MPs, replacing various existing payments and aiming to reduce overall costs. The Independent Parliamentary Standards Authority (IPSA) is tasked with designing and administering this new system, subject to parliamentary approval.

Description

The bill mandates IPSA to create a Members' Allowance scheme within eight weeks of the bill's passing. This scheme will consolidate existing MP payments (salary, allowances etc.) into a single monthly payment. The initial calculation of this allowance will be based on the total cost of existing MP payments in 2009-2010, adjusted for inflation and other economic factors. A reduction will be made to account for IPSA administration costs (maximum 2.5%) and a further reduction for regional weighting, disability assistance, security, and other allowances (maximum 17.5%). The scheme will be reviewed annually, taking into account economic indicators. Separate provisions will remain for staffing and office rental costs. The IPSA must publish its proposals and reasons for its decisions, and the House of Commons must approve the final scheme through a statutory instrument.

Government Spending

The bill aims to reduce overall government spending on MP's allowances and payments by streamlining payments and reducing administration costs. The exact savings are not specified in the bill but are implied to be significant given the proposed changes and reductions built into the initial allowance calculation. The 2.5% cap on administrative costs is also intended to limit government expenditure.

Groups Affected

• Members of Parliament (MPs): Will receive a consolidated monthly allowance instead of multiple payments. The final amount will depend on IPSA's calculations and parliamentary approval.
• Independent Parliamentary Standards Authority (IPSA): Responsible for designing, implementing, and administering the new scheme, with a mandate to reduce costs.
• House of Commons: Will review and approve the IPSA's proposals.
• Taxpayers: May see a reduction in overall government spending on MPs' allowances, though the final impact depends on the IPSA's calculations and the approved allowance.

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