New expense regime 'is impeding' MPs and needs overhaul

In a highly critical statement, Sir George Young said the system set up by the Independent Parliamentary Standards Authority (Ipsa) was "failing in many respects" to support the Commons.

Certain "highly unsatisfactory" aspects of the reformed expenses are "at best distracting, and at worst impeding" the work of MPs.

The new system is deterring people from less affluent backgrounds from becoming MPs and putting "undue pressure" on the family lives of existing parliamentarians, he said.

In a submission to the annual review of the new scheme, Sir George called for improvements to be agreed, if not introduced, by April 1.

His intervention came as Ipsa was publishing the latest tranche of MPs' claims today.

Ipsa has incurred the wrath of hundreds of MPs since being set up to administer their expenses in the aftermath of the 2009 scandal.

Sir George said: "I believe that the current expenses scheme, as designed, implemented and administered by the Independent Parliamentary Standards Authority, is failing in many respects adequately to support MPs to undertake their responsibilities.

"There are some highly unsatisfactory features of the scheme that are at best distracting, and at worst impeding, MPs from doing their jobs.

"In addition, some aspects of the new regime are in danger of deterring people from less affluent backgrounds from becoming - and in some cases remaining - Members of Parliament and are also placing undue pressure on some MPs' family lives.

"This is unsustainable and it would be unacceptable to the House, if Parliament is to perform the task the country expects.

"I continue to support the principles of independent regulation and transparency.

"However, it would be unacceptable for any external body to prejudice the service that constituents should, as a matter of course, expect from their Member of Parliament."

Sir George said the Commons expected Ipsa to recognise the need for "substantial change", including a "simpler and, in the long run, more cost-effective system that properly supports all MPs as they go about their duties".

He added that it was "essential" for Ipsa to ensure "the key elements of the new scheme are established, if not actually operational, by 1 April 2011".

Sir George also appeared to take issue with Ipsa's publication of rejected expenses claims, which it is doing for the first time today.

"MPs must not be deterred from applying for expenses because they fear reputational damage as a result of failed claims made in good faith, nor from seeking advice for fear that the fact that they have done so may be disclosed and used against them," he said.

MPs had 154 claims for expenses rejected by Ipsa between September 15 and the end of October, it was disclosed today. They were collectively worth 15,352.49.

Another 3,641,081.09 was paid out in legitimate claims to 622 MPs in September and October.

The rejected claims ranged from one for just 30p for stationery to others worth hundreds of pounds.

Tory Defence Minister Peter Luff had a 286.50 telephone bill knocked back because he did not provide adequate documentation. He had another two claims, together worth 195, for administration costs rejected because Ipsa deemed them "not claimable".

Labour backbencher Paul Flynn had a 762 claim for service charges thrown out because of insufficient evidence.