Politicians slate plans by watchdog to cut expenses

MPS have hit out at plans by Parliament's new expenses watchdog to scale back their entitlements, claiming that proposed reforms would make the Commons the preserve of the rich.

The Commons committee on members' allowances also warned that people with children would be deterred from standing for parliament.

It urged the Independent Parliamentary Standards Authority (Ipsa) – which is taking over responsibility for setting, administering and policing expenses – to rethink its plans.

The body was set up to overhaul the allowances system in response to the expenses scandal, after which it was agreed that MPs could no longer set their own rules.

But the members' allowances committee, which advises the top Commons committee which used to manage expenses affairs, suggested the watchdog has much to learn.

"Ipsa will gradually develop a deeper understanding of MPs' work," it said.

Ipsa's proposals include scrapping the resettlement grant for retiring MPs, worth up to about 65,000 depending on age and length of service.

They also include stopping MPs buying homes with mortgages subsidised by the taxpayer. Instead, they would be forced to rent.

In a submission to Ipsa's consultation on its proposals, the members' allowances committee said the new system would increase the range of expenses MPs were forced to meet themselves.

The cross-party committee said that abolishing the resettlement grant would "add considerable financial insecurity" to being an MP.

It complained that making MPs meet all payments directly before claiming them back "would add major cash-flow problems".