'Golden goodbye' changes would cost MPs thousands
Two veteran Labour MPs stand to lose tens of thousands of pounds if House of Commons ''golden goodbyes'' are capped under new rules.
At the moment, MPs receive a resettlement grant to help them "adjust" to civilian life when they stand down, or lose their seat at a General Election.
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Patricia Hewitt
The grant is worked out depending on the number of years the MP has served.
For the longest-serving members, the figure can reach almost £65,000.
Both Leicester West MP Patricia Hewitt and North West Leicestershire MP David Taylor have announced they are stepping down at the next General Election.
If the rules remain unchanged, the MPs, who were both elected in 1997, could take a grant of some £54,000.
Earlier this year, Prime Minister Gordon Brown asked Sir Christopher Kelly to carry out a comprehensive review of the way in which MPs received pay, expenses and allowances.
He will announce his findings officially on Wednesday next week but is expected to say that the ''golden goodbye'' resettlement grant should be capped at two months' salary – about £10,000.
Mr Taylor said: "I think we will have to wait and see what Sir Christopher says in his report. Nothing we have heard about what he is going to do has been confirmed yet."
Leader of the House of Commons Harriet Harman confirmed yesterday that any changes to the allowances system following Sir Christopher's report would not be voted on by MPs.
Instead, Ms Harman will make a statement to the House next Wednesday and give MPs a chance to "put forward their views".
Mr Taylor added: "We have accepted the Kelly report in principle and won't get to vote on it, but there will be a chance to comment on Wednesday and that will be the right time to do so."
Ms Hewitt was not available for comment yesterday.
The present resettlement grant can be between £32,383 and £64,766, depending on the age and length of service of the departing MP, who gets the first £30,000 of the pay-out tax-free.
It is not yet known whether Sir Christopher will say the new cap will be brought in at some point in the future, or immediately.
It is thought, however, that Sir Christopher wants other changes to be phased in over a number of years. They include a rule that MPs should not be allowed to employ family members to work in their offices.
The former civil servant is also expected to announce that MPs will no longer be able to use their second home allowance to pay mortgage interest on a property. That will mean Westminster politicians will be expected to rent second homes in the future.











3 Comments
by Kulgan, Crydee
Monday, November 02 2009, 3:28PM
“You are far to generous John. I don't know what you will spend your increase on but don't spend your extra money all at once. If you save it for a year, you will have £142.35 (woohoo).”
by John Ryde, Newbold Verdon
Monday, November 02 2009, 11:34AM
“My heart bleeds for these two hard done by MP's.
If they are really hard up they can have my first weeks pension increase which works out at 39p per day.”
by Kulgan, Crydee
Monday, November 02 2009, 9:31AM
“Watch the rats desert the sinking ship now the gravy train will be stopping. Any MP who now announces that they will retire at the next election will prove that they are in it for the money, instead of public service.”