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NON-PHILIP NEWSThis might be one of the most insane stories I've ever covered
Tory MPs are billing £20,000+ of their rent to the taxpayer while making money RENTING OUT properties they own AND cutting housing benefit for the poorest https://www.theguardian.com/politics/2021/apr/11/tory-mps-claim-almost-3m-in-housing-rent-on-expenses
I've found 42 cases where Tory MPs are billing their own rent to the taxpayer while at the same time renting out housing for at least £10,000 a year
Sixteen of them are renting out housing in London itself https://www.theguardian.com/politics/2021/apr/11/tory-mps-claim-almost-3m-in-housing-rent-on-expenses
Sixteen of them are renting out housing in London itself https://www.theguardian.com/politics/2021/apr/11/tory-mps-claim-almost-3m-in-housing-rent-on-expenses
This isn't unique to Conservative MPs - but from this month the Tory government is freezing housing benefit for private-renting tenants.
That means a real-terms cut for a lot of private tenants claiming housing benefit.
So I focused on the Tories. https://www.theguardian.com/politics/2021/apr/11/tory-mps-claim-almost-3m-in-housing-rent-on-expenses
That means a real-terms cut for a lot of private tenants claiming housing benefit.
So I focused on the Tories. https://www.theguardian.com/politics/2021/apr/11/tory-mps-claim-almost-3m-in-housing-rent-on-expenses
I should also say at this stage that this is all entirely within the rules - more on that later.
For now, meet 'red wall' MP Paul Howell...
...who bills the taxpayer for £1,917.50 of his own rent each month while renting out SIXTEEN different properties
For now, meet 'red wall' MP Paul Howell...
...who bills the taxpayer for £1,917.50 of his own rent each month while renting out SIXTEEN different properties
Kevin Hollinrake bills £2,925 of his own rent every month to the taxpayer - while having a share in *five* rental properties.
"I do not consider it reasonable to have to pay my own accommodation expenses in London in addition to other costs incurred while living away from home”
"I do not consider it reasonable to have to pay my own accommodation expenses in London in addition to other costs incurred while living away from home”
Now, Howells and Hollinrake own rental properties well away from London.
Not so Paul Bristow. who claimed £10,500 of his own rent on expenses in eight months while renting out three properties in London itself...
...which sounds like quite the side hustle.
Not so Paul Bristow. who claimed £10,500 of his own rent on expenses in eight months while renting out three properties in London itself...
...which sounds like quite the side hustle.
Then there's good old Sir Geoffrey Cox QC, he of the booming oratory and rhetorical flourishes at the despatch box when he was Attorney General...
Now, Sir Geoffrey bills £1,900 in rent to the taxpayer each month...
...while renting out a residential property in London...
...and getting paid £10,000s for legal work...
...and since September making FOUR HUNDRED AND SIXTY EIGHT THOUSAND A YEAR (minus 13.5% for chambers)
...while renting out a residential property in London...
...and getting paid £10,000s for legal work...
...and since September making FOUR HUNDRED AND SIXTY EIGHT THOUSAND A YEAR (minus 13.5% for chambers)
A few more, you say?
Oh go on then.
You might be wondering why Helen Whately's in this Guardian picture.
Well, it's because she bills more in rent to the taxpayer than any other Tory MP - £3,250 *every single month*
That's heading for £39,000 in a year https://www.theguardian.com/politics/2021/apr/11/tory-mps-claim-almost-3m-in-housing-rent-on-expenses
Oh go on then.
You might be wondering why Helen Whately's in this Guardian picture.
Well, it's because she bills more in rent to the taxpayer than any other Tory MP - £3,250 *every single month*
That's heading for £39,000 in a year https://www.theguardian.com/politics/2021/apr/11/tory-mps-claim-almost-3m-in-housing-rent-on-expenses
Helen Whately is paid £114k a year
If she claims £39k a year in rent, that's more than:
- the average annual pay of her constituents
- average full-time earnings in the UK
- the average nurse’s salary
- double the average care worker’s pay
(she doesn't rent out property)
If she claims £39k a year in rent, that's more than:
- the average annual pay of her constituents
- average full-time earnings in the UK
- the average nurse’s salary
- double the average care worker’s pay
(she doesn't rent out property)
Ben Bradley claims £2,621.67 a month
Johnny Mercer claims £2,816.66 a month
James Cleverly claims £1,200 a month and rents out a property in Lewisham
Damian Collins claims £2,802.50 a month and rents out a flat in London
Johnny Mercer claims £2,816.66 a month
James Cleverly claims £1,200 a month and rents out a property in Lewisham
Damian Collins claims £2,802.50 a month and rents out a flat in London
And I want to give a special shout out to Lia Nici.
It was this tweet that got me looking at her expenses - and from there, looking at other MPs' rent expenses.
She claims £2,015 a month
It was this tweet that got me looking at her expenses - and from there, looking at other MPs' rent expenses.
She claims £2,015 a month
Ok, so, what's the deal here?
Well, MPs have to work from two locations - their constituency, and London.
Non-London MPs need a home in each. And it's considered unfair to expect them to pay for both homes themselves. So they can claim costs relating to one of them on expenses
Well, MPs have to work from two locations - their constituency, and London.
Non-London MPs need a home in each. And it's considered unfair to expect them to pay for both homes themselves. So they can claim costs relating to one of them on expenses
Now, most MPs are paid £81,932 a year, and ministers are paid more.
That's way above the national average.
But younger MPs, working class MPs, and MPs for high-cost constituencies may not own their own home. And paying rent for two different homes would be very expensive
That's way above the national average.
But younger MPs, working class MPs, and MPs for high-cost constituencies may not own their own home. And paying rent for two different homes would be very expensive
So there's a very clear logic to allowing MPs to claim rent on expenses.
But clearly, there are some MPs who could afford to pay their rent themselves, but they're billing it to the taxpayer, in my view, because they can.
That's legal, but in my view it's entitlement.
But clearly, there are some MPs who could afford to pay their rent themselves, but they're billing it to the taxpayer, in my view, because they can.
That's legal, but in my view it's entitlement.
And it's particularly egregious given that their government is now *cutting* housing benefit for a lot of private tenants on low incomes, via a cash-terms freeze - a real-terms cut in most areas once you account for rent inflation.
More on that here https://www.theguardian.com/money/2021/mar/13/benefits-freeze-will-leave-tenants-across-britain-facing-rent-arrears-of-1000
More on that here https://www.theguardian.com/money/2021/mar/13/benefits-freeze-will-leave-tenants-across-britain-facing-rent-arrears-of-1000
So the cap on housing benefit paid to private renters is being frozen.
The caps on the rent that MPs can claim from the taxpayer? Those are rising by 1.2% this year.
The caps on the rent that MPs can claim from the taxpayer? Those are rising by 1.2% this year.
Now, housing benefit for private tenants is capped (well, was capped before the freeze this month) at 30% of local private rents. In other words, it covers the cheapest 30% of local private rents. If you're on average rents, you face a shortfall...
...whereas the cap on the annual rent MPs can claim for renting in London is based on the *average* rent for a one-bed property in *Lambeth and Westminster*
In 2020/21, non-London MPs could claim:
- £23,010 to rent in London
- £16,120 outside London
- £5,435 'dependant uplift'
In 2020/21, non-London MPs could claim:
- £23,010 to rent in London
- £16,120 outside London
- £5,435 'dependant uplift'
What are dependant uplifts?
Well, they account for the fact that many MPs have children under 18 or other dependants that they have caring responsibilities for, meaning they might need a bigger residence than a one-bed property
Fair.
They can claim up to three of these uplifts
Well, they account for the fact that many MPs have children under 18 or other dependants that they have caring responsibilities for, meaning they might need a bigger residence than a one-bed property
Fair.
They can claim up to three of these uplifts
The uplift was £5,435 in 2020/21, based on the average difference in rental prices for properties with additional bedrooms.
Add three uplifts to the London maximum and you get to... £39,315 - just above the annual total Whately is heading for.
Add three uplifts to the London maximum and you get to... £39,315 - just above the annual total Whately is heading for.
I want to end with Marcus Fysh.
Fysh's parents own Naish Priory, a large house dating to the 14th century which they bought for £1.49m. Fysh lived here for a while, and in 2015 he had a 'beneficial interest in it', though I understand he now lives elsewhere
Fysh's parents own Naish Priory, a large house dating to the 14th century which they bought for £1.49m. Fysh lived here for a while, and in 2015 he had a 'beneficial interest in it', though I understand he now lives elsewhere
Marcus Fysh claims £2,750 a month in rent - £22,000 between April and November last year, heading for £33,000 a year.
How about private renters in his seat of Yeovil?
Thanks to the benefit freeze, low-income tenants paying average rents will be worse off by hundreds of pounds.
How about private renters in his seat of Yeovil?
Thanks to the benefit freeze, low-income tenants paying average rents will be worse off by hundreds of pounds.
If they're renting a room in shared accommodation, their rent shortfall after benefits will rise by an estimated £364 this year; by £119.60 if they're renting a one-bed property; by £418.60 for a two-bed, and £837.72 for a four-bed.
And that, ultimately, is the point.
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And that, ultimately, is the point.
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Oh, one other thing - those dependant uplifts I mentioned earlier?
It appears they don't have to actually spend any time in the rented property for the MP to be able to claim an uplift in rent for them.
This is what IPSA, the expenses regulator, told me:
It appears they don't have to actually spend any time in the rented property for the MP to be able to claim an uplift in rent for them.
This is what IPSA, the expenses regulator, told me:
