Allowances and Expenses

1

2

3

4

5

6

7

7a

8

9

Additional Cost Allowance

London Supplement

IEP

Staffing Allowance

Members Travel

Staff Travel

Stationery

Postage

IT

Other

£17,372

0

£19,324

£70,147

£29,992

£4,197

£1,779

£5,427

£1,923

£10,615

Column 1: Additional Costs Allowance (ACA) [Table]

This is paid to reimburse Members for necessary costs incurred when staying overnight away from their main home for the purpose of performing parliamentary duties. Inner London Members do not receive this allowance.

2004/05 Allowance: Maximum of £20,902

Column 2: London Supplement [Table]

Inner London Members receive the London Supplement instead of the ACA. Outer London Members may choose between the ACA and the London Supplement. In 2004-05, Ministers who did not live in official accommodation and certain office holders automatically received the London Supplement with their salary. London Supplement is subject to income tax and national insurance.

2004/05 Supplement: £1,618

Column 3: Incidental Expenses Provision (IEP) and Column 4: Staffing Allowance [Table]

Both these allowances support Members in undertaking their Parliamentary and constituency work. Budget flexibilities between allowances and between years introduced for 2004-05 mean that these two allowances should be considered together. Changed accounting procedures adopted by the House of Commons mean that a transfer of funds from one allowance to another is shown as expenditure against its final destination.

Incidental Expenses Provision (IEP) [Table]

This is paid to meet the costs of accommodation for office or surgery use; equipment and supplies for office or surgery; work commissioned or other services; and certain travel and communications.

2004/05 Provision: Maximum of £19,325 (*Please refer to note below about budget flexibility) [Table]

Staffing Allowance

This is paid to enable Members to engage staff and is paid directly to staff. The IEP can also be used to cover certain staff related costs. The Staffing Allowance varies according to the number of staff based in London . London Members automatically receive the higher figure.

2004/05 Allowance: £66,458-£77,534 (*Please refer to note below about budget flexibility)

*Budget flexibility
Members are permitted to transfer funds from the IEP budget to the Staffing Allowance with the result that, in each case, the personal IEP budget will decrease while the Staffing Allowance budget will increase.

Members are also permitted to carry forward unused funds in the IEP and Staffing Allowance from one allowance year to the next or to draw down an advance from the next year's budget. In both cases the Member's allowance limit will be increased or decreased accordingly. The carry forward/draw down facility is only permitted for specific purposes and requires prior approval by the Department of Finance and Administration.

Column 5: Members' Travel [Table]

This column sets out the total cost of travel on parliamentary business within the UK plus certain European travel. The Members' travel column does not include travel on parliamentary delegation business or select committee visits.

Certain elements of the travel allowances are taxable. More information about the various categories of travel and transport is given below.

Public Transport
Subject to certain rules, Members may claim free tickets or reimbursement of expenditure for travel by public transport.

Motor Mileage Allowance
2004/05 mileage rate: up to 20,000 miles per year at the rate of 57.7p per mile, and over 20,000 at 26.6p per mile. (For 2005/06 this rate has been reduced to a rate of 40p and 25p per mile)

Bicycle Allowance
2004/05 mileage rate: 20p per mile

Motorcycle Allowance
2004/05 mileage rate: 24p per mile

European Travel
Travel and subsistence costs for up to 3 visits per year to EU institutions, the national parliaments of EU member states, or candidate countries.

Column 6: Members' Staff Travel [Table]

Each Member is entitled to claim costs of up to a maximum of 24 single journeys per calendar year between Westminster and the constituency, shared by all employees.

Column 7: Centrally Purchased Stationery [Table]

This column sets out the cost of stationery items ordered from a central supplier. This includes stationery with pre-paid postage for use in direct connection with a Member's parliamentary duties.

Column 7a: Postage Associated with the use of Centrally Purchased Stationery [Table]

This column sets out the cost of postage associated with the use of stationery with pre-paid postage ordered from the central supplier for use in direct connection with a Member's parliamentary duties.

Column 8: Centrally Provided Computer Equipment [Table]

This column sets out the cost of equipment supplied on loan to each Member. The provision allows for up to one laptop, four desktop PCs and two printers. The figures show the asset value spread over a four-year period.

Column 9: Other Costs [Table]

This column sets out costs incurred from central budgets, including:

• the temporary secretarial allowance which pays for additional help when staff are absent due to sickness or maternity leave;
• central contributions to security costs for the office;
• exceptional needs support which provides for short term additional help to Members whose constituencies have particular problems;