Pay, tax & benefits

MPs need to be aware of relevant guidance from HMRC and must ensure all their staff have the correct employment status, so that the correct tax and National Insurance contributions are paid.

Employment status is determined by the nature of the working relationship, including the level of control exercised by the MP, even if the work is only casual or part-time. [7.21]

Employers’ contributions to National Insurance

Employers' National Insurance contributions will be paid by IPSA for all members of staff for whom salaries are paid.

These will be deducted from the staffing budget. Employees' contributions will be deducted from salaries. [7.22]

Pension scheme payments

IPSA will make employers' pension contributions (equal to 10% of the employee’s salary), on the MP’s behalf, in respect of eligible employees for whom salaries are paid.

Payments will be deducted from the staffing budget and made to the MPs’ Staff Pension Scheme.

Employees’ contributions will be deducted from their salaries. [7.23]

Salary sacrifice for employee benefits

From 4th October 2018, The Government announced that childcare vouchers via the payroll (salary sacrifice) will be closed to new entrants.

Please click here instead Tax Free Childcare

If however an MP or staff member were already in receipt of childcare vouchers via the payroll (salary sacrifice, before this date, nothing will change unless the individual asks us to amend or cancel the request.

Payments from staff salaries will be administered by IPSA.

Any employer contributions will be deducted from the staffing budget. [7.24]

The staffing budget may be used to meet the following costs:

• staff salaries, employers' contributions to National Insurance and employers' contributions to pension schemes

• payments for pooled staffing services, which provide research, briefing and drafting services to groups of MPs, and have an arrangement with IPSA in place

• payments for bought-in services, where staffing services are provided by companies, self-employed individuals and others not on the MP’s payroll

• overtime payments, to the extent that these are specified in staff terms and conditions

• payments for childcare vouchers for staff, cycle-to-work schemes, or other payments by way of salary sacrifice

• reward and recognition payments, except where the employee is a connected party

• one-off health and welfare costs associated with provision of staffing support, such as eyesight tests and occupational health assessments

• costs associated with apprenticeships that meet the standards of the National Apprenticeship Service

• the incidental expenses of volunteers

• staff training costs (which may also be claimed from the office costs budget). [7.3]

For more information about the claim limits and the staffing costs you can claim, visit Staffing costs claim limits.

Staff employed after 7 May 2010

The salaries of staff employed by MPs after 7 May 2010 will only be paid by IPSA if the following conditions are satisfied:

• the member of staff is employed to do work that complies with one or more of the job descriptions published by IPSA

• the member of staff’s salary is within the relevant range published by IPSA for the job description in question

• a contract of employment that complies with the model contract of employment published by IPSA from time to time has been signed by the relevant parties. [7.6]

Staff employed before 7 May 2010

Staff already employed by an MP on 7 May 2010 may remain on job descriptions, salaries and contracts that do not conform to the conditions set out above, provided they remain employed by the same MP. [7.7]

Once the conditions set out in above have been fulfilled (or IPSA is satisfied that they will be fulfilled), IPSA may pay the salaries of MPs’ staff with effect from the commencement of the staff members’ employment. [7.8]

Apprentices

The salaries of apprentices employed by an MP after 7 May 2010 will be paid by IPSA provided that the apprentice is employed on terms that meet the standards of the National Apprenticeship Scheme. [7.9]

Employed interns

The salaries of employed interns engaged by an MP after 7 May 2010 will be paid by IPSA provided that the employment conditions comply with the requirements of National Minimum Wage legislation. [7.10]

Staffing costs may only be claimed for the salary of one employee who is a connected party, unless the MP already employed more than one connected party on 7 May 2010.

In that case the MP may continue to claim for the salaries of those connected parties.

IPSA will not pay for any new employees who are connected parties and who are employed on or after 9 June 2017, nor will IPSA pay for employees who become connected parties, subject to a transition period of two years. [7.11]

For more information, visit Partners, family & business interest (connected parties) claims.

The London Area Living Payment (LALP) is intended to contribute toward the additional cost of living in the London Area. It is payable on a monthly basis. [5.1]

The LALP may only be claimed by London Area MPs. [5.2]

The LALP will not be payable to an MP who occupies any "grace and favour" accommodation in London by virtue of any particular office held. [5.5]

MPs representing the outer London Area constituencies may also claim an additional LALP amount. [5.4]

Here’s how to claim it

An MP must notify IPSA that you elect to receive the LALP.

It will not be payable in relation to any period before this notification is given to IPSA. [5.3]

For more information, visit London area constituencies and London area constituencies eligible for “additional LALP”.

MPs may make reward and recognition payments to their staff (with the exception of staff members who are connected parties) in recognition of outstanding performance.

No individual member of staff may receive more than £1,000 per year (not including on-costs).

If any MPs exceed these amounts, they will have to fund the excess from their own resources.

Claims for these additional sums will not be processed by IPSA. [7.14]

For more information on rewarding and recognising staff using IPSA Online visit Rewarding & recognising your team.

Where staying in rented accommodation or hotel accommodation, MPs may have their accommodation budget limit increased for each dependant for whom they need to provide accommodation, up to a maximum of three uplifts.

This does not apply where an MP lives in their own home and claims associated costs only. [4.8]

MPs will become eligible for increased budgets in order to accommodate dependants after they register their dependants with IPSA.

IPSA may use its discretion to apply the uplift shortly before the birth or adoption of a child to allow an MP to secure appropriate accommodation beforehand. [4.9]

If you would like to claim for the dependant uplift to your rental accommodation budget, you must first register the dependants with us using the form on IPSA Online.

For more information, visit Registering a dependant.

To find details of the current dependant budget uplift possibly obtainable in addition to your Accommodation Budget, visit the Summary of 2024-25 budgets.

Please be aware that budget uplifts can be pro-rated.

To find out more about how pro-rating of budgets and budget uplifts works, visit Pro-rating budgets when an MP registers a dependant.

As part of the regular review of the Scheme, IPSA may provide additional funds to MPs’ staffing budget to facilitate a percentage annual increase to the salaries of staff members.

Such annual increases will be applied automatically, except where a member of staff has been opted out of this arrangement.

The amount of this increase will be determined by IPSA and communicated to MPs and their staff ahead of the start of the financial year. [7.15]

If an MP wishes to opt out of the automatic application of the annual salary increase, for one or more of their staff members, the MP must notify IPSA by the deadline communicated by IPSA in guidance. [7.16]

For more information visit Automatic annual salary increases for MPs’ staff.

The information below outlines the pay ranges for 2024-25 for an MP's Staff within the London area.

The MPs’ staff pay ranges are designed to ensure MPs have the option of paying all staff the voluntary Living Wage, also known as the Real Living Wage (as determined by the Living Wage Foundation).

Where the voluntary Living Wage is adjusted such that it exceeds the maximum of any published pay range, IPSA will treat the voluntary Living Wage as the new maximum for the remainder of the financial year.

The information below outlines the pay ranges for 2024-25 for an MP's Staff outside the London area.

The MPs’ staff pay ranges are designed to ensure that MPs have the option of paying all staff the voluntary Living Wage, also known as the Real Living Wage (as determined by the Living Wage Foundation).

Where the voluntary Living Wage is adjusted such that it exceeds the maximum of any published pay range, IPSA will treat the voluntary Living Wage as the new maximum for the remainder of the financial year.

The annual staffing costs budget is:

• London area MP –  £268,550

• non-London Area MP – £250,820

New starters and additional hours

For a new fixed-term staff member:

• a New Starter Form

• staff contract generator

• job description generator

For other required new starter documentation, visit the New Starter Checklist.

Additional contractual hours require a completed salary and hours amendment form.

Visit Changing employment contracts.

For overtime claims timesheets for the relevant period are required.

MPs must register a volunteer with IPSA and submit a signed arrangement with the volunteer before claims for incidental expenses can be made.

The signed arrangement must comply with the Model Arrangement Form.

Incidental expenses are limited to the cost of reasonable travel and food, and non-alcoholic drinks, which are incurred as a result of parliamentary activity. [7.26]

The term volunteer can include individuals doing unpaid work experience.

Download the Model Volunteer Arrangement Form.

The staffing budget has been increased by 6.2% for the financial year 2024-25.

This includes amendments to some salary bands based on market benchmarking and scope for MPs to make individual pay awards in relation to the cost of living.

MPs are the employer of their staff and therefore decisions on their staff pay remain their responsibility.

In 2021 IPSA introduced a system whereby it automatically applies an annual increase to all members’ staff salaries unless they have been opted out by their employing MP.

This is intended to reduce the administrative burden on MPs when making pay awards.

The following information may be useful.

How much is the automatic uprating amount?

6.2% of basic annual salary.

Does the 6.2% increase to the staffing budget cover the employer‘s on costs due (employer‘s National Insurance and employer‘s pension contributions)?

Yes.

Can staff be given more?

Yes, we know from previous years that many offices have headroom in their staffing to pay more if they wish to.

For MPs who want to increase staff pay by more than 6.2% please complete the updated Contractual Changes Form in IPSA Online.

The form changes will go live in the week commencing 11 March 2024.

For more information, visit Making contractual changes.

How was the percentage determined?

The percentage increase to be applied is determined by the IPSA Board ahead of each new financial year. In doing so, they will take into account a range of factors, including:

• changes in the cost of living

• guidance that applies elsewhere in the public sector

• affordability

• value for money for the taxpayer

When will the increase be paid?

It will be paid in the April salary – due on 30 April 2024.

Can staff be opted out?

Yes. Please email payroll@theipsa.org.uk by 26 March confirming staff name(s) by either the MP or proxy.

What does “opt-out” mean?

This means the staff member should not receive any increase from 1 April or if the MP chooses to pay less than 6.2%.

MPs are encouraged to provide annual increases to their staff where appropriate, as part of ensuring they are paid fairly and have an experience similar to staff employed in public bodies or other similar roles.

MPs will, however, retain an opt-out from the automatic arrangements. This is because there are some circumstances where awarding a pay increase may not be appropriate. For example, where staff members are on probation or where there is a live disciplinary issue.

Where MPs exercise an opt-out, they should ensure they are adhering to good employment practice and treating their staff fairly.

MPs are strongly encouraged to seek advice from the House of Commons Members’ HR team on when opting out might be appropriate.

Which staff will be awarded the automatic increase?

All MP Staff who are being paid via the IPSA payroll with effect from 1 April 2024 – including those not on an IPSA contract.

Individuals contracted as bought-in services who are not on the IPSA payroll will not receive an automatic pay increase.

Any increase in the fees charged needs to be agreed upon between the MP and the individual providing the services.

What is the “opt-out” date?

The opt-out date is 26 March.

Can staff be given increases before 1 April 2024?

Yes. For MPs who want to increase staff pay before 1 April 2024 (subject to budget), please complete a Contractual Change Form in IPSA Online.

On 1 April 2024, 6.2% will be applied automatically.

MPs may then want to consider an opt-out if the increase has been awarded early.

How will a staff member know what their “take-home” pay is after the increase?

Pay will change in April due to salary increases. Until we run the payroll at the end of April, we cannot tell individuals what their take-home pay will be.

Your payslips will be available three days before payday – the last working day of the month – which will outline your new monthly pay. 

How does a staff member view their payslip?

Visit Accessing your payslip for guidance on how to find your payslip in IPSA Online.

Can staff donate a proportion of their salary to charity via the payroll?

Yes. Give as you earn charitable donations can be set up via the payroll.

For more information on how to do this, visit Employment benefits.

What happens if the 6.2% automatic increase still brings the staff member below the minimum of the pay scale?

If, after the automatic 6.2% increase has been applied, the full-time equivalent salary is still beneath the minimum of the new scale, the salary will be increased again to meet the minimum of the new scale.

What happens if the increase takes the staff member over the maximum of the pay scale?

Salaries are capped to the maximum of the relevant pay scale. The maximum of each pay scale is being increased to ensure all staff can receive the automatic increase.

Will the increase still be applied if the staff member only recently joined?

Yes. MPs should consider whether a pay increase is appropriate in all cases.

If a staff member is opted-out, can an MP give an increase at a later date?

Yes. Subject to budget, a Contractual Change Form should be submitted at the relevant time.

Will a letter be provided to staff individually confirming their new salary?

No.

What are the pay scales for 2024-25?

The payscales for London- and non-London-based staff for 2024-25 can be found by visiting:

• MPs' Staff pay ranges 2024-25 – London area

• MPs' Staff pay ranges 2024-25 – non-London area

You can also view the 2024-25 salary bands alongside job descriptions by visiting MPs' Staff job descriptions and pay bands for 2024-25.

IPSA determines the salary bands for specific roles. Staff must be paid a salary within the appropriate band for the role.

This is paid out of the staffing budget. IPSA reviews pay bands periodically.

Ideally, MPs will advertise all job opportunities for their offices, but it is ultimately up to each MP what kind of process they go through to hire new staff, taking good recruitment practice into account.

They can choose to advertise a salary range that covers all or some of the range for the role, or a specific salary.

Once an appointment has been made, MPs must determine the individual's salary.

The MP should consider:

• the experience and skills required for the role

• the experience of the individual appointed, and

• the skills/salary balance of the overall office

It would not be expected to give a new employee a salary in the upper half of a pay scale who has very limited relevant skills for the advertised role.

ACAS has produced useful guidance on good recruitment practice.

This information should be read in conjunction with the information on Family leave & holidays, which also includes guidance on parental leave.

Download the full details of MPs' Staff job descriptions and pay bands for 2024-25.

Proration of pay is needed when a staff member has worked fewer hours than the full-time equivalent for a specific period.

This could be due to several reasons such as a reduction in hours, or starting or leaving employment part-way through the month.

To prorate salary, we need to determine the full-time working hours per week to calculate the actual hours worked by the employee.

The method of pro-rating salaries is a company decision and should be fair and consistent. We base our calculations on working days using employees' individual work schedules as set out in their contracts

The Yearly salary calculator allows offices to forecast the staffing budget expenditure for 12 months.

It is commonly used when the staff modelling report is unavailable at the beginning of the financial year.

New MPs’ salary calculator

New MPs can use this version of the calculator to work out their staff costs for the remainder of the 2024-25 financial year.

Yearly salary calculator

Throughout the year, it can be used alongside the Staff Modelling Report to check whether there are any variations to the original forecast.

MPs can use the MP team report to check their current staff’s salaries and enter them into the calculator to conduct an annual overview of the total costs charged to the staffing budget.

Open the Yearly salary calculator.

The following information should be used when inputting details into the Hourly Rate and Overtime Calculator.

Full-time equivalent salary

MPs can check this on the MP Team report.

Payroll proxies can check this on the contractual changes form.

Members of staff can check this by multiplying their monthly salary by 12 (using their most recent payslip).

Full-time equivalent hours

MPs can check this on the MP Team report.

Payroll proxies can check this on the member of staff’s contract.

Actual hours

MPs can check this on the MP Team report.

Payroll proxies can check this on the member of staff’s contract.

Members of staff can check this on the "My employment" tab of IPSA Online.

Casual staff hourly rate

MPs can check this on the MP Team report.

Payroll proxies can check this on the member of staff’s contract.

Members of staff can check this on the "My employment" tab of IPSA Online.

Casual staff annual holiday entitlement

This can be checked using the member of staff’s contract.

For full-time and part-time staff, type the following information in the relevant cells:

• the full-time equivalent salary

• the full-time equivalent hours and

• the actual working hours

For casual staff, type the hourly rate and annual leave entitlement in the relevant cells. The calculator returns the amount paid to the member of staff and also the costs charged to the MP’s budget.

Notes

The Employer’s National Insurance (ERNIC) cost to charge to the MP’s budget is an approximate value due to the way this additional cost is processed.

Employers pay National Insurance on monthly salaries paid to staff members when the total salary for the month (this includes the normal monthly pay plus the extra time) is above the monthly threshold (£758).

Example:

Monthly salary = £800

Extra time = 4 hours @ £12.5 each = £50

ERNIC = £850 - £758 = £92

£92 × 13.8% = £12.70

In this example, only some of the overtime attracted ERNIC.

Open the Hourly Rate and Overtime Calculator.

The payroll cut-off dates for 2024-25 are outlined below.

Cut-off refers to the deadline for the submission of:

• timesheets

• new starter documents

• leaver documents

• salary changes

Please note the following list is not exhaustive.

Can I purchase bikes from other organisations besides Halfords?

Yes! You can also shop at www.tredz.co.uk by using your LOC number in the checkout process and www.E-bikesdirect.co.uk by browsing online and then calling us on 0345 504 6444 or emailing cycle2.work@halfords.co.uk to place an order.

You can also shop with more than 800 independent bike shops that accept our Letters of Collection. Visit the Store Locator to see your local options.

How do I apply for the scheme?

Please visit the Cycle2Work website and select "Employee Sign Up".

What is IPSA’s employer code?

IPSAC2W.

Which email should I use to register with the scheme?

You can use any address, work or personal.

How long do I have to apply for the scheme?

The scheme operates all year – you can apply at any time.

How long will recoveries be made from my salary?

Twelve months.

How much will I save in tax and National Insurance contributions by joining the scheme?

Please refer to the Cycle2Work Savings Calculator.

Can I select more than one bike?

The legislation does not prohibit the selection of two bicycles providing that both are used for commuting to work.

What if I don’t use the bike every day to get to work?

It's OK to use the cycle-to-work scheme for a bike that you use "when practical" to get to work.

What if I don’t use it for my entire journey?

It is also OK to use the bike for part of a journey to work, for example, to get to the station.

There is no requirement for the cycle to be your main form of transport, or even a regular form of transport, to get to work. The only requirement is that the main use of the bike should be for home to work travel.

What if I also use the bike for other journeys?

You are welcome to use your Cycle2Work bike at any time for recreational use.

Do I have to keep records of when I use the bike to get to work?

No. There is no requirement to keep records.

What is a Letter of Collection (LoC)?

LoC stands for Letter of Collection which you exchange for your chosen bike.

When can I collect my bike?

As soon as you receive your LoC you can go and collect your bike. The LoC will be emailed to you within two weeks of signing up.

What equipment is available?

Cycles and cyclist’s safety equipment are included. The tax exemption defines a “cycle” as “a bicycle, a tricycle or a cycle having four or more wheels, not being, in any case, a motor vehicle” (section 192(1) of the Road Traffic Act 1988 (c52.)). An electrically assisted pedal cycle can be included under the scheme.

Cyclists’ safety equipment is not defined in the legislation and a common-sense approach should be taken when selecting it. This could include:

• cycle helmets which conform to European standard EN 1078

• bells

• bulb horns

• lights including dynamo pack

• mirrors and mudguards to ensure the rider's visibility is not impaired

• cycle clips and dress guards

• panniers, luggage carriers and straps to ensure luggage is carried safely

• locks and chains to ensure the cycle can be safely secured

• pumps, puncture repair kits, tool kits and tyre sealant to allow for minor repairs

• reflective clothing, white front reflectors and spoke reflectors

• child seats

Accessories that are not available include:

• forks

• frames

• sat navs

• cycle computers

• Gro Pro computers

• turbo trainers

• cycle racks

Items such as frames and forks are cycle components not safety equipment. Safety equipment is something you add to the bicycle or the cyclist to make cycling safer.

More details can be found in the HMRC guidance.

Is any care plan included?

Yes, you will receive a free one-year bike care plan on all bikes. This includes an annual Silver service at the end of the plan and fitting on all parts and accessories bought from Halfords.

What happens if I do not use the bike for commuting after I have joined the scheme?

You will no longer qualify for the tax relief afforded to this benefit. In such circumstances, you should contact the IPSA payroll department which will arrange for the remaining salary reductions to be taken from your net pay, for example after tax and National Insurance have been deducted.

You cannot return the cycle and have your salary readjusted.

I’ve only been employed as a member of staff for a short time or am a casual member of staff. Can I take part?

Yes, however, you may be given alternate options to the salary sacrifice scheme. Please apply in the usual way.

Can I take part in more than one scheme?

No, you can only apply for another cycle when your 12-month hire period has finished.

Who owns the equipment?

The legislation that governs a cycle-to-work scheme states that IPSA must own the equipment. There can be no automatic right for you to own the equipment at the end of the agreement. If you do, there cannot be a claim for tax exemption. Therefore, a cycle-to-work scheme operates as a loan. IPSA is technically lending the equipment to you for a fixed period. Although you do not own the equipment, you remain the custodian of the equipment and are free to use it as you wish, providing it is mainly for cycling to work.

What is the maximum value of equipment I can obtain through Cycle2Work? / What is a Group Consumer Credit License?

The Financial Conduct Authority has issued a Group Consumer Credit License allowing any employer to run a Cycle2Work scheme. The license allows you to hire equipment up to the value of £2,500 inclusive of VAT.

What if I am over state retirement age?

You will benefit from tax savings but not from any savings in National Insurance. Your employer will still save employer’s National Insurance.

Can I get a change from a LoC if I don’t use it all?

No. You need to choose a LoC to the nearest £1 above the value of the bike and related equipment that you want to collect.

Can I participate if I am under 18?

Yes, however, a guarantor form would need to be completed by your employer.

Is this a hire purchase agreement?

No. the bike is provided to you as a benefit under a salary sacrifice scheme. This means that you agree to a reduction in your salary and IPSA provides you with a bike for use to get to work.

Can I join if I am on the National Minimum Wage (NMW)?

Yes, however, you will be given alternate options to the salary sacrifice scheme. Please apply in the usual way.

What if I leave my employment or am made redundant?

If you leave before the end of the agreed repayment period, you must pay IPSA the balance of the amount still to pay and this will be deducted automatically from your final net pay. If your final salary does not cover the final balance owed, IPSA will write to you for the outstanding sum.

You may then have continued use of the equipment without further payment until the agreed repayment period expires, when you may be offered the opportunity to purchase the equipment for its fair market value. However, this transfer of ownership is subject to a separate agreement and is not governed or influenced by the original agreement you signed as part of the scheme.

What if I already have another salary sacrifice benefit, childcare vouchers for example?

Being part of more than one salary sacrifice scheme is not an issue as long as the total amounts of the schemes do not take your salary below the National Minimum Wage. If your other scheme(s), for example, Childcare vouchers, leave you above the National Minimum Wage, you can only salary sacrifice to the point where your gross salary remains at least the National Minimum Wage.

What if my bike gets a fault, or is accidentally damaged or stolen?

You will receive a warranty with your bike, the length of this warranty is generally dependent on the brand. The responsibility for loss, damage, theft, roadworthiness and repair is yours for the duration of the scheme.

It is recommended that you obtain separate insurance, or check your bike is covered under your home contents insurance policy. If your home contents insurer covers the bike, you must inform them that IPSA owns the bike. Payments will not stop or be suspended due to loss or damage to the bike.

Can I use the scheme to obtain a bike for someone else?

No. it must be for you to use for at least part of your journey to work. However, if you participate in the scheme you will receive a 20% off the entire Apollo bike range for your family members.

Can I add my own money to the LoC value to get a more expensive bike?

No. You cannot “top up” or add to your LoC using your own funds because you don’t own the bike during the term and this would cause issues at the end of the hire period.

Why doesn’t my agreement show my actual savings?

The gross payment is the value before tax and National Insurance has been taken and is stated on your agreement and each of your payslips. The net payment is the true cost after your tax and National Insurance savings and varies from person to person. Your agreement will state a gross value as this will not change based on personal tax circumstances.

What happens at the end of the scheme?

When your Cycle2Work hire finishes, Halfords will be in touch with you to discuss your options relating to the “transfer of ownership”.

Will a salary sacrifice affect my entitlement to benefits?

Possibly, although in most cases the effect is likely to be small. However, you need to be aware of the implications of paying less National Insurance contributions and accepting a reduced salary. For a small number of employees, a cycle-to-work scheme might not be appropriate. There may be an impact on:

• Entitlement to contribution-based benefits like the state pension, statutory sick pay, statutory paternity pay, statutory adoption pay, jobseeker’s allowance, incapacity benefit, widowed parents allowance, bereavement allowance and bereavement payment. This is particularly likely if your salary after taking a salary sacrifice falls below the Lower Earnings Limit.

• Entitlement to earnings-related benefits like maternity allowance, the state second pension and statutory maternity pay, which are based on the actual gross pay you receive.

If you would like a fuller explanation of the effects of salary sacrifice on benefit entitlement, please contact HMRC.

What if I change my mind after I’ve collected the bike?

Once your LoC has been issued – you have a 14-day "cooling off" period in which you can cancel the agreement.

Is Statutory Maternity Pay (SMP) affected?

SMP might very well be affected. SMP is based on the actual pay you receive and not your basic salary before any salary sacrifice. Therefore, if you choose to reduce your salary to benefit from cycle to work, the salary on which SMP is based would be reduced.

However, if you qualify for occupational maternity pay, based on your length of service, this is calculated using your basic salary and would not be affected by this scheme.

What about other statutory entitlements?

If these are based on actual and not basic salary, these may also be affected.

If I get any type of tax credits, are these affected?

You will need to check your individual circumstances at the time. As your salary will be reduced, your entitlement to tax credits may increase.

Will Salary Sacrifice have any impact on my Child Maintenance and Enforcement Commission payments/Child Support Agency payments?

Child maintenance payments to the Child Maintenance and Enforcement Commission are broadly calculated by reference to your net income, for example, your pay after the deduction tax and National Insurance contributions. The value of any bicycle benefits provided under salary sacrifice is not included in this calculation.

For more information, visit Manage your Child Maintenance Service case.

Contacts

• Halfords: 0345 504 6444 (Monday-Friday 8am-7pm)

• IPSA Payroll: payroll@theipsa.org.uk

• www.cycle2work.info

Glasses and eye tests for display screen users

MPs can claim the cost of an eye test from the office cost budget.

They can also use the office cost budget to claim the costs of glasses for themselves if an eye test shows they are needed specifically for display screen use.

As employers MPs must arrange an eye test for staff who use display screen equipment if they ask for one. They must also provide glasses if a test shows an employee needs them specifically for display screen use.

The staffing cost budget can be used for staff eye tests and glasses in these circumstances.

The Health and Safety Executive has provided guidance on working safely with display screen equipment, as well as additional guidance on the regulations impacting employers.

For more information on claiming this cost, visit Making reimbursement claims.

If you have questions about glasses or eye tests, please contact MP Support.

Cycle2work

Information on this scheme can be found at Cycle2Work.

Season ticket loan

MPs’ Staff can apply for an interest-free season ticket loan, which must be used to purchase an annual season ticket at a cost equal to or greater than the loan advanced.

The following terms and conditions apply:

• the loan must be recovered by salary deduction over a maximum of 12 months

• a loan will not be advanced while any part of a previous season ticket loan remains

• the ticket must be for bona fide travel to and from work

• IPSA reserves the right to request proof of purchase

• MPs’ staff must have completed probation

Use IPSA Online to apply for a season ticket loan. For help, visit Applying for a season ticket loan.

Bicycle loan

MPs and their staff can apply for an interest-free bicycle loan, which must be used to purchase a bicycle at a cost equal to or greater than the loan advanced.

The following terms and conditions apply:

• the loan must be recovered by salary deduction over a maximum of 12 months

• a loan will not be advanced while any part of a previous bicycle loan remains

• the bicycle must be for bona fide travel to and from work/station

• IPSA reserves the right to request proof of purchase

• MPs’ staff must have completed probation

Use IPSA Online to apply for a bike loan. For help, visit Applying for a bike loan.

Give As You Earn (GAYE)

The GAYE scheme, run by the Charities Aid Foundation, enables you to:

• schedule regular donations to one or multiple charities from a range of more than 160,000 organisations

• respond quickly to campaigns or appeals

• make one-off donations at any time

• sponsor friends and family

You can donate as much as you like each month, subject to a minimum of £4 and whole pound increments. Donations made will be added to your online account on or around payday.

You can take part in the scheme by using the unique sign-up link.

You will be sent a welcome email with instructions on how to set up and manage your account.

If you have any issues accessing your online account or have any queries about the scheme, you can contact the Charities Aid Foundation at 03000 123 000, or by email at giveasyouearn@cafonline.org.

Subsistence costs are claimable only when incurred due to conducting volunteer work for the MP, such as when travelling or working in the office.

If a volunteer wishes to claim subsistence, this should be stipulated in the Model Volunteer Arrangement Form.

The term volunteer can include individuals doing unpaid work experience.

For details of the Scheme rules, visit Volunteer arrangements & incidental expenses.

If you are an MP and have a query about your pension, please contact the House of Commons by email to pensionsmp@parliament.uk, or by calling 020 7219 2106.

The MPs' pension scheme, called the Parliamentary Contributory Pension Fund (PCPF), is the pension scheme for MPs. The Fund is made up of two schemes – the  MPs' Pension Scheme and also a scheme for Ministers called the Ministerial Pension Scheme.

For further information, visit the PCPF website.

You can also read more about the PCFC on the House of Commons website.

Legal and General are the current pension provider for the MPs’ Staff Pension Scheme.

MPs’ Staff are automatically enrolled on the pension scheme when they start their employment.

Legal and General will write to a member of staff confirming this within six weeks of starting. At this point, they have the option to opt out of the scheme.

It is a non-contributory pension scheme, which means it is not compulsory for a member of staff to make any contributions. The employer contributes 10% of a member of staff’s salary into their pension pot.

Should a member of staff want to make voluntary pension contributions, please complete the Change of Voluntary Contributions Form and email it to IPSA at payroll@theipsa.org.uk.

MPs’ Staff can find out more about the scheme by either calling Legal and General on 0345 070 8686 (pin 43) or by visiting their pension scheme website where they can view their Member Booklet and Investment information.

These documents contain important information. Please read them carefully before deciding how to proceed.

Manage your account

When Legal and General confirms the details of the scheme in writing they will also supply a unique member number. IPSA strongly recommends they register online using the "Manage My Account" function on the pension scheme website.

It is a member of staff’s responsibility to update their personal details – including things like name and home address – as and when required by Legal and General.

By registering online using the Manage My Account function, MPs’ Staff will be able to change these at any point.

Manage Your Account gives MPs’ Staff access to their pension and savings information whenever they want. It offers:

• Flexibility – MPs’ Staff can monitor their pension plan and follow investment performance.

• Opportunities – to view and change where money is invested so a member of staff can make sure it’s working hard for them.

• Choices – MPs’ Staff can request benefit and unit statements and explore their investment options.

• Education – MPs’ Staff can look at the fact sheets about current and potential funds so they can be kept informed.

Summary of scheme charges

Legal and General will initially invest contributions in the scheme’s default investment choice which is the LGIM Multi-Asset Fund.

The Fund Management Charge (FMC) is 0.13% and the Annual Management Charge (AMC) is 0.15% for this fund.

MPs’ Staff can change how their contributions are invested at any time. MPs’ Staff can find out more about investing in other funds in the pension scheme information provided online. The FMC can vary, depending on the fund chosen, currently between 0.08% and 0.97%. This is on top of the AMC of 0.15%.

Legal & General may make fair and reasonable changes to the charges and will provide at least 30 days prior notice.

Legal and General death in service benefit

The Nominate Your Beneficiary Form must be completed to inform the Trustees of the pension scheme who a member of staff would like them to consider making payment to should they die before taking their retirement benefits.

If changes need to be made to previous beneficiaries named, MPs’ Staff must complete the above form when required.

The form should be sent directly to Legal and General:

Workplace DC Pensions, Legal & General, Brunel House, 2 Fitzalan Road, Cardiff CF24 0EB.

Your beneficiary instructions can also be emailed to employerdedicatedteam@landg.com.

Further details are outlined at the end of the form.

Portcullis death in service

All permanent and fixed-term MPs’ Staff are eligible to participate in the Portcullis Death in Service scheme, which will pay MPs’ Staff dependants a sum equal to two times their salary if they die during employment.

Participation is subject to:

• the terms of the Portcullis death in Service scheme, as amended from time to time

• the rules or the insurance policy of the relevant insurance provider, as amended from time to time

• MPs’ Staff satisfying the normal underwriting requirements of the relevant insurance provider and the premium being at a rate which the Trustee considers reasonable

Full details of the scheme are available from the Parliament intranet.

This benefit is administered by the Pensions Unit in The House of Commons and therefore IPSA cannot give any additional guidance regarding this.

The phone number for the Pension Unit is 020 7219 1356.

Pension opt-out

If a staff member decides to opt out of the pension scheme, they can do so as long as it is before the opt-out date shown on your enrolment letter from Legal and General.

This letter will be sent by post after they have been enrolled. It will give instructions on how to do this online.

If a member of staff does opt out by this date, they will be treated as if they had never joined the pension scheme.

If a member of staff doesn’t opt out by this date, they can then cease payments into the pension scheme at any time, in accordance with the pension scheme rules.

If they do this, both the employer contributions and any payments made by the member of staff up to that point may remain invested in the pension pot until they take their benefits.

MPs’ Staff can take their benefits at any time from age 55.

Further information

Visit Legal and General for more about the scheme.

IPSA’s role as an independent regulator is to resource MPs appropriately to carry out their parliamentary functions and to support them in making eligible claims.

We provide a staffing budget to meet staffing costs including salaries, overtime, reward and recognition payments, training, health welfare and wellbeing costs.

We want to enable MPs to be good employers and to be able to serve their constituents well.

We think that a significant part of IPSA’s role in this is supporting MPs to recruit, retain and develop highly skilled and experienced staff.

We have therefore increased the financial support for training to help staff gain skills that will assist in dealing with the increasing complexity of work. This includes further support for staff members’ mental health and wellbeing in the workplace.

The staffing budget has always contained an element for staff training and welfare costs. As part of IPSA’s 2019 review of the staffing budget, we found that in 2018-19, the average (mean) expenditure on such costs was about £940, or around 0.6% of the total staffing budget.

An extra amount is included in the staffing budget of each MP to provide additional support for training, wellbeing, health and welfare costs of their staff.

This is intended to cover two to three days of training and support for mental health and wellbeing per year for each staff member, as well as one-off health and welfare costs, such as eye tests or occupational health assessments.

This money may be spent in the following ways.

Training

MPs can claim for the cost of training for their staff provided it is training that will support staff to carry out the running of the constituency offices and other parliamentary functions. It is the MP’s responsibility to decide if the training costs are reasonable.

This can include training on:

• office skills

• dealing with handling difficult casework

• training that covers a specific subject area that arises in policy work, correspondence or casework

• training to support wellbeing at work such as vicarious trauma training

• team-building training

• any other training that is relevant to enable and support staff to carry out their jobs

The cost of the training can be claimed from the staffing budget and travel costs can be claimed from the travel and subsistence budget.

Health, welfare, and wellbeing

MPs can claim for one-off health and welfare costs that are associated with supporting staff, such as eyesight tests, flu jabs and occupational health assessments. It is the MP’s responsibility to decide if the costs are reasonable.

MPs cannot claim for ongoing health costs for staff. MPs can claim for the costs of support for staff wellbeing where it supports staff to carry out the running of the constituency offices and other parliamentary functions.

This could include:

• support for dealing with work-related stress

• vicarious trauma

• mindfulness courses

• supervision sessions with a counsellor to debrief on traumatic casework

• support for resilience and positive mental wellbeing at work

It is the MP’s responsibility to decide if the costs are reasonable.

Please note that costs to support staff with disabilities who need reasonable adjustments to their work environment can be claimed from the disability assistance fund. Please contact your account manager via info@theipsa.org.uk for more information about support for disabilities.

Covid-19 tests

One of the fundamental principles and conditions of funding under the Scheme is that MPs may only claim for costs relating to the performance of their parliamentary functions. As such, IPSA would only reimburse a claim from an MP or their office for costs relating to the purchase of a Covid-19 test if it is related to or necessary for parliamentary work.

An example of this would include the requirement to purchase a test for foreign parliamentary travel, which can be claimed from the travel budget using "Travel Associated Cost" expense type.

There also may be other instances, for example, visits to a particular setting, or specific health concerns for individuals, where tests are also required to complete parliamentary work.

Tests for general or personal use by staff are not, however, considered to be a parliamentary cost.

In instances where MPs, their staff or members of the public are concerned for their health and wellbeing while working in their respective offices or during constituency visits, you should ensure all relevant health and safety guidance is followed and when staff members come into contact with members of the general public.

The government has outlined principles for Reducing the spread of respiratory infections, including Covid-19, in the workplace.

The Heath and Safety Executive has also provided guidance on Coronavirus (Covid-19) – Advice for workplaces.

Claims and publication

You can claim these costs from the staffing budget in the usual way.

For more information on making claims, visit Making reimbursement claims.

IPSA publishes individual claims made from the training expense categories and this includes the information added by an MP or proxy in the description field of the claim. We do not publish any staff names or initials for these claims.

If a staff name is mentioned in the description field, we will redact the name prior to publication. When you make a claim, you should omit any staff names or any other personal or sensitive information from the description field.

If you have information you believe is important for IPSA to see but contains sensitive information that should not be released, please use the “add information” box on a claim. We do not proactively publish this field.

Claims for staff health and welfare costs are not published in detail. Instead, IPSA publishes an aggregate total claimed by all MPs for staff health and welfare costs in each financial year.

House of Commons sources of support

Employee Assistance Programme

The House Employee Assistance Programme (EAP) is a 24/7 365-day-per-year confidential helpline offering employees assistance, guidance and support with personal problems and/or work-related problems that may impact their job performance, health, and mental and emotional wellbeing.

Issues they cover include family issues, gambling, domestic abuse, debt, childcare, medical information, financial, insurance claims, legal, work, lifestyle addiction, relationships, consumer issues, stress and housing.

The EAP also offers short-term counselling and follow-up services for employees.

Contact details

Telephone 0800 030 5182.

This free phone line is available 24 hours a day, seven days a week, 365 days a year. There is no limit on how many times someone can call.

You can also download the Wisdom app from the Apple or Android app store. To use the app, you will need to enter a code, which you can obtain from the House of Commons Members and Members’ Staff Services Team.

Contact with the EAP is confidential, and not recorded or reported back to employers.

House Learning and Organisation Development team

The team provides training for MPs’ staff to enable them to perform their roles effectively. Information on available courses can be found on the learning management system, Act.

Contact details

Learning Facilitator for MPs, and Members’ Staff

Email: trainingmpandmpstaff@parliament.uk

The ICGS Helpline can provide you with support and guidance if you feel you have experienced, witnessed, been accused of or are supporting someone with bullying, harassment or sexual misconduct.

Contact details

Email: Support@ICGShelpline.org.uk

Tel: 0808 168 9281

For more information, visit the ICGS website or SharePoint page.

HMRC has prepared a guide for MPs and Ministers about personal tax and National Insurance contributions.

The guide includes:

• contact details for your personal tax queries

• self-assessment

• taxable benefits from your office (payroll costs)

• employer responsibilities

• Capital Gains Tax on residences

Read the full Tax and National Insurance contributions guide for MPs and Ministers.

April 2019 changes to taxable expenses

In 2019, a joint letter from IPSA and HMRC set out to MPs how IPSA would manage "taxable expenses" from April 2019 onwards.

With agreement from HMRC, the treatment of MPs’ costs has followed the process set out in legislation.

This does not change how MPs claim for business costs.

Taxable costs will be identified and checked on the system, and where taxable, this tax will be deducted alongside the salary.

IPSA has agreed with HMRC to pay the tax on behalf of MPs for several costs that IPSA considers necessary to conduct their parliamentary and constituency duties.

Where allowable under the Scheme, IPSA will pay the tax associated with:

• newspapers

• dependant travel

• spouse travel

• hospitality – including food and drink away from the parliamentary estate

• hotels

• insurance

• taxis

There are specific examples where MPs have to pay the tax themselves. These relate to

• diverted journeys

• accountancy costs

In addition, HMRC and IPSA also look at any expenditure that is claimed from the following categories:

• other

• disability and contingency

• capital expenditure

For general queries about your business costs and expenses, as well as for queries about the way you have been taxed and what has been included on your payslip, please contact us.

If you have questions about your personal tax affairs, please contact HMRC.

To read the full letter please visit Correspondence, August 2019 – Taxable expenses (CEO-2019-223).

If you are experiencing issues relating to your personal tax please contact HMRC directly.

IPSA does not set tax rates and we do not determine which tax code an individual is assigned.

All tax matters are managed by HMRC, who will then instruct IPSA payroll to use a specific tax code for an individual.

• For MPs, call HMRC: 03000 581587

• For MPs staff, call HMRC: 03000 534720

IPSA payroll

The payroll email address is payroll@theipsa.org.uk

Members HR

• 020 7219 2080 / 020 7219 4140 / membershr@parliament.uk

Employee Assistance Programme (EAP)

The external provider is Health Assured. They can be contacted by calling 0800 030 5182

All staff employed by MPs have access to the Employee Assistance Programme. This is a free and confidential service accessible 24 hours a day.

You can also call Members HR for details of the services offered by Health Assured, or if you need assistance with booking services such as an Occupational Health assessment.

• MAPSA – the Members and Peers Staff Association: mapsa@parliament.uk

• Unite parliamentary staff branch

• Acas helpline number: 0300 123 1100

• Legal and General – MPs’ Staff Pensions: 0345 070 8686 (Pin 43) (Mon – Fri 8.30 to 7 / Sat 9 to 12)

• House of Commons Pension Unit – MPs’ Staff Death in Service Benefit: 020 7219 5759

• House of Commons Pensions Unit – MPs: 020 7219 1356

• Buck – MPs’ Pension Provider: 0330 123 0634

Recruitment and employment guidance links

ACAS

• Recruitment

• Holidays and holiday pay

• Terminating employment – notice periods and pay

• Discipline

• Redundancy

• Managing absence

• Health and wellbeing

• How to manage performance

• Disputes and problems at work

Gov.uk

• Redundancies, dismissals and disciplinaries

• Raise a grievance at work

• Dismissal: your rights

• Disciplinary procedures and action against you at work

• Redundancy: your rights

• Workplace bullying and harassment

• Making staff redundant

• Statutory Maternity Pay and Leave: employer guide

• Statutory Paternity Pay and Leave: employer guide

• Statutory sick pay (SSP): employer guide

• Statutory Adoption Pay and Leave: employer guide

• Shared Parental Leave and Pay: employer guide

GMB

The GMB is recognised by the Parliamentary Labour Party and is working for further recognition agreements.

The Members' Staff Branch is contained within the wider Houses of Parliament Branch. Constituency staff are also covered by regional and political branches.

Read more about how to join, as well as benefits and services.

Contact the Chair of the Members' Staff Branch, Jenny Symmons, or call 020 7219 8461.