Overview

View the latest budgets set for the current financial year, how to apply for contingency funding, and details of what each capped budget can be used for.

You can find guidance on running budget and claims reports on IPSA Online, including the Payroll Modelling Report, as well as guidance on reporting and financial terminology, how IPSA pro-rates budgets, and links to our budget management webinars.

Scheme rules

Below is a summary of the budget types, areas or eligibility, and the budget amounts available for 2022-23.

Budget headingArea / Eligibility2021-22 budget2022-23 budget
AccommodationLondon£23,290£25,080
AccommodationConstituency (outside London) £16,320£17,840
Accommodation – associated costs only(Non-London Area MPs only)£5,480£5,910
Accommodation uplift for dependantsPer eligible dependant (max of three uplifts)£5,500£5,720
Office costsLondon Area MPs£30,400£31,620
Office costsNon-London Area MPs£27,470£28,570
Start-up supplementNewly elected MPs£6,000£6,000
Staffing costsLondon Area MPs£218,430 (including Covid uplift)£237,430
Staffing costsNon-London Area MPs £204,300 (including Covid uplift)£221,750
London Area Living Payment (LALP) 96 London Area MPs£4,140£4,310
Additional LALPLondon Area MPs of 23 outer London constituencies£1,470£1,530
MP parental leave and absence cover(Pro-rata for period of absence)£60,000£61,800
Hotel nightly cost limitLondon / Europe£175/night£190/night
Hotel nightly cost limitRest of UK£150/night£150/night

Download an offline version of the Budgets for 2022-23.

For more information, visit:

Accommodation costs may only be claimed for one of the following at a time :

  • hotel accommodation

  • rental payments

  • associated costs” on rentals or owned property

  • for MPs who own their property, associated costs only [4.3]

MPs can claim for the costs of more than one office provided that they stay within budget.

If you can demonstrate exceptional circumstances, you may be eligible for contingency funding to allow for the operation of more than one office. [6.3]

MPs and their staff may claim for the costs of a home office – if that is where they routinely work from.

IPSA will only pay claims for costs that are additional to those which are part of the normal cost of living in the home.

Staff members cannot claim for costs relating to a home office during the same period in which they are in receipt of the homeworking allowance. [6.6]

To be funded by IPSA, a constituency office must be located in the constituency, unless it is a home office.

A home office can be claimed for even if it is more than 20 miles from the constituency boundary. [6.7]

Rent cannot be claimed for a home office. The location will also be treated as the MP’s home rather than an office for the consideration of any travel claims. [6.8]

This is covered by Requesting additional budget.

For more information on using IPSA Online, visit Applying for contingency funding.

Removal costs for moving to new office premises may be claimed from the contingency budget. No pre-approval is required.

Other costs associated with moving, including any legal costs, must be claimed from the office costs budget. [6.9]

MPs may claim under office costs for "routine security measures", which are those not falling within the recommended or further measures funded from the security assistance budget [6.10]

For more information, visit Security measures & assistance.

When submitting claims for telephone calls, MPs should only claim for that proportion of the costs which has been incurred for parliamentary purposes. [6.34]

MPs may claim for pooled staffing services from either the office costs or staffing budget. [6.35]

Visit Staffing costs and Staffing costs you can claim for more information.

IPSA will not pay claims for any of the following:

  • alcoholic drinks

  • stationery provided by the House of Commons

  • newsletters

  • funding of any material, other than websites, that contains a party-political logo or emblem, or

  • personal accountancy or tax advice [6.5]

Staffing costs may be claimed to meet the cost of staff who support MPs in performing their parliamentary functions.

"Staff" should be taken to include "apprentices" where those apprenticeships meet the standards of the National Apprenticeship Service, and "employed interns", except where otherwise stated. [7.1]

Nothing in the Scheme affects the MP's position as the employer of his or her staff. [7.2]

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 and Staffing costs you can claim.

Exceeding your staffing costs budget

IPSA will not accept any claims or requests for payments (including payment of overtime, increases in salary, addition of new staff members to payroll, or other changes to the staff complement) where these will take an MP over the staffing budget limit for the year. [7.4]

You can use the Staff Budget 2022-23 Monthly and Yearly Salary Calculator to help with staffing budgets.

MPs may apply to IPSA for contingency funding, under the following circumstances:

  • where they have incurred a cost, or liability for a cost, which is not covered by the Scheme, but which they consider to be in support of their parliamentary functions

  • where their spending under a particular budget has exceeded or may exceed the budget limit for the year and they consider this to be the result of exceptional circumstances [10.11]

To apply for contingency funding, MPs must complete an application form and follow the process as set out in guidance. [10.12]

You can complete the Contingency Funding Application Form on IPSA Online.

For contingency applications in relation to the situation in Afghanistan, please download this form and send it to info@theipsa.org.uk

For more information, visit Applying for contingency funding.

Using IPSA Online

IPSA Online provides financial reports that are useful for budgeting.

The Budget v Expenditure Report is at the top of your IPSA Online dashboard. The report provides bar charts that display your total budget, spending, and the remaining amount in each of your IPSA budgets.

Under the charts, the report also shows this data as a table. From here, you can access reports that show outline your expenditure against each budget, including any year-end journals, repayments or requested changes.

These reports are:

  • Breakdown by Expense Type

  • Business Costs Breakdown

These reports are useful for monitoring your expenditure against capped budgets because they display a complete list of all items currently marked against each budget.

Please be aware that these reports do not show your real-time expenditure. Claims will only be included once they are fully processed by IPSA and posted.

  1. Note!

  2. Step1

    If you want to view expenditure in the current financial year then remain on your current dashboard as IPSA Online opens

    Alternatively, select the Main menu tab, Information Pages and then select a dashboard from a previous financial year to see details of your expenditure in that financial year.

  3. Step2

    When you are on the dashboard for the financial year you wish to view, scroll down to MPD IP Budget v Expenditure and scroll across so you can see the column headed Links to reports.

  4. Step3

    Select a report under Links to reports.

    • Breakdown by Expense type (This Row) – this provides a breakdown of expenditure against the budget of that row broken down by Expense type

    • Breakdown by Expense type (All Rows) – this provides a breakdown of expenditure against all budgets broken down by Expense type

    • Business Costs Breakdown (This Row) – this provides a breakdown of expenditure against the budget of that row broken down by individual journal entries, including all claims, direct payments, corrections and year-end changes – this is the general ledger

    Please be aware that Business Costs Breakdown (This Row) is a financial report which is used for bookkeeping.

  5. Step4

    The Breakdown by Expense Type options display the budget available to spend in the Budget column, and the spend against it – broken down by Expense Type – in the Spend column.

    The total budget available and current spend are displayed for each budget in the row that states that budget. This row is beneath the breakdown.

    For example, in the screengrab below the current spend on Cleaning Services is £71.71, Equipment – purchase is £397.59, and Stationery and Printing is £4,653.97.

    This totals a current spend of £5,123.27 against a budget of £28,800, with £23,676.73 remaining available.

  6. Step5

    The Business Costs Breakdown option displays each business cost posted against your budget, as well as any corrections, year-end changes or credit notes that have been actioned.

    As it only includes expenditure that has been posted, it will only include claims that have had all their claim lines processed by IPSA.

    You may find our Glossary of financial terms useful for understanding the kind of year-end changes and information shown on this report.

  7. Step6

    Each column displays information about the claim or payment line.

    You can find a description of each column heading in our Glossary of report terms.

    These columns can be used to filter the report. This is done by typing what you wish to filter and selecting Search.

    You can either type exactly what you are searching for, or use wildcards (*) to show where letters or words are missing.

    For example: if you enter *Hotel* in the Expense Type (T) column, it will return all types of hotel.

  8. Step7

    No entry is ever deleted or removed from the Business Costs Breakdown report. Instead, when a change is made the original line is reversed by a new line that is identical but for the inverse amount.

    For example, in the screengrab below, claim 60051909 incorrectly states the journey was between London and Birmingham when it should state London and Bristol.

    This has been corrected by the claim being reversed with a journal line that is identical but for the amount -£30, and a new journal line being entered for £30 with the correct information on it.

    This is how you will see a correction made if you informed us of an error by completing a Direct Payment Correction Form. Although, please be aware these can take up to a few weeks to process.

  9. Step8

    When you receive a refund from a supplier for a direct payment that has already been made, this will be displayed on the Business Costs Breakdown report.

    For example, the screengrab below demonstrates how it would appear if you were charged £118.45 for stationery by Banner, but then you had returned it and they had refunded you.

    There is a direct payment for £118.45 which is the original charge and then another direct payment line for -£118.45 which is the refund.

    This results in the total spend against your budget for this stationery being £0.

  10. Step9

    When you agree to repay IPSA for a claim against your current budget by actioning a credit note, then this credit note is displayed on the Business Costs Breakdown report.

    This does not show whether you have repaid IPSA or not, it just reduces the spend against your budget by the amount you have agreed to repay.

    To see what you owe IPSA, you should check MPD Repayments Due on your dashboard.

    For example, in the screengrab below, claim 60051813 is for a £50 flight and was posted against the MP’s budget. However, the MP has agreed to repay it by actioning a credit note.

    This is shown by credit note 70002724 of -£50. Credit note 70002724 means that £50 less has been spent against the MP’s budget because they will repay IPSA £50 for the claim.

    The result is that £0 was claimed against the budget for the flight.

  11. Step10

    If as part of the year-end process a cost is accrued, this is shown on the Business Costs Breakdown.

    An accrual is when the costs for goods or services relate to one financial year, but where the payment is made in the next.

    For example, in the screengrab below the cost for trains in March have been claimed in April. As the costs related to March (which is in the previous financial year) they have been accrued.

    This is shown by the expense claim in April for £120 being reversed with journal 200002710 for -£120, leaving the amount in the 2020-21 financial year as £0.

    A new journal, 200002709, is then entered on the Business Costs Breakdown for the previous financial year for £120. The cost of the expenditure is therefore in the financial year to which it relates.

    Please be aware that during the year-end process these two journals are processed separately by our finance team, so will not necessarily appear simultaneously.

  12. Step11

    If as part of the year-end process a cost is prepaid, this is shown on the Business Costs Breakdown.

    A prepayment is when costs for goods or services relate to one financial year but were paid in the previous financial year.

    For example, in the screengrab below the cost of council tax for April has been claimed in March. As the cost relates to April, which is in the next financial year, this has been prepaid.

    This is shown by the expense claim, 60051903, in March for £106.73 being reversed with journal 200002713 for -£106.73, leaving £0 of expenditure in the 2019-20 financial year.

    A new journal, 200002714, is then entered on the Business Costs Breakdown report in the next financial year for £106.73. The cost of the expenditure is therefore in the financial year to which it relates.

    Please be aware that during the year-end process these two journals are processed separately by our finance team, so will not necessarily appear simultaneously.

  13. Step12

    If only part of an expense claim is changed or moved, there will only be a part-reversal of the original claim.

    For example, in the screengrab below the cost of £2,500 for April and March’s rent has been paid in March.

    Because £1,250 of the rental payment relates to the next financial (the rent for April) this portion has been reversed in 2019-20 financial year with journal 200002711 for -£1250.

    This leaves just the £1,250 portion relating to March in the 2019-20 financial year.

    A new journal, 200002712, is entered on the Business Costs Breakdown in the next financial year for £1,250. The cost of expenditure is therefore in the financial year to which it relates.

    Please be aware that during the year-end process these two journals are processed separately by our finance team, so will not necessarily appear simultaneously.

  14. Step13

    The report can be exported by selecting Export at the bottom of the screen.

    Once selected you will be asked to select the format of the report.

    If you select Browser then it will export all journals as you can see them on IPSA Online, and if you select Pivot then it will export them as a pivot table.

  15. Step14

    The reports are a great way of seeing granular detail.

    When you are looking for patterns and trends the Analyzer tool is a quick and user-friendly way of analysing your data.

    Having run a report, select Analyzer tool.

  16. Step15

    Use the three drop downs on the left-hand side to select the type of data you wish to view and how the data is distributed.

  17. Step16

    Use the chart icons to select how the data will be displayed.

The Claims and Payment Card Tracker allows you to track the status of reimbursement claims and payment card transactions submitted on IPSA Online.

This tracker tells you whether your claim is saved as a draft, is under review by IPSA, or requires action from you.

  1. Note!

  2. Step1

    Select the Main menu tab.

  3. Step2

    Select Reports.

  4. Step3

    From the dropdown list under the heading Global reports, select MP Reports and MPD – Claims and Payment Card Tracker.

  5. Step4

    Enter the date range for claims and payment card transactions you want to search.

    This will look for claims and payment card transactions submitted between the dates specified.

    Once fully approved, claims and payment card transactions will continue to appear in the tracker’s results for 30 days from the date of approval.

  6. Step5

    The tracker distinguishes between line numbers on the same transaction.

  7. Step6

    The tracker outlines the status of the transaction:

    • Action Needed (Red)

    • In Draft (Amber)

    • In Progress (Amber)

    • Awaiting Other Lines (Amber)

    • Complete (Green)

    • Cancelled (Green)

  8. Step7

    The tracker outlines who the current task owner is.

  9. Step8

    If an action is required in order to progress the claim or payment card transaction, this will be specified further under Type of Action.

    You will need to access the transaction via your task manager to complete the required action.

    The possible Types of Action are as follows:

    • Correction required – the claim has hit a hard stop on the system and you will need to make a correction in order to resubmit.

    • Check claim; correct or submit – the claim has hit a soft stop on the system and you will either need to make a correction or choose to Submit anyway including a reason.

    • Correction or information required – the claim has been returned to you by a validator, as it requires correction, more information, or evidence.

    • Claim rejected – request review? – the claim has been rejected by a validator as outside the rules of the Scheme. The MP has 14 days to either request a review of the decision or accept the claim rejection.

    • Complete and submit or zero out – the claim has been saved as a draft. Either complete and submit the claim or "zero it out" (remove it from the system).

  10. Step9

    Each column in a report can be filtered.

    To do this, type in what you wish to filter and select Search again.

    You must type exactly what you are searching for.

  11. Step10

    Alternatively, you can use wildcards (*) to show where letters and words are missing.

    For example, *train* will bring back all items with "train" in the description.

You can track the status of the following three forms on IPSA Online by using the relevant form tracker:

  • Bank Details for Expenses Form (only MPs can submit this form)

  • Dependants Form

  • Direct Payment Correction Form

The tracker will tell you the status of the form, and where it is in the process.

The process is the same for each of the three forms, but each tracker must be accessed separately.

  1. Note!

    Open IPSA Online.

    Naming convention tip

    The best way to use the tracker is to have a naming convention so you can differentiate between submitted forms. We suggest:

    Title of the form / To whom it relates / Date the form was submitted

    Submit your form.

    Once an MP or a proxy has submitted the form you can visit the Form Trackers to check its status.

  2. Step1

    In the main menu, select Reports from the left-hand menu.

  3. Step2

    Select the MP Reports menu dropdown.

  4. Step3

    Select the Form Trackers dropdown.

    Select the form you want to track from the list.

  5. Step4

    You can now view the status of the form you have submitted under the Form Status column.

    If there is an Action Needed flag, it will also be marked with a red block.

    "For action with [name]" means the form is with the named individual to action.

    If the form is Complete, and no further action is required, it will be marked with a green block.

    The form has been approved by the MP/Proxy and has been processed by us.

  6. Step5

    If the form is In Progress, it will be marked with an orange block.

    "For action with IPSA" means the form has been approved by the MP/Proxy and is with us to action.

    If the form has been fully approved and is with us, it will be processed before the next pay run at the end of the month.

IPSA Online provides three additional reports to show you which claims and direct payments have been made.

These are:

  • MPD Expenses Details     

  • MPD Direct Payments by MP

  • MPD Direct Payment and Expenses Posted

These reports are useful for seeing details of claims and payments that you have made previously.

They do not show you how they are allocated against your budgets, or any corrections, so cannot be used to show your total spend against your budgets.

  1. Note!

  2. Step1

    Select the Main menu tab.

  3. Step2

    Select Reports.

  4. Step3

    From the drop-down list under the heading Global reports, select MP Reports.

  5. Step4

    Select the report you wish to open.

    • MPD Expenses Details displays the details of all claims you have made, either via reimbursement claim or on the IPSA payment card, including those that are in progress.

    • MPD Direct Payments by MP displays the details of all direct payments made by IPSA on your behalf, such as rental payments to a landlord, subscription fees to pooled staffing services, and bills for approved stationery suppliers like Banner.

    • MPD Direct Payment and Expenses Posted displays the details of all claims, payment card lines, and direct payments, that have been approved and posted against your budgets – it does not show you claims in progress.

  6. Step5

    These three reports have a selection criteria box at the top that allows you to set the parameters of the results.

    The most useful parameter is setting the time period you wish to see claims and payments for. This will either be by payment period or by transaction date.

    Some reports are locked. In these cases, the options will be greyed out and you will be unable to change their parameters.

  7. Step6

    Each column shows you information about the claim or payment line.

    When you begin using the reports, the best way to understand how they work is to run a search without any filters or criteria.

    To do this select Search. Over time you may wish to filter the results.

  8. Step7

    Each column in a report can be filtered. This is done by typing in what you wish to filter and selecting Search again.

    You must type exactly what you are searching for.

  9. Step8

    Alternatively use wildcards (*) to show where letters and words are missing.

    For example:

    • *Hotel* will bring back all types of hotel.

    • *Const* will show “Between London and constituency”, “Within constituency” etc

  10. Step9

    To remove a filter, simply delete the text and either select Search or enter different text and select Search.

  11. Step10

    All direct payments are posted against your budgets and become part of the spend shown on your dashboard once they are paid, while claims go through our validation process.

    Claims are first automatically review by IPSA Online, and then either processed for immediate payment or reviewed by one of our validation team.

    Once a claim is posted against your budget its status will change from “for approval” to “posted”. Claims that are “for approval” are waiting with either IPSA, an MP, or a member of an MP’s staff.

    This can only be seen on the MPD Expenses Details report, the other two reports only show expenditure that has been posted against your budgets.

  12. Step11

    The report can be exported by selecting Export at the bottom of the screen. Once selected you will be asked to select the format of the report. This will then download the data.

  13. Step12

    The reports are a great way of seeing granular detail.

    When you are looking for patterns and trends the Analyzer tool is a quick and user-friendly way of analysing your data.

    Having run a report, select Analyzer tool.

  14. Step13

    Use the three drop downs on the left-hand side to select the type of data you wish to view and how the data is distributed.

  15. Step14

    Use the chart icons to select how the data will be displayed.

The Payroll Modelling Report (previously Staffing Budget Report) can be used to monitor and forecast your staffing budget.

This can be locked so only certain staff (MP and Payroll Proxy) can view it.

  1. Note!

  2. Step1

    Select the Main menu tab.

  3. Step2

    Select Common.

  4. Step3

    Select Report ordering.

  5. Step4

    Select MP Payroll Modelling report.

  6. Step5

    You do not need to enter any information into the General parameters, Fixed parameters or Printer parameters sections.

    In the Open parameters section, enter a number in the To Period field, for the month’s report you require.

    This should be the year followed by the month. The number of the month is based on the financial year.

    For example:

    • 202101 = April 2021

    • 202102 = May 2021

    • 202012 = March 2021

    To produce a report with forecasting, you need to put the last pay period which you have been paid for in the To Period field.

  7. Step6

    Select Save and select OK on the pop-up box.

  8. Step7

    Select Your ordered reports from the bottom of the screen to display a list of saved reports.

  9. Step8

    Check the status of the report you have just ordered.

    If the status is Running, select Refresh at the bottom of the screen until the status is Finished.

  10. Step9

    Select the icon on the left of the report to download it.

    The report will be downloaded as an Excel file.

    A pop-up box may appear and you will need to select Open file for the spreadsheet to open.

  11. Step10

    Staff budget spend and Forecast will open.

Downloads

Guidance

Report terms

Transaction number – this is the unique number of a transaction made against your budgets. This includes claim numbers, direct payment numbers and the numbers of other journals, such as those of credit notes and accruals. This is not unique to an individual line, so multiple lines could have the same transaction number.

Claim number – this is a type of transaction number unique to each claim form you submit. On the Business Costs Breakdown report, this will appear under "Transaction number", while on MPD Expenses Details this will appear under "claim number". The claim number begins with "600".

Direct payment number – This is a type of transaction number unique to each direct payment made. On the Business Costs Breakdown report, this will appear under "Transaction number". On the MPD Direct Payments by MP report, this will appear under "Direct Payment Number". Direct payments include rent paid to landlords, as well as payments for bills from other direct suppliers such as Banner, XMA and the Chambers Travel Office.

Claim line – this is the line number of an individual line of a claim. The first line is 1, the second line is 2, and so on. All individual claim lines share the same claim number.

Transaction date – this is the date that an item of spend was posted against your budget – unless the spend has not yet been approved, in which case it is the date you submitted the claim. If the item has the status "posted" on the MPD Expenses Details Report, or is included in your Business Costs Breakdown, then it has been posted against your budget.

Line date – this is the date the expense was incurred. For a reimbursement claim, this is the date that was selected as the expense date. For a payment card claim, it is the date the spend was made on the IPSA-provided payment card.

Claim line submitted date – the date you submitted the claim line to IPSA.

Supplier – to whom the payment was made.

Status – the status of a claim on MPD Expenses Details report shows whether an initiated claim is:

  • a "draft"– which means it has not been submitted)

  • "for approval" – which means it is waiting with yourself or IPSA, or

  • "posted" – which means it has been approved by IPSA and will be paid and allocated against your budget

Posted – an item of expenditure has been "posted" when it has been allocated – or “posted” – against your budget. Once posted, an item of expenditure will be included in the spend shown on your dashboard. Claims are only posted once all claim lines have been processed by IPSA.

Expense Type – the category that an item of expenditure falls under. When submitting claims this is selected by whoever made the claim. There is a complete list of all expense types as part of our evidence requirements.

Financial terms

Accruals accounting – this is the main method of accounting used by central government, including IPSA, as required by HM Treasury. Accruals accounting:

  • counts money as being spent when an expense was incurred, irrespective of when the cash was paid, and

  • revenue as received when earned, irrespective of when the income was received

For example, a fuel bill for the period January to March received and paid in April, will be recorded as expenditure for the period January to March.

Budget – the amount of money allocated for a specific purpose. The amount of each budget and its purpose is outlined in the Scheme of MPs' Staffing and Business Cost.

Year-end – in the accountancy world, organisations need to prepare their complete accounts each year. The "year-end" refers to the day the financial period ends. For IPSA this is the 31 March.

Year-end process – this is the process at the end of the financial year which allows any costs that have been paid in a different financial year to the one in which they were incurred to be moved into the correct financial year.

Financial year – the government financial year in the UK runs from 1 April to 31 March. This is the period that your budgets run between, meaning they will renew on 1 April each year. In IPSA Online the financial year that runs from 01/04/2020 to 31/03/2021 is referred to as "2020".

Period – these are the months of the financial year. They run from April to March. April is period 1 of the financial year. IPSA also uses period 13 and 14 where necessary, and in common with other organisations, to reflect adjustments needed for the financial year after the end of period 12 (March).

Pre-payment – costs for goods or services that relate to one financial year, but for which the payment was made in the previous financial year. If a claim is pre-paid then the cost of the claim is moved into the next financial year. For example, if you paid Council Tax in March, but it related to April, then this expenditure is a pre-payment.

Accrual – costs for goods or services that relate to one financial year, but for which the payment is made in the next. If a claim is accrued then the cost of a claim is moved back into the previous financial year. For example, if you paid Council Tax in April, but it related to March, then this expenditure is an accrual.

Repayment – when a cost or service is claimed, but subsequently repaid to IPSA.

Credit note – a tool used by IPSA to establish or recognise debt on IPSA Online which returns spend against your budget (crediting the budget). When you action a credit note you recognise there is debt owed to IPSA which is then credited against your budget.

Journal – a journal entry is an act of keeping or making records of any transactions. The journal entry can consist of several recordings, each of which is either a debit or a credit. If, for example, a processed cost was moved from the travel budget to the accommodation budget, then the accommodation budget would receive debit and the travel budget would receive credit.

Accrued income – this is income earned in one financial year and not yet paid to IPSA, but will be paid to IPSA in the next financial year. For example, subletting income earned in one financial year, but not received until the next.

Deferred income – this is income earned and paid to IPSA in one financial year where the service will be carried out in the next financial year. For example, subletting income paid in advance in one financial year, but for services provided in the next.

Overspend – when expenditure exceeds an allocated budget.

Expenditure – money spent on goods or services.

The funds available to MPs are broken down into separate budgets:

Staffing

The staffing budget is largely made up of payroll costs, which are paid directly to the staff MPs employ to assist them in carrying out their duties in Westminster and the constituency. The budget covers all payroll costs (salaries, employers' national insurance contributions and pension contributions). It also covers pooled staffing services and expenses for volunteers. Staffing costs account for approximately three-quarters of the total spend by an MP on average.

Office costs

The office costs budget allows MPs to buy everything they need to run their office and constituency surgeries – this includes costs such as rent, business rates, equipment and stationery.

Travel and subsistence

The travel and subsistence budget covers travel between the constituency and Westminster, travel within the constituency and elsewhere on parliamentary business. It also covers some limited hotel costs for MPs and their staff.

Accommodation

The accommodation budget covers the cost of overnight accommodation in either London or the constituency. This can cover hotels, a rented property or utility bills etc on a property the MP owns. MPs who represent a constituency in the London Area are not entitled to claim from this budget.

Start-up

The start-up budget is provided to MPs in their first year of office, covering the costs incurred in starting up an office, such as buying office furniture.

Miscellaneous

There are also additional one-off costs paid from the miscellaneous budget. This covers other parliamentary costs which are not covered by other parts of the rules, but which have been approved by IPSA. It also covers any residential accommodation costs incurred in the two months after an MP has left Parliament.

IPSA will pro-rate budgets when they are made available to MPs at a date other than the start of the financial year or are closed before the end of the financial year.

This applies to all capped budgets provided by IPSA.

Budgets will be pro-rated when:

  • an MP is elected during the financial year

  • an MP leaves their seat during the financial year, whether at an election or for another reason

  • an MP begins claiming for associated costs in a property they own

  • an MP moves between associated costs and rented accommodation/hotels

  • an MP moves from the constituency to London (or vice versa)

  • an MP registers a dependant

Where a budget must be pro-rated, the adjusted budget will be pro-rated by day.

This means the MP will receive 1/365 of the annual budget for each day they are drawing the budget. In leap years the budget will be divided by 366.

In the past, IPSA has chosen to increase MPs’ pro-rated budgets at general elections. This is because MPs may take or leave office unexpectedly at elections and because MPs are not expected to spend at an even rate throughout the year.

Increasing MPs’ budgets in this way, whether at elections or in other circumstances where an MP leaves office, will be considered on a case-by-case basis. MPs will be informed of election-year budgets in IPSA’s election guidance at the earliest opportunity.

Budget headingArea/Eligibility2022-23 budget1/365
Accommodation – rental or hotel London£25,080£68.71
Accommodation – rental or hotel Constituency (outside London) £17,840£48.88
Accommodation – associated costs only(Non-London MPs) £5,910£16.19
Accommodation uplift for MPs with dependantsPer eligible dependent per year (max. three uplifts) £5,720£15.67
Office costs London Area MPs £31,620£86.63
Office costsNon-London Area MPs £28,570£78.27
Staffing costs London Area MPs £237,430£650.49
Staffing costs Non-London Area MPs £221,750£607.53

Example scenario

An MP is elected on 1 February.

They receive budget for the days served in office in February (28) and March (31) for the 2022/23 financial year.

This means their pro-rated budgets will be 1/365 of each budget multiplied by the 59 days served.

For accommodation outside London, the pro-rated budget would be £2,883.92 (£48.88 multiplied by 59 days).

If they are a non-London Area MP, the pro-rated office costs budget would be £4,617.93 (£78.27 multiplied by 59 days).

IPSA will pro-rate budgets when an MP takes or leaves office.

What happens when an MP is elected during the financial year?

If an MP is elected during the financial year the relevant budgets will be pro-rated starting the day after the election until the end of the financial year or they leave office – whichever is soonest.

What happens when an MP leaves their seat during the financial year?

When an MP leaves their seat the relevant budgets will be pro-rated to the end of the two-month winding-up period.

IPSA will pro-rate accommodation budgets in several circumstances.

Budgets will be pro-rated when:

  • an MP is elected during the financial year

  • an MP begins claiming for associated costs in a property they own

  • an MP moves between associated costs and rented accommodation/hotels

  • an MP moves from rented accommodation/hotels in the constituency to London (or vice versa)

  • an MP registers a dependant

What happens if an MP is elected during the financial year?

If an MP is elected during the financial year the relevant budgets will be pro-rated starting the day after the election until the end of the financial year or they leave office – whichever is soonest.

What happens if an MP begins claiming for associated costs in a property they own?

MPs may choose to claim for associated costs (such as Council Tax and utilities) if they live in a property they own.

The associated costs budget will be pro-rated from the date the MP registers the property until they leave the property, or until the end of the financial year, or they leave office – whichever is the soonest.

What happens if an MP moves between associated costs and rented accommodation or hotels?

If an MP moves from a property they own (and are claiming associated costs) into rental or hotel accommodation during the financial year, the budget will be pro-rated to the day before they register for alternative accommodation.

The new accommodation budget will be pro-rated from the date of registration until they leave the property, or until the end of the financial year, or they leave office – whichever is the soonest.

What happens if an MP moves from rented accommodation/hotels in the constituency to London (or vice versa)?

If an MP moves in to, or out of, London the accommodation budget will be pro-rated to the day before the move.

The new accommodation budget will be pro-rated from the date of the move until they leave the property, or until the end of the financial year, or they leave office – whichever is the soonest.

What happens if an MP registers a dependant?

MPs are eligible for an uplift to their accommodation budget where they need to provide accommodation for dependants, up to a maximum of three dependants.

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

The uplift amount will be pro-rated from the day the dependant is registered with IPSA.

Where a dependant meets the defined criteria, the MP will continue to be eligible for the uplift until the end of that financial year.

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.

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