What on earth is going on inside the House of Commons "fees office"?

How much are the Commons authorities to blame for the current sleaze allegations blowing through Westminster?

The Mail on Sunday's story of Ann and Nicholas Winterton and the £30,000-a-year "rent" for their second home in London (even though they finished paying the mortgage in 2002) is the most significant of this morning's post-Conway sleaze investigations by the Sunday newspapers.

The background: MPs can claim about £22,000 a year each towards the upkeep of a second home. This can go on mortgage payments or rent. The Wintertons, who have clocked up 62 years as Tory MPs between them, claimed mortgage assistance until 2002 when the Cheshire Building Society loan was paid off. In theory, the Wintertons would only then be able to claim for utility bills, council tax and other sundries from this point.

But also in 2002 they decided to transfer ownership of their London apartment to a trust. No longer being the owners, the Wintertons tell the Commons authorities that they must now pay rent to live in London in the same property. This rent comes from their parliamentary allowances: the taxpayer.

And who are the trustees? Ann and Nicholas Winterton, along with Hugh Carslake, a lawyer who specialises in tax planning.

Carslake told the Mail that the trust was created to reduce any inheritance tax paid by the Winterton family but Sir Nicholas would neither confirm nor deny this, saying that the end beneficiaries of the trust "are private". The Wintertons say that they could have rented elsewhere, at greater expense to the public purse, so the arrangement is justified. Meanwhile, the trust is still accumulating money from the taxpayer: £165,000 so far.

Potentially the most surprising claim in the whole affair, however, is from Sir Nicholas: "It was agreed by the Commons Fees Office."

Astonishingly, he also said that it was drawn up before checks on handouts for MPs' second homes were tightened up, and would probably not be allowed if it had been put forward now.

The Commons authorities refused to comment about the matter - a situation that is clearly unacceptable.

Urgent questions must now be answered by the Fees Office (now the Department of Finance and Administration). Was Sir Nicholas right to say that the arrangement was agreed by the Fees Office? What is the office's understanding of the arrangement? How many other MPs pay rent to trusts in this manner? Why is each MP's arrangements not regularly reviewed to ensure that they comply with current rather than previous rules? Are their any other unorthodox payment models used by MPs?

The Fees Office does not talk to journalists, and the Commons authorities prefer to keep these arrangements in the shadows, arguing privacy. It looks to outsiders as though there is a "nod and a wink" culture inside this department allowing MPs to claim more than they should. If these guardians of the public purse authorise odd, non-standard arrangements, they must be prepared to explain why, particularly in the current climate. The wider reputation of politics and politicians depends on it.

Comments

[Marcus]

E-mail addresses to ask the MPs when they will be repaying the "rent" which they claimed improperly:

Nicholas Winterton
wintertonn@parliament.uk,

Ann Winterton
wintertona@parliament.uk

[S. Singh]

If the tax payers are funding a percentage of the mortage then when the house is resold, at a higher price then the same percentage should be handed back to the taxpayers.

[Edward Whitley]

Following Derek Conway's gross abuse of his parliamentary expenses, the Parliamentary Standards & Privileges Committee recommended that he be suspended for ten days' and required to repay c£13,000. These "punishments" were wholly inadequate, but, fortunately, the Conservative whip has been withdrawn, which will lead to his eventual deselection at the next general election. This, however, could be up to two years away, and the police should now investigate to see whether he should be prosecuted for embezzlement of public funds. If convicted, he could be removed from parliament at once.

[j bainbridge]

if what the wintertons have done is all legal and above board then it would seem like a good idea for the general public to follow suit.if you have retired and your house is paid for transfer it to a trust, with you your wife and best mate as trustees ,then claim housing benefit and rate relief .