Expenses system 'used to fund two homes'

The MPs’ expenses row in the UK took a new twist today as it was disclosed that some were using the system to claim on both of their homes out of their taxpayer-funded allowances.

As well as claiming back the costs of buying and improving second homes, MPs have been able to draw down expenses on their main residence by designating it as an office.

The Sunday Telegraph named disgraced MP Derek Conway among those taking advantage by saying he worked from his family home – a property hundreds of miles from his constituency.

Liberal Democrat MP Malcolm Bruce also claimed thousands of pounds towards the cost of running both his London flat and his Scottish main home, the newspaper said.

While the focus of the revelations has so far been on the Additional Costs Allowance (ACA) for second homes, the Telegraph’s latest revelations concerned claims from their Incidental Expenses Provision (IEP), which is to cover office costs.

They also prompted new interest in the controversial practice of MPs’ employing family members out of the staffing budget.

More than 200 MPs have declared in the Register of Members’ Interests that they employ relatives at an estimated cost to the British taxpayer of about £5.8m (€6.6m) a year.

By designating their homes as offices, MPs have been able to claim for the running costs of both of their domestic properties at the same time.

Previously, criticism has concentrated on “flipping”, whereby MPs claim allowances on improvements to one residence, then switch their second home designation to claim on another.