MPs' expenses: Watchdog accused of 'misleading' details

MPs have attacked the way the expenses watchdog has published details about their claims, with one minister calling it "seriously misleading".

Figures published on Thursday indicated that 154 claims made between May and October 2010 had been rejected.

But some MPs say the Independent Parliamentary Standards Authority (Ipsa) has made errors and claims turned down were later approved.

Ipsa has rejected criticism, saying some have not adjusted to the system.

Ipsa's latest figures showed that 248 claims were not "fully reimbursed" between May and October 2010 - meaning they were either partially rejected or turned down in full. A total of 154 claims were rejected completely.

'Insufficient evidence'

But almost 26,000 claims - for costs relating to accommodation, travel, utility bills and hospitality - were approved, and £3.6m paid out.

Claims rejected included one for £75 by Labour deputy leader Harriet Harman for hire of a hall for a constituency surgery, £609 claimed by Jack Straw for business rates on his constituency office and £762 claimed by the Labour MP Paul Flynn for a service charge on his accommodation.

In each case, the reason given by the watchdog was that there was "insufficient evidence" to validate them.

But Mr Straw and Ms Harman insisted their claims were later approved when they subsequently provided more documentation.

Defence Minister Peter Luff said information on Ipsa's website indicating that more than £400 in claims he had made for administration and phone bills had been rejected was inaccurate since he had re-submitted the claims and the "money was in his bank account".

"The way Ipsa has chosen to make this information public is seriously misleading and underlines what MPs are saying about this dysfunctional organisation," he told the BBC.

'Legitimate'

Several MPs have privately expressed their frustration to the BBC at having expenses claims which were rejected because of mistakes made by Ipsa listed among the rejected claims.

Conservative MP Jesse Norman had a £1,504 claim for office furniture rejected - but Ipsa has admitted this was an administrative error on its part and the claim was subsequently approved.

It is understood the watchdog feels obliged to publish details of all claims handled - even when technical mistakes are made - to demonstrate it is open and transparent. This follows criticism that the old system was secretive.

Chris Mason, BBC 5 Live's political reporter, said Culture Minister Ed Vaizey had had a claim for £4.75 rejected, for what appeared to be a lunch he had bought for his intern, despite the fact that his office said it was "totally legitimate".

Our reporter said he understood the claim was rejected because the receipt was lost after it had been submitted to Ipsa and the MP's office said that the intern, who has now left, is out of pocket as a result.

Problems

More than £6.7m has been paid out in expenses since the general election but but there is widespread dismay among MPs about how the new system - which came into force last May in response to the widespread abuse of expenses in the previous parliament - is working, and about their relationship with Ipsa.

On Thursday, Downing Street said problems with the system needed to be addressed.

"You cannot have a system that costs £6m a year to administer the expenses of 650 people," a Number 10 spokesman said. "Ipsa was set up quite rapidly following the expenses scandal. Clearly there are problems with the way it is working. The prime minister's view is that we have got to deal with this."

But Ipsa chairman Sir Ian Kennedy said the watchdog was independent and would not be forced into changes by MPs' criticism.

"There are still some MPs who find it difficult to come to terms with what has happened," he told the BBC.