MPs' expenses: Inside the world of under-fire watchdog

As the expenses watchdog comes under renewed criticism from MPs, its chairman Sir Ian Kennedy gives an inside look at how it operates.

The formation of an independent body to sort out the MPs' expenses system was meant to make the scandal and the sleaze go away.

From the publication of the latest batch of expense claims themselves, it seems the new system has rooted out the kinds of abuses that so shocked the public during the months of the expenses scandal.

But the controversy continues.

And a clash between MPs and the Independent Parliamentary Standards Authority (Ipsa) was re-ignited by the leader of the House of Commons, Sir George Young, who accused it of "failing in many respects" and "impeding" MPs in their work.

Paper trail

For the first time, Ipsa has allowed our TV cameras into its anonymous offices in central London.

Security there is tight, and the process is lengthy. Only four people are allowed into the scanning room where receipts from MPs arrive. Every single one is scanned into the computer system, and then given a sticker with a barcode so it can be traced through the system.

In the next room, all receipts are then checked, and double checked by members of staff.

During these "eyeball checks" Ipsa staff look at the lot; claims for staff, rent, stationery. They might make sure that mileage claims seem accurate, even checking with online mapping sites to verify what the MP has claimed.

It is time consuming, but it creates a complete paper trail of everything that MPs are doing with taxpayers' money.

Less hostility

Staff have hairy stories about confrontations with MPs over the phone in the first months of the system's operation.

That hostility seems to have receded. But MPs, encouraged by the promise of the prime minister to make Ipsa "shape up", are determined to force the organisation to change.

Conservative MP Adam Afriye warns "they have to sort this out or we will sort you out", complaining that the tighter rules on expenses "discriminate" against MPs' with families and MPs not from wealthy backgrounds.

Ipsa is consulting on how to improve the system and they are considering more generous rules for MPs who have children, relaxing the rules about MPs who travel from Greater London and even considering allowing MPs to have a credit card.

Independent

But the organisation's chair, Sir Ian Kennedy, is adamant that he will protect Ipsa's independence and rebuffs pressure to make changes at the behest of MPs.

"We are independent, we will proceed at our own pace... and we will make judgements that we think are right," he says.

Sir Ian says there are still some MPs "who find it difficult to come to terms with what has happened" and urges them to realise that "what we're doing is in their own interests".

And, in remarks likely to enrage MPs who have criticised the system, he says they are "missing a trick if they don't celebrate what is going on".

It is clear that Ipsa faces a difficult task in balancing the demands of the public - and you can contribute to their consultation here - and the increasing volume of demands from MPs who say the system has to change to make it easier for them to do their jobs.