the recent revelation of the significant sums that MPs are being paid for expenses to cover London accommodation, travel and repairs and maintenance to constituency homes is staggering.
However, one significant item has been left out of the sums declared and that is pension contributions.
I am sure readers of the EA will be aware that MPs enjoy one of the most beneficial pension schemes in the country, paid for by taxpayers. Indeed when the pension fund was recently found to be £25 million underfunded, MPs sought to correct this situation by voting through a £25 million payment to the fund you can of course guess where the money came from.
I note that all expenses paid to MPs are of course tax free. This is not the case for 'ordinary' people. If an employer contributes to your home to work travel, the revenue will demand tax is paid as it classes such a payment as a benefit in kind. If you are an MP you get free first class travel plus 15 trips to London for your partner and family members to London. All tax free and courtesy of the taxpayer.
If you calculate the gross value of the tax free benefits it shows the actual salary of an MP is much more than the base figure they like to talk about.
Des Morgan
Caraway Drive
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