Peers Lose London Property Claim Allowance

With the second home scandal by the government, there has been a review of the allowance system to stop abuse by politicians.  The latest of these to be reviews is the overnight subsistence allowance.

Members of parliament claim £174 tax-free overnight allowance for staying in a London hotel or property let (even their own property investment) but many members have been claiming when this wasn’t the case.

Out of 326 members, 167 had their own London property and 113 were in fact mortgage!

They were not breaking any rules, until recently there was no definition of what was a ‘main home’. Many have got away with claiming as under the old system they were doing nothing wrong.

The government revealed that as of October 2010, peers will get £300 a day to attend the House of Lords the £174 overnight allowance being removed.

Peers will need to complete a full day and give evidence of this work to claim this new fee.  The option to work part of the day is available at a reduced £150.

The governments reveal there will be no more ‘addresses of convenience’ or manipulation of utility bills/claim forms so it leaves a cheaper, cleaner system that will not be abused.