Parliamentary Standards Act 2009

Summary of the key elements of the Parliamentary Standards Act 2009

There will be an Independent Parliamentary Standards Authority (IPSA) and the Commissioner for Parliamentary Investigations.

The IPSA

IPSA is to pay the salaries of MPs.
IPSA is to prepare the MPs' allowances scheme ("Scheme"), and review and revise it as necessary (having conducted suitable consultation).
IPSA is to pay allowances to MPs under the Scheme.
1. IPSA will determine whether claims are to be allowed, and if allowed, determine how much is to be paid.
IPSA will provide to MPs HMRC-published guidance on taxation issues relating to allowances and salaries under the Scheme that it considers appropriate.
IPSA will prepare a code relating to financial interests to be observed by MPs. It will also maintain and publish this register of MPs' financial interests.

IPSA will have a further role in determining procedures relating to the Scheme and procedures for investigations.

The Act does not affect the House of Lords, although members of the House of Lords may be Members of IPSA.

The Act also creates a new criminal offence of knowingly providing false or misleading information in a claim for an allowance, for which the maximum sanction is up to 12 months custodial sentence or an unlimited fine.

Commissioner for Parliamentary Investigations

The Act has established an officer known as the Commissioner for Parliamentary Investigations ("Commissioner") with the power to investigate complaints against MPs.

The Commissioner may conduct an investigation if an MP

may have been paid an amount under the Scheme which should not have been allowed; or
may have failed to comply with a requirement in the MPs code of conduct relating to financial interests.

After conducting an investigation, the Commissioner may refer the findings to the House of Commons Committee on Standards and Privileges.

The Commissioner is appointed for a fixed term not exceeding five years and may not be appointed again.

The Commissioner will have a key role in creating a robust transparent and fair process to conducting the investigations that are entrusted to him/her.

He or she will provide leadership and direction to a small team handling the investigations and will be asked to make sensitive and defensible decisions.

Members of IPSA

IPSA is to consist of five Members:

the chair
four other ordinary members.

Collectively, IPSA Members must hold one or more of the following requirements (it is possible that a Member holds two or more of the requirements).

has held (but no longer holds) high judicial office;
is qualified to be an auditor for the National Audit Office.
has been (but is no longer) a member of the House of Commons.

In addition, apart from the Parliamentary member, a person who has been a member of the House of Commons at any time within the last five years may not be a member of IPSA.

Each Member of IPSA is appointed for a fixed term for no more than five years. A member may be re-appointed once only for a further period (whether consecutive or not) for no longer than three years.

For further information please view the full Parliamentary Standards Act 2009