IPSA’s regulatory principles

It is 15 years since the Independent Parliamentary Standards Authority (IPSA) was created, with the aim of rebuilding trust and confidence in the use of public money to support the work of MPs. As the independent funding body for MP expenditure, we know transparency is an essential part of supporting trust in democracy - the public has a right to know their money is spent on the right things, in the right way.

IPSA supports MPs to carry out their jobs by giving them the funding they need to pay their staff, run an office and work from two locations: Westminster and their constituencies. We do this so that being an MP is not reserved for those wealthy enough to fund it themselves. 

Our aim is to ensure MPs can focus on fulfilling their role, whether it’s legislating, holding the government of the day to account, or supporting and representing their constituents in Parliament and locally. Coupled with our regulatory duty, we believe this is the best way to rebuild trust and foster confidence in our democracy. 

We set the principles and rules that MPs and their offices must follow, primarily through the Scheme of MPs’ Staffing and Business Costs, but also through guidance and advice. 

From 1 April 2025, a new Scheme will be in place which sets the parliamentary principles MPs are expected to adhere to. It incorporates several changes made following last year’s public consultation.  

The new Scheme is one step on our journey to evolve our regulatory approach, to provide the right amount of flexibility for MPs to determine how to run their parliamentary affairs, while still taking robust action to address regulatory risks and providing transparency to support the public’s trust in democracy. 

Through the new Scheme, we are placing a higher emphasis on our principles for the legitimate use of public funds, which are: 

• Parliamentary purpose: MPs may only access IPSA funding for costs resulting from carrying out their parliamentary functions. They cannot use IPSA funding for electoral campaigning, party political work or activities designed to promote their own political profile.  

• Value for money: MPs must take proportionate steps to achieve value for money when using IPSA funding and they and their staff must show good financial management. 

• Integrity: MPs’ decisions must not be aimed at gaining financial or other material benefits for themselves or connected individuals and must consider conflicts of interest when it comes to IPSA funding.  

• Accountability: MPs are accountable for their decisions and must be prepared to explain how they have met our rules, guidance and regulatory principles.  

The new Scheme also addresses areas of public concern, including on MPs’ work accommodation and the use of “bought-in-services" - professional services such as consultancy and communications. 

We will no longer permit MPs to rent accommodation from other MPs using IPSA funding. MPs will also need to have regard for a list of expectations, aimed at mitigating the risk of undue personal financial gain for MPs, their family, friends and associates, before accessing accommodation funding.  

IPSA will also implement a new requirement for MPs to submit a declaration confirming the relationship with a bought-in service does not contravene, or would not reasonably be perceived as contravening, the principle of integrity, and that the service is appropriate for what they are being contracted to undertake. 

At the same time, through the Scheme we are supporting recommendations made by the Speaker’s Conference on the employment of MPs’ staff to improve the working conditions for MPs’ staff, recognising staff members’ past service and facilitating the movement of staff between MP offices.  

While principles have always featured in our Scheme, IPSA is evolving its regulatory approach to focus more on regulatory principles as a means of holding MPs to account. MPs need to comply with principles across all areas of public life and other regulators, such as the Parliamentary Commissioner for Standards, operate a similar model.  

We will continue to carefully and transparently scrutinise on behalf of the taxpayer the way MPs spend public money but focus our efforts proportionately on areas of high-risk and high-spend, and of public concern. 

Overview of Scheme changes 

Regulatory Principles: The 2025-26 Scheme sets out revised Regulatory Principles for MPs to adhere to in order to access IPSA funding. The principles are similar to the existing Fundamental Principles but provide a clearer description of IPSA’s expectations and MPs’ responsibility in demonstrating they have been met. We will work with MPs and their staff to continue building a shared understanding of the Regulatory Principles, which will enable us to produce more comprehensive guidance about the new approach. 

Recognising past service of MPs’ staff: The 2025-26 Scheme introduces new arrangements for the recognition of a staff member’s past service with different MPs as employers, for the purposes of redundancy pay and family leave pay. This means that if a staff member has qualified for certain payments through length of service with one MP employer, they would not need to do so again after moving to another MP. Certain conditions will apply, including a maximum break between employments of 60 days. 

Inter-office staffing loans and secondments: The new Scheme reflects our intention to introduce a new process to facilitate staff members being ‘loaned’ to another MP’s office for short periods, and the ‘secondment’ of staff employed by outside organisations to support an MP’s parliamentary work. The aim is to provide MPs and their offices with the flexibility they need, for example to tap into experienced staff working for other MPs or other organisations to help them set up a new office, cover heavy workloads due to casework and more. 

Constituent communications: The new Scheme does not include any new cap on the amount of funding which can be used for constituent communications and advertising. Although we consulted on this proposal, we were persuaded by the responses that doing so might unduly restrict an MP’s ability to communicate effectively with their constituents. We have lifted the long-standing prohibition of claims for newsletters, as we recognise that these types of multi-issue communications can offer good value for money. All communications produced with IPSA funding must align with the principles, rules and guidance in relation to their nature and purpose, including that they must not be party political or self-promotional. 

Funding MPs’ work accommodation: The Scheme no longer permits MPs to rent accommodation from other MPs using IPSA funding. MPs also need to have regard for a list of expectations (to be set out in guidance), aimed at mitigating the risk of undue personal financial gain for MPs, their family, friends and associates, before accessing accommodation funding. 

Conflicts of interest: IPSA has implemented a new requirement for MPs to submit a declaration confirming that the relationship with a bought-in service does not contravene, or would not reasonably be perceived as contravening, the principle of integrity; and that the service is appropriate for what they are being contracted to undertake. 

Parliamentary accountancy: Reflecting the change in HMRC rules (whereby MPs no longer are required to submit a self-assessment tax return just by virtue of being an MP), no further claims for accountancy or tax-related services relating to the 2024-2025 tax year or future years will be accepted. 

Summary of changes to the publication of parliamentary expenditure 

We know the data we publish is important as it provides people with the transparency they deserve over how public funds are used by MPs.

At the same time, we know the data and costs we publish can lack context and be open to misinterpretation. Our website covers this topic in depth: Supporting democracy – understanding our 2023/24 data.

The changes we will introduce to the way we publish MPs’ business costs are: 

Rent and pooled service subscription fees: From the 2025-26 financial year, expenditure on rent and pooled service subscription fees will be published as aggregate annual amounts per MP as a way of reducing the risk of misinterpretation of this data and ensuring that the costs are more clearly, accurately ,and fairly reflected. 

Small-value items: From the 2025-26 financial year, we will publish items of expenditure under £50 in aggregate for each MP on an annual basis, broken down by cost type. We expect that this will reduce the risk that small-value items are taken out of context and that MPs and staff are discouraged from making legitimate purchases as a result. 

Staff absence: From 2025-26 we will no longer attribute staff absence (i.e. payroll expenditure relating to staff members who are on long term sick leave, parental leave or special paid leave relating to armed forces reservist training) to specific MPs. Due to the limited risk that this data could identify a staff member, as well as potentially the impact of publication on staff wellbeing, we will instead publish an aggregate total for all MPs each year.