MPs’ pay watchdog seeks to give public greater voice in how politicians are funded

Published: 06 October 2025. The English Chronicle Desk, English Chronicle Online.

The Independent Parliamentary Standards Authority (IPSA), the body responsible for overseeing MPs’ pay and expenses, is exploring ways to give the public a stronger role in determining how politicians are funded. In a recent statement, Karen Walker, Ipsa’s newly appointed chief executive, outlined a series of reforms aimed at making the system more transparent, flexible, and responsive to both parliamentary requirements and public expectations.

Walker, who assumed leadership of the watchdog last month, emphasised that Ipsa had already implemented a significant change in the way MPs claim funding for office costs, staff salaries, travel, accommodation, and other essential expenditures. According to her, the system has shifted from a rigid, mechanistic set of rules to a more principles-based approach, grounded in the core tenets of value for money, parliamentary purpose, accountability, and integrity. The reform has granted MPs greater discretion in deciding what claims are appropriate, while still maintaining strict limits on overspending.

Despite these recent reforms, Walker acknowledged that more could be done to enhance public involvement in how MPs are funded. Ipsa recently convened a citizens’ forum consisting of 23 members of the public to discuss parliamentary pay and funding issues. Feedback from this group has informed Ipsa’s ongoing consultation, which aims to balance parliamentary needs with public opinion and social expectations.

One area under consideration is the introduction of variable funding allowances depending on constituency demands. Some MPs represent constituencies with higher populations or unique challenges that require increased staff support or elevated travel budgets. By allowing differential funding, Ipsa hopes to ensure that MPs can adequately serve their constituents without facing arbitrary limits that fail to account for local circumstances.

Walker also highlighted the importance of improving public understanding of MPs’ pay and expenses. Currently, Members of Parliament receive a base salary of £93,904 per year, with additional allowances capped at £250,000 annually for costs associated with their parliamentary work. The citizens’ forum largely agreed that the base pay was fair but emphasised that it should be contextualised within the broader social and economic realities facing ordinary working people.

The forum’s recommendations included benchmarking MPs’ salaries against similar roles in public service and comparable democracies, linking pay partially to national average household income, and recognising the demanding nature of the parliamentary role. Ipsa is actively considering these suggestions as part of its review process for the upcoming financial year.

Ipsa was established following the 2009–2010 parliamentary expenses scandal, which revealed widespread misuse of taxpayer funds. Since then, it has sought to ensure transparency, accountability, and fairness in MPs’ financial arrangements. The new focus on public consultation represents an extension of this mandate, reflecting the growing expectation that citizens should have a say in how their elected representatives are funded.

Under Walker’s leadership, Ipsa has also embraced a principles-based approach to regulation. This method allows MPs to make informed judgments about their claims, rather than relying on strict, prescriptive rules. While red lines and spending caps remain in place to prevent misuse, MPs now exercise more discretion within these boundaries, applying principles such as value for money and parliamentary purpose to guide their decisions.

Walker explained that the shift away from mechanistic rules has already improved compliance and accountability. “Previously, MPs would call us asking if they could make a specific claim, and the answer would be yes or no,” she said. “Now, the system asks them to consider how their constituents would view a particular expenditure. It encourages thoughtful decision-making rather than blind rule-following.”

She added that the principles-based framework also helps address nuanced areas such as communications. MPs can claim funding for constituency-related communication, but political activity or derogatory commentary about other politicians or the government is prohibited. The approach provides flexibility while maintaining the integrity of the system.

Walker noted that other regulatory bodies are also exploring similar principles-based frameworks. The Parliamentary Standards Commissioner, for example, has discussed with MPs the possibility of adopting a comparable model for their code of conduct. By aligning financial regulation with broader ethical principles, Ipsa hopes to create a more accountable and adaptable system for parliamentary oversight.

Public trust in how MPs are funded remains a key concern for Walker. “My biggest worry is ensuring MPs are funded fairly, while also acknowledging that public perception directly affects confidence in democracy,” she said. Walker emphasised that most MPs act responsibly, and lapses are often due to misunderstandings rather than deliberate misconduct. “Where someone makes a mistake, there is usually a reason, often related to a lack of understanding. We give the benefit of the doubt unless we see repeated patterns.”

The citizens’ forum process has already influenced Ipsa’s approach to pay and expenses. Forum members expressed a desire for MPs’ remuneration to reflect the complexity and demands of the role while remaining transparent and understandable to the public. Walker suggested that implementing these principles could enhance both public trust and parliamentary effectiveness.

In addition to public consultation, Ipsa’s reforms have focused on simplifying the application process for MPs while maintaining robust oversight. By moving away from a rigid checklist of allowable expenditures to a more nuanced framework based on judgment and principles, MPs can better prioritise spending that directly supports their parliamentary and constituency responsibilities.

The broader context for these changes includes heightened scrutiny of politicians’ pay, especially in light of widening social inequality and public sensitivity to government spending. While MPs’ base salaries and allowances are designed to support their parliamentary duties, the public forum’s feedback reflects a desire for financial arrangements to remain proportionate to the wider economic environment and accountable to taxpayers.

Walker’s previous experience in the private sector, including leadership roles at First Direct, Centrica, and Virgin Media, has informed her approach to modernising Ipsa’s processes. She has emphasised transparency, efficiency, and responsiveness, ensuring that MPs’ financial claims are subject to both regulatory oversight and public input.

Looking ahead, Ipsa intends to continue engaging with the public, refining its principles-based system, and implementing recommendations from the citizens’ forum. The organisation is consulting on pay and funding for the next financial year, with the board set to review the forum’s proposals before finalising any changes.

Walker concluded that Ipsa’s mission remains clear: to ensure MPs are appropriately funded, accountable, and guided by principles that reflect both parliamentary purpose and public expectations. “This is about creating a system where MPs can do their jobs effectively while the public can have confidence that their money is being used responsibly,” she said.

The reforms introduced under Walker mark a notable shift in parliamentary oversight, moving towards a system that blends professional discretion, accountability, and public engagement. As the next cycle of pay and funding decisions approaches, Ipsa is positioning itself at the forefront of transparent governance, aiming to foster trust, efficiency, and fairness in the management of MPs’ financial entitlements.