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Who really sets MPs’ pay – And why you might be wrong about it. A conversation with Richard Lloyd, chair of IPSA - Parliament Matters podcast, Episode 126

21 Jan 2026
Image © House of Commons
Image © House of Commons

What are MPs actually paid and what does the public fund to help them do their job? In this conversation with Richard Lloyd, chair of the Independent Parliamentary Standards Authority (IPSA) we explore the delicate balance between supporting MPs to do their jobs effectively and enforcing strict standards on the use of public money. We discuss how IPSA has shifted from a rule-heavy “traffic cop” to a principles-based regulator, why compliance is now very high, and the security risks and pressures facing MPs‘ offices as workloads rise and abuse becomes more common.

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Sixteen years after the expenses scandal that reshaped British politics, Richard Lloyd offers a rare insider’s account of how Parliament is now regulated from the outside. Drawing on his experience in government, regulation and civil society, he explains why MPs’ pay and expenses were taken out of politicians’ hands, how IPSA evolved from a body widely seen as hostile and bureaucratic into a more service-focused regulator, and why independence remains essential even when it attracts controversy.

Richard explains the basic package of salary and pension, and how this compares with those of parliamentarians in other countries, but also the less well-understood support that sits behind an MP’s work: travel between Westminster and constituency, accommodation for those far from London, and – most of all – the funding that pays for staff, offices and equipment.

We revisit how the 2008–09 expenses scandal changed everything, and how IPSA’s early reforms tightened the rules on housing costs, ending practices like mortgage interest claims and “flipping” second homes. Richard also addresses more recent controversies, including MPs renting to other MPs, and why IPSA has moved to stop new arrangements where public confidence and perceived conflicts of interest are at stake.

Richard argues that today’s system is delivering: spending is now close to 100% compliant, serious wrongdoing is rare, and IPSA’s approach is evolving from dense rulebooks to clearer principles – parliamentary purpose, integrity, value for money and accountability – backed by enforcement when needed. We also explore the strain on MPs’ offices, the separation between parliamentary and party-political activity, the rising security threat, and the growing impact of AI on constituent correspondence.

Finally, Richard discusses the politically charged question of MPs’ pay, the Citizens’ Panel work that shifted views once the reality of the job was understood, and the wider role independent regulators can play in rebuilding trust in our democratic institutions.

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Our guest

Richard Lloyd OBE. ©

Richard Lloyd

Richard Lloyd OBE

Richard Lloyd is Chair of the Independent Parliamentary Standards Authority (IPSA). He joined its board in 2018, became Interim Chair in 2019 and was formally appointed Chair in 2021. Alongside this role, he has served as a board member of the Financial Conduct Authority since 2019 and as a member of the Advertising Standards Authority Council since 2020. His career spans regulation, government and the voluntary sector. He began in housing, later becoming Head of Policy at the homelessness charity Shelter, before working with the NGO Landmine Action and leading Consumers International as its Chief Executive. From 2008 to 2010 he was a Special Adviser to Prime Minister Gordon Brown, after which he held senior roles with Choice in Australia and Which? in the UK, the leading consumer organisations. He was awarded an OBE in 2019 for services to the economy and consumer rights.

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The Independent Parliamentary Standards Authority (IPSA)

Transcript

Please note, this transcript is automatically generated. There may consequently be minor errors and the text is not formatted according to our style guide. If you wish to reference or cite the transcript copy below, please first check against the audio version above.

Intro: [00:00:00] You are listening to Parliament Matters, a Hansard Society production supported by the Joseph Rowntree Charitable Trust. Learn more at hansardsociety.org.uk/pm.

Ruth Fox: Welcome to Parliament Matters, the podcast about the institution at the heart of our democracy, Parliament itself. I'm Ruth Fox.

Mark D'Arcy: And I'm Mark D'Arcy. And in this special edition of the pod, we are focusing on the work of IPSA, the Independent Parliamentary Standards Authority. IPSA is the organisation which sets MPs pay and monitors their expenses, and we're delighted to be joined by its chair, Richard Lloyd, who's been chair of IPSA now, Richard, welcome to the pod, by the way, for what is it, six or seven years now.

Richard Lloyd: Thanks for having me. Yes, it's just over six years.

Mark D'Arcy: And Richard, we wanted to start just by giving our listeners an idea, because they won't necessarily be familiar with all this. Just what is the kind of package of salary and expenses available to Members of Parliament?

What is the pay [00:01:00] and what are the special provisions made for the fact that they have to operate both at a constituency and in Westminster, for example?

Richard Lloyd: Like nearly everyone in the public sector, they get a salary and a pension, but there's other things that we fund that allow MPs, enable MPs, to do their jobs in Parliament.

As you say Mark, they have to be in their constituency and they have to be in Westminster. So we'll enable them to do that, to be in two locations. If they have a constituency that's far away from Westminster, say, then we'll fund their travel and their accommodation in London so that they can do their jobs in Parliament and get back to their constituencies and serve locally.

The other thing though, which we are really seeing as probably the most important thing IPSA does these days, is to enable them to do their jobs by funding their staff. We fund the equivalent of about five people for each MP's office. We fund the physical offices that they work in and the equipment that they need, and that [00:02:00] forms the vast majority of the funding we put into enabling MPs to do their jobs. Full transcript →

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