Rachel Reeves, the Chancellor, has been criticized for claiming over £10,000 in council tax expenses for her second home. Since 2019, she has used taxpayer money to cover £10,880 in council tax bills, which has sparked a debate about whether this practice is fair. Critics argue it may follow the rules, but it raises moral concerns, especially during a cost-of-living crisis that is affecting millions of ordinary people.
A deeper investigation by *The i* revealed that 41 Labour ministers have claimed council tax expenses for their second homes since 2019.
Business Secretary Jonathan Reynolds claimed the highest amount, totaling £14,821, followed by senior figures like Deputy Prime Minister Angela Rayner (£7,822) and Energy Secretary Ed Miliband (£7,240).
These figures, despite being well-paid, have been accused of not understanding the financial struggles faced by people on modest incomes. Critics say the system gives MPs financial protection that ordinary people don’t have.
Dennis Reed, the director of the Silver Voices Pensioners’ group, expressed concern, saying that MPs appear out of touch with the real impact of rising costs on everyday people. He called it “morally questionable” for ministers earning high salaries to claim such large sums of money, even if it’s allowed by the rules.
Rules allow MPs, especially those representing constituencies outside London, to expense council tax, rent, and other costs related to one rented home. This helps them manage the financial burden of working in two locations.
However, data from the Independent Parliamentary Standards Authority (IPSA) shows the overall cost to taxpayers is significant. In the 2023-24 financial year, MPs claimed £506,000 in council tax expenses, up from £480,000 the previous year. Since 2019, taxpayers have paid a staggering £2.6 million to cover MPs’ council tax expenses for rented homes.
Labour ministers are not the only ones using this system. On the Conservative side, Tory leader Kemi Badenoch claimed £11,900 in council tax expenses since the last Parliament began, while Shadow Chancellor Mel Stride claimed £11,100.
In total, eight members of the Conservative Shadow Cabinet claimed council tax expenses, amounting to about £13,000 in the 2023-24 period alone.
Labour defended the practice, saying it is a standard part of the rules set by the Independent Parliamentary Standards Authority.
A Labour spokesperson explained that MPs are entitled to claim these costs because they work from two permanent locations. They emphasized that MPs still pay their utility bills and other costs for their personal homes, just like everyone else.
While the practice is allowed, the growing backlash highlights the divide between MPs and the public. Many believe that claiming such high amounts, especially during a time when ordinary families are struggling with higher living costs, is hard to justify, even if it follows the rules. Critics argue that MPs should lead by example and avoid making claims that seem unfair to taxpayers.
