The “golden goodbye” payments for three MPs facing criminal charges over their expenses will be suspended until after legal proceedings, Commons Speaker John Bercow said last night.
Elliot Morley, Jim Devine and David Chaytor would have been entitled to resettlement grants on stepping down from the Commons at the general election, it emerged at the weekend.
All three Labour MPs, who earlier yesterday had the party whip suspended, deny allegations of false accounting, and have pledged to defend themselves “robustly”.
Last night, Mr Bercow wrote to Clerk of the House Malcolm Jack telling him to “suspend any payments which would otherwise be due and attributable to the resettlement grant in any case where criminal proceedings are brought in relation to any claim for expenses until the criminal proceedings have been finally disposed of”.
MPs are entitled to payoffs of up to £65,000 when they leave parliament at an election, depending on their age and length of service.
Under new rules expected to be passed over the next few days, members who refuse to hand over money demanded by Sir Thomas Legg’s audit of expenses from 2004-08 will face having the money docked from any pay, allowances or grants due.
Mr Morley, Mr Devine and Mr Chaytor were not examined as part of the process because a police investigation was already under way – potentially making efforts to claw back cash more difficult.
Mr Bercow said Friday’s announcement by the Crown Prosecution Service that charges were being brought had forced a re-examination of the situation.
Given that the three cases had not been examined by the Legg Review, he said, “the House itself may wish to consider the Members’ conduct once the criminal proceedings are concluded”.
“In such cases, it is necessary to take sensible precautions to ensure that any restitution can effectively be made.”
Mr Chaytor, Mr Morley, Mr Devine and Lord Hanningfield are all charged with counts of false accounting in their expenses claims.
They will appear in court on March 11 and, if found guilty, could face up to seven years in jail.
Tory leader David Cameron came in for criticism for his outspoken attack on the three MPs’ attempts to avoid prosecution by citing privilege.
He said the move had provoked “disgust” and has asked shadow leader of the House draft legislation to clarify the rules and prevent the principle being misused.
Downing Street said the government would also legislate to clarify the situation if it proved necessary.
But Labour figures suggested Mr Cameron risked prejudicing court proceedings.
Commons leader Harriet Harman said: “He’s got to be very careful what he says or his comments might actually jeopardise the trial, and nobody wants to see that happen.”