MPs' expenses: Wirral MP Ben Chapman’s fate hangs in balance

May 19 2009 Liverpool Daily Post

Ben Chapman

The allegations against Ben Chapman reveal how the Commons fees office encouraged MPs to maximise their expenses’ claims, rather than protect taxpayers’ money.

The MP has admitted deliberately claiming for interest payments on his entire mortgage, despite repaying £295,000 of the loan - but with the agreement of Commons officials.

According to the Daily Telegraph, he benefited to the tune of £15,000 over the ten months of the arrangement between December 2002 and October 2003.

Most ominously, it reported legal advice that the fact the arrangement was approved by the parliamentary authorities did not make it legal.

Until December 2002, Mr Chapman paid about £1,900 per month in interest on a £380,000 mortgage on the house, in Lambeth, south-east London, and claimed most of it back on his expenses.

Then, between over six weeks from December 2002, he paid off £295,000 of the mortgage, cutting his monthly interest bill to £447. The interest charge was down to £398 by mid-April.

According to the files seen by the newspaper, Mr Chapman wrote to the fees office, noting: "By paying off capital, I am forgoing interest and investment opportunities elsewhere".

Therefore, he wrote, following discussions officials with an official: "We agreed that the mortgage should remain for ACA [Additional Cost Allowance] purposes at the original amount."

In September 2003, when Mr Chapman was asked by another Commons official for proof of his mortgage arrangement, he pointed out that the statement would show he had been over-claiming with agreement.

He was told he should have reduced his claim, prompting this second official to write to colleagues that "Mr Chapman was very concerned to learn this, as it was in direct contradiction to the advice and agreement he had come to".

The following month, Mr Chapman submitted a new plan to the fees office, accepting the smaller mortgage interest claim, but apparently using the rest of the allowances on other items.

He estimated he would need £4,000 for food over 10 months, writing. "Since I live as a bachelor and eat out for every meal."

To July 2008, according to the files, Mr Chapman claimed about £94,000 in expenses for the house, including £7,645 for a new bathroom and builders’ and architects’ fees for work on his conservatory.

He was then allowed to remortgage the house to finance home improvements and claim the £600 per month extra mortgage interest on expenses.

His claims also included £1,230 on a fridge freezer, £780 on two televisions and a DVD player, £230 for a garden trellis and £149 for the insurance of jewellery and watches.

Mr Chapman’s deal with the fees office will add to criticism of Andrew Walker, the civil servant in charge, who described how he considered MPs "honourable members", whose expenses could be trusted.

Indeed, it is only in recent years, that MPs have even had to produce receipts for many of their purchases - and many resented such an intrusion.