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

May 19 2009 Liverpool Daily Post

Ben Chapman

How Wirral MP made his claims

THE allegations against Ben Chapman reveal how the Commons fees office encouraged MPs to maximise their claims.

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

According to the Daily Telegraph, he benefited to the tune of £15,000 over 10 months, between Dec, 2002, and Oct, 2003.

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

Until Dec, 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, he paid off £295,000 of the mortgage, cutting his monthly interest bill to £447. The interest charge was just £398 by April.

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 with an official: “We agreed that the mortgage should remain for ACA [Additional Cost Allowance] purposes at the original amount.”

Mr Chapman’s deal 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.