House of Commons Members’ Fund (No. 2) Bill — House of Commons, 2016-03-04
Topic: Government Operations
Alexander Paul Beresford (Conservative, Centre-right): I beg to move, That the Bill be now read the Third time This is a little Bill—actually, it is a little littler than when it went into Committee—that will amend provisions for the House of Commons Members’ Fund. I extend my thanks to the numerous hon. Members, especially the trustees, and the Minister, who have supported the Bill through its various stages. I also thank the various officials who have supported it, including the actuary who helped my hon. Friend the Member for Christchurch (Mr Chope) and me to enable a distinct change to be made that will free the fund from the Treasury or, to put it another way, free the Treasury from the fund I suspect that few Members who are not trustees will be aware of the fund, apart from through the note about a small deduction on their monthly payslip from the Independent Parliamentary Standards Authority. The fund was established before the second world war, when there was no parliamentary pension to help former Members who had fallen into financial difficulties. It was used to top up pensions for the widows of Members who had left the House when widows received a lower entitlement, and has been used for a few isolated cases of hardship among former Members As the House will recognise from that description, as time has passed, the demand has dropped. In the last financial year the payments worked out at £137,000, but over the years the fund has grown to a considerable sum of approximately £6.5 million. At present, the fund is drawn from compulsory contributions from Members, earnings from its investments and an annual contribution from the Treasury of £215,000 Thanks to my hon. Friend the Member for Christchurch, the Treasury contribution will cease. That follows a suggestion that he made to that end. An actuarial estimate of the fund was undertaken, and hence his amendments were accepted in Committee. They will remove the requirement for the Treasury to donate to the fund The Bill will remove the requirement under the existing primary legislation for Members to make monthly contributions of £2. In effect, the trustees will be empowered to cease deducting contributions. Given the figures I have just stated, I suspect that they intend to do so immediately following Royal Assent, since the fund has, to put it simply, a considerable surplus. However, the Bill enables the trustees to recommend the resumption of contributions, if it is needed, up to a maximum of 0.2% of pay. The trustees may, if they wish, return any surplus funds to the Treasury. The trustees have requested that discretion The Bill will permit the acceptance of bequests and allow the trustees to make arrangements under which a commercial institution would undertake the commitments and/or liabilities of the fund. The Bill will extend the class of beneficiaries to all dependants of former Members who experience severe hardship. The Bill will also remove the requirement for trustees to be current MPs. I am sure the House will agree that it seems sensible for the trustees to ask, for example, the Association of Former Members of Parliament to nominate one trustee. In addition, this provision will enable the trustees to get over the problem that arises when a number of Members who are trustees lose or vacate their seats at a general election. The Bill will allow such former MPs to remain as trustees temporarily, until they are replaced formally As I have said, this is a little Bill that tidies up the arrangements for the trustees in today’s world. I commend it to the House.