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MPs who lose their seat at the next general election will receive double the financial support following a ruling from parliament’s expenses watchdog.

MPs who suffer an election defeat have previously been entitled to two months of financial assistance to help close their office and manage the departure of staff.

But the Independent Parliamentary Standards Authority (IPSA), which governs MPs’ pay and expenses, has ruled this should be increased to four months.

The so-called winding-down payments will now also be made available to those who choose to stand down at the next election.

However, payments will not be given to MPs who step aside outside the election period, such as former prime minister Boris Johnson, who stood down in June.

The rule change means the winding-up payment will be paid to all MPs who leave parliament at the next election – whether they lose their seat, stand unsuccessfully in a new or different seat or stand down.

As of April this year, MPs are paid an annual salary of £86,584.

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IPSA’s ruling comes following the confirmation of 75 current MPs that they will not be standing at the next election – including 50 who were elected as Conservatives.

For Labour, 14 MPs are stepping down, while seven from the SNP will not seek re-election.

IPSA, which is an independent body, said it made the decision because the time to fully close down an MP’s parliamentary and financial affairs was longer than the time covered.

“Former MPs will continue to have access to their normal budgets [pro-rated] for that four-month period, and they will continue to employ staff as needed to assist them in winding up their affairs,” the ruling said.

As well as winding down payments, MPs who have served more than two years are also eligible for loss-of-office payments, with longer-serving MPs receiving larger amounts.

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Adam Boulton: 75 MPs to step down as ‘change election’ looms

Bob Seely, the MP for the Isle of Wight, criticised the move.

“I don’t think people resigning should be getting a payout,” he told TalkTV.

“But this is an independent body, I’m afraid to say we don’t get to vote on it unless somebody tells us that we do, and frankly, I am more concerned about dealing with my constituency casework.

“So I’m not particularly happy about this either because it just shows us in a bad light and despite the fact it’s an independent body, everyone is going to blame us for it.

“It really winds me up, frankly.”

John O’Connell, chief executive of the TaxPayers’ Alliance, echoed his concerns, saying: “Doubling golden goodbyes for MPs is a kick in the teeth for taxpayers.”

He added: “Hard-pressed Brits are already funding generous salaries, perks and pensions for elected officials.

“IPSA should be mindful of that when recommending more taxpayers’ money for politicians.”

A report by parliament’s Commons Administration Committee in February found that Westminster’s payouts to MPs compared poorly with comparable international democracies.

The median loss-of-office payment for MPs who were defeated in the 2019 general election was £5,250 – equivalent to less than one month of their then £84,144 salary – with the amount paid depending on the length of service.

By comparison, an ousted MP in Germany who has served for 18 years qualifies for £162,360 compensation, while outgoing Australian MPs can expect to receive either £31,455 or £62,909, depending on length of service.

The payments, similar to redundancy packages, will be available to all eligible MPs who leave parliament at the next election.

Separately, severance payments for outgoing prime ministers have been criticised recently after Liz Truss received £18,660 despite serving in office for just 49 days.

Her chancellor, Kwasi Kwarteng, received £16,876 after he was forced to resign following his mini-budget, which caused turmoil in the financial markets.

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SEC silent on Canary Litecoin ETF amid gov shutdown

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SEC silent on Canary Litecoin ETF amid gov shutdown

SEC silent on Canary Litecoin ETF amid gov shutdown

The US Securities and Exchange Commission has seemingly missed its decision deadline for the Canary Litecoin ETF, adding to uncertainty amid a government shutdown and new generic listing standards.

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European Central Bank picks tech partners for digital euro

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European Central Bank picks tech partners for digital euro

European Central Bank picks tech partners for digital euro

The ECB said it had reached agreements with seven entities not yet involving “any payment” responsible for components of the digital euro, potentially launching in 2029.

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Michelle Mone says she won’t step down as Tory peer – and accuses chancellor of ‘endangering’ her

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Michelle Mone says she won't step down as Tory peer - and accuses chancellor of 'endangering' her

Baroness Michelle Mone says she will defy calls for her to step down from the House of Lords after PPE Medpro, a company founded by her husband, was ordered to repay £122m to the government for providing faulty PPE at the height of the COVID-19 pandemic.

The peer has faced calls to stand down from MPs across the political spectrum, including Chancellor Rachel Reeves, who earlier this week agreed with Baroness Mone’s contention that the government was pursuing a “vendetta” in trying to recover improper Covid funding.

“Too right we are,” she said in comments at the Labour Party conference.

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Baroness Mone ‘should resign’

In an extraordinary letter to the prime minister, Baroness Mone has accused Ms Reeves of endangering her and her family with her comments, citing the murders of Jo Cox and David Amess as evidence of the risks facing parliamentarians.

She also alleged ministerial interference in the civil and ongoing criminal investigations of PPE Medpro, and has called for an investigation into whether ministers have “improperly influenced” the Crown Prosecution Service and the National Crime Agency.

In the letter, sent from the private office of Baroness Mone OBE and seen by Sky News, she addresses the prime minister directly, writing in a personal capacity “first as a wife, second as a mother, and lastly as a Baroness.”

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£122m bill that may never be paid

Referring to Ms Reeves’ comments, she writes: “The chancellor’s deliberate use of the term “vendetta”, a word connoting vengeance, feud and blood feud, is incendiary and has directly increased the risks to my personal safety…. My family and I now live with a heightened and genuine fear of appearing in public.”

She goes on to accuse Reeves and health secretary Wes Streeting of “falsehoods” in demanding that she hand back £122m, pointing out that she was never a director of PPE Medpro and “never received a penny from it personally.”

While the company was founded by her husband Doug Barrowman, a High Court judgement this week confirmed that Baroness Mone introduced it to the government’s VIP fast lane for PPE providers, and lobbied on its behalf in negotiations.

She has previously admitted that £29m of profit from the PPE contract was passed to a family trust of which she and her children are beneficiaries.

The peer has also accused the Prime Minister of “a total lie” when “you stated in Parliament that my children had received £29m into their bank accounts.”

Baroness Mone said that following these comments, she had received threatening and abusive communications, and cited the death of TV presenter Caroline Flack, who took her own life, as showing “the fatal consequences of personalised public vilification”.

“Your cabinet members, by repeating this knowingly false claim, are inciting hostility and inflaming public hatred against me.”

Baroness Michelle Mone and her husband Doug Barrowman. Pic: PA
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Baroness Michelle Mone and her husband Doug Barrowman. Pic: PA

She has also accused the home secretary of influencing the NCA and Director of Public Prosecutions in unspecified meetings to discuss “high-profile cases”.

“That political influence is being brought to bear is, therefore, undeniable,” she said.

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On Wednesday, PPE Medpro was ordered to repay £122m paid for 25 million surgical gowns that failed to meet sterility standards in breach of its contract with the Department of Health and Social Care.

PPE Medpro was put into administration the day before the judgment, with assets of just £666,000.

Asked if Baroness Mone would step down from the Lords, a spokesman said: “Those calling for Baroness Mone’s resignation from the House of Lords would be well advised to read the open letter sent this morning to the prime minister, which sets out how this has now become a personal attack and vendetta, politically motivated with loss of all balance and objectivity.”

Sky News has asked Number 10 and the Treasury for a response to the allegations made by Baroness Mone.

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