Parliamentary authorities, overseen by Michael Martin, the Speaker, gave secret permission for some MPs to over-claim for thousands of pounds in home loan interest in deals that led to the systematic abuse of the taxpayer-funded expenses system.
Ben Chapman, a Labour MP, admitted last night that he was allowed to continue claiming for interest payments on his entire mortgage after repaying £295,000 of the loan in 2002.
Over 10 months the arrangement allowed Mr Chapman to receive £15,000 for the part of the home loan which had been paid off. Last night, he said he would not give back the money.
Permission to claim “phantom” mortgage payments is understood to have been offered to several MPs before 2004. It was stopped after Commons officials admitted it should never have been allowed. Michael Martin has been Speaker since 2000 and was therefore ultimately responsible for the arrangements – which has never been independently investigated.
He will make a statement today on the growing expenses scandal after a sustained attempt by MPs to unseat him.