MEP pay and expenses explained

For a long time, the MEP expenses system was based largely on trust. Like in any system that is administered by those who benefit from it, it was abused by many and lacked the transparency and accountability needed to foster confidence.

After the European election of 2009, the European Parliament introduced a new statute governing MEP expenses. These changes are welcome and the system is slowly being more transparent but I want to go further.

During my election campaign to the European Parliament in 2009, I committed to publishing my expenses regularly, making them available to all. I don't want my pay and expenses to be a secret - after all, it is your money and it is being spent on work done on your behalf.

So here I want to explain MEP pay and expenses and give you the opportunity to look at how I use this money to carry out my work for Scotland.

So, what are MEPs paid?

Prior to July 2009, MEPs were paid at a rate equivalent to MPs in the country they represent, leading to huge pay discrepancies between MEPs

All MEPs within the new statute are paid an annual salary of €91,980. This salary level is based on 38.5% of the basic salary of a judge at the European Court of Justice.

The cost is met from the European Parliament's budget and is subject to an EU tax and accident insurance contribution, after which the monthly salary is €5,963. UK MEPs also pay National Insurance contributions under the UK system and the difference between EU and national tax.

When the new equal salary arrangement was voted upon it would have represented a decrease in wages for UK MEPs. However, changes in the exchange rate mean this is not the case at present. The monthly salary received will vary according to the monthly exchange rate for countries outside the eurozone.

What about MEP expenses?

The European Parliament's total budget represents about 1% of all EU expenditure. One fifth of that 1% is allocated to MEPs total expenditure at present. Each Member of the European Parliament is entitled to claim the following allowances, which are paid from the Parliament's budget.

General Expenditure Allowance

From 2009, this allowance is €4202 per month. It is used for expenditure such as constituency office rent, telephone and postal charges, and IT costs. The allowance is halved if an MEP fails to attend at least half of the Strasbourg plenary sessions, without seeking prior permission and having reasonable cause.

I am making available all receipts for major items of expenditure in line with what I promised during my election campaign to the European Parliament.

Parliamentary Assistance

The maximum payment at present is €17,540 per month. This has to be spent on "human resources", staff who are employed to help me in my Parliamentary work. This can cover staff employed on a long-term or temporary basis, and other costs such as consultancy and research.

It also covers all the related costs such as national insurance, tax, pension, training and staff expenses should they be asked to travel to my European office. MEPs can also use it to cover expenses for those on work experience. Members have to demonstrate to Parliament's authorities that staff are covered for tax and social security payments.

Under the old system, MEPs were responsible for paying their staff directly, effectively setting up their own business. This was a system open to abuse.

Under the new rules, Parliamentary Assistance Expenses cannot be paid directly by the MEPs themselves. Therefore, I have employed the services of Milne Craig Accountacy firm to administer the contracts and pay of my staff who are based in Scotland.

My contract with Milne Craig is regulated by the Parliamentary authorities. At the end of each financial year they will provide me with a detailed account of the monies received for Parliamentary Assistance to ensure that I have complied with all rules governing MEP allowances.

The contracts for my Brussels based staff are administered and paid directly by the Parliament.

I currently have four full-time members of staff - two based in my constituency in Glasgow, one in Brussels and an office manager who works between those offices.

Daily Attendance Allowance

For any day that we attend an official Parliament meeting or are present at an EU institution during an official working day for work purposes, MEPs are paid an attendance allowance of €298.

This is used to cover all expenses such as hotel rooms and/or flat rental, meals, and transportation.

Travel Allowance

This allowance is for travel to Parliament both in Brussels and in Strasbourg and for official meetings.

Liberal Democrats have been at the forefront of efforts to change the previous system of a flat rate travel allowance and this has now been abolished. Under the new rules, on presentation of receipts MEPs are refunded the actual cost of their travel tickets plus time and distance allowances for attending official Parliamentary meetings.

Personal Travel Allowance

Each member has a personal travel allowance of €4,148 a year to enable them to accept invitations outside our usual places of work or make their own fact-finding journeys outside their own Member State. We can claim the real-costs by presenting the appropriate proofs and invitation if relevant.

My expenses

Documents and receipts for my expenses have been scanned electronically to make information on my allowances available online. Please follow the links of the expenses form to see the receipts.

July 2009 - January 2010