In a revelation that threatens to undermine Labour's credibility on expenses reform, newly-appointed deputy leader Lucy Powell finds herself at the centre of a growing controversy over MPs' property claims.
The £30,000 Westminster Flat Scheme
Five Labour MPs, including prominent frontbencher Powell, are collectively charging taxpayers approximately £30,000 per year to rent London flats to parliamentary colleagues. This arrangement persists despite Labour's explicit 2014 promise to crack down on such practices.
Powell, who represents Manchester Central, claims around £6,000 annually for renting her Westminster flat to fellow Labour MP Jeff Smith. The arrangement sees public funds transferred between colleagues while both benefit from taxpayer-supported accommodation.
Broken Promises and Political Hypocrisy
The situation becomes particularly contentious given Labour's strong stance against MPs profiting from property claims just a decade ago. In 2014, the party's then-leader Ed Miliband pledged to ban MPs from renting properties to each other at public expense, declaring the practice "doesn't pass the test with the public".
Current Labour leader Keir Starmer has positioned himself as a reformer promising higher standards in public life, yet several members of his top team continue to benefit from the very arrangements his predecessor vowed to eliminate.
The Landlord MPs Club
Analysis of parliamentary records reveals four other Labour MPs operating similar arrangements:
- Jeff Smith rents to Powell in a reciprocal arrangement
- Other senior figures benefiting from inter-MP rental claims
- Multiple properties funded through parliamentary expenses
- Collective annual cost to taxpayers approaching £30,000
Defending the Indefensible?
When confronted about her claims, Powell's office stated the arrangements are "fully within IPSA rules" and properly declared. However, critics argue that while technically permissible, such practices undermine public trust and contradict Labour's previous reform commitments.
The controversy emerges as many constituents face their own housing crises, with rising rents and mortgage costs putting enormous pressure on household budgets across the UK.
A Pattern of Problematic Property Claims
This isn't the first property-related controversy for Powell. In 2022, she faced questions over claiming £2,700 monthly for a London flat while her family home remained just outside the capital. Such repeated incidents have led to accusations of MPs treating the expenses system as a supplementary income stream rather than essential support for their parliamentary duties.
As Labour positions itself for government, these revelations threaten to damage the party's carefully crafted image of integrity and accountability. With the public increasingly sceptical about politicians' financial arrangements, the rental claims controversy represents a significant challenge for Starmer's leadership team.
