'Beyond contempt': Higher expense claims draw criticism as homeowners face prospect of property tax hikes
Several government ministers, including energy secretary Ed Miliband, have submitted notably higher expense claims to cover council tax on their second homes — an issue likely to spark public anger as ordinary taxpayers face potential hikes in property taxes under proposals previously advanced by Chancellor Rachel Reeves.
According to recent data from the Independent Parliamentary Standards Authority (IPSA), which details MPs’ claims during the first two months of the 2025-26 tax year, Miliband claimed £3,285.90 in March for council tax on his Doncaster property - an increase of 108% compared with the £1,576.42 claimed at the same time last year.
Other ministers have also recorded substantial increases. Torsten Bell, pensions minister and MP for Swansea West since July 2024, claimed £6,119.48, the highest amount among MPs. This was up from a partial claim of £2,510.12 made in December for the previous tax year. Hilary Benn, Northern Ireland secretary and MP for Leeds South, submitted two claims of £432 each in April and May, more than double the average of his previous claims.
These increases follow changes introduced in April, when most councils in England began applying a 100% council tax premium to second homes, under legislation passed in 2023. Wales has had a similar premium since 2017. It was previously reported that MPs would be exempt from paying these higher bills directly, as their accommodation budgets were increased to offset the additional costs.
In a report by The Telegraph, John O’Connell, chief executive of the Taxpayers’ Alliance, commented: “It was beyond contempt that many of the same MPs who voted through the policy to allow these additional charges will now be completely shielded from the financial impact of it.”
Andrew Dixon, from the campaign group Fairer Share, added: “The unfairness of MPs receiving taxpayer-funded support for their council tax bills is symptomatic of a broader issue with our tax system – one that prioritises privilege over equity.”
Gaurav Shukla, of Home Me Mortgages, told Mortgage Introducer: "MPs should not be allowed to expense council tax. No ordinary employee has the ability to claim their council tax or household bills back, and the public rightly expects MPs to be held to the same standard. Having a second home is a privilege, and those costs should be met personally. Allowing them to continue to shift this burden on to taxpayers undermines fairness and damages public trust further."
The report also comes at a time when homeowners across the country are facing the prospect of higher or additional property taxes. A recent study examining public sentiment towards two major government proposals on property taxation found widespread scepticism among homeowners. Many expressed concern that the reforms could lead to greater financial pressure, particularly for retired and older working households who have already paid off their mortgages.
IPSA figures indicate that MPs claimed approximately £271,000 in council tax expenses in the first two months of the current tax year. There is no suggestion that any rules have been breached. MPs with constituencies outside London can claim up to £31,840 annually for accommodation, with an additional allowance of up to £6,870 for associated costs, including council tax.
“We provide funding for MPs to work from two places: Westminster and their constituencies,” an IPSA spokesperson stated. “We do this so being a member isn’t only an option for people wealthy enough to fund two properties themselves. We only reimburse costs for one home per MP, which must be either in their constituency or in London. Strict budgets are in place and must be adhered to.”
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