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Old 3rd Jun 2015, 17:08
  #21 (permalink)  
NutLoose
 
Join Date: Feb 2006
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Without wanting to sound disrespectful,
One wonders if Charles Kennedy's resettlement allowances will be paid now he is no longer with us, as I should imagine they take a while to get sorted and paid.

Resettlement Grant

The Resettlement Grant is the name given to the MPs severance pay package. It may be claimed to help former MPs with the costs of adjusting to nonparliamentary life. It is payable to any Member who ceases to be an MP at a General Election. The amount is based on age and length of service, and varies between 50% and 100% of the annual salary payable to a Member of Parliament at the time of the Dissolution.[8]

In the UK the first £30,000 of severance pay is tax free. The amount retiring MPs, or those who lose their seats receive depends on how old they are and how long they have served in the House. For example. an MP who stays in office for one term (say 5 years) and then leaves office will currently receive tax-free severance pay of 50% of his current salary, or £32,383 at current rates - equivalent to an annual salary increment of over £12,000 at current tax rates and pay scales.[9]

For the 2010-2015 Parliament, only MPs defeated in their attempt to be re-elected will get one month’s salary for each year served, up to a maximum of six months or over £33,000. From the start of the 2015 Parliament, it will be replaced by a "Loss of Office Payment", at double the statutory redundancy payment. "For the 'average' MP, who leaves office with 11 years' service, this may lead to a payment of around £14,850."[10]
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