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Iain Duncan Smith
Iain Duncan Smith has previously backed pre-paid cards for benefits claimants to control their spending. Photograph: Rob Stothard/Getty Images
Iain Duncan Smith has previously backed pre-paid cards for benefits claimants to control their spending. Photograph: Rob Stothard/Getty Images

Iain Duncan Smith among 19 MPs to have official credit card suspended

This article is more than 8 years old

Work and pensions secretary and his opposite number, Rachel Reeves, among MPs subject to action after failing to show spending was valid

Iain Duncan Smith had his official credit card suspended after running up more than £1,000 in expenses debts, it can be revealed. The work and pensions secretary was among 19 MPs subject to action by the Independent Parliamentary Standards Authority (Ipsa) after failing to show spending was valid.

The details, disclosed in response to a freedom of information (FoI) request submitted by the Press Association, are likely to prove embarrassing for Duncan Smith, who has previously backed prepaid cards for benefits claimants to control what they can spend their money on.

The senior cabinet minister is responsible for identifying £12bn of welfare cuts and the benefit sanction regime, which cuts off payments for more than a month at a time for failing to meet certain criteria. It has been criticised by the Commons work and pensions committee for causing severe hardship, sometimes when people are penalised for relatively minor breaches.

According to the FoI response, Duncan Smith’s card was blocked when he owed £1,057.28. He does not currently have any debt.

A spokesman for the Department for Work and Pensions said it looked like it was an error by Ipsa, while suggesting the watchdog had apologised. But a spokesman for Ipsa said it was not a mistake and Duncan Smith’s card had indeed been cut off earlier this year. The watchdog said it had separately made a mistake in relation to the work and pensions secretary’s expenses in May.

While IPSA several times confirmed to the Guardian that the FOI information was correct, a spokesman for Duncan Smith insisted it was a mistake by the watchdog. “Iain has not had his card suspended. IPSA have confirmed twice in writing that this issue was an error on their part. To be clear, no money is owed,” she said.

MPs are issued with credit cards by Ipsa to cover expenses such as travel and accommodation. They then have to prove the spending was genuine by the end of the month, or they build up debts to the watchdog.

According to the FoI response, Ipsa suspended the cards of 19 MPs since the beginning of this year because they had not settled outstanding sums. The debts were then recouped by not paying out valid claims filed by the politicians.

Others to have their cards suspended included Duncan Smith’s Labour opposite number, Rachel Reeves, who owed £4,033.63 at the time. Shadow business minister Toby Perkins was subject to action when he owed £693.30.

Health minister Ben Gummer had his card stopped with £1,290.07 outstanding, defence minister Mark Lancaster had a £600 tab, and former universities minister David Willetts owed £1,172.05.

Disgraced former Labour MP Eric Joyce, who assaulted a colleague in a Commons bar in 2012, had his card blocked when he owed £12,919.61, and later had his salary docked.

Liberal Democrat Simon Hughes had a stop placed on his card when he owed £826.56.

All have since cleared their debts.

Ipsa also released information about 25 MPs who had sums outstanding as of this week.

DUP MP Ian Paisley Jr owed £13,833.38 on 29 June. He previously had his card blocked when his tab hit £6,195.94. Lib Dems Stephen Gilbert and Mike Crockart had their cards stopped when they owed £2,925.76, and £720.64 respectively. Gilbert owed £13.50 this week and Mr Crockart £90.

An Ipsa spokesman stressed that the debts from 29 June were a “snapshot” and in many cases could merely be awaiting evidence from MPs that they were valid claims.

“An MP may owe an amount to Ipsa for many different reasons, and the fact that an amount is owed does not, in itself, indicate any misuse of the MPs’ scheme of business costs and expenses,” the spokesman said.

“As part of our credit management programme, MPs are sent financial statements detailing their monthly position with Ipsa. Where MPs have amounts owed to Ipsa, action is taken to recover these amounts.”

Here is a full list of the MPs who have had their payment cards temporarily suspended by Ipsa since 1 January this year.

MPs – and amount owed when their card was suspended

Ben Gummer – £1,290.07
Brian Binley – £575.02
David Willetts – £1,172.05
Debbie Abrahams – £2,586.90
Eric Joyce – £12,919.61
Iain Duncan Smith – £1,057.28
Ian Liddell-Grainger – £1,023.94
Ian Paisley Jr – £6,195.94
Jack Dromey – £1,328.46
John Woodcock – £1,756.13
Mark Lancaster – £600.00
Mike Crockart – £720.64
Pamela Nash – £6,929.29
Paul Farrelly – £213.00
Rachel Reeves – £4,033.63
Simon Danczuk – £3,645.67
Simon Hughes – £826.56
Stephen Gilbert – £2,925.76
Toby Perkins – £693.30

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