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Pay review to be accelerated as expenses rise

A SLEAZE watchdog was poised last night to bring forward its inquiry into MPs’ pay and perks as fresh controversy and a £5m increase in expenses claims sparked calls for an urgent shake-up.

Members of the Committee on Standards in Public Life were said to be "minded" to accept calls from party leaders, including Gordon Brown, that their review - not due to start until September - be brought forward.

Pressure for change mounted as the Prime Minister defended under-pressure Home Secretary Jacqui Smith over revelations that her taxpayer-funded allowances were used to pay for adult films watched by her husband.

The delayed publication of official figures showed the total bill to the public purse for MPs’ allowances rose around 6% last year.

News that MPs would get a 2.33% pay rise added yet more momentum.

In a letter to the committee’s chairman Sir Christopher Kelly, Mr Brown requested that he "both start and conclude the review earlier to make progress on this issue as soon as practical".

And he urged the committee to look at the possibility of scrapping the controversial second-home allowance - for which two ministers, including Ms Smith, are under investigation - in favour of a simpler system.

London MPs should be prevented from claiming for second homes altogether, he suggested, and others moved to "a simpler, overnight allowance that is independently determined".

The Prime Minister’s letter was published after Tory leader David Cameron and Liberal Democrat leader Nick Clegg renewed their calls for a more urgent review of the system. A committee spokeswoman said members were "minded" to do so, although they were concerned not to repeat the previous mistakes of over-hasty piecemeal changes. A formal announcement is expected today.

The House of Commons figures showed the total amount claimed by 646 MPs in 2007/08 was just over £93m - some 6% up on last year’s £87.6m. It was also announced MPs will receive a pay rise of 2.33% from April 1, bringing their salary - before allowances to £64,766.

But Downing Street said ministers’ salaries would be frozen to show solidarity with hard-pressed workers hit by the recession.

The figures showed that more than 150 MPs claimed the maximum £23,083 to cover the cost of staying away from home on parliamentary business.

Ms Smith received £22,948 towards the cost of running her family home in her Redditch constituency - a claim which has sparked an investigation by another Westminster watchdog.

Click here to read more on the MPs' expenses

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