Question to the Cabinet Office:

To ask His Majesty's Government, further to the Written Answer by Baroness Neville-Rolfe on 23 October 2023 (HL10740), how the National Audit Office, in assessing the use of the Public Costs Duty Allowance (PCDA) for audit purposes, distinguishes between the costs of paying staff, travel, and accommodation expenses, incurred (1) as a result of political and commercial projects, including political activity overseas, and (2) costs which arise wholly and exclusively as a result of being an ex-Prime Minister, excluding commercial or political activities; and what consideration they have given to publishing a summary of PCDA claims showing different categories of expenditure on a regular basis.

Answered by Baroness Twycross - Baroness in Waiting (HM Household) (Whip)

The National Audit Office is independent of the government.

Former Prime Ministers submit invoices to the Cabinet Office setting out their claims. This information is used by the Cabinet Office for auditing and assurance purposes and is made available to NAO.

Most of the claims are used to cover the salaries of the staff that work in the offices of the former Prime Ministers. These staff are not civil servants, and it would therefore not be appropriate for the Cabinet Office to publish any further detail.

Question to the Cabinet Office:

To ask His Majesty's Government whether they intend to undertake a review of the Public Duty Costs Allowance.

Answered by Baroness Twycross - Baroness in Waiting (HM Household) (Whip)

The Public Duty Costs Allowance (PDCA) has a limit of £115,000 per year. The limit is reviewed annually and at the start of each Parliament; the government is currently in the process of reviewing the limit and will publish the outcome in due course.

There are no current plans to review the PDCA more widely.

Question to the Cabinet Office:

To ask His Majesty's Government whether visits to the Republican Convention by former Prime Ministers could qualify for expenditure under the Public Duty Costs Allowance; and what further information they can provide on claims made under the scheme.

Answered by Baroness Twycross - Baroness in Waiting (HM Household) (Whip)

The Public Duty Cost Allowance (PDCA) is not paid to support private duties, nor is it used for security purposes.

Further details about the PDCA are on gov.uk at the following web link:

https://www.gov.uk/government/publications/public-duty-cost-allowance.

Annual payments are published in the Cabinet Office Annual Report and Accounts. The most recent report is available on gov.uk at the following web link:

https://www.gov.uk/government/publications/cabinet-office-annual-report-and-accounts-2022-23.

Question to the Cabinet Office:

To ask His Majesty's Government, further to the Answer by Baroness Neville-Rolfe on 21 November 2022 (HL Deb, col 1170), whether they update the House on claims made as a result of the Public Duty Costs Allowance (PDCA); when and how a review of the PDCA will take place; and how the National Audit Office is able to distinguish between the costs of paying staff, travel, and accommodation expenses etc. occurring as a result of them working on commercial projects such as memoirs, paid speaking engagements etc. and costs which arise wholly and exclusively as a result of being an ex-Prime Minister.

Answered by Baroness Neville-Rolfe - Shadow Minister (Treasury)

The Public Duty Cost Allowance is specifically reviewed by the National Audit Office (NAO) as part of its annual audit of the Cabinet Office. The 2022-23 NAO audit review was completed in October 2023. The 2023-24 audit review will commence in May 2024.

The offices of the former Prime Ministers receive guidance which stipulates what type of expenses can be reimbursed by the Allowance. Claims, including those for office staff time, are then received by Cabinet Office Finance and include supporting evidence showing how much is related to the Allowance and how much is not.

I would note that the same audit provisions applied when former Liberal Democrat Deputy Prime Minister, Nick Clegg, claimed the Allowance.

Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, whether former Prime Ministers in receipt of the Public Duty Costs Allowance were required to notify his Department by 31 March of the total costs they intended to claim in the 2022/23 claim year; and whether any costs to be claimed in the 2022/23 claim year were notified to his Department after that date.

Answered by Alex Burghart - Shadow Chancellor of the Duchy of Lancaster

In the 2022/23 financial year, all PDCA claims from the offices of the former Prime Ministers were received by the department in time for our 31st March financial cut off.

Full disclosure of the 2022/23 amounts will be published in the Cabinet Office Annual Report and Account 2022-23 which will be published later in the year.

Question to the Cabinet Office:

To ask His Majesty's Government what plans they have for taxpayer funded legal costs for former Prime Minister Boris Johnson in relation to his investigation by the House of Commons Privileges Committee to be set against any claims he should make from the Public Duty Costs Allowance.

Answered by Baroness Neville-Rolfe - Shadow Minister (Treasury)

There are no such plans. There is an established precedent across multiple administrations that former Ministers may be supported with legal representation after they have left office when matters relate to their time and conduct as a Minister. The Public Duty Cost Allowance exists for a different purpose.

I refer the Noble Lord to the transcript of the Public Administration and Constitutional Affairs Committee meeting on 26 January 2023, where Alex Chisholm, the Permanent Secretary of the Cabinet Office, provided oral evidence on this matter: https://committees.parliament.uk/oralevidence/12604/pdf/ (Q299-315).

Question to the Cabinet Office:

To ask His Majesty's Government when the next review of the Public Duty Costs Allowance will take place; who will be consulted; what plans they have for recipients to be required to declare their claims upon the fund in a similar fashion to MPs; and whether the review will examine how the use of the allowance for public duties can be distinguished from costs incurred in (1) making fee paying speeches or (2) publishing books.

Answered by Baroness Neville-Rolfe - Shadow Minister (Treasury)

The Public Duty Costs Allowance was introduced to assist former Prime Ministers who are still active in public life. It has operated under successive administrations, including the last Labour Government and the Coalition Government. Exceptionally, a total of £444,775 was paid to the former Liberal Democrat Deputy Prime Minister, Sir Nick Clegg, before he became a senior executive at Facebook.

The allowance is reviewed annually by the Government. The allowance has an annual limit of £115,000, which has remained frozen since 2011. The amount received by each claimant is published annually in the Cabinet Office Annual Report and Accounts.

It is not a form of salary; payments are made only to reimburse actual administrative costs incurred in the fulfilment of public duties. Generally, these costs can include managing an office (staffing, payroll and administration); handling correspondence as a former Prime Minister; and support with visits and similar activities. Invoices are submitted to the Cabinet Office to cover relevant costs. In this light, no review of the matters of (1) or (2) is required.

Question to the Cabinet Office:

To ask the Minister for the Cabinet Office, if he will make an assessment of the potential merits of bringing forward legislative proposals to require that (a) former Prime Ministers must have served a minimum of 12 months in post before becoming eligible for the Public Duty Costs Allowance (PDCA), (b) the PDCA can only be claimed for 10 years and (c) claims for the PDCA are published.

Answered by Jeremy Quin

The Public Duty Costs Allowance was introduced to assist former Prime Ministers who are still active in public life. It has operated under successive administrations and continues to support Prime Ministers who formed previous governments.

It is not a form of salary; payments are made only to reimburse actual administrative costs incurred in the fulfilment of public duties. Generally, these costs can include managing an office (staffing, payroll and administration); handling correspondence as a former Prime Minister; and support with visits and similar activities.

The allowance has an annual limit of £115,000, which has remained frozen since 2011. The amount received by each claimant is published annually in the Cabinet Office Annual Report and Accounts.

The Government keeps the allowance under review.

Question to the Cabinet Office:

To ask His Majesty's Government, further to the answer by Baroness Neville-Rolfe on 21 November (HL Deb col 1170) concerning the Public Duty Costs Allowance (PDCA), and the statement that the “Government keep these matters under review and that the level of the limit is reviewed by the Prime Minister, at the start of a Parliament and annually”, when the next review of the PDCA will take place; on what basis the review of the PDCA will be undertaken; and who will be consulted.

Answered by Baroness Neville-Rolfe - Shadow Minister (Treasury)

The review of the Public Duty Costs Allowance is undertaken by the Prime Minister at the start of a Parliament and annually. It is for the Prime Minister to consider the level, operation and coverage of the allowance. This review will take place in due course.

Question to the Cabinet Office:

To ask His Majesty's Government, further to the answer by Baroness Neville-Rolfe on 21 November (HL Deb col 1170) concerning the Public Duty Costs Allowance (PDCA), and the statement that the “Government keep these matters under review and that the level of the limit is reviewed by the Prime Minister, at the start of a Parliament and annually”, whether the next review will consider transferring responsibility for the PDCA to the Independent Parliamentary Standards Authority (IPSA) to operate in a similar fashion to the way in which MPs expenses and allowances are regulated under the “Scheme of MPs’ Staffing and Business Costs”, designed to ensure MPs are reimbursed for costs incurred in the performance of their parliamentary functions; and whether similar details of claims made using the PDCA will in future be made public along similar lines to the way in which MPs allowances and expenses are published.

Answered by Baroness Neville-Rolfe - Shadow Minister (Treasury)

The review of the Public Duty Costs Allowance is undertaken by the Prime Minister at the start of a Parliament and annually. It is for the Prime Minister to consider the level, operation and coverage of the allowance. This review will take place in due course.

Question to the Cabinet Office:

To ask His Majesty's Government, further to the answer by Baroness Neville-Rolfe on 21 November (HL Deb col 1170) concerning the Public Duty Costs Allowance (PDCA), and the statement that the “Government keep these matters under review and that the level of the limit is reviewed by the Prime Minister, at the start of a Parliament and annually”, whether the Prime Minister is entitled to set the level of allowance which would be available to that Prime Minister after ceasing to occupy that role; and whether the Prime Minister remains able, at their discretion, to make the PDCA available to former Deputy Prime Ministers, or other ex-Ministers.

Answered by Baroness Neville-Rolfe - Shadow Minister (Treasury)

The review of the Public Duty Costs Allowance is undertaken by the Prime Minister at the start of a Parliament and annually. It is for the Prime Minister to consider the level, operation and coverage of the allowance. This review will take place in due course.

Question to the Cabinet Office:

To ask His Majesty's Government, further to the Answer by Baroness Neville-Rolfe on 21 November (HL Deb col 1170) concerning the Public Duty Costs Allowance (PDCA), and the statement that the “Government keep these matters under review and that the level of the limit is reviewed by the Prime Minister, at the start of a Parliament and annually”, whether the next review of the PDCA will consider restricting the allowance to former Prime Ministers (and any other eligible other Ministers) to those who have served less than a full parliamentary term.

Answered by Baroness Neville-Rolfe - Shadow Minister (Treasury)

The review of the Public Duty Costs Allowance is undertaken by the Prime Minister at the start of a Parliament and annually. It is for the Prime Minister to consider the level, operation and coverage of the allowance. This review will take place in due course.

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