Under the principle of integrity, care must be taken when dealing financially with ‘connected parties’ - our term for immediate members of MPs’ families and business partners with whom they share significant interests.
MPs must ensure their decisions do not provide a benefit to themselves of a connected party. The full definition of a connected party is:
Spouse, civil partner or cohabiting partner of the MP
Parent, child, grandparent, grandchild, sibling, uncle, aunt, nephew or niece of the MP or spouse, civil partner, or cohabiting partner of the MP
A body corporate, firm or trust with which the MP is connected, as defined in section 252 of the Companies Act 2006
Connected parties and IPSA's regulatory principles
MPs must complete their own due diligence to identify a connected party when using IPSA funding.
To meet our regulatory principles of integrity and value for money, MPs must be objective in their decisions about how they spend IPSA funding and must take proportionate steps to achieve value for money.
MPs must be able to show that they have considered perceived or real conflicts of interest and that they have not been unduly influenced by any interests or relationships.
What IPSA will not fund
IPSA will not fund the purchase of goods or services where the MP or a connected party, as defined by the Companies Act 2006, is the provider of the goods or services in question.
IPSA will also not fund accommodation where the MP or a connected party is the direct or indirect owner of the property.
Employees who later become connected parties
IPSA will not pay the salaries and other costs of any new employees who are connected parties.
If employees are not connected parties when initially employed by MPs but become connected parties later, IPSA will only fund their salaries and other costs for a period of up to 24 months after the point at which they become connected parties.
MPs must notify IPSA whenever an employee becomes a connected party during their employment.
To make a declaration, complete the Connected Party Declaration Form.
Example of when funding would be allowed
The MP is looking for a new cleaning service for their constituency office.
One of the suppliers is a local party member who supplies quotes for their services. To benchmark the costs and services, the MP decided to obtain additional quotes.
The MP receives a quote from another supplier who can provide a comparable service at the same cost.
The MP is conscious of their connection to the party individual and how this could be seen to influence their decision making and/or future business dealings with them. They remove the conflict of interest by selecting the other supplier.
The MP has demonstrated value for money by obtaining several quotes for the most effective service. The MP has also demonstrated integrity by not selecting a supplier with a connection to them rather than another supplier who can provide the same services at the same cost.
Example of when funding would not be allowed
An MP is looking for new accommodation in London.
The MP's daughter has a long-term partner who owns property in London. They offer this to the MP as it would be convenient for both of them for the MP to occupy this property. To make this transparent, they agree the rental amount based on comparable market rates and provide a legal contract for the rental period.
While there may be a legitimate rental contract in place and while the owner of the property is not related in the legal sense, there is a real or perceived benefit. Arguably the property owner could be considered ‘friends or family’ of the MP and stand to gain by the use of public money.
Funding for this accommodation would not be allowable under the Scheme.
Guidance updated on April 2026.