An investigation has been launched by Labour into the Daily Telegraph disclosures that House of Commons officials colluded with MPs to let them make inflated claims on their mortgages.
Parliamentary authorities, overseen by Michael Martin, the Speaker, gave secret permission for some MPs to over-claim for thousands of pounds in home loan interest in deals that led to the systematic abuse of the taxpayer-funded expenses system.
Ben Chapman, a Labour MP, admitted on Sunday night that he was allowed to continue claiming for interest payments on his entire mortgage after repaying £295,000 of the loan in 2002.
Over 10 months the arrangement allowed Mr Chapman to receive £15,000 for the part of the home loan which had been paid off.
He has so far refused to give back the money.
But Labour has now launched an investigation into the claims. The party’s chief whip had spoken to Mr Chapman and wpuld be seeking further clarification from the MP and the Fees Office, a Downing Street spokesman said.