44 days as PM, $129k yearly stipend for life. Truss’s resignation isn’t all bad

Some have argued that the funds could be used more effectively while others have expressed opposition to the idea of the prime minister with the shortest tenure ever receiving the payments. A request for comment from Truss was not immediately fulfilled. 

What is the Public Duties Costs Allowance?

Following Margaret Thatcher’s resignation as prime minister in 1991, John Major, the erstwhile prime minister, announced the allowance.

The central Cabinet Office makes payments to former leaders to cover office expenses incurred as a result of their “special position in public life.” They are not permitted to use the funds for their personal expenses or to support their district office.

The £115,000 cap is evaluated by the prime minister in office at least once per year, but it hasn’t changed since 2011.

What are the restrictions on it?

As long as they don’t continue to serve as the leader of the official opposition in Parliament, all former prime ministers are eligible to receive the payments. There’s a separate salary for that. If they take on another public sector job, the Cabinet Office will review — and possibly reduce — the amount they receive. 

Former officials cannot ask for money “in advance of need.” They are required to keep track of receipts and pay slips and make them “available on request” to the Cabinet Office in order to demonstrate how the money is being used.

Former leaders may continue to receive the allowance well into their later years. Three months are allowed after a former prime minister’s passing before staff salaries are resumed. The costs associated with closing the office will also be covered.

Which former prime ministers claim the most?

The Cabinet Office publishes the amount paid out to former prime ministers each year. Here’s a breakdown for the year ended March 31, 2021: 

– Sir John Major and his successor, Tony Blair, both claimed the maximum £115,000 allowance.

– Gordon Brown and David Cameron both claimed close to the limit, receiving £114,712 and £113,423 respectively.

– Theresa May claimed the least, receiving £57,832.

Including pension costs for their staffs, taxpayers spent a total of £571,348 on the payments last year. Boris Johnson would also be eligible to claim payment, but any request he may have made isn’t yet public.

Controversy surrounding the payments

Given Truss’ brief tenure as leader, many on social media urged her to decline the payments. Some, particularly in the opposing party, remarked that the annual sum was greater than her salary during her month and a half in office, while others questioned how the funds could be better allocated.

The Liberal Democrats said there “is no way that she should be permitted to access the same £115k a year for life fund as her recent predecessors — all of whom served for well over two years.”

(With inputs from Bloomberg)