The watchdog also raised concerns about the decision to uprate local housing allowance - which covers private accommodation - by the CPI rate of inflation rather than pegging it to average rent rises in an area.

BBC: Block of flats

Ministers who for security or other reasons live in so-called 'grace and favour' homes will continue to pay council tax and tax on the benefit of living in this accommodation but will not receive this new allowance.

BBC: In full: MP expenses reform plans

We propose that, for MPs representing constituencies outside London, the Personal Additional Accommodation Expenditure (commonly known as the 'second home' allowance) should be abolished and be replaced by a flat-rate daily allowance, based on actual attendance at Westminster on parliamentary and government business or the business of the Opposition frontbenches.

BBC: In full: MP expenses reform plans

In April, the government introduced the Local Housing Allowance (LHA) which established national rules about what type of accommodation is appropriate and how much rent can be paid to landlords.

BBC: Woman given ?12k a month for home

In addition, MEPs get a flat-rate allowance of 304 euros for each day of attendance at official parliament meetings, to cover accommodation and meals.

BBC: Euro MP allowances boosted again