Ruth Kelly claimed thousands for damage despite insurance

Ruth Kelly used her second home allowances to pay for £31,000 of repair work at her house in Bolton

Miss Kelly, the former Cabinet minister, used her taxpayer-funded second home allowances to pay for £31,000 of rebuilding, refurbishment and appliances at the house in her Bolton West constituency.

Some of the renovations and furnishings were needed after a water pipe burst while Miss Kelly was staying at her designated main home in London. At the time of the flooding, Miss Kelly was the financial secretary to the Treasury.

Miss Kelly has confirmed to the Telegraph that the building and contents of the house were covered by an insurance policy, but that she chose to pay for the work from her expenses.

Last night Miss Kelly said “with the passage of time”, she “can’t now recall” why she did not make a claim on insurance. “I acted in good faith throughout and have broken neither the spirit nor the letter of the rules,” she said.

On Monday, the Telegraph disclosed how Miss Kelly, who served as education secretary, communities secretary and transport secretary, claimed £31,000 to redecorate and refurbish the house between 2004 and 2008. She told the Telegraph that some of the costs had been caused by the burst pipe. Since then the newspaper has asked her whether or not the property was insured. She has since confirmed that it was. In 2004, she was paid more than £13,000 for building and maintenance work at the house, which she bought with her husband Derek Gadd for £109,000 in 2001.

The following year, she claimed about £2,500 for painting, curtains, plumbing and other work. In the first four months of 2006, she claimed £15,363 for furnishings and appliances. She tried to claim £3,600 for a sofa and chairs from the upmarket BoConcept retailer, £2,355 for a dining table and chairs, and £2,000 for a 37-inch plasma television. The claims were reduced for being excessive.

A £1,625 claim for a garden table, chairs and parasol was rejected. Several purchases were made in London stores and delivered to her house in Bolton at a cost to taxpayers of £380. She also claimed £1,275 for a sideboard, £530 for a dishwasher and £570 for a washing machine.

A further £780 was claimed for curtains and rails, £625 for a coffee table and £160 for a rug.

Over the next two years, Miss Kelly claimed: £1,511 for work on her patio and repairs; £1,424 for building and redecoration; £650 on kitchen equipment; £330 on Ikea bathroom and bedroom items; £450 on maintenance and £300 on gardening. She has claimed almost £120,000 in second home expenses since 2001. She declined to say how much had been used to cover the costs of the flood damage, but said that the furniture would not have been covered as “it was about 30 years old”.

Correspondence shows that another MP, Fabian Hamilton, was made to pay for £295 of damage caused to his bathroom and kitchen by leaking pipes. He confirmed that the cost could be met from his home insurance after being told to check by the fees office in June 2004.

Miss Kelly resigned as transport secretary last September to spend more time with her family. She plans to stand down at the next election. Before being elected she worked as an economics writer for the Guardian newspaper.

On Wednesday night, she said: “The fees office said the costs could be claimed under the allowances system and, on provision of receipts, they would judge what were reasonable amounts for reimbursement, the remainder of which I would be liable for myself.”