Andy Burnham used around £16,000 in parliamentary expenses to help buy and renovate a London flat after receiving a payout from the sale of Dolphin Square.

Andy Burnham, In 2005, while serving as Labour MP for Leigh and living in the Dolphin Square complex near Westminster (a well-known block that housed politicians and others), the property was sold. Residents received payouts to end their tenancies and leave. Burnham received about £18,200. While many MPs handed similar sums to parliamentary authorities, he arranged to add nearly all of it to his second-home allowance.

This helped him and his wife purchase a two-bedroom ex-council flat in Kennington, south London, for £215,000. He submitted a single expenses claim of £16,644 covering stamp duty, legal fees, and a new kitchen. Reports noted that treating the windfall this way also meant he avoided capital gains tax that might otherwise have applied.

Burnham stated at the time: “It is complete nonsense to suggest that I set out to avoid capital gains tax. My file shows I made arrangements to pay over this money in full to the fees office, and all arrangements were signed off by them. At no stage did I make any personal profit on this transaction.” He also said he had under-claimed on his Additional Costs Allowance by around £40,000 over five years and worked within the rules. A spokesman later argued the arrangement saved the taxpayer money compared with ongoing rental claims and involved no personal gain; he was not investigated by the Commissioner for Standards.

Under the rules then in force, MPs could claim mortgage interest on second homes. Burnham made such claims (and faced some rejections or adjustments, including attempts related to both the London flat and his constituency home, plus an ineligible capital claim). After the 2009 expenses scandal and reforms, mortgage interest claims on second homes were banned; MPs could claim only for rented accommodation.

Burnham kept the Kennington flat, later rented it out privately, and claimed parliamentary expenses (reported around £14,000–£18,000 a year in different periods) to rent another London property nearer Westminster. He said changes to the rules meant he could no longer afford to live in the owned flat alone. The property has since risen substantially in value.

The story resurfaced in late June/early July 2026 amid Burnham’s rise in Labour politics (he had recently returned to Parliament and was positioned as a potential successor to Keir Starmer). Coverage highlighted the contrast with his “man of the people” and northern identity image, as well as his later comments on housing affordability, rents, and property inequality.

All of this occurred under the pre-2009 expenses system, which was widely criticised and overhauled after the scandal. Burnham maintained he followed the rules as they stood and did not profit improperly. The flat remains associated with him in reporting.