Angela Rayner, the Labour MP and former deputy prime minister, has confirmed she will not repay her £16,876 ministerial severance payment following her return to the cabinet.

The decision comes after she was reappointed as housing secretary by new Prime Minister Andy Burnham, despite Conservative demands for her to return the funds.Rayner resigned in September 2025 after failing to pay sufficient tax on her £800,000 flat in Hove, which triggered the exit payout.During her first interview since rejoining the government, she defended her stance, stating she had fulfilled her duties and would continue to serve.

The Conservatives criticized her for leaving in 'disgrace' and taking the severance, questioning her commitment to repay it now that she has regained her position.

Rayner also addressed her tax settlement with HMRC, resolving a £40,000 stamp duty issue and stating she had been 'exonerated' of deliberate tax evasion.She emphasized her focus on unfinished government work, including expanding council housing and supporting local authorities.

Burnham’s government aims to launch the largest council house building programme since the post-war era, though Rayner avoided specifying exact figures or timelines.The controversy highlights ongoing debates about political ethics and financial transparency in public office.