A root-and-branch review of Parliamentary expenses is to be conducted by senior MPs in the wake of the Derek Conway affair.

The Members Estimate Committee resolved to consider all aspects of the controversial allowances regime brought into question over the last week.

The review is expected to be so detailed it will not report back to the House of Commons until MPs return from the summer recess in October.

Among issues to be considered are the employment of relatives, the lack of auditing and the need for more receipts to be submitted in support of claims.

It had been hoped that the inquiry would be completed in time to coincide with a review of the mechanism for setting MPs' pay before the summer recess.

Speaker Michael Martin has said an "effective and acceptable solution" is urgently required.

He also stressed that the matter must be determined by the House of Commons itself.

The move follows last week's ten-day expulsion from the Commons of Mr Conway after he was censured by a watchdog for employing his son Freddie as a researcher.

He paid him almost £50,000 of public money while he was a full-time student in Newcastle.

In a brief Commons statement, Mr Martin said: "We must take fully into account the public interest in transparency. At this afternoon's meeting of the MEC we will be discussing urgently how to proceed on these matters."

He added: "The subject of Members' allowances is something the House itself must determine.

"But it is clear the committee must find an effective and acceptable solution as quickly as is practicable."

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