SHAUN Woodward has described the MPs’ expenses system as “rotten” and says he understands the public anger that has followed revelations in the national press.

The St Helens South MP and Secretary of State for Northern Ireland was speaking on BBC’s Newsnight programme.

Responding to questioning from Jeremy Paxman, he said: "This entire (expenses) system is rotten and has got to be changed, and I am also incredibly sorry for the way that the public looking at this with the anger they must feel.

“People are looking at this and saying, hang on this is our money, we’re the taxpayers. This is not your money - and they’re actually saying this isn’t fair. So they’re out there (during a recession), having a really hard time, it’s incredibly difficult making ends meet.”

Mr Woodward was among politicians whose expenses claims have been published by the Daily Telegraph. The reports showed he claimed the maximum second homes allowance of £23,083 in 2007-08, for mortgage interest and council tax payments on a Thames-side flat in London where he stays when Parliament is sitting.

His expense receipts were far from as shocking or lavish as those of some colleagues. However, Woodward still came under fire because is regarded as one of the wealthiest members of the cabinet, owing to his marriage to a member of the Sainsbury’s grocery family.

He countered criticisms by pointing out he has not broken any rules and also pointed out that although he is entitled to a ministerial salary of £141,866, he claims only his MP’s salary of £63,291.

The former BBC TV producer said any new expenses system must ensure that people from all walks of life can enter the political arena.

Woodward, a Labour MP in St Helens for eight years, added: “It does matter that at the end of this we do produce a system that doesn’t only mean that rich people are the only people who can become MPs, and if we are going to have a system, it’s got to be fair and work across the board.”