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A former member of the panel which used to set the wages and expenses for MLAs has expressed concern about a plan for its replacement.

Alan McQuillan, who sat on the Independent Financial Review Panel (IFRP), said the new system could undo work to end wasteful practices.

The proposal would give the assembly authority to set MLAs' allowances.

It is backed by the Assembly Commission, which includes representatives of the main parties.

"What we are going back to if this is acted on is the system we came in to deal with in 2011," Mr McQuillan told ³ÉÈË¿ìÊÖ NI's Good Morning Ulster.

"At that point, the members had a set of rules set aside by the assembly, but a number of MLAs, now not all, but a significant proportion of MLAs were driving a coach and horses through that.

"They took the view that they were elected members, no-one had the right to challenge them or question anything they did in any way.

"Some of them were quite aggressive about it."

Mr McQuillan claimed it was "close to a free-for-all" and the panel had cut "huge waste".

"You could have one MLA paying £5,000-a-year rent for their office and another MLA doing exactly the same job in a different area paying £20,000 for premises for theirs," he added.

A senior Stormont source told ³ÉÈË¿ìÊÖ News NI: "All parties believe MLA salaries and pensions should be determined by an independent body".

"They also believe there should be sufficient support for MLAs so they can continue to deliver a high quality of service to their constituents.

"Members' staff should enjoy terms and conditions in line with public sector norms."

In a letter to MLAs, the Assembly Commission confirmed a bill will be brought forward to reform the IFRP.

The letter, signed by Assembly Commission chairman Alex Maskey and representatives of the five main parties, states that the new body's "sole remit" will be "independently determining the salaries and pensions of assembly members.

The letter then states that the assembly will be asked to pass a resolution to give the Assembly Commission the power to determine allowances payable to members.

It adds: "It is important to emphasise that this means the provision of support to cover expenditure which is incurred by members, e.g. staff costs or constituency office running costs etc to undertake their duties and provide a service to the constituents they represent."

A motion is set to be debated on the matter on Tuesday of next week.

For five years, the IFRP set the pay and expenses for MLAs.

However, the terms of the three members of the panel ended in 2016 and they were never replaced.

The issue of pay and expenses came to prominence in January, after a pay increase of £1,000 was awarded to MLAs who were returning to Stormont after three years.

The increase saw pay rise from £49,500 to £50,500.

An agreement was reached between all of the parties to donate the money to charity or back into public funds.

The pay rise came in line with a determination from the IFRP made in 2016.