
It had been suggested such a wider ban could include all outside work apart from roles requiring continuous practice to keep professional registrations, such as working as a doctor or lawyer.
However, Labour subsequently moved away from that pledge, and it did not appear in the party’s manifesto ahead of the election earlier this month.
The previous Conservative government backed a plan to limit the time MPs devote to second jobs or the money they could earn, but later abandoned the idea after concluding it was impractical.
Speaking in the Commons, Ms Powell said that as well as helping to prevent conflicts of interest, the latest rule change would help prevent “conflicts of attention” and ensure MPs stayed focused on serving their constituents.
Describing it as a “first step,” she promised that the new committee, which will be cross-party, would “go further” on changes to MPs’ practices.
The panel will have a broad remit to examine working practices as well as standards, and emulates a similar committee set up by Tony Blair’s Labour government in the wake of its 1997 election win.
Ms Powell will chair the committee and promised to consult all parties when drawing up proposals, but smaller parties complained they would not be represented after Labour’s huge election win.
The SNP’s Kirsty Blackman said only Labour, the Tories and Lib Dems would get seats, while Reform UK’s Lee Anderson said it was “unfair” his party would also not have a representative.
The rule changes were backed without the need to record MPs’ individual votes, with no MP shouting that they objected during an oral vote.
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