A Labour MP forced to announce he will step down over a claim for £13,000 interest on a "phantom mortgage" also used his parliamentary expenses to pay his daughter for work under an assumed name, it was reported today.

David Chaytor, MP for Bury North, claimed almost £5,000 on his office allowances for research work done by "Sarah Rastrick", whose address and mobile phone number matched those of his daughter, Sarah Chaytor, according to The Daily Telegraph.

Miss Chaytor, 27, whose middle name is Rastrick, was a graduate student at University College, London, at the time of most of her father's claims and had registered with the House of Commons as "Sarah Chaytor", the Telegraph said.

The MP told the paper his daughter had adopted a "professional name for work purposes" and that she was "extremely well qualified to do the work allocated and worked very long hours".

Mr Chaytor - who has agreed to pay back the mortgage interest claims - was barred from standing for the Labour party at the next election and will leave Parliament at the next election.

Scotland Yard previously said he was among a handful of MPs who could face full criminal inquiries into their expenses claims.

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