Phil Hope confirmed that both his children were paid to carry out administrative work in his constituency office but the arrangement had been cleared by the Parliamentary authorities.

Mr Hope's son Nick was employed during his university vacations, while his daughter Anna has also worked for him.

The Corby and East Northamptonshire MP told the Evening Telegraph: "Nick and Anna have worked for me in the past, both as volunteers and on temporary contracts.

"They worked during vacations, for holiday cover."

He went on: "I have had 10 students on temporary contracts over the years."

Mr Hope said on two occasions in 2004 and 2005, his son – who studied politics at Bristol University – was paid £480 for three weeks' work but has not been employed by him since 2006. The rate of pay was about £6 an hour.

Asked if he thought it was a good idea for family members to be on an MP's payroll, Mr Hope said: "That is a wider question that Parliament may want to address. So long as it is a proper job I have no objections."

Mr Hope, who has been MP for Corby since 1997 and last year claimed a staffing allowance of £87,275, is one of the most senior figures to be embroiled in the expenses row, having been promoted to the role of minister for the East Midlands last month.

The row over MPs' expenses started last week when it was revealed Tory MP Derek Conway had employed his sons while they were at university.

Since then, 177 other MPs have admitted employing family members using taxpayers' money.

Conservative MP for Wellingborough Peter Bone confirmed the only employee at his constituency office is his wife Jeanette.

Kettering MP Philip Hollobone does not employ anyone.

Albert Runcie, 71, of Nasmith Avenue, Corby, said: "If he's declared it then he's done nothing untoward."

Anne Palmer, 65, of Leven Way, Corby, said: "It's OK as long as his children are doing the job that they are paid for."