As regards their wages, they should be paid a decent wage, but from then on ALL their pay rises should should be equal to the average pay rise (% wise) of the public sector.
Then when the penny pinching ar5eholes pay folk the Nurses a mere pittance they have to take the hit themselves too.
As regards London accommodation why not build a block of flats, the MP has a flat allocated, when they get voted out they move out. As regards to it's upkeep the constituency are liable for the bills, all of which MUST be FULLY vetted like you get in a private company.
Trev (climbing off his soapbox)
One of the problems with expenses vs. salaries, is an MP who represents, for example, Luton, he/she may still need accomodation near Westminster, yet when he/she goes back home, for a mid week surgery or for the weekend, an MP from Manchester will have to pay a lot more for a rail ticket than one closer to London. How much the Member for Inverness never mind Belfast would have to pay I've no idea.
There will be problems with whatever form of expenses/salary arrangement they come up with. In theory, The Commons could provide secretarial services although with the number of people leaking information or selling it to the press, or another party, I can see that coming up against some resistance.
As for accomodation, there's really not much wrong with a Premier Inn. Apart from lack of privacy; and a lower level of security than a private apartment or house; and the fact that an MP would always have to eat in public, which means they're always open to being bothered/harrassed etc. But, on Sky News the other day, a reporter was looking at a 2 bed rented apartment about a quarter mile from The Commons. The catch? £1,500 per month. In Greater Manchester you can rent a 5 bed detached in a nice area like Bramhall for that sort of money.
The other problem I can think of with putting them all in one accomodation block, is, if you remember the damage the IRA did (or could easily have done) to the Cabinet, it would really be a target Al Qaeda couldn't resist. You might not think the extermination of Parliament is such a bad thing, but not only would it render the UK ungovernable, but it may also make them less likely to make difficult international decisions for fear of being assasinated en masse.