Taxpayers could next year foot the bill to pay out more than 120 MPs, expected to take home up to £64,800 each as they plan to quit parliament.
The mass exodus of MPs - the biggest in 60 years -includes those who have been forced out by the expenses scandal, the FT reports.
According to one government whip, MPs could pocket the equivalent of up to £1,000 a month, tax free, for the next five years.
Taxpayers are further likely to foot a bill of about £10m for resettlement grants for departing MPs if the Conservatives win the general election.
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