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@William.
It also says he didn't want to live too far out of london. Which is where most people have to live. It's about what people are used to– he probably has a nice place back home with a garden, well connected to transport etc, and feels he shouldn't have to change his quality of life when in london.
I dont think it's a case of being able to live on the money but of wanting to. Ask anyone to lower their quality of life and they will resist the change. If he was a good MP, and we are losing good MPs because of this, it might need to be looked at. I don't happen to know if he was particularly good or not. I guess his quitting weakens the tory government which is a good thing. But what if good Labour MPs start quitting?