House of Lords peers award themselves a 2% pay rise so they now receive £305 a day (just for turning up)

  • Members are given the tax-free allowance instead of a salary 
  • They receive travel expenses but are unable to claim for accommodation, staff or subsistence
  • Last year, Electoral Reform Society found that peers used their tax-free daily allowance and travel costs to rake in £19m in 2016/17

Peers yesterday awarded themselves a pay rise as they opened the door to annual increases in their allowances.

The House of Lords Commission said peers should get the same 1.8 per cent increase being handed to MPs, bringing an end to a freeze on daily allowances that has been in place since 2010.

Lords will be able to claim £305 for a full-day sitting or £153 for a half day from next month, up from the current £300 and £150. 

Peers yesterday awarded themselves a pay rise as they opened the door to annual increases in their allowances. Lords will be able to claim £305 for a full-day sitting or £153 for a half day from next month, up from the current £300 and £150. (File photo)

Peers yesterday awarded themselves a pay rise as they opened the door to annual increases in their allowances. Lords will be able to claim £305 for a full-day sitting or £153 for a half day from next month, up from the current £300 and £150. (File photo)

Members are given the tax-free allowance instead of a salary. They also receive travel expenses, but are unable to claim for accommodation, staff or subsistence.

The Commission, which is made up of ten peers and two external members, said changes to Lords allowances should be pegged to MPs’ salaries from now on. 

Since 2015, MPs’ pay has been up-rated annually in line with average public-sector earnings, as calculated by the Office for National Statistics. 

The salary for MPs will rise to £77,000 from next month.

Last year, the Electoral Reform Society found that peers used their tax-free daily allowance and travel costs to rake in a total of £19million in 2016/17

Last year, the Electoral Reform Society found that peers used their tax-free daily allowance and travel costs to rake in a total of £19million in 2016/17

Peers only receive the daily allowance if they attend a sitting of the House or a committee at Westminster and undertake parliamentary work.

Officials claimed yesterday that since 2010 the cost of the House of Lords has fallen by 7 per cent in real terms. 

Peers will hold a vote on the Commission’s proposal before the rise in allowances comes into force.

Last year, the Electoral Reform Society found that peers used their tax-free daily allowance and travel costs to rake in a total of £19million in 2016/17.

It branded 33 of them ‘couch potato peers’ for taking part in less than a quarter of votes while claiming £462,510 in expenses – an average of £14,015 each.