Summary
In 'Review of Financial Support for Members of the House of Lords, Report No. 71 (Cm. 7746)' the Review Body on Senior Salaries was asked to review the system of financial support for Members of the House of Lords as it is currently constituted, pending more fundamental review. Focus would be paid to clarity and transparency, public acceptability, value for money and the geographical diversity of the House, among other factors.
Many Peers give up time and other earnings opportunities to work, unsalaried, in the House of Lords and they deserve a contribution to income as well as repayment of expenses necessarily incurred in carrying out their Parliamentary duties.
The 26 recommendations include:
- A daily payment of up to £200, intended to cover daily expenses of attendance (other than travel), office and secretarial costs and a contribution to income.
- An overnight allowance of up to £140, for Members whose principal residence is beyond reasonable commuting distance (this allowance may be used for specified running costs of second homes).
- Changes to the present system because it lacks proper controls, is ambiguous and open to abuse, leaving some Peers uncertain as to what they can properly claim.
The recommended overall level of financial support is broadly unchanged but the proposed conditions are more precise and transparent, requiring receipts for allowable expenditure on overnight accommodation and travel. The system should be subject to independent audit including a sample of individual claims.
The new arrangements will produce benefits to the tax payer as a result of better governance of the payments system and narrower eligibility criteria for claiming for second homes.
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