Peers who ‘make great sacrifices’ hike their own overnight allowance by a fifth

Peers have awarded themselves an inflation-busting hike in the amount they can claim for overnight stays in London and backed a separate payout for second homes.

Members of the unelected chamber, who Parliament heard “make great sacrifices”, waved through the allowance increase of more than a fifth without a vote.

Changes made to the remittance system last year enabled peers living outside the capital and attending the House of Lords to claim £100 towards the cost of “hotels, clubs or similar accommodation” on production of receipts.

This was on top of the daily attendance payment that can be claimed of up to £361 and travel expenses.

Overnight allowance

The overnight allowance was automatically uprated in line with inflation to £103 a night and after approval by peers will now swell to £125 – a 21% rise.

In a further change to the system, a payment will also be made available to contribute towards other London accommodation costs that may be incurred to attend sittings at Westminster, such as for those who rent or own a property that is not their main address.

This has been set at £63 or half the overnight allowance after rounding up.

Outlining the proposals in Parliament, Lords leader Baroness Smith of Basildon said the existing overnight rate of £103 “is not a realistic reflection of the cost of hotels across the capital”.

As such the House of Lords Commission, on which she sits, recommended this was increased to £125-a-night.

Lady Smith added: “As previously, claims are linked to attending the House on a sitting day, and receipts must be provided.”

Verification

On the proposed flat-rate allowance for alternative accommodation in London, the Cabinet minister said: “This will again be tied to attendance in the House, with a robust system of verification.

“For members whose main address is outside London, they would be able to claim £63-per-night to spend at a designated property in Greater London where they stay and are responsible for the costs.

“To claim, peers must have stayed in the property the day before or the day after attending the House, and the finance team will require documentation to support the claim.”

Her Conservative counterpart Lord True, who when in Government introduced the overnight allowance last year, said: “It is always difficult to strike a balance, and I think that the commission… has struck a reasonable balance which will support people who come to this House from all over the country, who wish to work hard on behalf of the House and on behalf of the country.”

He added: “There is a lot of loose talk outside this House about people in this House being lazy and lining their pockets.

“You do not become rich by becoming a member of the House of Lords. Many people here make great sacrifices.

“We should not claim that we are poor or that we are underprivileged, but it is right that the House makes provision to enable those of us who come here to do a hard day’s work to enable us to do so in the most reasonable fashion.

“Obviously, there is a duty on us to behave with honesty and clarity, as we all do and will all do, I have no doubt, under these new proposals. I support them.”