Eligibility
Members of the House of Lords, unlike MPs in the Commons, are unsalaried. They do not
receive salaries or other employment benefits, including pensions.
There are two exceptions: a few officeholders receive a salary, and some Ministers receive a salary from the Government for their Government roles.
Attendance at the House of Lords is voluntary, but Members who do not receive a salary
are eligible to receive allowances and, within certain limits, some travel expenses they incur in fulfilling their parliamentary duties.
Members who receive a Ministerial or Office Holders’ salary are not entitled to claim the
allowances based on attendance.
Daily Allowance
Members of the House of Lords who are not paid a salary may claim a daily allowance of
£313 (or may elect to claim a reduced daily allowance of £157) for each day if House of Lords records show that Members attended a sitting of the House that day or undertook qualifying work away from Westminster.
It is for the individual Member to decide whether a claim for the daily allowance is made at the full rate, the reduced rate or not claimed at all.
Attendance Travel Costs
In addition to the daily allowance, Members are also entitled to claim travel costs to and
from their registered residential address for certain parliamentary business.
Administration of the system
The House of Lords’ House Committee sets the rules. The rules are given to every Member and set out in the “Guide to financial support for Members” which is available online on Parliament site.
The House of Lords Finance Department administers the system and checks claims against records of attendance and registered residential address. Claims made outside the rules are rejected. Any abuses are dealt with under the system set out in the Code of Conduct. The National Audit Office audits the House of Lords’ Annual Report and Resource Accounts each year.
Are the payments taxable?
No. Membership of the House of Lords is neither an office nor employment and therefore payments are not liable for income tax. This was confirmed independently by the Senior Salaries Review Body (SSRB).
Source: UK Parliament
