Allowances

Lord True Excerpts

Monday 2nd June 2025 Lords Chamber

[The Lord Privy Seal (Baroness Smith of Basildon) (Lab)]

My Lords, I will speak to the second Motion at the same time, but I will move and speak to the third Motion separately.

In April 2024, the noble Lord, Lord True, as Leader of the House, moved a Motion to establish an overnight allowance to recognise the increased cost of staying in London, away from Peers’ main homes. That scheme set a rate of £100, which noble Lords based outside London could claim as a contribution towards the cost of a hotel. The scheme was welcomed across the House and followed representations from, and discussions with, those who chaired the main party groups and the convenor. It was agreed that it should be reviewed after about a year of operation, and these changes proposed result from that review.

The first change relates to the amount that can be claimed. The scheme was automatically uprated in line with inflation, so it is now £103 a night. It is hard to pick an exact amount, but this figure is not a realistic reflection of the cost of hotels across the capital. The commission therefore recommends an increase to £125 a night. This will continue to be uprated in line with inflation. As previously, claims are linked to attending the House on a sitting day, and receipts must be provided.

The existing scheme covers only hotel-type accommodation. Other noble Lords make other arrangements in London to enable their attendance in the House. The commission and the usual channels have considered this very carefully. We concluded that a new flat-rate allowance of 50% of the hotel allowance was the best way forward. This will again be tied to attendance in the House, with a robust system of verification. For noble Lords 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, noble Lords 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.

These changes were agreed in the commission and discussed in the usual channels. They are to ensure the original purpose: to assist Members from outside London to be able to attend your Lordships’ House. I beg to move.

[Lord True (Con)]

My Lords, I thank the noble Baroness the Lord Privy Seal for making this statement, which I think will be very welcome to the House. She referred to the discussions we had last year when I took the decision to put to the House the reintroduction of the overnight allowance. I was very grateful for her support on that, and I am very happy to reciprocate the full support from this side following the very careful consideration we have had of these issues in the usual channels and elsewhere, under the guidance of the noble Baroness.

It is always difficult to strike a balance, and I think that the commission, in its decision on the proposals put forward by the noble Baroness, 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. Talking of hard work, I may say that my noble friend Lord Howe, who is next to me, last week completed 34 years on the Front Bench in your Lordships’ House. If that is not a definition of hard work, I do not know what is.

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.

Rather than wearying the House, I say in advance that I strongly support the noble Baroness’s further Motion, because that also relates to hard-working and valued Members of the House. So again I thank the noble Baroness and commend these proposals unreservedly to your Lordships.

[Lord Balfe (Con)]

My Lords, I support this Motion. I have a very simple question for the Leader. Bearing in mind what happened during the period up to 2009, have the usual channels thought carefully about what the phrase

“where it is necessary to do so”

means? Will there be some sort of check, for instance, or will it be a pure self-declaration as it used to be before—which led us into a bit of trouble?