Members of the Lords: allowances

A new system of financial support for Members came into effect from 1 October 2010.  Most Members of the House of Lords do not receive a salary in respect of their parliamentary duties but may be entitled to financial support arising out of these duties.

Daily allowance

Members of the House of Lords, who are not paid a salary, may claim a daily allowance of £300 (or may elect to claim a reduced daily allowance of £150) per sitting day - but only if they attend a sitting of the House and/or committee proceedings.

Members of the Lords do not pay tax on their allowances.

Members of the Lords who receive a salary

Some Members of the Lords receive a salary because of the offices they hold.

  • The Lord Speaker, the Chairman of Committees, and the Principal Deputy Chairman - paid from the House of Lords budget.
  • Government ministers - paid by the relevant Government departments.

Members who receive a salary are not entitled to claim the additional allowances based on attendance.

Financial assistance for Opposition parties

The two Opposition parties and the office of the Convenor of the Crossbench Peers in the House of Lords receive financial assistance for their parliamentary business.

Known as 'Cranborne money', the amounts payable are uprated annually in line with the retail prices index and are subject to independent audit.

The rates payable for the 2010-11 financial year are as follows:

  • £55,695 for the Conservatives from 1 Apr – 11 May 2010
  • £27,808 for the Liberal Democrats from 1 Apr – 11 May 2010
  • £440,129 for Labour from 12 May 2010 – 31 March 2011
  • £63,687 for the office of the Convenor of the Crossbench Peers from 1 Apr 2010 – 31 Mar 2011.

Related information

Cranborne money: the annual payment to Opposition parties in the Lords to help them with their costs - named after the then Leader of the House, Viscount Cranborne, who negotiated it.

The Commons equivalent is Short money.