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Review to back peers' 'pay rise' Review to back peers' 'pay rise'
(31 minutes later)
Peers are to get an effective pay rise as part of expenses reforms being announced later, the BBC has learned.Peers are to get an effective pay rise as part of expenses reforms being announced later, the BBC has learned.
But members of the House of Lords will also see tighter rules, and a cut in expenses they can claim for overnight accommodation.But members of the House of Lords will also see tighter rules, and a cut in expenses they can claim for overnight accommodation.
The independent Senior Salaries Review Body reviewed peers' expenses after concerns some were abusing the system.The independent Senior Salaries Review Body reviewed peers' expenses after concerns some were abusing the system.
Currently they can claim a daily £75 office costs allowance and a £86.50 daily subsistence allowance.Currently they can claim a daily £75 office costs allowance and a £86.50 daily subsistence allowance.
The SSRB is expected to recommend that these allowances are merged and that peers get a single daily allowance of £200 for turning up and doing their job - effectively a £38.50 increase, BBC deputy political editor James Landale said.The SSRB is expected to recommend that these allowances are merged and that peers get a single daily allowance of £200 for turning up and doing their job - effectively a £38.50 increase, BBC deputy political editor James Landale said.
'Major step'
But it is also expected to recommend that peers' existing £174 flat rate allowance for overnight accommodation is cut to £140.But it is also expected to recommend that peers' existing £174 flat rate allowance for overnight accommodation is cut to £140.
Under proposals peers, who do not get a regular salary, would be able to claim only for rent and hotel or club bills and would have to provide receipts or rental agreements.Under proposals peers, who do not get a regular salary, would be able to claim only for rent and hotel or club bills and would have to provide receipts or rental agreements.
Peers who own their own homes in London will be able to claim only council tax; they will not be able to claim for mortgages.Peers who own their own homes in London will be able to claim only council tax; they will not be able to claim for mortgages.
The BBC understands that the SSRB will claim that the overall effect will be cost neutral and that the tax payer will be no worse or better off.The BBC understands that the SSRB will claim that the overall effect will be cost neutral and that the tax payer will be no worse or better off.
Prime Minister Gordon Brown ordered the review of Lords' allowances in June and said he accepted the report.
Baroness Royall, leader of the House of Lords, said she would work with other parties to implement the changes.
She said: "Taken together with a new code of conduct for members of the House which the House will be considering next week, these reforms will be a major step towards righting any wrongs in the House and towards putting our own house in order."