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Review to back peers' 'pay rise' Review to back peers' 'pay rise'
(about 1 hour 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 under new proposals.
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 has ruled out a salary for peers, but it has recommended that daily 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.
'Major step' Turning up on all 150 sitting days a year would result in an income of around £30,000, the SSRB said, plus expenses for travel and overnight accommodation.
But it is also expected to recommend that peers' existing £174 flat rate allowance for overnight accommodation is cut to £140. Cost neutral
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. The board has also recommended that peers' existing £174 flat rate allowance for overnight accommodation should be cut to £140.
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. It's right that the rules should be made tighter so lazy lords can't exploit the system, but to give them a pay rise as reward for general abuse of expenses is madness John Mann, Labour MP
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. Peers would be able to claim only for rent and hotel or club bills and would have to provide receipts or rental agreements.
Members of the House of Lords 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 taxpayer will be no worse off.
The board also wants a change in the law so the allowance is taxed, and for technology to be introduced to measure what work peers have done to deserve it.
Prime Minister Gordon Brown ordered the review of Lords' allowances in June and said he accepted the report.Prime Minister Gordon Brown ordered the review of Lords' allowances in June and said he accepted the report.
'Public trust'
Baroness Royall, leader of the House of Lords, said she would work with other parties to implement the changes.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."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."
Liberal Democrat peers leader Lord McNally urged colleagues to accept the recommendations.
He said: "The House of Lords gives the taxpayer value for money by being both hard-working and cost effective.
"However, the old system of allowances, vaguely drawn and only lightly policed, lacked the transparency to sustain public confidence."
"The SSRB proposals are fair and transparent and should restore public trust."
But Labour MP John Mann criticised the changes proposed by the SSRB. "It's right that the rules should be made tighter so lazy lords can't exploit the system," he said. "But to give them a pay rise as reward for general abuse of expenses is madness.
"The Lords must be trying to create sympathy for the Commons, it's the only possible explanation."