Peers are to get an effective pay rise as part of expenses reforms under new proposals.
Peers will get a daily allowance but will have to submit more receipts under new expenses rules.
But members of the House of Lords will also see tighter rules, and a cut in expenses they can claim for overnight accommodation.
The Senior Salaries Review Body has been reviewing the system in the House of Lords after claims some peers abuse the £174-a-night overnight allowance.
The independent Senior Salaries Review Body reviewed peers' expenses after concerns some were abusing the system.
It proposed that the daily £75 office and £86.50 subsistence allowances be merged into a £200 attendance fee.
Currently they can claim a daily £75 office costs allowance and a £86.50 daily subsistence allowance.
But it said receipts must be provided for travel and peers should not claim towards mortgages on second homes.
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.
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.
Cost neutral
The board has also recommended that peers' existing £174 flat rate allowance for overnight accommodation should be cut to £140.
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
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.
'Public trust'
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."
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."
