Peers, specifically members of the House of Lords in the United Kingdom, do not receive a traditional salary. Instead, their income is primarily derived from daily attendance allowances and reimbursement for expenses, the amount of which depends on their participation and choices.
Understanding Peer Remuneration
Unlike Members of Parliament (MPs) in the House of Commons who receive a salary, peers are not salaried. Their remuneration system is designed to cover the costs associated with attending and participating in parliamentary duties. This system includes a daily allowance that can be claimed for each day they attend proceedings.
Key Components of a Peer's Earnings:
- Daily Attendance Allowance: Peers have the option to claim one of two daily attendance allowances:
- Full Allowance: £361 per day
- Reduced Allowance: £180 per day
This allowance is intended to cover incidental expenses incurred while performing parliamentary duties, such as accommodation in London.
- Travel Expenses: Peers are reimbursed for travel costs incurred while travelling between their home and Parliament.
- Subsidised Facilities: Members of the House of Lords also benefit from access to subsidised restaurant facilities within the Parliament estate.
The amount a peer "makes" therefore varies significantly based on how often they attend the House of Lords and which allowance option they choose.
Daily Allowance Options for Peers
Allowance Type | Amount Per Day | Purpose |
---|---|---|
Full Allowance | £361 | Covers costs associated with attendance and duties. |
Reduced Allowance | £180 | An alternative, lower daily claim option. |
It's important to note that these allowances are claimed for attendance and are not automatically paid; peers must opt to receive them.
Practical Implications and Examples
The variability in attendance means that a peer's annual income from their parliamentary duties is not fixed. For example, if a peer attends the House of Lords on 150 sitting days in a year and claims the full £361 allowance each day, they would receive:
- 150 days x £361/day = £54,150 annually (before any tax implications, as allowances can be subject to tax depending on individual circumstances and other income).
However, a peer who attends less frequently or opts for the reduced allowance would receive a correspondingly lower amount. This system incentivizes active participation while acknowledging the often voluntary nature of the role for many peers.
For more detailed information on the workings of the House of Lords and its members, you can visit the official UK Parliament website.