UK (Parliament Politics Magazine) – The Guardian analysis shows over 10% of Lords earn money from commercial firms offering political consultancy, raising concerns over public trust.
Approximately 91 members of the House of Lords have received payments from commercial firms for political or policy advice, raising concerns over regulatory oversight.
What did the Guardian analysis reveal about Lords?
According to an analysis by The Guardian, more than 10% of peers have accepted payments from businesses, including lobbyists and firms in the banking, defence, and energy sectors. These positions can provide earnings in the tens of thousands each year.
The report showed that 91 members of the House of Lords were paid for political advice by firms including Santander, Thales, and JCB, a British construction equipment manufacturer.
How are peers in the House of Lords paid for consultancy?
The House of Lords values its members for their experience, with rules allowing many to continue professional work alongside their parliamentary duties. Unlike MPs, peers don’t receive a fixed salary but can claim a tax-free daily allowance of £361.
According to the current regulations, Lords are permitted to engage in paid consultancy positions, where they can provide insights on political issues, current events, and the workings of Parliament. This prevents them from contacting the minister or office to promote the company. Further, they are also restricted from using political experience to direct the business on which official to approach for advancing its commercial goals.
However, peers are not allowed to use their political standing to directly lobby on behalf of firms or businesses that compensate them.
What did campaigners suggest about the conflict between Lords’ duties and corporate interests?
Democracy activists argue this: despite the regulations allowing them to hold such roles, a fundamental clash exists between their parliamentary responsibilities in the Lords and the financial interests of the companies they serve.
Critics suggest this raises concerns about the perception that peers might be using their political roles and affiliations for personal interest.
Sue Hawley, who leads the transparency organization Spotlight on Corruption, stated,
“There is a risk that peers, who can gain considerable access to ministers and other decision-makers, could be perceived to be using their privileged position to obtain political consultancies of this kind.”
She said,
“It is hard to believe that any professional lobbying firm would need to pay peers for advice on public policy and how parliament works when this is bread and butter for these firms.”
What concerns exist about peers working for lobbying firms?
Scrutiny is intensifying over peers engaged with lobbying firms. According to The Guardian analysis, 24 House of Lords members have been financially connected to these firms, which are often hired by businesses and organizations to influence policymakers, including efforts to prevent unfavourable policies.
Concerns about Lords joining lobbying firms came into focus this month when Stonehaven, a lobbying company, announced the hiring of Charlotte Vere, a peer and ex-minister. Following public backlash, the appointment was swiftly revoked.
Advocacy groups are questioning why lobbying companies are recruiting peers who are prohibited from lobbying under House of Lords guidelines. The campaigners argue that these rules only permit peers to discuss general political matters and provide an overview of parliamentary procedures.
What did the CEO of the Chartered Institute of Public Relations say about peers in lobbying firms?
Alastair McCapra, head of the Chartered Institute of Public Relations, which represents lobbying firms, argued that peers should not be on the payroll of these firms, adding,
“There should be a firewall between debating and passing laws as a legislator, and acting to change/prevent change in the law through lobbying.”
Which peers have taken on consultancy roles?
Listed below are some peers engaged in consultancy work:
1. David Blunkett (Labour)
- Year of peerage 2015
- Hired by: DLA Piper since 2024
2. Andrew Lansley (Conservative)
- Year of peerage 2015
- Hired by: Low Associates since 2015
3. Natalie Evans (Conservative)
- Year of peerage 2014
- Hired by: Rud Pedersen since 2023
4. John Woodcock (Crossbencher)
- Year of peerage 2020
- Hired by: The Purpose Coalition since 2021
Duties of Peers in the House of Lords
- Reviewing legislation
- Scrutinizing government policies
- Offering expertise in policy discussions
- Questioning ministers
- Participating in committees that oversee public affairs