Rob Evans and Henry Dyer 

Calls to toughen Lords rules as it is revealed one in 10 peers are paid for political advice

Critics say practice risks perception that members of House of Lords are exploiting role for personal gain
  
  

Elevated view of a packed House of Lords
Under the rules, peers can take on paid consultancies to give general advice on political issues, current affairs and how parliament works. Composite: Guardian Design/AFP/Getty Images

Ninety-one members of the House of Lords have been paid by commercial companies to give political or policy advice, amid concerns that their activities are not being properly regulated.

Analysis by the Guardian shows that more than one in 10 peers have taken payments from businesses such as lobbyists and companies operating in the banking, defence and energy sectors. Peers can earn tens of thousands of pounds a year for such roles.

They include the former Conservative health minister Andrew Lansley and the ex-Labour home secretary David Blunkett.

The Guardian’s analysis found 91 members of the Lords were being paid for their political advice by organisations such as Santander bank, the French arms manufacturer Thales and the British digger-maker JCB.

Peers are valued for their experience, and the House of Lords rules take into account that many continue to work alongside their role in the upper chamber. Unlike MPs, peers are not paid a salary. However, they are entitled to a daily tax-free allowance of £361.

Under these rules, peers can take paid consultancies to give general advice on political issues, current affairs and how parliament works.

To prevent commercial concerns from getting an unfair advantage, peers are not allowed to use their political position to lobby directly for an individual company or business that is paying them.

This means they cannot contact ministers or officials to promote that company. Nor can they, for example, draw on their political experience to tell the business which official would be best to approach if that company wants to advocate for its commercial interests.

But democracy campaigners suggest that despite the rules permitting them taking on such roles, there is an inherent conflict between their public duty in the Lords and the commercial pressures of the companies for which many are working.

Peers have often taken these positions after stepping into the Lords and are often providing advice in sectors where they have no apparent previous experience.

Campaigners say this risks a public perception that peers could be exploiting their political position and connections for personal gain.

Sue Hawley, the director of the transparency group Spotlight on Corruption, said: “There is clearly 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 this could undermine public trust and confidence in the House of Lords.

The analysis comes as the Guardian launches a new series, the Lords debate, an investigation into members of the Lords, at a time when the Labour government has made moves to raise standards and reduce the size of the upper chamber.

The rules concerning peers are less strict than those that govern MPs, who are no longer allowed to take paid consultancies after scandals such as that of the former cabinet minister Owen Paterson, who broke rules at the time by lobbying for companies that paid him at least £500,000.

The government closed a loophole that had previously allowed MPs to advise clients on “public policy” and how parliament broadly functions. The restrictions were not extended to the Lords.

Lobbying concerns

Concerns are more acute with peers who are working for lobbying businesses. The Guardian’s analysis shows that 24 peers have been paid by such companies. Lobbying firms are typically hired by companies and organisations to influence ministers, officials or politicians to, for instance, drop damaging policies.

These concerns about lords working for such companies were highlighted earlier this month when the lobbying company Stonehaven announced it had hired Charlotte Vere, a peer and former government minister, as a partner. The job was withdrawn within days after a row broke out about the appointment.

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Alastair McCapra, the chief executive of the Chartered Institute of Public Relations, a trade association that represents lobbying firms, said such companies should not have peers on their payroll. “There should be a firewall between debating and passing laws as a legislator, and acting to change/prevent change in the law through lobbying,” he said.

Campaigners have questioned why lobbying companies are hiring peers who are specifically barred under the House of Lords rules from lobbying. The campaigners say the rules of the upper chamber mean peers can only discuss general political issues or how parliament broadly functions with the lobbying companies.

Hawley 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.”

Peers with consultancies

Below are examples of peers who have taken on consultancies. There is no suggestion of wrongdoing by any of the peers highlighted.

David Blunkett

Party Labour
Year of peerage 2015
Company being advised DLA Piper since 2024

Lord Blunkett, who was a cabinet minister in Tony Blair’s governments, has a series of consultancy roles. He is paid to be an adviser on public policy and internal understanding of government and policy development for the legal and lobbying company DLA Piper. He said: “I advise DLA Piper on their broader work here and across the world … My contract with them explicitly rules out ‘lobbying’.”

Andrew Lansley

Party Conservative
Year of peerage 2015
Company being advised Low Associates since 2015

The former Tory cabinet minister Lord Lansley is a director of the public policy consultancy Low Associates. The company is run by Sally Low, the wife of Lansley. According to the business, Lansley is a “member of the UK House of Lords and acts as Low’s strategic counsel. With his extensive experience in policy and public affairs, Lord Lansley is uniquely positioned to advise Low’s clients on how to achieve their strategic objectives.” Low Associates says it is not a lobbying company and Lansley is not involved in lobbying. It says it mainly operates in Europe, with some work in Britain.

Natalie Evans

Party Conservative
Year of peerage 2014
Company being advised Rud Pedersen since 2023

Lady Evans was the leader of the Lords under the previous Conservative government between 2016 and 2022. In 2023 she was hired by Rud Pedersen, a big lobbying company. She is described as a “senior adviser” who “supports the firm’s consultants in providing general advice on the broad development of UK policy and regulation”. The full list of the company’s clients is not made public. She and Rud Pedersen have previously said she would not lobby for its clients. Evans did not respond to a request to comment.

John Woodcock

Party Crossbencher
Year of peerage 2020
Company being advised The Purpose Coalition (formerly Purpose Business Coalition) since 2021

The former Labour MP Lord Walney was ennobled by Boris Johnson, who also appointed him as his government’s adviser on political violence. Woodcock reviewed whether the government should curb protest groups such as those campaigning against the climate crisis and wars. He was accused of a conflict of interest as he was a consultant for lobby groups representing arms manufacturers and fossil fuel companies. He worked for the Purpose Business Coalition, an organisation run by a lobbying company, and the lobbyists Rud Pedersen. Woodcock denied the claim, saying he had “consistently applied an objective standard and sought a wide range of perspectives”. Woodcock did not respond to a request to comment.

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The Guardian’s analysis has taken information from the House of Lords register of financial interests, which lists peers’ declared paid positions, up to the end of October 2024. From this register the Guardian identified 91 peers hired to give advice about political matters, defined in the register as advising, for instance, on “public affairs”, “public policy”, “strategic advice”, “government and policy development” or “political risk”.

 

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