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Ninety-one members of the House of Lords have received payments from commercial enterprises to provide political or policy guidance, raising concerns about the adequacy of oversight surrounding these activities.
According to an analysis by the Guardian, over 10% of peers have accepted financial compensation from various business sectors, including lobbying firms and companies in the banking, defence, and energy industries. Some individuals in these roles can earn substantial fees, amounting to tens of thousands of pounds annually.
The list includes notable figures such as former Conservative health minister Andrew Lansley and ex-Labour home secretary David Blunkett.
The Guardian’s investigation noted that 91 members of the Lords were compensated for offering their political insight to organizations like Santander bank, French defence firm Thales, and British machinery manufacturer JCB.
Members of the House of Lords are often engaged due to their wealth of experience, and the regulations acknowledge that many peers maintain concurrent professional commitments. Unlike Members of Parliament (MPs), peers do not receive a base salary; however, they are eligible for a daily tax-free allowance of £361.
The existing rules permit peers to engage in consultancy work, advising on general political matters, current affairs, and parliamentary procedures.
To mitigate potential conflicts of interest, peers are prohibited from leveraging their political roles to lobby directly on behalf of the businesses compensating them. This includes avoiding interactions with ministers or officials to advocate for the interests of the paying company or advising on who might be best approached for lobbying efforts.
Despite these regulations, advocates for democratic transparency argue that there is an inherent tension between the responsibilities of peers in the Lords and the commercial motivations of the companies that employ them.
Many peers pursue these consultancy roles after their appointments to the Lords and often offer advice in industries where they may lack prior experience. This raises concerns about the perception that they might be utilizing their political influence for personal or financial gain.
Sue Hawley, the director of the transparency organization Spotlight on Corruption, remarked, “The potential exists for peers, who can gain significant access to government officials, to be viewed as exploiting their privileged status to secure political consultancy roles.” She added that such practices could erode public trust in the House of Lords.
This analysis coincides with the Guardian’s launch of a new series titled “The Lords Debate,” which explores the roles of Lords members at a time when the Labour government is looking to enhance standards and possibly limit the size of the upper chamber.
The regulatory framework governing peers is notably less stringent than that which applies to MPs, who are now prohibited from accepting paid consultancies following controversies, including that of former cabinet minister Owen Paterson, who lobbied on behalf of businesses that compensated him over £500,000.
The government has since closed a loophole that allowed MPs to advise clients on “public policy” and general parliamentary processes, yet these restrictions have not been extended to the House of Lords.
Lobbying Concerns
The scrutiny intensifies for peers who are aligned with lobbying firms, with the analysis revealing that 24 peers have received remuneration from such companies. These lobbying firms are typically engaged by various organizations to sway ministers and policymakers, often to mitigate unfavorable policy measures.
Concerns regarding Lords working with lobbying firms surfaced recently when Stonehaven, a lobbying company, announced it had brought on Charlotte Vere, a peer and former government minister, as a partner. Following backlash, the appointment was rescinded within days.
Alastair McCapra, chief executive of the Chartered Institute of Public Relations, asserted that such firms should refrain from employing peers. “There ought to be a distinct separation between legislative duties and the role of influencing legal changes through lobbying,” he stated.
Critics have raised questions about the motivations of lobbying firms that hire peers, especially since the House of Lords rules prohibit them from engaging in direct lobbying efforts. Their role is confined to discussing non-specific political issues or the general functioning of parliament.
Hawley voiced skepticism, stating, “It’s difficult to believe that any professional lobbying firm would need to pay peers for insights on public policy and parliamentary procedures when that expertise is standard for these firms.”
Peers with Consultancies
Here are some examples of peers who have taken on consultancy roles, with no implication of misconduct by any of the individuals mentioned.
David Blunkett
Party: Labour
Year of Peerage: 2015
Company Being Advised: DLA Piper since 2024
Lord Blunkett, a former cabinet minister in Tony Blair’s administration, serves in several consultancy capacities. He provides advisory services regarding public policy and internal government processes for the legal and lobbying firm DLA Piper. He clarified, “My agreement with them expressly prohibits any involvement in lobbying.”
Andrew Lansley
Party: Conservative
Year of Peerage: 2015
Company Being Advised: Low Associates since 2015
The former Conservative cabinet minister Lord Lansley operates as a director for the public policy consultancy Low Associates, which is managed by his spouse, Sally Low. The company states that Lansley acts as a strategic adviser, utilizing his extensive background in policy and public affairs to support their clients in achieving objectives. The firm claims it does not engage in lobbying activities.
Natalie Evans
Party: Conservative
Year of Peerage: 2014
Company Being Advised: Rud Pedersen since 2023
Lady Evans, who led the House of Lords under the previous Conservative administration from 2016 to 2022, was hired in 2023 by Rud Pedersen, a major lobbying firm, as a senior adviser. She is involved in providing general insights into the development of UK policy and regulatory affairs. The specifics of the firm’s clientele are confidential, although both she and Rud Pedersen have stipulated that she would not engage in lobbying activities.
John Woodcock
Party: Crossbencher
Year of Peerage: 2020
Company Being Advised: The Purpose Coalition since 2021
The former Labour MP Lord Walney was appointed to the House of Lords by Boris Johnson and subsequently served as an adviser on political violence. Woodcock assessed whether the government should regulate protests by groups, including those addressing climate change. He has faced accusations of potential conflicts of interest, given his consultancy role with lobbying organizations that represent arms and fossil fuel interests. He denied these allegations, maintaining that he has sought a balanced perspective throughout his work.
A spokesperson for the House of Lords affirmed, “The code of conduct mandates members to uphold rigorous standards of transparency and proper conduct. This includes registering and declaring relevant interests and ensuring a clear separation between external engagements and their parliamentary functions.”
The Guardian’s analysis utilized data from the House of Lords register of financial interests, detailing peers’ declared paid positions as of late October 2024. From this registry, the Guardian identified 91 peers contracted to offer political advice on issues such as “public affairs,” “public policy,” “strategic advice,” and “government and policy development.”
Source
www.theguardian.com