Executive Summary

Key principles
The reformed second chamber should have sufficient authority to hold the
executive to account; a democratic mandate is the best way to achieve this.

The second chamber should complement the House of Commons, which

should retain its primacy.

As is currently the case, the second chamber should take account of the
prevailing political views of the electorate whilst at the same time being a
forum in which independent and minority views can be heard.

No single party should dominate the second chamber and members should be
able to bring independence of judgment to their work.

The reformed second chamber should reflect the diversity of the society it
serves.

Summary description of the elected second chamber

Size
A reformed second chamber of 300 elected members.

Term
A single non-renewable membership term of three normal election cycles, with
clear attendance requirements.

Recall
A system of recall in line with those to be developed for the House of
Commons, which takes account of the different electoral arrangements for the
reformed second chamber.

Frequency of Elections
Elections to take place at the same time as general elections, subject to a
caveat where a general election takes place within 2 years of the last election
to the second chamber.

Staggered elections so that a third of seats is contested at each election.

Electoral Regions
12 large regional constituencies, known as ‘electoral regions’, which mirror
those for European Parliamentary elections.

Electoral system
Elections to the reformed second chamber to use a proportional open list
system for elections in Great Britain, and the Single Transferable Vote system

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for elections in Northern Ireland.

Powers
No change to the constitutional powers and privileges of the House once it
becomes the reformed second chamber.

Link with the peerage

The link between the award of a peerage and membership of the second
House of Parliament will end.

Transitional period
A move to an elected Lords would not take place in one step but in three
stages over three elections. There will be a transitional period whereby two
thirds of existing peers will remain after the first election and one third after the
second election, with no existing peers remaining after the third election. This
is an inevitable consequence of a 100% elected second chamber.

Staging Post review

The transitional proposals mean that it will take three elections to move to an
elected second chamber. The Government proposes that in the Parliament of
the second stage (when two thirds of the elected members of the second
chamber will have been elected) there should be a review of the final stage in
order to provide Parliament with the opportunity to consider and ratify the
removal of the last appointed element from the second chamber. The final Bill
will make such a review mandatory. This review will allow for a formal vote
before the last stage of reform is entered into.

The Government has considered whether this final Bill should also then make
provision for any changes arising from the review to be approved by an
affirmative or super-affirmative process, but has concluded that given the
constitutional significance of this issue any changes should be by way of
primary legislation.

Lords Spiritual
The Lords Spiritual – the 26 Archbishops and Bishops of the Church of
England – have always held a special and different position in the House of
Lords. They differ from peers (the Lords Temporal) in two key respects. First,
they do not sit for life, but only for their period as a Bishop or Archbishop of
their diocese; secondly, although historically they sit as independent members
of the Lords they are widely regarded as representatives of the Church of
England.

The Government is and remains committed to the establishment of the Church

of England, with the Sovereign as its Supreme Governor, and the relationship
between Church and State. None of these reforms should or are meant to
diminish establishment. The Established Church has for centuries played a
seminal role in our national life and has played a major part in helping to
shape the constitutional, legal and social fabric of the nation.

The nature of Establishment has changed down the years to reflect changing

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circumstances, but a presence in the Lords has been a constant
manifestation. Bringing this to an end would therefore herald a significant
change to a constitutional arrangement that binds Monarchy, Church and
State together in a variety of ways. These include the fact that the Church of
England’s own legislation is subject to Parliamentary scrutiny, and it is the
Bishops who speak to that legislation in the House of Lords.

The Government proposes that a fully reformed second chamber, in

recognition of the enduring importance of the established Church in national
life, and irrespective of the outcome of the staging post review, should
continue to allow a role for the established Church. So the continued role of
the Church would be guaranteed. The draft legislation provides for a limited
role for a reduced number of Lords Spiritual in the reformed second chamber,
but the exact arrangements would be subject to the views of the Church.

The Government also acknowledges the contribution which all faith

communities have made to commenting on legislative proposals in the past.
This is particularly true of the Church of England, but it is not confined to them.
The Government will also consider how the contribution of the faith
communities more generally can still be made available.

Salary and Allowances

The Independent Parliamentary Standards Authority (IPSA) would become
responsible for regulating the salaries and allowances of members of the
reformed second chamber. They would also be entitled to receive a pension.

Tax status
Members of the reformed second chamber will be deemed Resident,
Ordinarily Resident and Domiciled (ROD) for tax purposes.

Disqualification
Members of the reformed second chamber will be subject to a disqualification
regime modelled on that in the House of Commons.

Attendance
Members will also be disqualified if they fail to attend the reformed second
chamber for a period of 80 consecutive sitting days and have not had their
absence approved by the chamber.

Role and Composition

The role of the reformed second chamber would mirror that of the House of
Lords and specifically would be to:
• provide a forum for debate on matters of national importance;
• scrutinise and, as appropriate, revise Bills that are introduced or amended
in the Commons;
• initiate less controversial Public Bills;
• consider subordinate legislation;

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• scrutinise activities of the Executive;
• scrutinise private legislation.

The reformed second chamber will be entirely composed of elected members.

The key aim in all our proposals for reform is to create a strengthened, more
legitimate second chamber. The increased legitimacy conferred by a popular
mandate will give it a level of accountability that is vital in a modern
democracy.

To reflect its role, the Government considers that membership of the reformed
second chamber should be distinctive from that of the House of Commons,
reflecting the different roles of each chamber, crucially, determining and
sustaining the elected government of the day will remain an exclusive role of
the House of Commons. It has concluded, therefore, that members of the
reformed second chamber should be elected on a different representative
basis.

The Government proposes that large constituencies, returning nine or more

members each over three electoral cycles, should be used to elect members
to the reformed second chamber.

The Government wishes to see a reformed second chamber that fully reflects
the diversity of the society that it serves. The Government will give active
consideration to what steps can be taken before the introduction of the Bill for
a reformed second chamber to deliver equality of representation for men and
women, and is committed to consulting widely on the options for achieving this
goal.

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Detail of the Proposals

Powers

Set out in clause 1

1. Clause 1 signals that the change in composition of the second chamber is
not intended to change the status of that chamber as a House of
Parliament or the existing constitutional relationship between the two
Houses of Parliament.

2. The relationship between the two Houses of Parliament is governed by

statute and convention. The Parliament Acts of 1911 and 1949 provide
that in certain circumstances legislation may be passed without the
agreement of the House of Lords. It is not intended to amend the
Parliament Acts – other than to make minor consequential amendments
in a final Bill in respect of the name of the reformed second chamber –
or to alter the balance of power between the Houses of Parliament. The
Parliament Acts, are, however, a long-stop which are rarely resorted to:
the relationship between the Houses is governed on a day to day basis by
a series of conventions which have grown up over time. These include
that the House of Lords will not vote down a Bill or part of a Bill which
contains a manifesto commitment and the principle that the House of
Lords will consider Government Bills in reasonable time. Most important
though are the conventions which support the financial privileges of the
House of Commons.

3. The Government’s position is that these conventions have served the

relationship between the Houses well and that they represent a delicate
balance which has evolved over the years. In its response to the Joint
Committee on Conventions (the Cunningham Committee),1 the
Government noted that:
“The Government agrees with the Committee that such reform [of the
House] will raise the question of whether or not the current conventions
should be carried forward to a differently constituted House. Our answer
to that question is that further reform should not alter the current role of
the Lords as a revising chamber, and that the conventions governing its
relationship with the Commons are fit for that purpose. We believe the
relationship the Joint Committee describes is one which should apply to
any differently composed Chamber.” (paragraphs 8 to 9) (CM 6997).

1
Joint Committee on Conventions of the House of Lords, 3 November 2005, HL 265, HC1212.

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4. The cross-party working group also examined the powers of the House,
and the conventions governing the relationship between the Houses, and
considered that there was no reason to change the current arrangements
for the powers of the second chamber once it became elected. In its
White Paper of July 2008 the Government concluded that there should be
no change to the powers of a reformed second chamber. As the
Government said in the 2008 White Paper, although an all-elected second
chamber will be more assertive, it would be unlikely to pose a risk to the
primacy of the House of Commons, because:
“this primacy is currently based on the fact that the Government of the
day is formed from the party or parties that can command a majority in
the House of Commons. It is also based on the Parliament Acts and the
financial privilege of the House of Commons. The Prime Minister and
most senior ministers are also drawn from the House of Commons.
A second chamber that is more assertive than the current House of
Lords, operating against the background of the current arrangements for
its powers, would not threaten primacy.”

5. In line with this, clause 1 is intended to underline that the move to an all-
elected House should not mean that the existing conventions are any less
relevant or that the relationship between the Houses, and their respective
powers and privileges are to be rewritten from scratch. Rather, the
starting point is the existing relationship between the Houses, while
allowing sufficient flexibility for the conventions to evolve over time.

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Composition

Set out in clause 2

6. It is a feature of second chambers around the world that they tend to be
smaller in number than the first chamber. The current membership of the
House of Lords, at over 700, exceeds the current House of Commons at
646 members. It is also larger than most second chambers in the world.
France Italy, and Spain, all countries of comparable size, have fewer than
350 members in their second chambers and Australia and Germany,
fewer than 80. All have second chambers smaller in number than the first
chamber.

7. The reformed second chamber must be large enough to carry out its roles
and functions effectively. However, there is general agreement, including
cross-party support, that a reformed second chamber should be
significantly smaller in number than the current House of Lords. The
Government proposes, therefore, that the reformed second chamber will
consist of 300 elected members.

8. Not all members of the current House of Lords attend regularly. The
average daily attendance of members of the House of Lords in the last
Parliamentary session was 400. It is acknowledged that members of the
current House of Lords are not full time parliamentarians, as some have
other, outside roles and interests. Members of a reformed second
chamber would, however, be expected to be full time parliamentarians
and attend regularly, taking part in the full range of the work of the
chamber, including committee work. Therefore, the Government
considers that a second chamber of 300 members will be sufficient to
carry out the chamber’s Parliamentary business effectively. A second
chamber of this size would also be commensurate with international
comparisons.

9. In the transitional period, the reformed second chamber will consist of

elected members, transitional members and Lords Spiritual. Details are
set out in paragraphs 79 to 95 below.

10. There is widespread support for breaking the statutory link between the
bestowing of a peerage and a seat in the legislature.

11. The Government considers that membership of the second chamber

should indicate an expectation of future commitment to serve the public
rather than any entitlement by birth, patronage or honour. Membership of
the second chamber should be dissociated from the award of a peerage
or of any other honour.

12. The link will be broken at the beginning of the transitional period. Those
existing peers who become transitional members will be in the reformed
second chamber by virtue of their selection. Although eligibility for

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 selection as a transitional member will be dependent on previous
membership of the House and therefore indirectly on the possession of a
peerage, it will no longer be the peerage which gives them a continued
right to membership.

13. The Government proposes that Ministers may be drawn from elected
members of the reformed chamber and, in the transitional period, elected
members and transitional members. This will ensure that Government
business in the reformed second chamber would be managed by
members belonging to the same political party that had formed the
Government. This will enable the Government of the day to draw the most
talented people from each House to serve as Ministers.

Timing of Elections

Set out in clauses 3, 4 and 18

14. The Government proposes that elections to the reformed second chamber
should be staggered so that 100 of the 300 Second Chamber seats are
contested at each election. Since the Wakeham Commission, there has
been widespread consensus that non-renewable long terms for individual
members of the reformed second chamber are appropriate as it will
differentiate them from the House of Commons and encourage
independence of thought. However, if all the members were elected at the
same time for lengthy terms, this would detract from the democratic
nature of the reformed second chamber as the people would have a
chance to vote only once every 12 to 15 years. Staggering the elections
will also ensure that the reformed second chamber as a whole never has
a mandate as recent as that of the House of Commons. This will support
the position of the House of Commons as the primary legislative chamber
through which and by which the Government is held to account.

15. In order to maximise voter turnout and to reduce costs, the Government
proposes that each “thirds” election to the reformed second chamber
should take place at the same time as general elections to the House of
Commons.

16. However, in order to achieve the aim of relatively long membership terms,
if there is a general election within two years of the last second chamber
election, there will not be another election to the reformed second
chamber at the same time. This means that the period between second
chamber elections will never be less than two years, and could be up to
seven years (the maximum period between general elections being five
years).

17. The final Bill would provide that the detailed rules governing the conduct of
elections to the reformed second chamber, and the procedure by which
those elected become members, would be set out in regulations subject
to the affirmative resolution procedure.

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Elected members’ term of office

Set out in clause 5

18. The Government proposes that a member will serve a term of three normal
electoral cycles or “periods”. This term will be non-renewable, although
there are some limited exceptions to this rule, for example in the case of
replacement members (see paragraphs 35 to 39 below). This will result in
terms of between six and a theoretical maximum of just under 21 years,
but more usually around 12 to 15 years, the length of the term depending
on when elections to the reformed second chamber are held (discussed
at paragraphs 14 to 17 above).

19. Currently, members of the House of Lords receive a writ of summons to

attend each Parliament. The Government considers that writs of
summons are an important part of the Monarch’s summoning of a new
Parliament. Members of the reformed second chamber will therefore be
entitled to receive a writ of summons to attend each Parliament of their
membership. The final Bill will include the procedure for the issuing of
these writs. Even though it is arguable that once a member has proved
their entitlement they should not need a further summons, membership
will continue for several Parliaments, therefore the Government considers
it important that members receive a new writ at the start of each
Parliament, as do existing members of the House of Lords.

20. The Government also proposes that members of the reformed second
chamber will be required to take the oath of allegiance, or make a solemn
affirmation, prior to sitting and voting in the reformed second chamber at
the beginning of each Parliament. The final Bill will include an amendment
to the Parliamentary Oaths Act 1866 to provide this requirement.

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The Electoral System

Set out in clauses 7 and 8 and Schedule 4

21. The Government proposes that the reformed second chamber would be
elected using a system of Proportional Representation. The system
proposed is the “open list” system, using multi-member constituencies.
This reflects the Government’s view that electoral systems must be
appropriate for the institutional context. As with the current House of
Lords, the role of the reformed second chamber will be different to that of
the House of Commons. The House of Commons, through the formation
of a Government by the party that can command the confidence of the
House, is the seat of executive authority. In addition, unlike the House of
Commons, members of the reformed second chamber will not act as sole
constituency representatives.

22. Clause 7 (voting system in Great Britain) provides for this system of
election to be used in Great Britain. A voter will be able to vote either for a
party or an independent candidate, or for the candidate of their choice on
a party’s list.

23. Schedule 4 (voting system in Great Britain) sets out the method for
allocating seats to parties and candidates.

24. In summary:
• The votes are sorted by parties and independent candidates;
• seats are allocated to parties and independent candidates on
a proportional basis using the d’Hondt method.2 Where a voter has
cast their vote for an individual candidate on a party list, that vote is
counted for the purposes of this process as a vote for a party;
• The votes for each party to be awarded a seat or seats are
then sorted into the “direct” votes for each candidate on the party’s list
(discarding votes cast simply for the party). That party’s seats are
allocated to candidates from the party’s list according to the number of
“direct” votes each candidate receives.

2
Under the D’Hondt method, votes for a party are always divided by the number of seats they
have already achieved, plus one. At the beginning of the count none of the parties have a
seat, so their vote is divided by one, and the first seat is awarded to whoever has the largest
number of votes. When a party achieves its first seat, its vote total is then divided by two (one
seat plus one). On achieving a second seat, the total is divided by three (two seats plus one),
and so on. Taking account of seats already achieved in this way means that the seats are
awarded in proportion to the votes cast in the region.

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25. This helps achieve the aim that a reformed second chamber should not be
dominated by party politics and it should be a chamber in which
independent views can be represented, since it allows the electorate,
rather than parties themselves, to determine which candidates on a
party’s list receive seats. The Explanatory Notes to these draft clauses
include a worked example.

26. The Government wishes to see a reformed second chamber that fully
reflects the diversity of the society that it serves. In particular, the
Government regards it as vital that concrete steps are taken to ensure
that the representation of men and women in the reformed second
chamber is broadly equal. The Equality Bill currently before Parliament
contains provisions that will extend the existing facility for parties to adopt
all-women shortlists for Parliamentary candidates to 2030. The
Government will give active consideration to what steps can be taken
before the introduction of the Bill for a reformed second chamber to
deliver equality of representation for men and women, and is committed
to consulting widely on the options for achieving this goal.

Northern Ireland
27. For elections in Northern Ireland, the single transferable vote (STV)
system will be used (clause 8). Northern Ireland uses STV for all elections
except those to the House of Commons, and the Government does not
propose departing from this practice.

28. STV focuses on candidates rather than parties. Under STV, voters rank
candidates in order of preference on the ballot paper, and candidates
meeting a quota are elected. However, with the aim of ensuring fewer
votes are wasted, votes above the quota (i.e. those not needed by a
candidate in order to be elected) are ‘transferred’ to other candidates,
in accordance with the next preference expressed on the ballot papers.
To avoid the problem of deciding which votes are to be transferred and
which are not, the second preferences on all of the ballot papers on which
the first preference was for an elected candidate are counted, and the
surplus votes are transferred to other candidates in proportion with the
total second preference votes for each other candidate. Any candidates
now meeting the quota are elected; this process continues until all of the
seats have been filled.

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Electoral Regions

Set out in clause 6 and Schedules 2 and 3.

29. The Government proposes 12 electoral regions which will act as multi-
member electoral constituencies. England will be divided into nine
electoral regions, which are listed in Schedule 2. Scotland, Wales and
Northern Ireland will each be a single electoral region. This mirrors the
electoral regions for European Parliamentary elections.3

30. As is the case for European Parliamentary elections, the Electoral

Commission will be charged with calculating and recommending how
many seats should be allocated to each electoral region. Schedule 3
requires the Commission to produce a report recommending the
distribution of seats between regions in the first three elections to the
reformed second chamber, which will be published and laid before
Parliament. This report will be made by 1 May 2012, ahead of the first
election to the reformed second chamber, and its recommendations will
aim to secure a ratio of electors to seats that is as similar as possible in
each region, subject to a minimum of 3 seats being allocated to each
region at each “thirds” election. Details of how the Commission will carry
out this initial allocation are set out in paragraph 1 of Schedule 3. The
Electoral Commission’s recommendation will be given effect by an order
laid by the Secretary of State which will be subject to the affirmative
resolution procedure in Parliament.

31. Paragraph 2 of Schedule 3 sets out the requirement for a review of the
allocation of seats to regions by the Electoral Commission after every
third election to the reformed second chamber. The allocation calculation
will be conducted on the basis that 100 seats are allocated at each thirds
election, and then that allocation of seats to each region is calculated for
the next 3 second chamber elections.

32. In a similar way to the Electoral Commission’s initial recommendations, the

Electoral Commission’s report will be published and laid before
Parliament, and any recommendation of a change to the current
allocation of seats will be given effect by an order laid by the Secretary of
State, which will be subject to the affirmative resolution procedure.

3
At European elections, Gibraltar forms the “combined region” with the South West of England.
Gibraltar will not participate in elections to the reformed second chamber.

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Franchise

33. The Government proposes that the franchise for the reformed second
chamber will be the same as for that for the House of Commons at that
time. This means that, as in general elections to the House of Commons,
Irish and qualifying Commonwealth citizens (which includes British
citizens) will be eligible to vote in elections to the reformed second
chamber, as will those entitled to vote in Parliamentary elections from
overseas by virtue of the Representation of the People Act 1985. This will
be set out in the final Bill.

34. Currently, peers cannot vote in UK Parliamentary elections. However, the

Government proposes that all members of the reformed second chamber
will be able to vote in both general elections and elections to the reformed
second chamber. The registration requirements will also mirror those
used for elections to the House of Commons and will include a special
residence requirement for Northern Ireland (as is the case for general
elections).

Filling vacancies

35. The final Bill and associated secondary legislation will include provision for
the filling of vacancies.

36. Given the relatively long term of membership, vacancies may be more
likely to arise for seats in the reformed second chamber than seats in the
House of Commons. Holding by-elections for whole electoral regions
would be a time-consuming and expensive process. Given this, and that
members of the second chamber do not individually directly represent a
constituency, the Government proposes that when a vacancy arises as a
result of the death, resignation, expulsion or disqualification of a member
before the expiry of the term of their membership, vacancies would be
filled in one of two ways:
• where the individual was a party member, the seat would be
taken up by the candidate from the same party's list in that region at
the most recent election who received the highest number of direct
votes without winning a seat. If that person is not eligible or willing to
take the seat, the replacement would be the candidate from that
party’s list with the next highest number of votes, and so on. In the
event that the party list is exhausted, the party would nominate a
replacement. In Northern Ireland, party nominating officers would be
asked to nominate a replacement;
• In the case of independent members at the point of their
nomination candidates would nominate between one and six

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 substitutes who could, if willing and eligible, take the seat of the
independent member if the member left the reformed second chamber
early. The substitutes would be approached in that order to fill the
vacancy.

37. In the event that the vacancy could not be filled by these methods, the
vacancy would be filled by the person, regardless of their party, who
would have been elected at the last election to the reformed second
chamber if there had been an additional seat to allocate in that region.

38. In all cases, the person taking the vacancy would fill it until the next
second chamber election. That person would be eligible to stand as a
candidate at the next election to the reformed second chamber in the
ordinary way; this would be an exception to the general principle of non-
renewable terms. This exception is designed to encourage talented
people to be willing to fill vacancies.

39. If the departed member’s term would have expired at the next election to
the reformed second chamber, that election will proceed as normal in that
region. If the departed member’s term would have continued past that
point, at the next election to the reformed second chamber in that region
an additional seat would be contested for a short term of either one or two
electoral periods, so that that seat retains its place in the 100 full term
seats contested at each election. The extra seat with a short term will be
the last seat allocated at that election.

Political donations and spending rules

40. The Government proposes that the regulatory regime for donations and
loans to members of the second chamber should reflect that for MPs, who
are regulated by the House authorities and subject to a number of
controls in the Political Parties, Elections and Referendums Act 2000 (as
amended) as holders of elective office.

41. The regime for expenditure by parties and candidates for election to the
second chamber will broadly reflect the arrangements for election to the
House of Commons in a way which takes account of the combined nature
of the elections to the two Houses of Parliament and the differing electoral
systems in operation. In addition, as elections to the reformed second
chamber will take place at the same time as general elections, the
Government also proposes to extend the scope of the regulatory regime
for third party campaigning to elections to the reformed second chamber.

42. These provisions are not included in the draft clauses but will be set out in
the final Bill.

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Provision to resign

Set out in clause 15

43. The Government proposes that members of the reformed second chamber
should have the right voluntarily to relinquish their membership at any
time. Although it is hoped that members of the second chamber elected to
serve the people of their region will be committed to that service for a full
term, where that is relatively long, the Government recognises that there
are many reasons why a member may wish to resign. In the event of a
resignation, the vacancy would be filled as set out in paragraphs 35 to 39
above so that the number of members of the reformed second chamber
remains constant.

44. The Constitutional Reform and Governance Bill includes a resignation

provision which, if enacted, would allow members of the current House of
Lords to resign before the start of the transition period.

45. The provision in clause 15 broadly replicates the mechanism for

resignation in the Bill, by giving written notice to the Clerk of the
Parliaments. The provision does not apply to the 5 bishops and
archbishops who are Lords Spiritual by virtue of holding particular named
offices, because their ex officio membership of the second chamber is
reserved to the holders of those offices.

Recall

46. The Government has committed to introducing a recall mechanism for the
House of Commons for grave situations where financial impropriety has
been proven, but where Parliament itself has failed to act. The
Government intends that the final Bill will include a recall mechanism
broadly analogous to any mechanisms that are developed for the House
of Commons but that takes account of the different electoral
arrangements for the reformed second chamber. The arrangements
outlined above for the filling of vacancies and the final Bill would be cast
in a way that takes account of the possibility of recall.

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Disqualification

Set out in clauses 11 to 13, clause 16 and Schedule 6

47. The provisions on disqualification will be broadly harmonised with those of
the House of Commons to ensure that there is a common standard
governing membership of both Houses. The main purpose of the
disqualification regime would be to ensure the fitness and propriety of
members of the reformed second chamber.

48. Under the regime, members would be disqualified on the following

grounds:
• Age (a minimum of 18 years for elected members);
• Nationality (matching the requirements for the House of
Commons for elected members, and retaining the requirement for the
House of Lords for transitional members and Lords Spiritual);
• Holding a disqualifying office (matching the House of
Commons regime for elected members);
• Insolvency (applying to any time during which an insolvency
order is in force in relation to an elected or a transitional member);
• Imprisonment for a serious criminal offence (applying to any
time during which an elected or transitional member is serving a
prison sentence of a year or more);
• Expulsion (where the second chamber resolves that a
member’s conduct has brought the chamber into disrepute and
warrants expulsion);
• Having previously been elected to the second chamber (to
ensure that elected members serve a single, non-renewable term; this
is of course not the case in the House of Commons);
• Non-attendance, as to which see paragraphs 59 to 61 below.

49. Disqualification for previous election to the second chamber is lifted where:
• an elected member’s membership has been ended in the first
or second electoral period by disqualification for insolvency or
imprisonment; and
• subsequently, the insolvency order is annulled, or the prison
term is reduced to a year or less or the conviction overturned.
In this scenario, the person is able to stand for election again and may
serve a further term as an elected member.

Membership of the House of Commons

50. Under clause 16(1) a member of the reformed second chamber is

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 disqualified from becoming a member of the House of Commons.
Therefore, a person cannot be a member of both Houses of Parliament at
the same time.

Treason
51. Anyone serving a sentence for treason is disqualified under section 2 of
the Forfeiture Act 1870, from ‘being elected, or sitting, or voting as a
Member of either House of Parliament’. Clause 16(2) clarifies that the
provision will apply to all members of the reformed second chamber.

Mental health
52. Section 141 of the Mental Health Act 1983 currently provides that an MP’s
seat becomes vacant if the Member is sectioned under the Act for a
period of six months or more. It is widely recognised that there is a need
to end this distinction between mental and physical illness, though it will
be important to do so in a way which protects the interests of
constituents. The Government agrees that, in line with the recent
recommendation by the Speaker’s Conference, the issue should be
discussed by a select committee as soon as possible. Although members
of the reformed second chamber will not represent constituents in the
same way as members of the House of Commons, the Government
believes that the position for the reformed second chamber should reflect
the position for the House of Commons once settled.

Mandates on leaving the reformed second chamber

53. Members of the reformed second chamber could be prevented from

seeking election to the House of Commons for a certain period of time
after the expiry of their term of membership of the reformed second
chamber. The Wakeham Commission proposed a waiting period of ten
years. The 2007 White Paper set out the Government’s view that
membership of the reformed second chamber should not be used to build
a political base in the House of Commons. In the 2008 White Paper, the
Government proposed a cooling off period of five years.

54. The Government has considered this matter further and believes that the
public should be given the widest possible choice of candidates for
election to the House of Commons. Former MEPs and local Councillors
are free to stand for election to the House of Commons and former MPs
will be permitted to stand for election to the reformed second chamber.
The Government therefore proposes that former members of the
reformed second chamber should be free to stand for election to the
House of Commons.

17
Expulsion or suspension for misconduct

Set out in clauses 12, 13 and 14 and Schedule 6

55. Clauses 12, 13 and 14 provide powers for the reformed second chamber
to suspend or expel an elected or transitional member who is deemed by
resolution of the second chamber to have brought the House into
disrepute to such an extent that suspension or expulsion is warranted.
Details of the process would be set out in standing orders (in the same
manner proposed in the Constitutional Reform and Governance Bill).

56. These provisions broadly mirror the powers available to the House of
Commons in respect of misconduct by MPs.

57. Expulsion will result in permanent loss of membership. The member would
lose their entitlement to receive writs of summons, and any writ of
summons already issued would have no further effect However, if a
member is suspended the individual will not lose his membership, but will
not be entitled to sit and vote (or receive writs of summons) for the period
of the suspension.

58. As a suspended individual would continue to be a member, he or she

would be continue to be deemed resident, ordinarily resident and
domiciled in the UK under the deeming provision on tax status
(see paragraphs 75 to 78 below).

Attendance

Set out in clauses 12 and 13 and Schedule 6

59. Unlike MPs in the House of Commons, members of the reformed second
chamber will not have extensive constituency duties and will be expected
to participate fully in the business of the reformed second chamber when
it is sitting.

60. For this reason the clauses provide that transitional and elected members
will be disqualified if they fail to take part in the business of the Second
Chamber for 80 consecutive sitting days without having their absence
approved by the reformed second chamber before the end of that period.

61. Currently standing orders set out the system by which members may seek
leave of absence in the House of Lords. The provisions will permit the
Second Chamber to make such standing orders as are necessary to give
effect to the non-attendance condition.

18
Salaries and allowances

62. The final Bill will include provision on salaries, pensions and allowances.
Currently, with the exception of a few office holders, members of the
House of Lords are unpaid; they do not receive salaries or other
employment benefits, including pensions. Instead, members are entitled
to receive a non-taxable allowance to cover the expenses they incur in
carrying out their parliamentary duties. As members of the reformed
second chamber will be full time parliamentarians the Government
proposes that transitional members (except Lords Spiritual) and elected
members will receive a taxable salary. They will also be entitled to receive
a pension.

63. The Government proposes that members of the reformed second chamber
will also be subject to the same independent regulatory regime as the
House of Commons provided by the Independent Parliamentary
Standards Authority (IPSA).

Salaries
64. The arrangements are intended to be broadly similar to those which will
apply to members of the House of Commons. The Parliamentary
Standards Act 2009 (‘the PSA 2009’) made provision for the salaries of
MPs to be paid by the IPSA in accordance with resolutions of the House
of Commons. However, the Report of the Committee on Standards in
Public Life (CSPL): MPs’ expenses and allowances: Supporting
Parliament, safeguarding the taxpayer (“the Kelly Report”)4 published in
November 2009 recommended that the IPSA determine (as well as pay)
MPs’ salaries, and the Constitutional Reform and Governance Bill
currently before Parliament implements this recommendation.

65. In light of these developments the Government has reconsidered the

proposal in the 2008 White Paper that the advice of the Senior Salaries
Review Body should be sought when determining the level of pay of
members of the reformed second chamber. It has instead decided, in line
with the recommendations in the Kelly Report, that the IPSA should pay
and set the salaries of members of the reformed second chamber.

66. While the level of pay will be solely a matter for the IPSA, the Government
believes that the salary of members of the reformed second chamber
should be between that of MPs and members of the devolved
administrations. It should be open for the IPSA to consult the Senior
Salaries Review Body, and any other person it considers appropriate,
when determining the level of pay.

67. The IPSA will be expected to conduct a general review of members’

salaries in the first year of each new electoral period, replicating the
arrangements in the House of Commons. The salaries of office holders
would be included in this exercise as these form part of the running costs
4
Cm7724

19
 of the reformed second chamber. However, the review would not include
Ministers’ pay as this comes from departmental budgets and is reviewed
separately.

Salaried office holders

68. There are a number of salaried posts in the House of Lords which it is
intended should continue in the reformed second chamber albeit with the
necessary revisions to titles. These include the posts of the Lords
Speaker, Leader of the Opposition and Opposition Chief Whip.

69. The salaries for these positions will continue to be governed largely by the
Ministerial and Other Salaries Act 1975. However the post holders will
also receive a salary as members of the second chamber, mirroring the
approach adopted for office holders in the Commons.

Pensions
70. The Government proposes that the pensions arrangements for transitional
members (except Lords Spiritual) and elected members of the reformed
second chamber will broadly mirror those available for MPs.

71. The Kelly report recommended that the IPSA be given statutory
responsibility for setting MPs’ pensions. The Constitutional Reform and
Governance Bill currently before Parliament implements this
recommendation. The details of the scheme for the second chamber will
be the subject of further consideration.

Allowances
72. A system of allowances will entitle all members (including transitional
members and Lords Spiritual) to claim allowances for costs that are
necessarily incurred during the course of their parliamentary duties.
These may include for example, accommodation costs of those
representing regions which are geographically remote from Parliament.

73. The Government proposes that the IPSA should set and from time to time
revise the allowances scheme for the reformed second chamber. The role
of the Compliance Officer, together with the other aspects of the
enforcement regime provided for in the PSA 2009, as amended by
Constitutional Reform and Governance Bill, would also be extended to
the reformed second chamber.

Governance
74. The governance arrangements for the IPSA which apply in relation to the
House of Commons will be extended to the second chamber. These
include matters such as terms and conditions of appointment of members
of the IPSA, funding, staffing and reporting requirements.

20
Tax Status

Set out in clause 17

75. Members of the reformed second chamber will continue to consider
legislation that affects all aspects of life in the UK, including policies with
significant public expenditure and therefore tax consequences. It is only
right that members should be liable to pay the same tax as the vast
majority of people in the UK.

76. Since the publication of the 2008 White Paper, the Government has
revised its proposals for achieving its policy on tax status for members of
the reformed second chamber. Rather than a disqualification provision to
bar those who do not pay the required taxes, clause 15 provides for a
deeming provision which will apply to elected members and transitional
members (but not the Lords Spiritual) so that they are liable to pay UK tax
on the same basis as the majority of the population, regardless of actual
tax status. Members will be deemed Resident, Ordinarily Resident and
Domiciled (ROD) for the purposes of income tax, capital gains tax and
inheritance tax. There will be an exception, during the transitional period,
of Lords Spiritual and any transitional members who are temporarily
disqualified from sitting and voting because they hold judicial offices)

77. The provision will apply for the whole of each tax year in which the person
is a member, from the start of the tax year in which membership
commences, to the end of the tax year in which membership ceases.
Clause 15 builds on provisions included in the Constitutional Reform and
Governance Bill that provides that members of the House of Commons
and House of Lords should be deemed to be Resident, Ordinarily
Resident and Domiciled (ROD) for the purposes of income tax, capital
gains tax and inheritance tax.

78. The provision will make members liable to pay UK tax on their domestic
and foreign income when it arises, subject to any relevant Double
Taxation Agreements, for the whole of their period of office. Those who
die while a member will be deemed ROD on their death and will be
subject to normal UK inheritance tax provisions.

21
Transitional arrangements

Set out in clauses 2 and 3 and Schedule 1

79. During the transitional period it will be critical for the reformed second
chamber to carry out its functions effectively. Existing peers have build up
a wealth of expertise as members of the House of Lords and it is
essential that they have the opportunity to transmit their knowledge to
elected members. A transitional period of around 8 to 10 years, or two
“normal length” Parliaments, will allow time for this process.

80. In deciding the size of the reformed second chamber during the transitional
period, the Government is seeking to achieve a balance between a
chamber which is too small to fulfil its functions and a chamber which is
unmanageably large, even in the short term.

81. At the first elections to the second chamber, 100 members will be elected.
At the same time up to two thirds of the existing members of the House of
Lords will be selected as transitional members of the second chamber.
The maximum number of transitional members is to be calculated by
reference to the total number of peers who are entitled to receive a writ of
summons on the day that the final Bill is introduced into the House of
Commons.

82. To be eligible to be selected as a transitional member, a peer must be

entitled to receive a writ of summons to attend the House of Lords
immediately before dissolution of the last Parliament before the first
election to the reformed second chamber.

83. The exact method and process used to select transitional members will be
set out in Standing Orders of the House. This follows the approach taken
in the House of Lords Act 1999 to remove hereditary peers from the
House of Lords. The standing orders may provide for political parties or
groups (cross-bench and non-aligned) to decide which of their members
should retain their seats at each stage of the transition. The selection
process must be completed before the end of the day of the first elections
to the reformed second chamber, so that writs of summons can be issued
to the successful transitional members and they may take their seats
alongside the new elected members at the start of the first Parliament of
the reformed second chamber.

84. At the time of the next second chamber elections, approximately half of the
transitional members will be entitled to remain (the maximum number
being one-third of the number of peers who were entitled to receive writs
of summons to attend the House of Lords on the day that the final Bill was
introduced into the House of Commons).

85. The eligibility and selection criteria are the same as for the first transitional
period.

22
86. Writs of summons will be issued for each Parliament during the period of
transitional membership. All remaining transitional members would leave
at the end of the transitional period.

87. Peers who retain seats during the transitional phase would be:
• Disqualified if they fail to attend the reformed second
chamber for a period of 80 consecutive sitting days and have not had
their absence approved by the Chamber (see paragraphs 59 to 61);
• Paid a salary and pension and receive allowances in the
same way as elected members (see paragraphs 62 to 73);
• Deemed Resident, Ordinarily Resident and Domiciled for tax
purposes (see paragraphs 75 to 78); and
• Subject to a disqualification, suspension and expulsion
regime similar to that which will apply to elected members (see
paragraphs 47 to 52 and 55 to 58).

The Lords Spiritual

Set out in clause 2, 9 and 10 and Schedules 1 and 5

88. The Government proposes that transitional arrangements should also
apply to Lords Spiritual so that at the end of the transitional period only 12
Lords Spiritual will remain. The Government believes that these
arrangements will allow the Bishops to continue to contribute effectively to
the second chamber.

89. The Archbishops of Canterbury and York and the Bishops of London,
Durham and Winchester hold a seat in the House of Lords as of right
under the Bishoprics Act 1878. The Government proposes that they
should be entitled to remain in the reformed second chamber throughout
the transitional period and in the fully reformed second chamber. If one of
these Archbishops or Bishops leaves their position, he will be replaced in
the reformed second chamber by the new holder of that office.

90. 21 further Bishops are currently entitled to sit in the House of Lords, in
order of seniority. Up to 14 of those 21 who are in the House of Lords at
dissolution immediately before the first second chamber elections may be
selected to remain as Lords Spiritual in the first transitional period. At the
time of the second election up to 7 of these Bishops may be selected to
remain as Lords Spiritual in the second (and final) period of transition. If
one of the additional bishops becomes the Bishop of a different diocese,
he will continue to be a Lord Spiritual.

91. Additional Lords Spiritual will be able to resign from the reformed second
chamber both during the transitional periods and in the fully reformed
chamber. If the number of additional Lords Spiritual falls below 7, whether
through resignation or otherwise, the Church of England will choose

23
 replacements to ensure that 7 additional Lords Spiritual remain.

92. The selection of the additional Lords Spiritual is to be made by the Church
of England in whatever way it considers appropriate. Additional Lords
Spiritual at the start of the first and second transitional periods must be
selected from the existing Lords Spiritual; those appointed to the fully
reformed chamber or as replacements during the transitional periods may
be selected freely from the bishops of dioceses in England.

93. The Lords Spiritual who remain in the House after the end of the
transitional period will have speaking rights, and will be able to vote on
Church legislation but not on other legislation.

94. As Lords Spiritual, Bishops would sit in the reformed second chamber on a
different basis from other members. Therefore in the transitional period,
and in a fully reformed chamber, the Government proposes that:
• Lords Spiritual will not be entitled to a salary or pension in the
reformed second chamber (see paragraphs 62 to 71);
• Lords Spiritual will be exempt from the attendance
requirement and the tax deeming provision (see paragraph 59 to 61
and 75 to 78);
• Lords Spiritual will be entitled to claim allowances under the
scheme administered by the IPSA for members of the reformed
second chamber (see paragraphs 72 and 73); and
• Removal, expulsion and suspension provisions equivalent to
Part 3 of the CRAG Bill will not apply to the Lords Spiritual (see
paragraphs 47 to 49).

24
Implementation

95. The Government proposes that before a final decision is taken to complete
the move to a fully elected second chamber, Parliament should have the
opportunity to confirm that this is what it wants to do. There would
therefore be a vote in both Houses at the beginning of the second
transitional period on whether the final composition of the second
chamber should be 80% or 100% elected. These were the two
alternatives which the House of Commons approved in 2007. If the vote
were to be for 100% elected, then the implementation would be
completed as set out in these proposals. If, however, both Houses were
to vote for 80% elected, the Government would be obliged to bring
forward legislation to provide for that. Both the requirement for the vote
and the obligation on the Government to respond to it by bringing forward
appropriate legislation would be included in the final version of the Bill
which will be introduced for enactment in the next Parliament.

Name

Set out in clause 1

96. The Government remains open minded on the name of the reformed
second chamber. Before introducing the final Bill in the next Parliament,
the Government will undertake a public consultation after the General
Election on the name of the reformed second chamber.

97. The neutral term “reformed second chamber” is used throughout this
narrative. “Second Chamber” is the term which has been adopted for
drafting purposes in the clauses.

Costs

98. The overall cost of a reformed second chamber is subject to a number of

variables. As set out in the 2008 White Paper, the Government’s intention
is to ensure that the cost of a reformed Second Chamber is maintained at
the current or at a lower level. The net operating cost of the House of
Lords in 2008/2009 was £103,918,000.5

99. The extra support costs which full-time elected members might require will
be offset by the fact that at 300 full-time members, the reformed second
chamber will be smaller than the current House of Lords. The exact cost
of the reformed second chamber will depend on the pay and allowances
of members. The Government proposes that these will be set by the
Independent Parliamentary Standards Authority (IPSA).
5
House of Lords Annual Report (2008/2009). The figures are in resource terms.

25
100. The Government proposes running elections to the reformed second
chamber alongside United Kingdom Parliamentary general elections. We
estimate that the additional cost of running an election to the reformed
second chamber alongside a general election would be £51 million, when
compared with the cost of a general election on its own. In addition, there
would be significant costs arising from election mailings: no decision has
yet been taken on the degree to which candidate mailing arrangements
would follow those for the House of Commons.

101. Members of the reformed second chamber (with the exception, during the
transitional period, of Lords Spiritual and any transitional members who
are temporarily disqualified from sitting and voting because they hold
judicial offices) will be deemed resident, ordinarily resident and domiciled
(ROD) in the UK for tax purposes.

26
Draft Clauses

27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
102.

50
Explanatory Notes

51