Sadiq Khan has officially joined the House of Lords, taking his seat as Lord Khan of Tooting in a ceremony this afternoon. The London Mayor's elevation to the peerage, reportedly one of Keir Starmer's final acts as Prime Minister, has drawn criticism over potential financial benefits.
Khan, who earns £170,000 as London Mayor, would see his salary significantly reduced if he accepted a formal pay in the Commons or Lords. However, he is eligible to claim a tax-free daily allowance of £390 for attending sittings in the Upper House. With the House of Lords typically sitting for around 150 days a year, this allowance could amount to an additional £58,500 annually.
This additional income, being tax-free and not subject to national insurance, would mean Khan could effectively increase his take-home pay substantially without a reduction in his mayoral salary. For context, the Prime Minister's total salary, including pay as a Member of Parliament, is just over £174,000.
A spokesperson for Khan previously stated that his time would remain dedicated to his mayoral duties, including attending meetings and fulfilling all responsibilities for Londoners. Aides have not commented on whether Khan would claim the daily allowance for his first day of attendance.
Khan has indicated he does not wish to serve as a government minister and has not yet decided if he will seek a fourth term as Mayor of London in 2028. Reports suggest that other mayors may also be considered for ennoblement to enhance their influence. For instance, Tees Valley Mayor Lord Houchen, who earns a considerably lower salary of £65,000, has also claimed the daily allowance for attending the House of Lords.