Sadiq Khan's recent appointment to the House of Lords by Keir Starmer has triggered a wave of scrutiny regarding political compensation in the United Kingdom. the move has highlighted a specific "double-jobbing" loophole that could allow the London Mayor to significantly increase his annual earnings.
The £58,500 per diem loophole
The financial structure of the House of Lords allows Sadiq Khan to bypass traditional salary reductions that usually accompany dual roles. As the report notes, if a politician accepts a salary in the House of Commons or the House of Lords, their existing salary—in this case, Khan's £170,000 mayoral pay—would typically be reduced by two-thirds. However, a loophole exists that allows officials to claim a £390 tax-free daily allowance for attending Lords sittings instead of a formal salary.
Because the House of Lords is expected to meet for approximately 150 days each year, this per diem arrangement could add an estimated £58,500 to Khan's income. This mechanism allows the Mayor of London to maintain his full mayoral salary while simultaneously collecting parliamentary allowances, a practice that critics argue is designed to maximize personal revenue.
A total income exceeding double the Prime Minister's pay
Sadiq Khan's projected annual compensation is expected to reach roughly £280,000, a figure that places him among the most highly compensated politicians in the country. This total is more than twice the salary currently earned by the Prime Minister. While the scale of this income has drawn criticism, a spokesman for Sadiq Khan has confirmed that the Mayor intends to claim the per diem allowance.
The Mayor's office has attempted to mitigate the controversy by stating that his primary focus will remain on his duties within London. Nevertheless, the disparity between the Mayor's potential earnings and those of the Prime Minister has become a central point of contention in the debate over political ethics and the cost of governance.
TaxPayers' Alliance calls for immediate legislative clarity
The TaxPayers' Alliance has voiced strong opposition to the current arrangement, describing it as a loophole that must be closed to ensure fairness. The organization is calling for Sadiq Khan to provide explicit clarification on his intentions and how he plans to balance his dual responsibilities. According to the report, the group's primary concern is the precedent set by allowing officials to stack multiple forms of public compensation.
This tension reflects a broader debate within British politics regarding the transparency of political pay. Critics argue that the ability to "double-job" creates a conflict of interest and allows well-connected politicians to accumulate wealth through multiple taxpayer-funded streams. The TaxPayers' Alliance is pushing for a more stringent regulatory environment to prevent similar income-stacking in the future.
Speculation regarding Andy Burnham's potential peerage
The appointment of Sadiq Khan has led to widespread speculation that other influential regional leaders may soon follow suit. There are suggestions that Manchester Mayor Andy Burnham could potentially be appointed to the House of Lords to bolster his political influence on the national stage. This would allow regional leaders to have a direct voice in the upper chamber of Parliament while maintaining their local mandates.
However, several questions remain unanswered regarding the government's long-term strategy. It is currently unknown if Keir Starmer intends to use peerages as a tool for regional empowerment or if this is a one-off appointment for the London Mayor.. Furthermore, it remains unclear whether any legislative changes will be introduced to address the specific "double-jobbing" loophole identified by the TaxPayers' Alliance.
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