London-Centric House of Lords

The allowances for MPs and peers are different in a number of ways. 

• Amount: MPs receive a basic annual allowance of £81,930, while peers receive a basic allowance of £31,982. However, MPs can also receive additional allowances for things such as office costs, travel and subsistence, while peers cannot. 
• Purpose: The basic allowance for MPs is intended to cover the costs of their role as an MP, such as travel to and from Parliament, accommodation in London, and office costs. The basic allowance for peers is intended to cover the costs of their role as a peer, such as travel to and from Parliament, accommodation in London, and office costs. However, the additional allowances for MPs can also be used to cover the costs of running their constituency office, employing staff (invariably a family member), and attending meetings with constituents. 
• Indexation: The basic allowance for MPs is indexed to inflation, which means that it increases each year in line with the Consumer Price Index. The basic allowance for peers is not indexed to inflation, which means that it remains the same in real terms each year.

It is fair to say that the peers regularly attending the House of Lords mainly live permanently in London. A 2019 study by the House of Lords Library found that 65% of peers live in London, while only 12% live outside the South East of England. 

This means that the composition of the House of Lords is heavily skewed towards London, which can lead to concerns about the representation of the wider UK population.