Is Sadiq Khan about to become the country's best-paid politician? London Mayor hints he will claim £390-a-day tax-free House of Lords allowance - on top of his £170k salary

By JAMES TAPSFIELD, UK POLITICAL EDITOR Published: 15:27, 24 July 2026 | Updated: 15:28, 24 July 2026 Sadiq Khan looks set to become the country's best-paid politician after being handed a peerage. The London Mayor was installed in the House of Lords by Keir Starmer in one of his last acts as PM. But there is anger at the prospect he could benefit from a loophole in rules around 'double-jobbing'.  Sir Sadiq would see his £170,000 mayoral pay slashed by two-thirds if he took a salary in the Commons or the Lords. However, he can claim the £390 tax-free daily allowance for attending sittings of the Upper House without any reduction in his other pay. With the Lords typically sitting for around 150 days a year, that could mean boosting his income by £58,500.  As the extra cash is not subject to tax or national insurance, he would need to be on a salary of roughly £280,000 to take home the equivalent of his allowances and mayoral pay combined. In contrast, the Prime Minister's salary - including pay as an MP - is just over £174,000.  There is anger at the prospect that Sadiq Khan (pictured) could benefit from a loophole in rules around 'double-jobbing' It appears Sir Sadiq can claim the £390 tax free daily allowance for attending sittings of the Upper House without any reduction in his other pay A spokesman for Sir Sadiq did not deny that he would claim the per diem allowance. 'The Mayor's time will still be devoted to carrying out his role as Mayor of London, including attending all the same meetings and events as he does now, and fulfilling all of his duties as Mayor,' the spokesman said.  'He will continue to devote the same time and energy building a fairer, safer and greener city for every Londoner.' Aides have made clear Sir Sadiq does not want to be a Government minister. He has yet to decide whether to run for an unprecedented fourth term in City Hall in 2028.   There have been rumours that Andy Burnham is planning to put other mayors into the House of Lords to bolster their power.  Tory Tees Valley mayor Lord Houchen has claimed the per diem allowance, but his salary is far lower at £65,000.   John O'Connell, chief executive of the TaxPayers' Alliance said: 'Sadiq Khan must come clean about whether he plans to pocket the Lords' tax-free daily allowance on top of his mayoral salary. 'Taxpayers will not take kindly to their mayor exploiting a loophole to boost an already bumper pay packet. 'If ministers want to stuff more mayors into the Lords, they should close this loophole now.' The London Mayor was installed in the House of Lords by Keir Starmer in one of his last acts as PM