I used to think until about 2005 that we should ditch the Lords and have an elected second chamber - perhaps by PR, so the Commons could represent constituencies and the, say, Senate the national popular vote. (There are all sorts of reasons why MPs would fight that)
But then I worked on a Bill which obviously had to pass the Lords, and I got to work with individual Lords and Ladies, and the relevant committee. Not all of them were good, but some were very very good, with decent legal and scientific minds to get into the problems and suggest changes. I realised then that some of the Lords would be worth keeping for that legislative revision role.
So if wand waving was involved, I would get rid of the hereditary peers and the Lords Spiritual, and then have new appointments to the Lords approved by a panel similar to a very big jury. Parties would still recommend people, but they’d have to have a reason for being there other than ‘donated a lot of money to the party’, or ‘supported the government in a tricky vote’ - some sort of expertise which would help improve the laws the government made. There would also be popular nominations put forward for consideration. Part of the point of it would be not to have any ‘elected’ expectations, but there’s no reason why if enough people thought we needed an expert on broadcasting pretend reality shows that a panel shouldn’t consider if that had merit or not.
I wouldn’t rule out former MPs or even bishops or people whose 18x great grandfather lent Henry VIII some money to play cards per se, but they would have be put forward by a group and then make it past the panel. The panel would be charged with the revising chamber having a good balance of technical knowledge across fields legislated in, and filtering out unsuitable candidates like, say, Lordy McLordface.
New Lords would have a 10 year term, at the end of which they could either retire or ask to go before a panel again.
Realistically such a scheme wouldn’t result in drastic changes, but would address some of the more egregious aspects of the Lords, while keeping some of the things I saw were actually rather useful.
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