A senior Liberal Democrat from the House of Lords last night attacked Gordon Brown’s expected plans to promote the former Commons Speaker Michael Martin to the House of Lords.

Michael Martin is now expected to receive £25,000 in overnight allowances and £3,000 in office costs every year on top of his “gold plated” £1.4 million pension from his old job.

The Queen has agreed to give former Commons Speaker Michael Martin a peerage – despite a warning from sleaze watchdogs that it would damage the reputation of the House of Lords.

In a letter to Gordon Brown, the House of Lord Appointments Commission raised the red flag about Mr Martin’s personal expenses claims and his stewardship of the Commons during the political firestorm over MPs’ claims, but the Prime Minister ignored the warning and a motion asking the Queen to approve a peerage was nodded through the Commons without a vote last week.

The Commission could not block his peerage but it advised the Prime Minister Mr Martin might not pass its test of propriety.

A source said:

“They considered the possible impact of public controversy on the reputation of the Lords. There were causes for concern that were drawn to the Prime Minister’s attention.”

Critics reacted with fury at the peerage.

Spokesperson for the Treasury in the House of Lords, Lord Oakeshottsaid:

“What planet is Gordon Brown on? 

“On Monday he told MPs he wanted to rebuild trust in politics, and reform the Lords into a smaller, elected second chamber.

“Now we learn that he has used his personal power of patronage to hand the worst speaker of modern times his P45 in an ermine envelope.”