In the United Kingdom, it has been alleged that peerages have been awarded to contributors to party funds, the benefactors becoming members of the House of Lords and thus being in a position to participate in legislating. Famously, Lloyd George was found to have been selling peerages. To prevent such corruption in the future, Parliament passed the Honours (Prevention of Abuses) Act 1925 into law. Thus the outright sale of peerages and similar honours became a criminal act. However, some benefactors are alleged to have attempted to circumvent this by cloaking their contributions as loans, giving rise to the 'Cash for Peerages' scandal.
What did the Honours act do?
outright sale of peerages and similar honours became a criminal act