I'd totally reform the system for awarding honours, introducing a larger public input and taking away the party patronage. You would then draw the House of Lords from this group - a mix of CEOs of Mencap, RSPB, National Trust etc , Nobel prize winners, academics, business people, authors etc. Any system will have its flaws but its much better to have a checking and restraining second house drawn from a wide selection of society (but united by being successful in their field) than to hand more power of croneyism to exisiting politicians of the type we could with less of, not more.