Honours (Prevention of Abuses) Act 1925

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The Honours (Prevention of Abuses) Act 1925 is an Act of the Parliament of the United Kingdom, passed in 1925 (15 & 16 Geo. V c. 72) , that makes the sale of peerages or any other honours illegal. It was brought in after the Liberal Party government of David Lloyd George (later 1st Earl Lloyd George of Dwyfor) was embroiled in a widespread and long-term sale of Honours, to benefit Liberal Party funds, and allegedly for the personal financial gain of the Prime Minister, in a then-legal abuse of the Prime Minister's powers of patronage.

Only one person has ever been convicted under the Act — Maundy Gregory, Lloyd George's "honours broker" — whose actions were the main cause of the Act in the first place.

In March 2006, the Metropolitan Police confirmed that, following complaints by the Scottish National Party and others, they were investigating possible breaches of the Act. A total of £14 million in loans was given by wealthy individuals to Labour during the 2005 general election campaign and four of these men were subsequently nominated for Life Peerages. (see main article Cash for Peerages)