The Public Administration and Constitutional Affairs Committee is expected to look into former prime minister David Cameron's decision to award honours and peerages to a raft of key advisers and Conservative party donors.
Details of the former prime minister’s 16 resignation peerages were published last week alongside his controversial, widely-leaked 46-name honours list, which included rewards for Conservative politicians and aides.
The former prime minister’s accepted nominations for new members of the Lords included 13 Conservative appointments – seven of them either former special advisers or key staff members of Cameron and his cabinet.
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Bernard Jenkin, the Conservative chair of PACAC, said he intended to invite his committee to look into the former prime minister's honours list and choice of peers when parliament returns from recess in September.
“We have already discussed the principle of holding an inquiry into the House of Lords," Jenkin said.
"This should include the size and composition of the House of Lords, but also the way in which new peers are appointed.
He added: "I think reform of the House of Lords is by far the most important issue arising from this month's controversy. I hope the new government will consider this and our previous report seriously, and I hope the committee will agree terms of reference and to launch our inquiry as soon as the House returns in September.”
A 2012 report published by Jenkin's committee said reform of the honours system was needed to increase "transparency and public confidence", while Jenkin himself wrote to Cameron to warn that rewarding ousted ministers would lead to the public feeling that politicians had been given "consolation prizes".
"We believe that no-one should be honoured for simply “doing the day job”, no matter what that job is," the then-Public Administration Select Committee's report said.
"Honours should be awarded only for exceptional service above and beyond the call of duty.
"This would result in a far higher proportion of honours being awarded to people who devote their time to the local community, instead of to politicians, civil servants, and celebrities."
However, the coalition government rejected the committee's call for reform, saying that it was "right to continue to to reward those whose achievements have been exceptional, whatever their field".