Lords probe into Warsi expenses
The House of Lords Standards Commissioner has launched a formal investigation into Cabinet minister Baroness Warsi's expenses claims.
Former police chief Paul Kernaghan decided to investigate after being asked to look into the claims by Lady Warsi.
She is facing allegations that she claimed for accommodation expenses while staying at a friend's house rent-free.
Scotland Yard said it had decided not to investigate Lady Warsi's expenses and had passed the matter back to the House of Lords.
Labour had called for a criminal inquiry into the Tory peer's expenses, but Lady Warsi, the Conservative Party co-chairman, has denied any wrongdoing, insisting that she had acted within the rules at all times.
A spokesman for the Lords Standards Commissioner said he was holding a formal investigation after an initial assessment.
Scotland Yard said it had "determined that this is not a matter for the police".
"As such the matter has been referred back to the House of Lords Commissioner for Standards," a spokesman said. "The matter was considered in accordance with previously adopted procedures."
Lady Warsi says she made an "appropriate payment" to her friend - Tory official Naweed Khan, who is now one of her aides - for the nights she stayed at a property in Acton, west London. At the time, she was claiming Lords subsistence of £165.50 a night.
But the property's owner, GP and former Conservative donor Wafik Moustafa, denies receiving any income from either Lady Warsi or Mr Khan during the time of her stay in 2008.