Scotland Yard have launched an investigation into a Tory frontbench peer who claimed £100,000 in overnight allowances despite living less than 50 miles from Westminster, it was reported last night.

The Daily Telegraph said that Lord Hanningfield was being investigated over reports that he returned to his home in Essex while simultaneously claiming expenses for staying in London.

Lord Hanningfield, who is the leader of Essex County Council, also has a full-time chauffeur paid for by the taxpayer. He is reported to have claimed £99,970 in “overnight subsistence” over the last seven years, including £17,120 for the year ended March 2008.

Yesterday he accused the paper of aiding a “vindictive campaign against me” and insisted that his claims were reasonable.

He said: “I work extremely hard on the front bench and am satisfied that I can account for my expenses.”

The Telegraph said that the police were also currently investigating two other peers. The two Labour peers under investigation are Lord Clarke of Hampstead and Baroness Uddin. Two Labour MPs Elliot Morley and David Chaytor, both accused of claiming for mortgages that had already been paid off, are also under scrutiny.

A spokesman for the Met refused to confirm last night that Lord Hanningfield was among those being investigated.