THE SNP last night warned other parties not make the House of Lords a 'house of losers' after the election by elevating defeated MPs as a consolation prize.

The Nationalists, who refuse to have SNP peers and want to abolish the Lords, challenged their opponents not to give a "free pass" to MPs who retire or get kicked out by voters on May 7.

The call comes amid speculation that LibDem Danny Alexander, who is tipped to lose his Inverness seat to the SNP, could be elevated to the Lords after a defeat.

This would allow him to continue serving as Chief Secretary to the Treasury if there was a second Tory-LibDem coalition.

Other LibDems tipped for peerages include Charlie Kennedy, who is struggling to defend his Ross, Skye and Lochaber seat, and Sir Menzies Campbell, who is retiring.

The LibDems want to overhaul the Lords and make it a fully elected chamber, with the number of peers almost halved to 450.

However in the meantime, the party is likely to keep adding to its current 101 peers.

Scottish Labour may also back peerages for senior figures such as former Prime Minister Gordon Brown and former Chancellor Alastair Darling, who are retiring.

A wave of losses to the SNP could also create a demand for seats in the Lords from Labour veterans such as Douglas Alexander, Dame Anne Begg and Margaret Curran.

The SNP accused Labour, the Tories and the LibDems of failing to make any significant reforms of the Lords in recent years, and said that until it was replaced there should be a moratorium on sending defeated or retiring MPs to the red benches.

Pete Wishart, SNP candidate for Perth & North Perthshire, said the Lords was a "deeply undemocratic, absurd institution" which was "bloated beyond repair".

He said: "The SNP has long believed there is no place for the unelected House of Lords in a modern democracy. The Lords should be scrapped and replaced with a fully elected and accountable second chamber.

"In the meantime, the Westminster parties must ensure that politicians rejected at the ballot box - and those retiring from politics - will not be given a free pass to the Lords.

"The public deserve clarity on this issue in the run up to polling day.

"On top of this, the rules around Peers' allowances and expenses should be changed to ensure they are no longer exempt from tax.

"Scottish Lords alone cost the taxpayer over £2m a year - at a time when more families are relying on foodbanks this is indefensible."

A LibDem spokeswoman said: "In our 11 seats it is a straight choice between the Lib Dems and the SNP. People know that a vote for the Lib Dems is a vote for a hard working MP who will invest £800m in our NHS and stop the SNP wrecking the recovery with their massive borrowing plans. It is our SNP opponents who should be exploring alternative employment opportunities."