LORD Elder has apologised for breaching the code of conduct on peers' behaviour.

A watchdog found the Labour peer had incorrectly registered money from the Dundee-based Al Maktoum Institute for Arabic and Islamic Studies as a non-financial interest instead of remunerated employment.

He was also found to have improperly used a House of Lords envelope for non-parliamentary business by the independent Lords Commissioner for Standards, Paul Kernaghan

The complaint was made by the former principal of the institute, who said the envelope was used to send him a letter informing him of his dismissal.

The institute said Lord Elder had been its chancellor since 2004 and had received an annual "honorarium" of £5000 a year since 2008 to cover expenses.

The peer said he had never regarded this money as "either remuneration or taxable income".

He accepted he should not have used the House of Lords envelope, but "had no other envelope to hand" at the time.

It came as the House of Lords standards watchdog also upheld a complaint against Foreign Office Minister Baroness Warsi over her failure to register rental income.

The peer – formerly co-chairman of the Conservative Party – has also accepted the finding and apologised, and the matter is now regarded as closed.