I have argued on this site that the House of Lords is inherently biased and undemocratic. Further, the £60 million-or-so annual spend on it would provide a nice budget for Interactive Democracy. But do we really want to lose the experience, intellect and insights of those people?
Another way to encompass them in the ID system would be to highlight their contributions, much in the same way that I have advocated that MP's contributions are brought to the fore.
Would they do it for free? I'd hope so. They are, after all, the recipients of decent pensions and typically of retirement age. But alternatively, they may be paid per contribution or for each vote of confidence their contributions receive.