Zac Goldsmith handed peerage by Boris Johnson so he can stay as minister despite losing MP seat for second time in three years

Defeated Tory MP Zac Goldsmith has been handed a fast-track peerage and elevated to the House of Lords – allowing him to keep his job as environment minister.

Boris Johnson has ignored widespread criticism that the award would be an abuse of democracy, just days after also rewarding Nicky Morgan despite her quitting the Commons at the election.

Downing Street had signalled that the gong for Mr Goldsmith – a close friend of Carrie Symonds, the prime minister's girlfriend – would be delayed until the New Year, to dilute the controversy.

There had also been speculation that his complicated tax history, as a former ‘non-dom’ and son of a billionaire, would hold up the process.

But the government has now announced that the Queen is “pleased to signify Her intention of conferring a peerage of the United Kingdom for life on Zac Goldsmith”.

He will continue in the environment brief, a role he only took on last July, but will be unpaid.

Mr Goldsmith – defeated by the Liberal Democrats in Richmond Park, south-west London – held non-domiciled status, allowing him to reduce his tax bills, until he became an MP.

Educated at Eton, he is the son of the billionaire businessman and financier, Sir James Goldsmith, whose Referendum Party championed the Eurosceptic cause in the 1990s.

Despite once vowing to end “cronyism”, Mr Johnson is expected to create a sizeable number of peers, in a list that will combine a set of dissolution honours with political appointments.

It is expected to include Gisela Stuart, the former Labour MP, a Vote Leave supporter, who took to the campaign trail alongside Mr Johnson before last Thursday's election.

The prime minister is said to want to boost the anti-EU presence in the upper chamber, which repeatedly amended Brexit legislation to the government's fury in the previous parliament.

The Electoral Reform Society had condemned the move as a mockery of democracy, when “the bloated House of Lords is already packed full of defeated and former MPs”.

“Politicians shouldn’t be rewarded with votes on our laws for life, after losing their seat,” said Darren Hughes, its chief executive.

“This issue we’ve seen across parties for years, and makes an absolute joke of democratic accountability. Our second chamber should not be some absurd insurance policy for trounced MPs.”