He goes on:
Mr Cameron reportedly intends to award 29 peerages to Tory donors and other political allies, with 15 for Mr Clegg's Liberal Democrats. By contrast, Ed Miliband will get just ten new Labour peers.Who will those 15 new Liberal Democrat peers be? Walters speculates:
It is the biggest influx from a governing party since Tony Blair handed out a record 47 peerages when Labour won power in 1997, giving his party a majority in the Lords for the first time.
Lords insiders say Liberal Democrat candidates include Brian Paddick, the former Scotland Yard Deputy Assistant Commissioner, who stood as the party's London mayoral candidate in 2008, and qualified doctor and anti-abortion campaigner Evan Harris, who lost his seat as Lib Dem MP for Oxford at the Election.
Three Liberal Democrat donors who each paid up to £250 a month into Mr Clegg's private bank account before he became party leader are also said to be under consideration.
They are Ian Wright, a senior executive at drinks firm Diageo; Neil Sherlock, head of public affairs at accountants KPMG; and Michael Young, a former gold-mining executive.