A SERVICE of thanksgiving for Peter Law, the late MP and AM for Blaenau Gwent, was held in Cwm yesterday.

Around 40 people attended the hour-long service at St Paul's Church.

The Reverend Peter Abbott said it was arranged because many people had been unable to attend Mr Law's funeral at Christ Church in Ebbw Vale last week or had been unable to get a seat.

The service came as Scotland Yard announced it would not be investigating claims that Labour offered Mr Law a peerage not to stand against the party in the 2005 General Election. His widow, Trish, claimed a senior politician had offered him a peerage. Plaid Cymru MP Elfyn Llwyd accused Peter Hain of making the offer, a claim the Welsh secretary denied.

Mr Abbott spoke yesterday of Mr Law's popularity in Blaenau Gwent and of how much he had thought of local people and described him as "a great man".

He said: "One of the most moving moments of the funeral was when the people outside the church started to clap as the hearse moved away."

He added: "Twelve months ago he could have retired because of ill health and no one would have thought any the less of him.

"He stood not to bring down his party but to make them stop and listen."

The Electoral Commission today confirmed that candidates are allowed to spend up to £200,000 on the Blaenau Gwent parliamentary and assembly by-elections.

A spokesman said: "Usually parties have to declare a party and candidate expenditure.

"In a by-election we only ask for a candidate expenditure so the spending is lumped into one amount.

"The limit on each is £100,000.

"Because there are two seats, there are two sets of candidate expenditures."

The spokesman said this was nothing new, and had been done for a number of years.