David Cameron was absolutely right to say this morning that he won't be giving Sir John Butterfill a peerage. Several people have asked whether as former Cabinet Ministers and Privy Councillors, Hoon, Hewitt and Byer have an automatic right to a peerage. The answer is that they do not. While most Prime Ministers operate by a convention whereby ex Cabinet Ministers are indeed put in the Lords, there is no contitutional precedent for it. Sir John Nott is one former Thatcher Cabinet Minister who is not in the Lords, although I think that was originally his choice, rather than because it wasn't offered.
I would find it incredible if Gordon Brown offered a peerage to his three colleagues, and I imagine he will make clear very soon that it won't be happening. His successor as Labour leader, may take a different view, of course.