Bishop Richard, who retired as Bishop of London in March this year, has been appointed to sit as a crossbencher in the House of Lords.
He said: "This is a tribute to the work we have carried out together, across the Diocese of London, over more than 20 years.
"I hope to continue to speak up for the causes important to London and beyond, contributing to a new chapter - without, of course, treading on my successor's toes."
Bishop Richard is being joined by former Metropolitan Police commissioner Sir Bernard Hogan-Howe (pictured below) and the former chief of the defence staff General Sir Nicholas Houghton.
Archbishop of Canterbury, the Most Rev and Rt Hon Justin Welby commented: "It is wonderful to hear that Richard Chartres will be returning the House of Lords.
"His deep wisdom, experience and integrity were greatly valued during his two decades on the Bishops' benches, and I pray that this new role will provide Bishop Richard with a fresh opportunity to offer those gifts in service to our national life."
The Lord Chief Justice Sir Ian Duncan Burnett and the former private secretary to the Queen, Sir Christopher Geidt are also being made life peers.
In contrast to a hereditary peerage, a life peerage is a title which cannot be inherited. Cross bench peers are non-party political.