High sheriff is the oldest continuous secular office under the Crown
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Landowners and wealthy individuals are still dominating the roles of high sheriff and lord lieutenant.
A group of MPs says less affluent people are excluded from the roles because of the costs holders are expected to bear themselves.
The justice committee criticised the appointments process for high sheriffs, who chose their own successors.
Justice Minister Michael Wills says he will consult on the "self-limiting" nature of funding the posts.
Social class
The committee acknowledged recent improvements in increasing the number of women and members of ethnic minorities who held lord lieutenancies.
But it expressed alarm at the lack of diversity where social class was concerned.
Mr Wills told the committee it was "difficult to define".
The committee said: "The reality is that ceremonial offices such as that of lord lieutenant are associated in the public mind with a narrow band of people in society.
"If such offices are to retain credibility as representative links between the Crown and communities then this must change."
Both roles are unpaid but lord lieutenants receive minimal allowances for secretarial help, mileage allowance and a driver.
Mr Wills has promised to report on the possibilities of measuring diversity and on whether the costs of holding these offices restricts those who apply.
Committee chairman Sir Alan Beith said: "Such posts should not be limited to the gentry and the wealthy.
"The method of appointing people must be seen to be fair and open, as is now the case for most other public appointments.
Ceremonial role
The cross-party group said high sheriffs were a self-appointing group, without any open competition or transparency in appointments.
The role of high sheriff in England and Wales is largely ceremonial, meeting judges and attending courts as the representative of local communities.
Lord lieutenants, who are the representatives of the Queen in each local area of the UK and co-ordinate her visits, are appointed by the sovereign on the recommendation of the prime minister.
His recommendation follows consultation in the area, among MPs, local authorities and other people who "play a prominent part in the life of the community".
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