The Archbishop of Canterbury paid homage to the Queen at Buckingham Palace yesterday in a ceremony dating back to the Reformation in the 16th century.

The Most Rev. Justin Welby, who was confirmed in the holy post earlier this month, made an oath to acknowledge her to be supreme governor of the Church of England.

The old Etonian former oil company executive, who replaced Dr Rowan Williams, was accompanied by the Lord Chancellor Chris Grayling and Clerk of the Closet the Right Reverend Christopher Hill, Bishop of Guildford.

He later went to the Palace of Westminster to take his seat as archbishop in the House of Lords for the first time.

He sits in the Lords alongside other peers as one of 26 Lords Spiritual.

He had previously sat in the Lords as Bishop of Durham, taking a high-profile role on the Parliamentary Commission on Banking Standards – a job set to continue.

The Archbishop yesterday grilled Chancellor George Osborne and accused him of lacking the political will to break up the big banks.