Stern was elected a Fellow of the British Academy in 1993; he is also an Honorary Fellow of the American Academy of Arts and Sciences and a Foreign Honorary Member of both the American Economic Association and the American Philosophical Society. In the 2004 Queen's Birthday Honours he was made a Knight Bachelor, for services to Economics. On 18 October 2007, it was announced that Stern would receive a life peerage and was to be made a non-party political peer (i.e. would sit as a cross-bencher in the House of Lords). He was duly created Baron Stern of Brentford, "of Elsted in the County of West Sussex and of Wimbledon in the London Borough of Merton" on 10 December 2007. He is, however, usually addressed as Lord Stern, or Lord Stern of Brentford.