The government has published new legislation to centralise the vetting system for people who work with children and vulnerable adults.
Ruth Kelly detailed the proposals on Wednesday, saying they would make public safety "unequivocally the first priority".
The education secretary's move was prompted by the row over revelations that ministers and officials had allowed a limited number of registered sex offenders to work in schools.
The subsequent investigation revealed a lack of consistency between the different mechanisms put in place to protect vulnerable people from abuse.
Under the proposed new law employers will be committing an offence and will face penalties if they employ people to work with children and vulnerable adults that they know are barred.
In the most serious cases they could face penalties of up to five years in prison.
Failure to make a background check could also result in fines of up to £5,000.
The Safeguarding Vulnerable Groups Bill will integrate the current List 99 (for people banned from working as teachers), and the Protection of Children Act lists which cover those working in childcare settings.
It will also establish a new list of people barred from working with vulnerable adults to replace the Protection of Vulnerable Adults list.
Ministers will lose responsibility for barring decisions, with the functions transferred to a new independent statutory board.
Domestic employers such as parents will be able to check whether private tutors, nannies, music teachers and care workers are barred.
And employers will be able to make a 'real-time' checks of employees with secure online access to an electronic database.
"Today's Bill will introduce a 21st century approach to the protection of children and vulnerable adults," said Kelly.
"It will fundamentally reform and rebalance vetting procedures so that children's and other vulnerable people's safety is unequivocally the first priority.
"This Bill brings forward the root-and-branch reform I promised ensuring we have a far more comprehensive and coordinated system.
"I am acting to take ministers out of the vetting process. I firmly believe sensitive child protection decisions should be taken by experts, not politicians.
"Parents employing anyone to work closely with their children will be able to check the information they need as a result of this important reform.
"Anyone who employs a nanny or private tutor for example, will get the extra reassurance they need."
Sir Michael Bichard, who headed the review of procedures prompted by the Soham murders, welcomed the move.
He added that the new registers "will not guarantee that all unsuitable people are prevented from working with children but it should ensure that no one about whom relevant intelligence is held should be able to 'slip through the net' in future".
The government hopes the new systems will be implemented from 2007.
Dods Parliamentary Communications Ltd