The government has set out its blueprint for a second stage of Lords reform to both houses of parliament.

Leader of the House of Commons, Robin Cook told MPs that the government's plans the new upper chamber would "complement the Commons but will be unable to compete for power with it".

Shadow leader of the Commons, Eric Forth branded the white paper a "fudge" and an affront to democracy.

"We will have a continuation and indeed an institutionalisation of Tony's cronies, and the government should either withdraw this white paper or at the very least should refer it to the joint committee of both houses," he said.

The House of Lords currently has over 700 peers, a number that would be capped at 600 10 years after legislation was enacted. Although the government accepts that the figure may rise as high as 750 during the transitional period.

Of the 600, bishops will be capped at 16, law lords at 12, 120 will be elected, 120 will be independently appointed by the appointments commission and the balance of not more than 332 nominated on a party political basis reflecting electoral share. With 587 existing life peers this may take some time.

The linkage between peerages and membership for the second chamber is to be scrapped, along with the remaining 92 hereditary peers, and future members will not receive the "Lord or Lady title". Equally, new peers, by birth or the honours list, will not become Lords members.