Lords reform continues to be controversial

Last week peers blocked a bid to ban foxhunting and the future of the remaining hereditary peers is likely to be contentious in coming months.

It is understood that the House of Lords appointments commission will receive a list of working peers.

Tory leader Michael Howard gets to pick six and Lib Dem Charles Kennedy will be able to put forward four or five names.

Asked about the issue, the prime minister's official spokesman said: "We did say we were in discussions with the relevant people - those consultations will continue.

"I don't anticipate any immediate announcement but we are carrying out the necessary consultation."

The House of Lords Appointments Commission was set up by the government in 2000.

Chaotic votes

It took over recommending peers for the cross benches.

Earlier this year, in a series of chaotic votes, MPs and peers failed to agree a way forward for House of Lords reform.

Since then, a joint committee charged with examining the issue of Lords reform has said it would examine at least removing the remaining 92 hereditary peers.

It has been waiting for the government's own proposals which were supposed to be published during the summer but were delayed by Lord Chancellor Lord Falconer.

In July he said: "For the time being the government will concentrate on making the House of Lords work as effectively as possible in fulfilment of its important role."

A Lib Dem member of the joint committee on Lords reform warned the government against "breaking its own rules on the number of life peers before the ink on their own Lords reform consultation paper is dry".

Lord Oakeshott said: "This proposes the remaining hereditary peers be removed and the numbers of life peers should have regard to the votes cast for each party at the last general election."