LABOUR last night announced that it would oppose the Coalition's plan to reform the House of Lords.

The news came as Lord Lipsey, a Labour peer, suggested the proposed shake-up would cost the taxpayer £433 million in its first five years.

At the start of a two-day debate on the future of the second chamber, Labour’s Baroness Royall of Blaisdon, a supporter of Lords reform, condemned the Government’s draft plan as “a bad Bill”.

But Lord Strathclyde, the Leader, stressed the most important issue was consensus.

The Government plans to replace the Lords with a Senate of 240 elected members, 60 appointed crossbenchers, 12 Bishops and a number of appointed ministers.