The House of Lords should be stripped of the power to veto new regulations and instead be restricted to calling on MPs to rethink proposals, a review commissioned by David Cameron has recommended.
The review by Tory grandee Lord Strathclyde recommended that a new law should be passed which would ensure that the Commons had the "final say" over secondary legislation.
The move comes after Labour and Liberal Democrat peers infuriated ministers in October by combining to block Chancellor George Osborne's plans to cut tax credits for the low paid.
Lord Strathclyde said: "In my review, I have looked carefully at the history and current practice of the House of Lords as it regards secondary legislation and financial matters and I have spoken to a wide range of parliamentarians.
"I believe that my recommendations strike the right balance between preserving the vital role of the House of Lords in scrutinising legislation, and enabling the elected House of Commons to have a decisive role on statutory instruments."
Mr Cameron will respond to the report's recommendations in the new year.