Proposals to reform the House of Lords could cost the taxpayer up to £230m a year. The bill to bring peers' pay, expenses and facilities into line with MPs would add more than £170m a year to the present £56m cost of administering the upper house.

A report by the committee warned that the 600 elected members would require salaries, office accommodation, staff and resources equivalent to those for MPs, who cost £380,000 each a year. At present, each peer costs only £85,000 a year. The Lords would still be the largest upper chamber in the democratic world.

The report, published yesterday, said: "We believe that elected members would understandably expect better facilities and support than those which currently exist."

The report outlined seven models for reform, including a wholly-elected or appointed chamber and a series of compromise options.

MPs and peers are expected to vote on the options next month, before the committee prepares detailed proposals for legislation. But there is little chance of agreement between the Lords and the Commons, paving the way for a clash between the Houses.