This white paper sets out the Government's proposals for a reformed second chamber. It stems from the constructive discussions in a Cross-Party Group on House of Lords Reform, which followed the March 2007 Parliamentary votes on the proposals contained in the February 2007 white paper ("The House of Lords: reform", Cm. 7027, ISBN 9780101702720). The Group reached consensus on a number of key issues, and this paper states where agreement was not reached. The white paper sets the context for decisions on House of Lords reforms and goes on to consider issues around, and options for, electoral systems. The effect of different electoral systems is examined against two scenarios: that the House is either 100 per cent or 80 per cent elected. The paper then looks at the powers of the second chamber. It suggests possible arrangements for any appointed elements, but there are no concrete proposals yet. Finally the white paper addresses other issues around the operation of a reformed second chamber and explores transitional arrangements.