Tony Blair is set to continue with his "people's peers" plan despite claims of cronyism.

A new round of life peers will be appointed to the House of Lords by the end of the year as part of the prime minister's controversial reform programme.

Five of the non-party political peers will be announced in the Queen's New Year honours list, it was claimed on Monday.

This will be followed by another five appointed in March or April and an additional five in July or August.

A new list of working peers will also be revealed - made up of 20 Labour supporters, six Conservatives and five Liberal Democrats.

Number 10 refused to confirm the reports but said discussions about new "people's peers" were on-going.

"We did say we were in discussions with the relevant people. Those consultations will continue," said a spokesman.

"I do not anticipate any immediate announcement but we are carrying out the necessary consultation."

The revelation comes at a time when ministers are set for a new battle with the Lords over plans to abolish the remaining 92 hereditary peers.

The fresh attempts to pacify critics of the new system are being seen as an attempt to head off claims that the appointees are little more than "Tony's cronies".

Among those announced in the first list were former Metropolitan Police commissioner Sir Paul Condon and the wife of former Conservative foreign secretary Lord Howe.

Reformers on Labour's backbenches had called for the concept to be scrapped - proposing instead an upper chamber with a significant proportion of elected members.

Campaigners for more radical changes were dealt a blow earlier this year by the unexpected death of Lord Williams of Mostyn, then-leader of the House of Lords.

He was the most senior voice in the government lobbying for Tony Blair to change his mind.

The issue of Lords reform has been a source of major controversy; the joint committee on reform had urged a part-elected, part-appointed Lords.

But the new list will be a fresh signal from Blair that he is determined to see a fully appointed second chamber.