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The government has been defeated in the House of Lords over its plans to introduce photo ID for voters in elections.
Peers voted by 199 to 170 to widen the range of documents a person could present to get a ballot paper.
The government will now have to decide whether or not to try to overturn the vote in the House of Commons.
Ministers argue photo ID would tackle voter fraud but critics warn it would discourage some people from voting.
The vote came during a debate of the Elections Bill which makes changes to the running of UK parliamentary elections, local council elections in England and police and crime commissioner elections in England and Wales.
The bill's measure requiring people to show an approved form of photo ID before voting would fulfil a manifesto promise made by the government but it has proved controversial.
Conservative former minister Lord Willetts proposed an amendment which said voters should be allowed to use documents including library cards and workplace or student ID cards to prove their identity.
The government says that under its plans people without an approved form of ID would be able to get a free voter card from the council, however Lord Willetts said it would be cheaper to broaden the range of acceptable forms of identification.
He expressed concern that "hundreds of voters per constituency" could be turned away from polling stations at the next election.
"Imagine if the outcome of the next election is a modest majority... where throughout the day the media story has been voters being turned away from polling stations," he said.
"That seems to me a very significant political and constitutional risk that does need to be taken into account if this measure is introduced."
Labour's Baroness Hayman supported his amendment, arguing it would "help to mitigate against the serious concerns about the impact of photographic voter identification on turnout".
Cabinet Office minister Lord True argued against Lord Willetts' amendment saying many of the proposed alternative forms of ID did not include a photo and so could not "provide the appropriate level of proof that the bearer is who they say they are".
Independent crossbench peer Lord Woolley of Woodford - founder of Operation Black Vote, a campaign to boost voter registration - wanted to remove the ID proposals altogether arguing that instances of voter fraud were very low.
Once the House of Lords have finished scrutinising the bill it will go back to MPs in the House of Commons who will decide whether to accept or reject the Lords' changes.