Controversial proposals are another step closer to becoming law – but critics say bill is in danger of being rushed through parliament

The controversial digital economy bill has moved a step closer to becoming law after the House of Lords last night approved the proposals - but critics say the legislation is in danger of being rushed through parliament.

Despite reservations from a number of peers, the scheme - which includes the contentious three strikes rule to cut off internet access for alleged file sharers - will now be put before MPs, with the government hoping that it can pass into the statute books before a general election is called.

The bill contains a number of controversial aspects alongside three strikes, which could suspend the broadband connections used by anybody accused of file sharing three times whether or not they are convicted of copyright infringement.

The notorious Clause 17 - which has now had its scope diminished - had proposed to give the secretary of state the power to update copyright law without parliamentary assent.

And the Liberal Democrats caused uproar when they proposed an amendment to the bill apparently aimed at bringing more judicial oversight into the system - but that critics could end up shutting down major websites such as YouTube.

The change - which gives the high court the power to shut down entire websites if they host "substantial" amounts of copyright infringing material - came in for strong criticism, particularly after it emerged that the language used was identical to a proposal by British music industry body the BPI.

As a result, the Lib Dems yesterday made the unusual step of tabling a change to their own amendment in order to allay some of the concerns.

The government, however, pushed that aside and said it would enact the changes itself in the "wash-up" process in the House of Commons in order to ensure that the bill continued its speedy passage through parliament.

Geoff Taylor, the chief executive of the BPI - which has been one of the groups lobbying hardest in favour of the proposals - said that he hoped the bill would become law soon.

"It is vital for the future of the UK's creative sector that the digital economy bill becomes law before the dissolution of parliament," he said last night. "We are pleased that it has passed successfully through the Lords and will continue to work closely with all parties as it progresses."

Not everybody was happy with the decision, however, including those who fear that the "wash-up" process - which allows behind-the-scenes political bargaining to rush through legislation before parliament dissolves - could leave the bill open to abuse.

The Earl of Errol expressed "concern" that future amendments will not be subject to full parliamentary scrutiny.

"My concern about the new clause... is that it will not be subject to any amendment, or discussion and then amendment, by either house," said the Earl of Errol. "We have no idea what it looks like, and it seems to be an abuse of parliamentary process."

Jim Killock, the executive director of the Open Rights Group, a lobbying organisation that opposes the plans, said that the hasty attempt to enact legislation in time for the election could be disastrous.

"Our elected MPs will have spent a whole two hours on this bill... before they disappear back to constituencies to ask for our vote," he said. "Meanwhile, a 'rump parliament' made up of retiring MPs and party whips will pass disconnection measures – with no actual debate."

Regardless of last night's move, the divisive arguments over whether the bill would actually improve Britain's digital economy look no closer to being settled.

On Monday, internet service provider TalkTalk continued its objections by suggesting that the three strikes rule would not have any significant impact on copyright infringement.

The company, which has been a vocal opponent of the bill, said a poll had indicated that 80% of youngsters would continue file sharing regardless.

The result, it said, was that ISPs would be forced to police the actions of users with no tangible result.

"The digital economy bill proposals create a new and unfair duty on broadband customers," said Andrew Heaney, TalkTalk's director of strategy and regulation.

"It asks them to implement complex and expensive security measures on their connections to make it more difficult for their neighbours and others to use their connection for copyright infringement. The bill reverses the core principles of natural justice by requiring customers to prove their innocence."