Before a bill is drafted, it will have often started as a green paper. A proposal for a new law / law reform with comments required before it processes to a bill - government ministers issue them.
White paper - stage 1
Following the green paper, the government ministers may publish a white paper which states firm decisions on how the law should be made.
When the proposed Act has been drafted, it is published. At this stage it is known as a Bill. (End of stage 1)
The Bill will only become law if it successfully completes all the necessary stages in Parliament.
A Bill can start either in the House of Lords or House of Commons but financial bills always start in the House of Commons.
First Reading - stage 2
A formal introduction to the Bill, where the title of the Bill and its main aims are read out. A verbal vote is taken too see if it should reach the second reading.
Second Reading - stage 3
The main debate on the bill, followed by a vote; the Bill must get a majority vote to go any further. If it gets a majority vote, it will carry on to the next stage.
Committee Stage - stage 4
A standing committee examines the Bill clause by clause, and amendments are made. The committee is compromised of MPs that are experts in that particular area. This could be engineering, banking or education etc
Report Stage - stage 5
The amendments made in the committee stage are reported back to the House and voted on. Only when the House is satisfied with the Bill will it go to the next stage
Third Reading - stage 6
The final debate as to whether the Bill should proceed to the House of Lords and a vote is taken. If the Bill proceeds to the House of Lords then it will go through the same reading stages
House of Lords - stage 7
If there are any amendments they have to be sent back to the House of Commons. If this happens then this stage is called 'Lords Amendments Considered'. Amendment may be sent back and forth between the houses.
Royal Assent - stage 8
This is where the King gives his royal assent to the Bill (his approval). The monarchy does not have any legal power anymore and this is just a formality/tradition.