Previously the ID cards bill, which the House of Lords rejected five times over the past few weeks, required anyone renewing a passport to also receive an ID card by 2008.
The amendments mean that until 2010, those renewing passports will be able to opt out ofbut will still have their entered into the National Identity Register, the database which ID card opponents have objected to along with the issuing of the actual cards.
In a vote on Wednesday, the House of Lords approved the amended proposal by 287 to 60.
U.K. Home Secretary Charles Clarke said pricing for the ID cards will be determined once the bill becomes law.
U.K. Home Office Minister Andy Burnham said he was "delighted" to back the amended proposal and added that it "preserves the integrity" of the National Identity Register while "meeting the concerns" of those who opposed mandatory ID cards.
Sylvia Carr of Silicon.com reported from London.