The government's controversial ID Card Bill was voted through for its third and final Commons reading last night, but with a majority of just 25.

The margin is the smallest in any government vote since the May election, after 25 'rebel' Labour MPs voted against the Bill along with opposition members.

An amendment by Labour MP Neil Gerrard to make it possible for people to apply for a biometric passport without having to submit details for the ID cards database was rejected.

John Denham, former Home Office minister and chairman of the Commons Home Affairs Select Committee, said that ministers were keeping the full costs secret at too early a stage, and that it would lead to higher costs because of a lack of early scrutiny.

Commentators have suggested that Home Secretary Charles Clarke sweetened the pill in advance of the vote by saying that a standalone card would cost only £30 compared to £96 for those also renewing passports.

Clarke also announced that personal details contained on the cards will not go beyond those held on passports, and that it would be possible for individuals to access their entry and see which organisations had been verifying their information.

George Platt, general manager of Intervoice, a provider of voice authentication systems, highlighted what he believes is a gaping hole in the current plans.

"With all the controversy that has surrounded the ID Card Bill, it is surprising that it has been accepted by the House of Commons," he said.

"MPs need to realise that ultimately a solution will be needed to secure all the avenues that criminals currently use to glean identity details, such as call centres, which the current proposals do not address."

However, Steven Philippsohn, senior partner at Philippsohn Crawfords Berwald, a law firm specialising in fraud, is backing the ID cards initiative.

"Benefit fraud has dropped significantly since March this year as a result of a data-sharing initiative between the Inland Revenue and benefit offices," he said.

"This in itself is a strong argument in favour of ID cards, and the subsequent creation of a National Identity Register, which would act as a central reference point.

"ID cards also have a clear benefit for consumers if they fall victim to identity fraud and seek verification. The Bill would result in the creation of a new criminal offence should a criminal assume a false identity, without the need to prove intent to defraud.

"This should be seen as welcome, proactive action against fraud. It is highly pertinent considering that identity-related theft is the UK's fastest growing crime."

Yesterday Microsoft attacked the plans, maintaining that a system based on a central database could lead to "massive fraud" and that the government needs to consider a more decentralised system.