Lord Clement-Jones said he was "delighted" the Bill had received such a "positive reception".
He later added: "The Live Music Bill will benefit hundreds of small pubs, restaurants and church and community halls who want live music at their venue by generally removing the need to apply for a complicated licence.
"I'm glad the government has responded so positively to this Bill and I look forward to working with them to fulfil the coalition agreement's pledge to put an end to red tape and bureaucracy."
The coalition had committed to cutting red trap on small scale live music, but so far stalled on announcing its plans on how to tackle this.
Earlier, the Bill received plenty of support from peers, including Michael Grade, the former ITV chairman, who was making his maiden speech in the Lords.