Speaking in the House of Lords during the second reading of the Rehabilitation of Offenders Bill, the Lib Dem peer said that there was a strong case for "expunging" criminal records when offenders reached their 18th birthday.
However, he added that this should not apply to murder, serial sexual offences and crimes of violence.
He said: "This is not woolly liberalism, but sound common sense, as is the continuation of anonymity for young offenders who come before the courts.
"All the evidence shows that resettlement into a job is the best way to avoid reoffending. I pay tribute to companies such as Timpson, National Grid and many others in the private sector who are willing to take on ex-offenders. The existence of a criminal conviction can undo years of successful rehabilitation work."
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