The changes to the children bill give the commissioner new investigative powers, including the right to enter public institutions such as prisons where young people under 22 are held, and to force organisations to hand over relevant documents.
The commissioner will also be allowed to help young people take legal proceedings in certain cases.
In addition, the commissioner must adhere to the UK-sanctioned version of the UN Convention on the Rights of the Child.
Peers voted 114 to 93 for the changes, which were tabled by the Liberal Democrat's Baroness Walmsley.
Louise King, senior policy officer at the Children's Rights Alliance for England, was very pleased with the result. "We have been actively lobbying for this and we are delighted.
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