Internet service providers have agreed to blacklist customers and reduce their internet access for downloading music and films illegally.

The measures – the first of their kind in the world - have been announced by Baroness Vadera, Parliamentary under Secretary of State for the Department for Business, Enterprise and Regulatory Reform.

The six major ISPs - BT, Virgin Media, Orange, Tiscali, BSkyB and Carphone Warehouse - will send warning letters to homes where illegal downloading is detected.

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If the warnings are ignored, the households will be monitored and their internet speeds reduced or even blacklisted.

Many parents could find out for the first time that their children are using PCs and laptops to download files illegally.

An estimated 6.5 million Britons downloaded music illegally last year. It is thought illegal downloads will cost the music industry alone £1 billion over the next five years.