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The government brings bills (suggested new laws) to the House of Commons, where they are discussed by MPs. The bills then go to the House of Lords. The House of Lords can suggest changes to a bill, but does not have the power to stop it from becoming law. When the bills come back to the Commons, MPs vote on them, and if they are passed they are signed by the Queen or King and become Acts of Parliament, which means that they become part of British law.
In 1997, the people of Scotland and Wales voted for devolution, which means that they will have their own separate parliaments, known as the Scottish Parliament or the Scottish Assembly, and the Welsh Parliament or the Welsh Assembly. Westminster will continue to deal with things cuch as foreign affairs, defence and immigration, and the Scottish and Welsh parliaments will deal with things such as health, education, transport, and the environment.
The organizations that are responsible for local government in the UK are called councils. Their main job is to provide local service such as schools, libraries, and the Fire Service. They are also responsible for the local environment, and take rubbish form people's houses and clean the streets.