Great British Energy Bill

(Limited Text - Ministerial Extracts only)

Consideration of Commons amendments and / or reasons
Wednesday 30th April 2025 Lords Chamber

Moved by

[Lord Hunt of Kings Heath]

That this House do not insist on its Amendment 2, to which the Commons have disagreed for their Reason 2A, and do propose Amendment 2B in lieu—

2A: Because it would alter financial arrangements made by the Commons, and the Commons do not offer any further Reason, trusting that this Reason may be deemed sufficient.

2B: Clause 3, page 2, line 18, at end insert—
“(e) measures for ensuring that slavery and human trafficking is not taking place in its business or supply chains.”

[The Minister of State, Department for Energy Security and Net Zero (Lord Hunt of Kings Heath) (Lab)]

My Lords, I will also speak to Motion A1 in the name of the noble Lord, Lord Alton. It is good to welcome the Great British Energy Bill back to your Lordships’ Chamber. I again thank all Members of this House for their continued scrutiny of this important Bill.

We are here to discuss specifically the issue of forced labour in Great British Energy’s supply chain—something that I have been adamant, throughout the Bill’s passage through your Lordships’ House, that the company will tackle. As I have stated in previous debate, we expect Great British Energy not only to abide by but to be a first-in-class example of adherence to the UK’s existing legislation and guidance. That is demonstrated by the commitments made by my colleague, the Minister for Energy, in the other place.

Great British Energy will appoint a senior individual dedicated to providing oversight to ensure ethical supply chains. I am delighted to confirm that the noble Baroness, Lady O’Grady, one of Great British Energy’s non-executive directors, will take up that role. Her role as chair of the House of Lords Modern Slavery Act 2015 Committee positions her extraordinarily well to lead on the issue, ensuring robust practices across Great British Energy in tackling forced labour.

In addition, my officials are working to ensure that the statement of strategic priorities outlined in the Bill, which will be published within six months of Royal Assent, will include an overarching expectation that Great British Energy proactively works to deliver on these commitments.

I think the House will also be pleased to hear that the cross-departmental ministerial meeting with my department, the Home Office, the Department for Business and Trade and the Foreign, Commonwealth and Development Office will convene for the first time in May to accelerate work across government to tackle forced labour in supply chains across the whole economy. To underscore the Government’s commitment, a letter will be sent to all FTSE 100 companies following the aforementioned meeting to communicate our expectations regarding responsible business practices, including on modern slavery.

I turn to the amendments. Amendment 2B, tabled in my name, relates to Clause 3 and makes clear that addressing forced labour in Great British Energy’s supply chains is within the scope of the objects of the company. I recognise the breadth of concern across Parliament on this issue—I pay tribute in particular to the outstanding work of the noble Lord, Lord Alton, in this area—particularly on how Great British Energy will tackle forced labour in its own supply chains.

That is why the amendment has been tabled. It makes clear that Great British Energy is committed to adopting measures so that it can act on any evidence of forced labour in its supply chains, as we would expect of any responsible company. The amendment will strengthen our existing framework and demonstrate the commitment of both Great British Energy and the Government to maintaining supply chains that are free from forced labour.

To ensure the effectiveness of this approach, GBE will respond to and take action on any identified issues or concerns that arise relating to forced labour, including any raised by the Joint Committee on Human Rights. The amendment is in addition to the expectation that Great British Energy is to be a sector leader in tackling forced labour, as will be outlined in the statement of strategic priorities. These measures will ensure that Great British Energy can and will prioritise doing everything in its power to remove instances of forced labour from its supply chains.

I turn to Amendment 2C, to which the noble Lord, Lord Alton, will speak in a moment. I thank him for taking the time and effort to develop and table his amendment and for the continued engagement I have been able to have with him over the weeks since this Bill left your Lordships’ House. The Government wholeheartedly agree on the importance of tackling modern slavery in energy supply chains and are committed to tackling the issue.

I recognise the drafting skill of the noble Lord in bringing the original amendment, the wording of which is remarkably familiar to me. I think the amendments are very much in the same frame, but the reason we have come forward with our own wording is that officials looking at the language of his amendment have identified one or two issues. First, the language suggesting

“the eradication of goods and services”

is unsuitable as it may be interpreted as the physical destruction of goods or services. We think the focus should be on ensuring that Great British Energy takes all reasonable measures to develop energy supply chains free from forced labour.

I can assure the House that following positive discussions with the noble Lord, Lord Alton, we accept that Great British Energy’s role in tackling forced labour in its supply chains could be made explicit in the Bill’s objectives, and that is exactly why I have tabled my own amendment.

In conclusion, I am very grateful to noble Lords who have taken part on this issue. Again, I particularly acknowledge the noble Lord, Lord Alton, and the noble Earl, Lord Russell. We have listened very carefully to what noble Lords have said. I believe the amendment I have brought accords with the principle of the debates that we have had in your Lordships’ House, and I beg to move.

Motion A1 (as an amendment to Motion A)

Moved by

--- Later in debate ---

[Lord Offord of Garvel (Con)]

My Lords, we welcome the Government’s decision to listen to the constructive challenge from this House and improve the Bill by ensuring that Great British Energy supply chains are not associated with modern slavery in China. I give my thanks and gratitude to the noble Lord, Lord Alton of Liverpool. Without his careful consideration and persistence in raising this issue, we would not have achieved such a positive change to this legislation.

The amendment to the Bill serves as a simple yet essential safeguard. It ensures that public funds will not support companies tainted by modern slavery in their energy supply chains. The UK has stood against forced labour and exploitation for many years. If this Government are serious about their transition to clean energy, which they refer to as being just, we must ensure that Great British Energy, as a publicly backed entity, operates to the highest moral and legal standards.

There is clear precedent for this approach. The Modern Slavery Act 2015 requires companies to take responsibility for their supply chains. Yet we know that modern slavery remains a serious issue in the global energy sector, particularly in sourcing solar panels, batteries and raw materials such as lithium and cobalt. If there is credible evidence of modern slavery in a supply chain, public funding must not flow to that company. This is a basic ethical standard. It is also a matter of economic resilience, because reliance on unethical supply chains creates risks for businesses, investors and the public. Therefore, this amendment strengthens the integrity of our energy policy. It aligns our economic ambition with our moral obligations, and it sends a clear message that Britain’s clean energy future must be built on ethical foundations.

To conclude, I once again thank the noble Lord, Lord Alton of Liverpool, and the many other noble Lords who supported him in securing this powerful victory. This positive change to the Bill serves as a testament to the integral role of this House in scrutinising and ultimately improving legislation.

[Lord Hunt of Kings Heath (Lab)]

My Lords, I thank the noble Lords, Lord Alton and Lord Offord, and the noble Earl, Lord Russell. I totally agree with the point that we have reached what I call a strong consensus around this issue. I am grateful to noble Lords for supporting the process of reaching agreement across the House and in the other place.

I will reconfirm what the noble Lord, Lord Alton, has said: he has met the chair of Great British Energy, Jürgen Maier, who has stated that, as a publicly owned company, it is only right that GB Energy is an exemplar of ethical and moral supply chain practices. That must be the answer to the noble Earl, Lord Russell, when he pondered whether we were putting GBE at a disadvantage. I understand the point that he is making, but I prefer to see this in a positive light: that GBE will be an exemplar and, I believe, will influence the market to the good. I am therefore confident that we will not have the potential problem that he has rightly identified.