(4 days, 12 hours ago)
Lords Chamber
Baroness Lloyd of Effra (Lab)
My understanding is that there is a lot of to and fro, and many requests between the EU and UK of a very technical nature to allow the European Commission to make its judgment. Quite a lot of those have been published already, in the European Commission report and in the European Data Protection Board’s opinion. The process by which this is set out is already transparent and clear.
My Lords, on the assumption that we get approval on 27 December, will my noble friend the Minister move quickly to make sure, as per the economic reset with the EU, that we reduce trade barriers and boost economic growth, which has been held back in this country by Brexit for far too long?
Baroness Lloyd of Effra (Lab)
My noble friend is right that the importance of digital trade to the UK and its exposure to the EU is a very significant part of our digital trade agreement, as are the relationships that underpin this. As a testament to the way in which the reset is happening, we welcome the state visit of the German President here today.
(4 days, 12 hours ago)
Lords Chamber
Baroness Lloyd of Effra (Lab)
The noble Lord makes a very good point about the need for accurate, evidence-based research that allows us to take the right action. As noble Lords may have seen, Ofcom published a report this morning setting out a number of methods for researching, for example, the use of VPNs by children. We should also examine technological solutions, as well as advice and guidance, and the role of Ofcom in enforcing the requirements of the Online Safety Act.
My Lords, while it is of course important that platforms maintain the standards Ofcom has set for them, does my noble friend the Minister also agree that parents have an important role to play in all of this to make sure that the parental controls on devices are implemented in full? Is there not more of a role for digital literacy for adults, to make sure they are keeping a proper eye on what their children are doing and that they comply with the regulations?
Baroness Lloyd of Effra (Lab)
My noble friend makes a very important point about the role of all of us in using the technology available to protect ourselves and to equip ourselves to be safe online, and for parents to do that in respect of their children. It is also very important that the Government support literacy campaigns, both for digital skills and online safety. The Government will play their part in supporting parents in that domain.
(3 weeks ago)
Lords Chamber
Baroness Lloyd of Effra (Lab)
The issues to which the noble Lord refers have, of course, been extensively debated here. One outcome of conversations during the passing of the data Act was a commitment to have these discussions. I also think it would be premature to decide the nature or timing of legislation until those discussions are completed. Like the noble Lord, I highlight the importance of the parliamentary consultations, the first of which with Peers is indeed happening tomorrow, with the two Secretaries of State.
My Lords, given the concerns that exist about the misuse of AI by pernicious actors, can my noble friend the Minister reassure the House that the Government are regularly stress-testing these threats, that we are preparing robust answers to them and that we will not therefore have any catastrophic incidents in this country? Will the lessons from the stress testing, if they exist, inform any future legislation?
Baroness Lloyd of Effra (Lab)
I thank my noble friend for her interest in this area. I can highlight that the AI Security Institute was established to provide the Government with exactly this kind of evidence and respond effectively to emerging AI risks. It has tested more than 30 frontier models, including OpenAI, Google DeepMind, Anthropic and others, and works closely with security experts across government, including the National Cyber Security Centre and Defence Science and Technology Laboratory. This is to ensure the institute’s work informs the preparations against AI-related incidents. We are committed to ensuring the UK is prepared for the changes AI will bring, and the institute’s research will continue to inform our approach.
(3 months ago)
Lords ChamberTo ask His Majesty’s Government, given their intention to align dynamically with the sanitary and phytosanitary (SPS) regime of the European Union, whether they intend to comply with Chapter 7 of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership on SPS measures.
My Lords, the UK and the EU are working towards establishing a common sanitary and phytosanitary area that will remove trade barriers for areas within the scope of the agreement. The UK will not be rejoining the single market or customs union. Our focus will be to regulate consistently with the EU on specific rules in the scope of the CSPS area. We expect the agreement with the EU to be consistent with our international obligations, including those under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. We have entered negotiations with the European Union in full awareness of those international commitments.
My Lords, I thank the Minister for her reply but I do not share her optimism that dynamic alignment with the EU’s SPS regime will be compatible with our membership of the CPTPP. The CPTPP’s processes depend on the assessment of equivalence, rather than alignment or harmonisation, between two party’s specific SPS measures. Our CPTPP partners are concerned about our proposed dynamic alignment under the European court for many reasons. For example, the EU’s GMO, gene editing and beef hormone bans are not based on sound science. The EU could put us in breach of the CPTPP’s SPS and TBT rules. A challenge would have to go through Brussels, but the EU is not a CPTPP member. Does the Minister not agree that we would do better to retain responsibility for our own rules and avoid the risk of protracted and expensive litigation?
My Lords, quite rightly we have reset our relations with European partners to improve our diplomatic, economic and security co-operation following Brexit. We are now looking at the opportunities that can follow on from that. The discussions with the EU are at an early stage. We signed a common understanding in May this year, and there will be further negotiations that may lead to a new formal agreement in some of these areas. That may require primary legislation for domestic implementation of the agreements in the UK once finalised. Formal negotiations on the EU SPS agreement have not yet begun and we will set out further details, but we will, of course, make sure that anything we do will be consistent with our international obligations and other arrangements with trading partners.
My Lords, does the Minister agree with me that the Opposition’s obsession with being isolated from the rest of Europe is very damaging to Britain and the industries?
My Lords, as I say, we see huge advantages to our reset with our European partners. The fact is that UK agri-food trade with the EU has, since 2018 to 2024, fallen by 21% for exports and 7% for imports. It is important that we re-establish those relationships so that our own trade can benefit from the new opportunities that we will have with the reset arrangements following that common understanding with the EU.
Lord Fox (LD)
My Lords, I think we are all grateful to the noble Viscount for causing the Minister to put her trade hat on. It is good to discuss trade. The Financial Times recently reported an influx of Australian steak, which is undercutting British beef. Does the Minister agree with what the Liberal Democrats said at the time: that the Australian FTA, which was made in haste by the Conservative Government of the time, sells out British farmers? What will her Government do to try to protect them from this problem?
My Lords, we remain committed to our high agriculture and food standards. As the Trade and Agriculture Commission report has confirmed, all food and drink products imported into the UK will still have to meet our existing import, food safety and biosecurity requirements. We have not lowered our standards to join the CPTPP. For example, hormone-treated beef and ractopamine—I knew I would fall when attempting to pronounce that—pork remain banned in the UK, as will other products affected by pesticides. We will maintain our existing food standards.
My Lords, since we are a member of the CPTPP, can the Minister tell us whether any of the other members of that organisation have raised this problem with us and said there will be any incompatibility? After all, our intention to sign an SPS agreement with the EU is a matter of common knowledge.
My Lords, these issues are, as ever, discussed at the CPTPP ministerial meetings. We have assured all those partners that we will maintain our existing agricultural standards, as I have confirmed.
My Lords, our membership of CPTPP is facilitated by our ownership of the Pitcairn Islands. Can the noble Baroness confirm that the Government are not planning to give that island away as well?
My Lords, I will try to avoid long acronyms in my question. We had the negotiation back in May for the sanitary and phytosanitary agreement. Nothing has happened yet. My colleagues in the inshore fishing sector in the south-west of England want to understand whether they will be able to export to Europe in the way that they used to, without all the red tape and bureaucracy they have had since Brexit.
My Lords, as I have said, the discussions are only just beginning, and we will set out more details, including with respect to our other trade obligations. I assure the noble Lord that we will do everything we can to remove a lot of the red tape that was introduced, quite unnecessarily, when we left the European Union.
My Lords, on 27 August, the responsible Minister, Nick Thomas-Symonds, said that any disputes under the SPS agreement
“go to international arbitration, not the European Court of Justice”.
However, the Commission’s negotiating mandate, agreed in July, says that the SPS agreement is based on EU law and
“should ensure uniform interpretation and application”
of EU law, and that
“the Court of Justice of the European Union is the ultimate authority for all questions of European Union law”.
Can the Minister explain how those two statements can be reconciled?
My Lords, I have not seen that piece of advice. I assure noble Lords that, as those discussions continue, we will continue to keep Parliament updated, no doubt in your Lordships’ Chamber as well as through our standing parliamentary committees.
Can the Minister confirm that the value of goods exported by the EU to us that will be relieved of any liability to SPS checks is five times the value of the goods that we export to the EU? So this deal is five times as valuable to the EU as it is to us. I have no objection to being generous to the EU, since I am a French farmer myself, but was it necessary to pay for the privilege of being generous by also giving away 12 years of our right to enhance our rights over fishing in UK waters, and to agree that we would pay for the privilege of implementing this deal and give up sovereignty over our right to control our SPS rules over the rest of the world?
We will maintain our SPS standards, as I have consistently said. I remind noble Lords that the EU remains the UK’s largest trading partner for agri-food and vice versa, so there are huge benefits in maintaining or re-establishing a lot of those European trading partners, which will benefit our farmers and consumers as well.
My Lords, I will develop a theme that was started by my noble friend in his supplementary question. Given that the UK is ahead of the EU in developing a proportionate regulatory framework for gene editing and that the sector has attracted significant inward investment positioning Britain as a potential global leader, will the Minister confirm that an exemption will be secured for gene editing in any SPS agreement?
That issue will be discussed as part of these agreements; it is not specific to the discussions that we are having at the moment. I remind noble Lords that we see ourselves as a global trading partner: the fact that we already have deals with India and the US and are now developing them with the EU will ensure that we can provide food on a cheaper basis for consumers while maintaining our own established food standards. That is the way that we should go in the future.
(3 months ago)
Lords ChamberMy Lords, I have it in command from His Majesty the King to acquaint the House that His Majesty, having been informed of the purport of the Employment Rights Bill, has consented to place his interest, so far as it is affected by the Bill, at the disposal of Parliament for the purposes of the Bill.
My Lords, before the formal Third Reading of the Employment Rights Bill, I will make a brief statement on its devolution status.
During the Bill’s development and parliamentary passage, the Minister for Employment Rights, Competition and Markets has regularly corresponded and engaged with his devolved Government counterparts. This has been supported by weekly engagement between officials. As a result, I can confirm that legislative consent Motions have been successfully agreed in both the Senedd Cymru and the Northern Ireland Assembly. The Scottish Parliament has also agreed an LCM that covers the majority of the Bill’s provisions.
However, we consider that certain amendments relating to the social care negotiating body, tabled in my name on Report and accepted by your Lordships’ House, also engage the consent process. Owing to the date that these amendments were tabled and the Scottish Parliament’s Summer Recess, it has not been possible for a further supplementary LCM to be secured by the time of this statement. Now that the Scottish Parliament has returned from recess, and noting that the Bill has the support of the Scottish Government, we are hopeful that the process around this supplementary LCM will progress swiftly.
More broadly, I am grateful to Ministers and officials in the Scottish Government, the Welsh Government and the Northern Ireland Executive for their positive and collaborative approach towards this legislation. We remain committed to sustained engagement with the devolved Governments for the remainder of the Bill’s passage as we look ahead to its implementation, the benefits of which will be felt across the United Kingdom.
Clause 162: Commencement
Amendment
My Lords, this is a tidying-up amendment and I hope it will not delay the House too long. It is consequential on the House’s decision on Report to leave out Clause 59 on members’ contributions to trade union political funds. The amendment leaves out a now redundant reference to it in the commencement clause. It introduces and involves no new issues. I beg to move.
My Lords, I thank the noble Lord, Lord Burns, for tabling this amendment, which I acknowledge is a simple tidying-up one, following changes made to the Bill on Report. It is non-controversial tidying-up amendment and therefore we are content to accept it.
My Lords, it has been a privilege to be responsible for the passage of this landmark piece of legislation since its arrival from the other place in March. The Bill is a cornerstone of our manifesto commitment to make work pay. It seeks to address outdated provisions and gaps in the current employment law framework and helps us turn the tide on the damaging trend of in-work poverty. It would benefit millions of people across the country, and this is particularly the case for those in insecure and low-paid employment. As just one example, over 2 million people on zero-hours or lower-hours contracts could benefit from the right to guaranteed hours and to payment for shifts cancelled, moved or cut at short notice. Alongside our newly published industrial and trade strategies, it will also help increase productivity and create the right conditions for long-term, sustainable and secure economic growth.
Throughout the Bill’s Second Reading, 11 days in Committee and four days on Report, noble Lords from across your Lordships’ House carefully scrutinised its provisions. While we may not have agreed on every issue, I believe we do agree on the importance of the Bill, as well as on the need to improve workers’ rights and level the playing field for good employers. Therefore, I am grateful for the pleasure of engaging with noble Lords inside and outside the Chamber, and I would like to thank all noble Lords whom I and my ministerial colleagues have spoken to for their time and wisdom.
To mention every Member of your Lordships’ House whom I have engaged with would risk taking almost as long as Committee did. While I will refrain from doing that, I would like to particularly thank a number of noble Lords. My first words of thanks must go to my noble friends Lord Leong and Lord Katz for their dedicated support from the Front Bench. Over the course of the Bill’s passage, we have collectively had over 50 engagements with stakeholders, including noble Lords and external bodies. My noble friends have been generous with their time and wisdom, and I owe them a great debt.
Similarly, I must give thanks to my noble friends Lord Collins of Highbury, Lord Hendy of Richmond Hill, Lady Smith of Malvern and Lady Merron, all of whom represented from the Dispatch Box in Committee. This represents a whole of government approach to bringing about long-overdue improvements to workers’ rights.
It has been a pleasure debating the Bill’s many clauses with noble Lords, including the noble Lords, Lord Sharpe of Epsom and Lord Hunt of Wirral, who have continuously made the case on behalf of the Official Opposition, and the noble Lords, Lord Fox, Lord Goddard of Stockport, Lord Clement-Jones and Lord Palmer of Childs Hill, and the noble Baroness, Lady Kramer, who have made meaningful contributions on behalf of the Liberal Democrats. This includes contributions in relation to non-disclosure agreements, where I was delighted to see the amendments I brought forward on Report being accepted to introduce a world-leading framework on NDA protections. I would like to say how gratifying it is to see the noble Lord, Lord Fox, back in his place. I am sure I speak for all noble Lords when I say how thankful we are for his continued recovery to good health.
I also pay particular tribute to the contribution of the noble Lord, Lord Goddard. While of course the wisdom of the noble Lord, Lord Fox, could never be replaced, the noble Lord was a worthy and often entertaining substitute. I am also grateful to my noble friends Lord Hendy, Lord Brennan of Canton, Lady O’Grady and Lady Lister for their valued contributions in relation to seafarers, bereavement leave, trade unions and parental leave, respectively.
My Lords, I think we have spent 13 days in this Chamber scrutinising this critical Bill. I salute the Ministers and Front Benches for their stamina and perseverance. The Bill has tested the patience of noble Lords on all sides of this House, so I will not test their patience further by going over the same arguments we heard during Committee and Report—very often the same arguments. I will simply raise one overriding question expressed by the FSB, the CBI, the ICAEW, the British Chambers of Commerce and, indeed, pretty much the whole private sector. They are asking, in light of the Bill, how committed the Government really are to delivering on their overriding number one mission—real, sustainable economic growth —and how the Bill will impact on the two crucial ingredients behind growth: job creation and, as we have heard, productivity.
On job creation, vacancies have now fallen to an effective 10-year low when you exclude the exceptional pandemic years. The Bill looks set to accelerate that downward trend. On the need for greater productivity across our 30-million workforce, employers are currently paying, on average, 5% annual wage increases for close to zero productivity gains. The Prime Minister and Chancellor have hailed this as an achievement, putting more pounds in workers’ pockets, but I am afraid that it is as illusory as it is inflationary, and will only contribute to ever-widening black holes.
The Bill will, as the Government admit, push up even further the costs of employment and damage the risk/reward equations behind recruitment, probation and employers’ ability to conduct those crucial performance reviews for staff. That is bad news for productivity, and I fear it will not go unnoticed by investors.
My Lords, first, I will respond to my noble friend Lady Warwick about Universities UK’s concerns. Given the stage of the parliamentary passage that the Bill has reached and the fact that the House has agreed that Clause 36 should stand part of the Bill, the clause will not be considered further during ping-pong. But as my noble friend knows, I have written to her on this issue, and the letter is available for all Members to read. We fully recognise the need not to impose disproportionate burdens on smaller procuring organisations such as universities and, to this end, we intend to consult in the autumn on the detail and scope of the two-tier code. The consultation will consider the extent to which certain public authorities, including higher education providers, are required to follow its provisions. While I cannot comment on whether we can carve out particular sectors before this consultation, I can assure my noble friend that we will carefully consider the issues, particularly applying to higher education providers.
Secondly, I thank the noble Lord, Lord Goddard, for his kind comments. I think it is fair to say that we have enjoyed working with him.
I am sorry that we have ended on a note of discord in this debate. I thought that we had, up until this point, had very courteous discussions around all this. The fact that there are relatively few issues remaining between us is a sign of the enormous work that this House has done over the last few months on this issue. I hope that, because there are so few areas of continuing disagreement, we can reach a conclusion on this Bill very quickly.
I do not want to rehearse the debates that we have had again. Listening to this debate this afternoon, it is a miracle that only 10 or so issues are still outstanding because it feels as if we are back at square one. But I feel that we made some progress during the course of the discussions.
When we came into office we inherited an economy that was on its knees and employment rights that were way out of date. We have been working and continue to work to address these issues. We are doing it in all sorts of ways. The small business strategy that we launched over the summer, the industrial strategy and the trade strategy are all designed to make the UK a place to do business with on an international basis and where jobs will be protected in the future.
On the state of the economy—because I have been provoked on this—in the three months to June, GDP grew by 0.3%, meaning the cumulative growth this year has already exceeded the OBR’s forecast for the whole of 2025. Since the start of the Parliament, 380,000 jobs have been added. Britain has become the most attractive place to invest in the world, joint top with India following its deal with the US. The FTSE 100 index smashed through the 9,000-point mark this July, with sustained growth throughout last month. Middle market businesses are growing at their fastest rate since the last election, according to research from NatWest. Confidence among UK businesses has grown, with 54% of companies feeling positive about the current environment, according to the Lloyds Business Barometer. I could go on.
We are positive about the opportunities ahead for our economy and, in that context, we are positive about the jobs that will be provided. They will be good jobs where people feel that they have a stake in their employment and a positive future. I am sorry we ended up on that discordant note, and of course I am sure we will come back and continue to try to iron out the remaining points of difference. In the meantime, I beg to move.
(4 months, 2 weeks ago)
Lords ChamberThe words that the noble Lord just said come from the Opposition Benches and do not reflect what we are intending by the Bill, or indeed these particular clauses.
I will first speak to government Amendments 156 to 158 in my name, which are minor but important technical amendments to Schedule 10. Amendment 156 makes a small correction to paragraph 36(6), replacing the phrase “that subsection” with a reference instead to “subsection (3)” of Section 15 of the Gangmasters (Licensing) Act 2004. Amendment 157 ensures that Schedule 1 to the Immigration Act 2016 is repealed following the abolition of the Director of Labour Market Enforcement, and Amendment 158 removes specific reference to paragraphs 9 and 11 of Schedule 3 to the Immigration Act 2016. The purpose of these changes is to ensure that the provision functions as intended and provides legal clarity. They do not alter the policy or substance of the Bill in any way but ensure that the schedule functions as intended.
On Amendment 154 tabled by the noble Lord, Lord Carter, the Government were elected on a manifesto pledge to deliver the plan to make work pay in full. This sets out that the new employment rights enforcement agency would have the power to bring civil proceedings to uphold compliance with employment law. This clause delivers that pledge.
The noble Lord, Lord Carter, referred to the precedent, and yes, the precedent that we are citing is the example of the Equality Act 2006, Sections 28 to 30 of which are the precedent for Clauses 113 to 115. Section 28 of the Equality Act enables the Equality and Human Rights Commission to assist an individual who is or may become party to legal proceedings. Section 30 of the Equality Act, which is the precedent for Clause 113, affords the EHRC the capacity to institute and intervene in legal proceedings, including for breach of EHRC rights, even though it is not a victim.
The noble Lord, Lord Carter, said there was not an example of where the EHRC had taken over a case. However, in the case of MS (Pakistan) v Secretary of State for the Home Department, the EHRC in fact substituted itself once the original appellant withdrew from the proceedings. This was a substitution, with the consent of the Supreme Court, by the EHRC in the same way that the fair work agency could substitute itself in place of a worker without their consent.
The EHRC uses Section 30 strategically to clarify the law and act where there are egregious breaches. We envisage that the fair work agency, rather than the Secretary of State as such, will use this power in Clause 113 similarly. Noble Lords have misrepresented what is intended by this clause. It is intended to address some of the worst employment practices that current regulations do not adequately cover. I agree with the noble Lord, Lord Marks, that there are of course cases where individuals or groups of workers are unable or reluctant to take a case, but that does not necessarily mean that the case should not be taken, because there are wider issues at stake. For example, the fair work agency could use the power to clarify entitlement to holiday pay where enforcement officers do not have enough information to confidently issue a notice of underpayment, or the fair work agency could exercise the power to clarify the employment status of a group of individuals. Currently, employers may misclassify workers as self-employed to get out of giving them the rights that they are entitled to. Without this power, the fair work agency has no ability to challenge such claims.
To give a specific example on the possible application of Clause 113, the Director of Labour Market Enforcement has flagged endemic bad practice in the hand car wash sector. A particular challenge in this sector is misclassification of workers, which stymies HMRC’s efforts to enforce the minimum wage. Currently, if a hand car wash claims that its workers are self-employed, HMRC has no means to test this in the courts. It must go through the full notice of underpayment process and wait for the employer to appeal against the notice of underpayment. This can lead to nugatory work if the appeal is upheld and otherwise delay workers getting their due rights. This is a gap in the existing system of state enforcement, which this power will go some way to remedy.
Just as the current system works, the fair work agency will take a whole-employer approach to enforcement. This has the advantages of a resolution for more workers than individual cases against the employer. But in such circumstances, where the fair work agency may be taking action for hundreds or thousands of workers, it is simply not practical to get consent from every individual concerned. As a strategic approach, this power will be used when acting in workers’ best interests to clarify the law. As with the EHRC’s powers under the Equality Act, the fair work agency will not need the consent of each individual concerned to take on cases. The fair work agency will therefore be able to decide when to seek clear, neutral and authoritative guidance from a tribunal on the application of employment legislation.
As we know, in the worst cases of serious exploitation, workers may be reluctant to give their consent due to fear of retribution from the employer. The noble Lord, Lord Goddard, was quite right to say that there are circumstances in which we have the responsibility to look after the individuals who are suffering at the hands of rogue employers and feel powerless in those circumstances. We know that many migrant workers with legal rights to work in the UK, particularly low- paid workers, are reluctant or unable to enforce their employment rights. These workers have understandable concerns, including fear of retaliation, lack of awareness or language barriers. For legal migrants, employment is their prerogative and, for those workers, there are wider implications in challenging an employer that could bring about repercussions for their employment or potentially impact on their visa. We believe that requiring consent from workers would make it easier for employers to attribute blame to individual employees, and they would suffer as a result.
I am going to carry on. When exercising this power—
My Lords, we have had advice already about what the Companion says on this. The noble Lord has spoken once.
I think that the Companion overrides anything that I have to say.
When exercising this power, the fair work agency will of course act in accordance with the rights under the European Convention on Human Rights, including Article 8, and comply with data protection legislation. In doing so, it must act in accordance with the law and for a legitimate purpose.
The noble Lord, Lord Marks, raised the issue of anonymity. In appropriate cases, the fair work agency will consider applying under Rule 49 of the Employment Tribunal Procedure Rules 2024. Rule 49 allows the tribunal to restrict public disclosure of aspects of the proceedings. That means that workers’ names can be kept from the public domain—
The point that we were making is that this is about test cases, which, as we know, is a frequent way of clarifying legislation, rather than primary legislation.
The noble Lord, Lord Marks, raised the issue of anonymity. In appropriate cases, the fair work agency will consider applying under Rule 49 of the Employment Tribunal Procedure Rules 2024. Rule 49 allows the tribunal to restrict public disclosure of aspects of the proceedings. That means that workers’ names can be kept from the public domain to protect their anonymity and to protect them from any reporting in the media, where it is necessary to do so in the interest of justice or to protect their convention rights. When deciding whether to give an order, the tribunal must give weight to the principles of open justice and the convention’s right to freedom of expression. The tribunal can do this on its own initiative, or the fair work agency can apply for such an order. The fair work agency must also comply with convention rights and data protection legislation, ensuring appropriate protections for individuals and fairness of proceedings.
I understand noble Lords’ interest in how this power will operate and confirm to the House that the Government will publish guidance on how the fair work agency will exercise this power in practice. We will develop detailed guidance, following deep and extensive engagement with social partners and the fair work agency’s advisory board. It will then be for the fair work agency, acting within this guidance, to determine which cases it brings to the tribunal. That will ensure that this power supports those who play by the rules. This approach enables the fair work agency to protect workers’ rights and to tackle injustice and abuse against legitimate workers.
This clause presents an opportunity to make a genuine difference in tackling the scourge of labour exploitation in the UK. Unchecked labour exploitation is unfair on the individuals who are being exploited. It is unfair on the majority of employers, who want to do right by their staff, and it is unfair on workers who are denied jobs by employers exploiting loopholes. The new power will complement the existing powers of the fair work agency, such as the powers to issue notices of underpayment, while enabling the fair work agency to act where these powers cannot be accessed. The fair work agency will exist to end labour exploitation and create a fair and level playing field for employers and for workers. A fair work agency with any less power to act for these most vulnerable would be an unacceptable failure for workers’ rights.
To the noble Lord, Lord Carter, I remain open to discussing how best to deliver this power and to ensure that it is appropriately safeguarded. However, I reiterate that this power is neither novel nor unprecedented and that it delivers a manifesto commitment. I therefore ask the noble Lord to withdraw Amendment 154.
My Lords, I am sorry to get up again, but would the Minister like to say something about adverse costs orders against workers?
My Lords, when we debated this in Committee, we made it clear that there would not be any cost to workers. The noble Lord, Lord Carter, suggested that the worker would be liable to costs where they had not consented to the Secretary of State taking a case on their behalf. Let me be clear that the worker will not be liable for the costs in these circumstances.
My Lords, I am grateful for all the powerful interventions we have heard this evening from very eminent speakers indeed, including the noble and learned Lord, Lord Garnier, the noble Lords, Lord Murray and Lord Pannick, and the noble Baronesses, Lady Fox, Lady Neville-Rolfe and Lady Falkner. Some really powerful points have been made around the importance of personal autonomy, the unworkability of the clause in relation to witness summonses and adverse witness results, and a duty to consult, which was a powerful point made by the noble Lord, Lord Pannick.
The noble Lord, Lord Marks, referred to the fact that the worker might not want to bring proceedings and therefore would be happy for the Secretary of State to do so in his or her place. That misses the point, which is that the worker might object to legal proceedings being brought in their name and might not give their consent. That is, for me, fundamental in this whole clause.
I believe that this is legally unprecedented—we can have further discussions about that. I think it is unworkable. I think it is completely unnecessary, given that the Secretary of State can support a worker to defend proceedings themselves. I read the manifesto and all I saw was “make work pay”. Those three words cover a multitude of sins. There was no mention of a power to bring proceedings on behalf of a worker—I read it very carefully. I feel that there has been enough power and passion in this debate to warrant seeking the opinion of the House, which I now do.
My Lords, I do not believe that for a moment.
This has been such an important debate. I thank the noble Earl, Lord Clancarty, the noble Lord, Lord Freyberg, the noble Viscount, Lord Colville of Culross, and my fellow lawyer—not solicitor—the noble Lord, Lord Clement-Jones, for what has certainly been a long-standing advocacy on behalf of freelance workers. As my noble friend Lord Parkinson of Whitley Bay said, with all his experience as a Minister, there is no doubt that freelancers play a vital role in our economy and their interests deserve proper attention.
We on these Benches have also made the case that this issue is likely to become more urgent after the passage of the Bill. We cannot avoid the suspicion that the Bill is going to drive more workers into at least considering turning freelance. Time will tell, but as the noble Lord, Lord Londesborough, pointed out, the number could rise towards 3 million freelance workers.
We are all very grateful indeed to the Minister for organising an important meeting on this subject, because it was most useful. We welcome the Government’s intention to create a freelance champion, announced last month as part of the creative industries sector plan. That may be half a loaf, but it is a welcome enough commitment. We recognise the intent behind the amendment to establish a freelance commissioner, but at the moment, in the light of the assurances given by the Minister, we feel that the Government should have the benefit of the doubt for now, not least because we are not totally persuaded that the creation of another public body is the only solution.
What freelancers certainly need is clarity, simplicity and proportionate support. If the new champion can deliver that, all well and good. But we remain of the opinion, as came across in some of the contributions we had in Committee and just now, that socialists despise the very concept of freelancing. “How dare workers choose to avoid our elaborate structures?”, some of them say. So we will be watching with a very keen eye to see how this proceeds, particularly in the light of the speeches we just heard from the noble Lords, Lord Hendy and Lord Berkeley.
As we salute the expertise of the noble Earl, Lord Clancarty, on the creative arts, I take this opportunity to assure him that if he is unsatisfied that the Government’s measures adequately address the issues that have been raised, we will certainly be on his side. So I encourage him to remain vigilant and to keep the Government’s feet to the fire. In the meantime, we look forward with great interest to what the Minister will say in response to the many questions that have been raised in this debate, in particular about the urgency of this problem.
My Lords, I am very grateful to all noble Lords who have spoken in this debate. We have indeed had a very good debate, which once again has identified the significant contribution that the creative and cultural sector makes to our industries and our lives. The Government share your Lordships’ passion for supporting the creative and cultural sectors, and we previously spelled out in detail the significant work we are already doing in this area.
The creative industries and cultural sectors are a distinct part of the wider UK workforce. They have a significantly higher proportion of self-employed individuals, reflecting the sector’s entrepreneurial and freelance nature, which is one of the points that has been well made this evening. In the latest published data, as of 2023, there were 2.4 million filled jobs in the creative industries and 666,000 filled jobs in the cultural sector. Of these jobs, 49.6% in the cultural sector were self-employed, and 27.9% in the creative industries, compared with 14% of UK jobs overall. This reiterates the point that noble Lords have made about the significance of freelancers in the cultural and creative sectors. This flexibility not only drives innovation but supports the more project-driven nature of the creative industries. However, we also know that freelancers’ creative careers, while offering a more flexible and autonomous way of working, can also be precarious and come with lower job security.
My Lords, I am grateful to the noble Baroness, Lady Bennett, for tabling Amendment 184B.
We recognise that workplace temperatures are changing, especially as the climate changes. We are committed to ensuring that workplaces are safe in the modern world, and we committed in Next Steps to Make Work Pay to look at how to modernise health and safety guidance for extreme temperatures.
The Health and Safety Executive is Britain’s national regulator for workplace health and safety. It is dedicated to protecting people and places, and helping people lead safer and healthier lives. To deliver on our commitment, the HSE is reviewing the approved code of practice for the Workplace (Health, Safety and Welfare) Regulations 1992 to ensure it is fit for purpose for a modern workforce. This includes monitoring emerging evidence around the impact of extreme temperatures on workplaces. The HSE will bring forward detailed proposals on workplace temperature in due course and there will be an opportunity to comment, which I encourage the noble Baroness and others to respond to.
I assure the noble Baroness that the workplace regulations currently require that, during working hours, the temperature in all workplaces inside buildings should be reasonable. All employers must make a suitable assessment of the risk to employees and take action where necessary. This includes assessing the risk from heat stress. The Environment Agency has also issued guidance on how employers can plan for climate change impacts to their sites of work and integrate climate change adaption into their management systems. Nevertheless, I hope this broad scope of work, which is currently under way, provides the noble Baroness with the reassurance that this is a matter that we already recognise as important, and that we are actively taking steps to address the impact of increasing temperatures on health and safety at work.
Before we conclude this group, my noble friends Lord Leong and Lord Katz and I would like to thank your Lordships’ House for the extensive and energetic debates that we have had throughout Report, as well as its continued engagement and scrutiny. Indeed, we have held over 50 engagements with noble Lords since the Bill came here from the other place, excluding the debates here in the Chamber.
This Bill will benefit 15 million people—half of the UK workforce. We were elected with a manifesto commitment to make work pay, and the Bill is a vital step in delivering that commitment. With that, I ask the noble Baroness, Lady Bennett of Manor Castle, to withdraw Amendment 184B.
(4 months, 2 weeks ago)
Lords ChamberThat the draft Regulations laid before the House on 9 June be approved.
Relevant document: 29th Report from the Secondary Legislation Scrutiny Committee. Considered in Grand Committee on 15 July.
(4 months, 2 weeks ago)
Lords ChamberMy Lords, I will begin with Amendment 111ZA, moved by the noble Lord, Lord Clement-Jones, and Amendments 168, 169, 171, 172, 175 and 176, tabled by the noble Lord, Lord Holmes, whom I thank for his engagement on these important issues.
I start by reassuring all noble Lords that we agree that AI should be deployed and used responsibly, including within the workplace. As the noble Lord knows, in January 2025, we published the AI Opportunities Action Plan, which included a commitment to
“support the AI assurance ecosystem to increase trust and adoption”
of AI. One of the key deliverables in this area is the AI management essentials tool. We are developing this tool to support businesses, particularly SMEs, to implement good AI governance practices. Following public consultation earlier this year, I hope to update your Lordships’ House on the consultation response and an updated version of that tool soon.
Regarding these amendments, I remind noble Lords that our plan to make work pay makes it clear that workers’ interests will need to inform the digital transformation happening in the workplace. Our approach is to protect good jobs, ensure good future jobs, and ensure that rights and protections keep pace with technological change.
To be clear, we are committed to working with trade unions, employers, workers and experts to examine what AI and new technologies mean for work, jobs and skills. We will promote best practice in safeguarding against the invasion of privacy through surveillance technology, spyware and discriminatory algorithmic decision-making. In response to the noble Lords, Lord Freyberg and Lord Hunt, of course we will put ethics and fairness at the heart of that.
I am keen to stress that we are taking steps to enhance our understanding of this area. This has included engagement and round-table events with a wide range of stakeholders and experts to help enrich our understanding. I reaffirm that we will consult on the make work pay proposals in due course.
The noble Lord, Lord Clement-Jones, asked what would be in the scope of the consultation. The consultation plan includes examining: what AI and new technologies, including automation and AI, mean for work, jobs and skills; how to promote best practice in safeguarding against the invasion of privacy through surveillance technology, spyware and discriminatory algorithmic decision-making; and how best to make the introduction of surveillance technology in the workplace subject to consultation and negotiation with trade union or employee representatives.
The noble Lord, Lord Holmes, asked whether or not this was going to be domain-specific. As the noble Lord, Lord Hunt, just reminded us, this was dealt with in an Oral Question earlier this afternoon, when my noble friend Lord Vallance said that existing regulators will oversee most AI systems, supported by enhanced AI skills and cross-regulatory co-ordination through forums such as the Regulatory Innovation Office. Some cross-cutting issues will be addressed also in the planned consultation on AI.
Looking specifically at Amendment 171, let me reassure the noble Lord that we believe that data protection legislation provides sufficient protection for workers and individuals where their personal data is being used in line with the key data protection principles, including lawfulness, fairness and transparency. Consent is a lawful ground to process personal data. However, due to the power imbalance between the employee and employer, it is often inappropriate for employers to rely on consent from employees to process their data. This is why we have an additional lawful ground to carry out such processing, such as legitimate interest under the data protection law. Therefore, we do not wish to limit data processing in these situations to consent alone. I also point out that while data protection principles establish the requirements that we expect the use of AI systems to adhere to, AI assurance provides ways to evidence that these requirements have been met in practice.
Amendment 170 tabled by the noble Lord, Lord Holmes, would require workers and employers to maintain records of data and intellectual property used in AI training and to allow independent audits of AI processes. As he will know, this issue was debated extensively during the passage through your Lordships’ House of the Data (Use and Access) Act 2025. Only last month I confirmed that we will publish a report, including on transparency in the use of intellectual property material in AI training, within nine months of Royal Assent to the Act, which will be due by 18 March next year. The Government have also committed to setting up expert stakeholder working groups to help drive forward practical, workable solutions in this area, alongside a parliamentary working group to engage with policy development.
Amendment 174 tabled by the noble Lord, Lord Holmes, proposes a review of the use of AI in recruitment and employment. As the noble Lord will be aware, last year the previous Government published detailed guidance on responsible AI in recruitment, which covers governance, accessibility requirements and testing. This was developed with stakeholders and relevant regulators, such as the Information Commissioner’s Office and the Equality and Human Rights Commission. Employers and recruiters may find this guidance useful to help integrate AI into their recruitment practices in a responsible way.
Furthermore, I am excited about the opportunities of AI in supporting the UK’s workforce, as well as creating jobs and growing our economy. However, we must also understand how it may affect the labour market, including any potential disruption. The AI Security Institute has begun assessing this issue, and I hope to be able to update your Lordships’ House on this as work progresses.
Regarding our position on general AI regulation and the establishment of a new AI regulator, we believe that AI is best regulated at the point of use by the UK’s existing sectoral regulators. As experts in their sector, they are in the best place to understand the uses and risks of AI in their relevant areas, and we will support them to do this. I emphasise that in response to the AI Opportunities Action Plan, we have committed to supporting regulators in evaluating their AI capabilities and understanding how they can be strengthened. I assure your Lordships’ House that we are committed to making sure that workers’ interests inform the digital transformation taking place in the workplace.
I am grateful to my noble friend Lord Pitkeathley for raising non-compete clauses. There has been extensive research and analysis in recent years looking at the prevalence of non-compete clauses in the UK labour market and their impact on both workers and the wider economy. Government research published in 2023 found that non-compete clauses were widely used across the labour market, with around 5 million employees in Great Britain working under a contract that contained a non-compete clause, with a typical duration of around six months. As my noble friend identified, this can adversely impact both the worker affected, through limiting their ability to move between jobs, and the wider economy, due to the impacts on competition.
It is often assumed that non-compete clauses are found only in contracts of high earners. However, research published last year by the Competition and Markets Authority found that while non-competes are more common in higher-paid jobs, even in lower-paid jobs 20% to 30% of workers believe that they are covered by non-compete clauses. The Government have been reviewing the research and work done to date on non-compete clauses, and I am pleased to be able to confirm that we will be consulting on options for reform of non-compete clauses in employment contracts in due course.
Finally, the noble Lord, Lord Hunt, asked for my suggested reading list following my noble friend’s kind offer earlier this afternoon. I can do no better than to recommend the excellent book by the noble Lord, Lord Clement-Jones, on AI. In that spirit, I ask the noble Lord, Lord Clement-Jones, to withdraw his Amendment 111ZA.
The noble Baroness nearly won me over at that point. I thank her. I feel like someone who was expecting a full meal but receives a rather light snack. I will explain why as we go through.
I thank the noble Lord, Lord Holmes. I feel that I am somewhat upstaging him by putting an amendment at the front of the group, but we have many common themes that we both have pursued over the years together. I agree with him on the desirability of a cross-sector approach. He is much more patient than I am and, in putting down individual amendments and hoping that the Minister will give satisfactory answers, he is clearly more optimistic than I am. Whether his optimism has been justified today, I am not so sure.
The Minister could not even acknowledge the work done by the TUC, which has been ground-breaking in so many ways. It has taken four years, so it is extraordinary that the Government are doing what they are doing. I acknowledge what the noble Lord, Lord Pitkeathley, had to say. I was not quite sure how it connected to AI, but he very cunningly linked the subject of non-compete clauses to innovation, which does link to AI. I was encouraged by what the Minister had to say about consultation on reform.
The noble Lord, Lord Hunt, reminded me that I was a solicitor. Unlike him, I do not still have a practising certificate still, but there we are. He has much more stamina than I have. Non-compete clauses can be extremely important in making sure that know-how is preserved within an existing business. I thank the noble Lord, Lord Freyberg, for what he had to say on making sure that AI ensures human flourishing and that we preserve agency. That is what the amendments tabled by the noble Lord, Lord Holmes, and me are all about.
The Minister talked about an AI assurance ecosystem and AI management essential tools that there will be a consultation on, but I could not sense any intention to do anything other than a sort of voluntary approach. We have a lot of employment law that has developed over the years, but the Government seem to be allergic to doing anything with any teeth. She mentioned recruitment practices, but that again seems to be very much a voluntary approach. The AI Security Institute is not a regulator. I cannot feel that the Minister has given much more than the noble Lord, Lord Leong, gave last time. For instance, the Minister talked about consultation over make-work proposals. This involved talking about best practice on the adoption of AI and how best to deal with surveillance technology. Again, I did not sense any real intent to make sure that we have a new set of protections in the workplace in the face of AI.
I very much hope that, as time goes on, the Government will develop a much more muscular approach to this. As many noble Lords have said, AI presents a great number of opportunities in the workplace, but we absolutely do not want to see the opportunities overwhelmed by mistrust and a belief that AI presents unacceptable risks on the part of those employees. We want to see employees understanding that in the face of AI adoption, they have the right to be consulted and there is proper risk assessment of the introduction of these systems into the workplace, so that there is a proper, consensual approach to AI adoption.
I really do not feel that the Government are keeping up to date with the issues in this respect, and I am afraid that is rather reflected in some of the issues that we are going to talk about on Wednesday as well. In the meantime, however, I beg leave to withdraw the amendment.
My Lords, it is a pleasure to follow the noble Lord, Lord Goddard. I agree with pretty much all that he said. I thank my noble friend Lady Barran for her amendments. I thank my noble friend Lord Agnew for his interesting and timely perspective, and I salute the teaching assistant whom he mentioned.
Amendment 111B would ensure that the establishment of national frameworks does not, by accident or design, limit the ability of employers to go further in improving conditions for their staff. It makes it clear that, while national terms may set the floor, they must not become the ceiling.
As we have heard, we must leave space for innovation and ambition at the local level, particularly for those schools, academies and trusts that are actively seeking to lead in areas such as flexible working, staff well-being or enhanced support for recruitment and retention. This amendment does not undermine the national framework. On the contrary, it reinforces it, because it allows it to act as a strong foundation on which more can be built, where employers have the capacity and willingness to do so.
We should not inadvertently create a situation where the national body becomes a constraint rather than a support. I therefore welcome the clarity that this amendment brings. I commend my noble friend for bringing it forward and, if she decides to press it to a vote, we will support her.
My Lords, I will speak first to government Amendments 112 to 116. The school support staff negotiating body will recognise the essential roles and responsibilities of over 800,000 support staff working in our schools, supporting our children to achieve and thrive. Like the noble Lord, Lord Sharpe, I very much pay tribute to the teaching assistant whom the noble Lord, Lord Agnew, mentioned. We all know examples of support staff who have played significant interventionist roles in helping to run a school—roles that are often underrewarded and unrecognised. It is about time we put them and their pay and conditions on a proper footing.
It is right that we have a mechanism for employer and employee representatives to come together to negotiate and to agree pay and conditions that reflect the varied and vital role that support staff undertake. We have heard arguments made across the House that we must make the legislation itself clearer, that the SSSNB will not mandate a one-size-fits-all approach and that individual employees will be protected from any moves to their detriment as a result of the SSSNB process. We have listened to noble Lords on this issue and, while we have always been clear that this is the Government’s intent and can be achieved through existing provisions, we have decided to amend the SSSNB provisions to ensure that both principles are established in primary legislation.
This change will mean that all school support staff will benefit from a minimum offer—or floor—for pay and conditions, and that there will be no ceiling to prevent employers offering better pay or conditions. This protects individual employees and allows employers to go beyond agreements reached, should they choose to do so in response to their local circumstances. That was the argument made in Committee. A number of noble Lords argued that, particularly in academies, employers want to pay more and provide better conditions. We are making it clear that that is absolutely the right thing to do, and our amendments will deliver that.
I turn to the amendments tabled by the noble Baroness, Lady Barran. Amendment 111A would change the SSSNB’s remit for academies so that academy employers would be required to have regard only to the framework. As outlined in response to this amendment in Committee, it would be wrong to create a two-tier system for support staff. Since roughly half of the 22,000 state-funded schools in England are now academies, it is right that academies are included in the SSSNB’s statutory remit in the same way as maintained schools. There is no need to take a different approach for academies when there will be ample room for innovation for all schools, irrespective of their structure.
I hope the noble Baroness understands and agrees that all school support staff deserve to know what they can expect as a minimum for pay and conditions, and that they can continue to benefit from more favourable terms where employers offer them. However, her amendment risks creating a two-tier system that undermines the role of the new negotiating body in establishing minimum standards which will work for all schools and recognise the vital roles that support staff undertake.
Having raised these issues at the beginning of Committee, I just want to say that, following the favourable response of the Front Bench to the idea of arranging a meeting at which they can be discussed, I very much look forward—at least, I hope I can—to the reply of my noble friend the Minister.
My Lords, I thank my noble friend Lord Hendy for moving his amendment.
Amendments 123 and 124 in my name relate to Clause 54, which provides powers to make regulations giving effect to two named international conventions and to give effect to international agreements as they relate to maritime employment. I thank the Delegated Powers and Regulatory Reform Committee for its thoughtful consideration of these powers, and its recommendation to amend the procedure for new Section 84A(2) from first-time affirmative to affirmative for all uses. I wrote to the committee on 7 July, setting out our response in full.
These amendments will change the parliamentary procedure applicable to regulations made under the power in new Section 84A(2) of the Merchant Shipping Act 1995, giving effect to international agreements as they relate to maritime employment. The amendments mean that all uses of the power to give effect to future or unspecified international agreements will now be subject to the affirmative procedure, and not just the first use. They will mean that Parliament has greater oversight of these agreements and amendments to them.
I turn to Amendment 122A tabled by my noble friend Lord Hendy. The amendment would specify that the statutory rights to which shore-based workers in the UK are entitled also apply to ships’ crews working aboard services that enter ports in Great Britain 120 or more times per year, or that operate
“between a place in Great Britain and another place in the United Kingdom”.
The scope of services covered follows the approach taken in Clause 29, where the Government have sought to ensure that those employed aboard these services are captured by the requirement to provide proposed notification of collective redundancy.
I thank my noble friend for this amendment on the application of employment rights to seafarers, and the maritime trade unions for their continuing engagement on these issues. I hope to be able to provide some clarity today, but we can also commit to continuing ongoing discussion about how we can ensure that seafarers are receiving robust protections.
The Government want to see stronger employment rights for seafarers. That is why, in addition to the broader changes to employment rights, we have included a package of maritime-specific measures in this Bill. As my noble friend knows, we are closing the loophole that meant that P&O Ferries could avoid prosecution for failing to provide advance notice of proposed collective redundancies. We are also providing powers for a mandatory seafarers’ charter, which will allow us to set a higher minimum standard for wages and for how long seafarers can spend at sea without a break. This will establish a level playing field that will help prevent the undercutting of working conditions in the way that P&O Ferries sought to do.
The new power to give effect to the Maritime Labour Convention, and other international agreements as they relate to maritime employment, is also important. Where international agreement is needed to improve protections, we can implement those changes.
(4 months, 3 weeks ago)
Lords ChamberMy Lords, the noble Lord, Lord Sharpe of Epsom, has spoken about the Green Paper, but I understood that we were responding only to the Post Office Horizon inquiry’s first report. I apologise if we are meant to cover the Green Paper, but, having had that instruction, I have rewritten my speech accordingly.
We need time to consider the inquiry’s first report. The Statement expresses many of the sentiments that we often hear at the Dispatch Box: admiration for the fearless and diligent work of Sir Wyn Williams, the bravery of the postmasters, and descriptions of what the Post Office, and through it, Governments, have done over a number of years. All that is true, but the problem is that, once again, a judge leading an inquiry has had to call out the lack of delivery and transparency, and, frankly, the re-victimisation of the postmasters and their families. It is just unacceptable. It is close to the old-fashioned saying about cheques: “words and figures do not agree”.
My first question to the Minister is: will the Government review all Sir Wyn’s recommendations, and, as importantly, the evidence of poor delivery in the compensation scheme that he cites, and report back to Parliament in three months? This cannot go on. Some postmasters are dying; until all have realistic offers of compensation, they remain in a financial limbo created by the Post Office and Whitehall.
To give the House an example from the report, page 48 sets out the design of the scheme, which was meant to be “user friendly”. Sir Wyn says that it was so chaotically delivered that, as described in paragraph 4.23, a postmaster’s eligibility criteria were
“determined by employees of the Post Office”
and not by people independent of it. Employees then decided whether the postmaster had suffered a shortfall. Assessors from the Post Office’s solicitors would value that and then write a recommendation for the independent panel. The independent panel’s overriding priority, set by the Post Office, was speed and to assess via its terms of reference, created by the Post Office.
That is just one example from Sir Wyn’s excellent report, but it demonstrates once again why such compensation schemes must be run truly independently from the body that caused the damage. He recommends a truly independent body and not one at arm’s length like the Infected Blood Compensation Authority, because not even that is truly independent. Are the Government going to consider this seriously? From what was said in the Statement, it does not sound like it.
I ask the Minister what it will take to change this. We now have or have had problems with the Post Office Horizon scheme, the Windrush scheme and the IBCA scheme. The government approach to redress and remedy, regardless of the Government, fails time and again; even worse, the problems last longer because there is no real desire to change.
Then there is the issue of Fujitsu. Sir Wyn says that the Post Office and the Government must start discussions with Fujitsu on its contribution to this scheme. Will the Minister provide a timetable for those discussions? There is also another Fujitsu issue: it is now clear from the evidence heard at the public inquiry that it was complicit at the very least, and proactive at worst, in helping the Post Office in its cases in court against postmasters over many years. We know the police are now investigating this, including for perjury and other very serious crimes.
There is a further question. Why does government continue to recontract Fujitsu in other areas? Can the Minister reassure your Lordships’ House that the Government are completely confident that Fujitsu meets the high standard of probity required of large IT contracts?
It is good that it is proposed that the family members of postmasters who suffered because of the scandal will receive redress. But before the Government copy the arrangements for the infected blood scandal, will they please look at the very large problems that the affected victims’ scheme already has? It still has 18 months before it offers its first compensation.
In opposition, Labour repeatedly promised that a duty of candour would be one of its priorities to ensure that discussions start at an early stage as it becomes clear that there are problems somewhere. But the Government have delayed the introduction of the Bill. Can the Minister say when that legislation will be presented to Parliament?
From these Lib Dem Benches, we believe that is not enough. It is essential that whistleblowers have a safe place to air their concerns. We believe that, given the repeated slapping down of anyone expressing concerns—which, by the way, delayed so many truths coming out—an independent office of the whistleblower must be set up. The decades of wrongdoing are a shameful episode in this country’s history. We need mechanisms in place to ensure that this never happens again.
My Lords, I thank both noble Lords for their comments. The inquiry under Sir Wyn Williams has asked some wise and penetrating questions and has scrutinised more than 2 million pages of evidence. I extend my thanks to Sir Wyn and his team for their commitment to confronting the impact of this terrible scandal. I also thank the Horizon advisory board, including the noble Lords, Lord Beamish and Lord Arbuthnot, for its hard work in helping to improve the delivery of redress. We will continue to seek its guidance on how we can continue to improve delivery, particularly in light of the recommendations made in Sir Wyn’s report.
The volume published last Tuesday is only the first volume of Sir Wyn’s final report. It focuses on the human impact of the Horizon IT scandal and the redress delivered to its victims, and we look forward to receiving the subsequent volume from the inquiry when it is published in due course. Sir Wyn’s report lays bare the wide-ranging suffering endured by victims of this scandal—the distress and severe disruption experienced so acutely. Victims lost money, their health and their liberty, and in the most tragic cases they lost their lives. We owe it to them to have proper redress for all crimes that have been committed.
Sir Wyn’s report focuses on the redress scheme set up by this and the previous Government, with 19 recommendations made for the Government to consider. The Government welcome these recommendations, which we have committed to respond to by 10 October. In answer to the noble Baroness, we will of course review all the recommendations and the evidence behind them in detail. I hope to be back here at the Dispatch Box in October to update Parliament on the progress we are making.
We have already announced that we will accept three of Sir Wyn’s recommendations, which include extending redress to the most severely affected family members and introducing a best offer approach in the GLO scheme. The Government are keen to ensure that we get redress to those affected as soon as possible. We recognise that delays have been unacceptable and that some sub-postmasters have found the schemes adversarial and difficult to navigate. Over the past year, we have made improvements that have significantly sped up the process of claims. In the last 12 months, this Government have more than quadrupled the total amount of redress paid, which now stands at nearly £1.1 billion. But we recognise that there is more to do.
Horizon, which sparked this whole scandal, should have gone long ago, but the task of replacing it is hugely complex and cannot be done overnight. In the meantime, it remains critical to the delivery of the essential Post Office services on which people depend. We are determined to end the use of Horizon and so draw a line under Fujitsu’s involvement with the Post Office. As part of over £500 million of investment during this Parliament, we have committed up to £136 million this financial year to invest in new technology and replace Horizon.
I turn to some of the questions. The noble Lord, Lord Sharpe, asked about the Green Paper. Twelve months ago we inherited a Post Office in crisis, with declining financial sustainability, unstable leadership, a network struggling to maintain services and a reputation shattered by the Horizon scandal and its appalling treatment of sub-postmasters, as Sir Wyn Williams’s report has underlined. The Green Paper published this week begins a national dialogue on the future of the Post Office so that we can create a modern, resilient and financially sustainable organisation.
Although we recognise the Post Office’s history, this Green Paper is about looking forwards, not backwards. We also need to recognise the serious cultural issues of the past and ensure that, going forwards, the Post Office has a positive postmaster-focused culture and is run in an accountable and transparent way. We also of course recognise the points raised by the noble Lord about the important role that post offices can play in rural areas and as banking hubs, particularly in disadvantaged areas.
The noble Lord asked about the progress and possible changes of governance. No decision on changes to governance will be made by the Government until the inquiry’s final report, to allow the Government to consider the inquiry’s recommendations on governance issues together with the Green Paper responses.
The noble Baroness asked about Fujitsu and the technology. The Post Office is committed to moving away from Fujitsu and the Horizon system. Post Office has a plan to introduce a new IT system in stages for postmasters and strategic partners. Post Office’s future technology portfolio is designed to transform technology and data across the Post Office while supporting the transition of Horizon out of Fujitsu. As I said, the Government have confirmed that they will provide up to £136 million for this project in the financial year. The noble Baroness wanted to see some speed in this. This is a complex programme of work that cannot be completed overnight, given the range of transactions that the IT system needs to support. Nevertheless, we will move at pace to try to bring those changes about.
The noble Baroness also asked about Fujitsu’s continued involvement. The first thing to say is that Fujitsu has acknowledged its moral obligation to contribute to the cost of the scandal, and the Government welcome this. The extent of Fujitsu’s culpability for the scandal will not be clear until all parts of Sir Wyn Williams’s inquiry report are published. In the meantime, Fujitsu has begun talks with the Department for Business and Trade on the company’s contribution to the cost of the scandal. That includes whether any interim payments should be made.
The noble Baroness asked about the progress on redress. We share the postmasters’ frustration that redress has been too slow. However, we have massively increased the pace. We have paid out nearly £1.1 billion—four times what had been paid when we took office. We have already made some other positive interventions, including introducing the £75,000 fixed offer for the HSS claimants; launching the HCRS and merging Post Office’s redress for convicted claimants into it; launching the HSS appeals scheme; and promising redress for Capture victims. We will continue to look at Sir Wyn Williams’s recommendations to see what more we can do.
It remains the mission of this Government to bring the victims of the Horizon scandal the justice they wholly deserve and to make sure that a miscarriage of justice does not happen again. But as well as fixing the past, we must build on the future. As I say, the Green Paper published earlier this week begins a national dialogue on the future of the Post Office. Our priority now is building a modern and financially sustainable Post Office that is run in an accountable and postmaster-focused way, and I hope noble Lords will support those objectives.
My Lords, I was astonished by the contribution from the Opposition Front Bench, not just because, as the noble Baroness from the Liberal Democrats said, I had assumed this was specifically on the report and not on the Green Paper, but because the noble Lord was talking about the future of the Post Office, and indeed mentioned Royal Mail, without acknowledging that the demise of the Post Office and the Royal Mail has been under the Tory party over the last 14 years. It has. If we look at other countries, we see a much better system continuing in most of our competitors.
I want to raise two points, the first of which was raised by the noble Baroness from the Liberal Democrats. The Minister said that the Government expect Fujitsu to contribute and that discussions are under way, but has Fujitsu been given a deadline by which this must be agreed, and how much do we expect it to contribute? It needs to be a great deal; otherwise, the taxpayer is undertaking the cost again, as we have done with so many things, and as we are going to have to do with the Afghan compensation, and it should not be the taxpayer in this case—it should be Fujitsu.
My second question is about prosecutions. Everyone seems to get away without any prosecutions in these kinds of things. Will the Minister talk to the Attorney-General and ask when some of the people who were responsible for the terrible tragedy that so many sub-postmasters and sub-postmistresses suffered will be held to account? It is about time that they were.
I thank my noble friend. He is quite right that this scandal occurred over many years, and it has taken a long time for both the previous Government and now this one to really get to grips with the action that needs to be taken. That is why the report from Sir Wyn is so important to provide extra clarity on the further actions that we need to take. My noble friend talked about Fujitsu. As I have said, the Government are having active discussions with Fujitsu about its contribution. We are still awaiting Sir Wyn’s second report to get a better sense of the complete culpability of Fujitsu, and we cannot pre-empt that, but I think Fujitsu recognises that it has a role in making amends, and we are in active discussions with it.
My noble friend asked about criminal prosecutions and accountability. I think everybody shares his frustration that this is taking so long, but the action on accountability must await the conclusions of the second part of the Williams inquiry—obviously, we all await those with interest. He will know as well that the Metropolitan Police investigation, which is independent of government, is ongoing. The Met is a core participant in the Williams inquiry, but it also has around 100 staff engaged on Horizon matters, looking at whether there are any criminal issues that need further following up, and I know that it will be doing that in a very active way.
My Lords, the Minister is quite right that this matter has taken place over many years, under Labour, Lib Dem and Conservative Ministers. We should all, frankly, hang our heads in shame. I went along to the Oval last week to listen to Sir Wyn give his excellent report, and he used a telling phrase about Fujitsu; namely, that it was kicking the can down the road. That is exactly what it is doing. The longer it thinks it can stave off paying a single penny towards the victims of this matter, the less it thinks it will have to pay. Do the Government recognise that the only way we can change that behaviour is to stop giving it contracts?
First, I pay tribute to the noble Lord for all his involvement in this running scandal over many years and for helping to bring the scandal to light. He asked about Fujitsu. As I say, we are in active dialogue with Fujitsu. He will know that Fujitsu has announced that it will not voluntarily bid for new contracts, unless requested by the Government, and we welcome that as the right course of action. The extent of Fujitsu’s role in the scandal is not fully known and therefore we feel it would be inappropriate to take further action until we have all the parts of the inquiry before us. At the moment, Fujitsu has not been found guilty of any wrongdoing and as such it continues to deliver government contracts where these are already in place. However, as I say, it has announced that it will not voluntarily bid for new contracts, but I share the noble Lord’s frustration with the current situation.
My Lords, I will not repeat everything that we have heard. I agree very much with the noble Baroness, Lady Brinton, but on one point she brought up, surely one way that we could allay the suspicions of the general public, which are mighty at the moment, to do with infected blood and this scandal, would be to get on with interim payments. That would at last begin to give these poor victims, and the general public, some confidence that we all mean what we say and that money is going to be forthcoming before some of these victims die.
The noble Lord is right that we need to speed up the payments and, as I set out earlier, we are taking steps to do that. The Government have already taken major steps to improve the delivery of redress, leading to nearly £1.1 billion having been paid to more than 7,900 victims, more than four times the total amount paid before last year. We need to continue to work on this issue. We have taken a variety of measures to speed up redress, including the introduction of the £75,000 fixed offer for HSS claimants, and we recently announced that we are introducing facilitated discussions in the GLO scheme, as requested by claimants’ lawyers. We will not rest until all those affected have received redress. That is absolutely the determination of the Post Office Minister and it is absolutely our determination. It is very frustrating when these things get held up, and we are trying to unblock any blockages that still exist. It is an absolute determination of this Government that individuals and their close family members receive the redress that they are due.
My Lords, I join others in welcoming the first stage of this very important report into an appalling scandal which has blighted so many lives and which we know has, sadly, actually cost lives as well. Sometimes we are faced with a scandal, such as we debated yesterday, that has been caused by a single cock-up. That is not the case here. There have been years, if not decades, of conscious decisions leading to culpability. It is right, as we move ahead with this inquiry, that those who are culpable are held directly to account, so I welcome the Government’s opening of discussions with Fujitsu.
While we cannot, at this stage, work out the quantum of the compensation Fujitsu owes, will the Government give an assurance that should Fujitsu, or indeed anyone else that is culpable in this situation, either not produce compensation or offer an inadequate compensation package, they are prepared to take action to compel those who are culpable to provide compensation? Further, will the Government give an assurance that whatever sum of compensation is provided by Fujitsu or anyone else, it will not be at the expense of calling off criminal prosecutions? Will they ensure that those who have committed criminal acts are ultimately held responsible for their behaviour?
My Lords, as I say, the extent of Fujitsu’s role in the scandal is not yet fully known, so we await the second stage of Sir Wyn Williams’ inquiry report. I very much hope that that will lay down some very clear rules for how we should proceed on this issue. Fujitsu has not been found guilty of any wrongdoing; nevertheless, the Government are in constructive discussions with Fujitsu, and I think it understands its responsibility to make amends when the final recommendations come out. I do not detect any sense from Fujitsu that it will not comply with the desire for proper redress.
My Lords, like others across the House, I welcome Wyn Williams’s first report into this IT scandal, and it is an IT scandal. It is clear from looking at the Green Paper that there are huge historical failings across the Post Office’s management and board—serious cultural failings. How do His Majesty’s Government see this Green Paper redressing those failings and setting up new structures for the future of the Post Office so that no sub-postmasters or sub-postmistresses are ever left to face these appalling situations again?
Every speaker in this debate has touched on the financial compensation, and I add my weight to that. The Statement made in the other place on 14 July said that £500 million of taxpayers’ money will be committed to bringing in and supporting a new IT system. That is before we even touch on the compensation packages. The Minister said that Fujitsu has a moral obligation. I think Fujitsu has far more than a moral obligation when we look at the situation that far too many of those sub-postmasters and sub-postmistresses were put into. They were ostracised within their communities, some took their own lives, and they were treated to years of not being believed and a legal system that believed a computer over their word in far too many cases. Fujitsu is on the hook for more than a moral obligation. It has a financial obligation to deal with both the redress and the implementation of a new and fairer IT system.
I thank my noble friend for those questions. He asked first about the cultural issues, and we all understand just how poorly the Post Office has been run over many years to allow this scandal to appear and not be addressed, given the increasing amount of evidence that was presented to the leadership in the Post Office. We are taking steps to address this. There is now, as my noble friend will know, a new leadership in the Post Office. The Green Paper gives us an opportunity to revisit what we want from the Post Office, which ought to remain a vital part of UK life in our communities and on our high streets, providing small business opportunities for many people. It is potentially a huge reset that will take place in the Post Office.
We are committed to maintaining it as a strong, accessible network. The noble Lord, Lord Sharpe, asked about the size. It is our preferred option that the overall size and shape of that network would remain the same. My noble friend is right about the cultural issues. For us, there are other issues about governance going forward, but the key thing is to make sure that postmasters and postmistresses play a critical role in shaping and designing the future of the Post Office, because they know what works, they know their communities and, as we know, we really have not listened to them sufficiently in the past. I am confident that they will very much be part of shaping the future of the Post Office as the consultation goes forward, and it will be all the better for that.
My noble friend asked about the technology. We are working to replace Fujitsu as quickly as we can. The development of the technology is based on a test and learn approach, so we are working to make sure that the replacement of Fujitsu is done right in a robust system. Post Office Ltd’s IT transformation is ensuring that the hardware that was purchased for NBIT will now be used to refresh counter devices across the network and that the software that was developed will still be used for drop and collect services. We need to get the technology right and there is money going into it, but the important thing here is that we really listen to those people at the heart of it, the postmasters and postmistresses.
My Lords, this is a very sad story about the failures of a very large business, the Post Office—which many years ago I used to work for—and its culture, and about the failure of the machinery of the state, which has had very serious impacts on the lives of many human beings and their families. It has cost us all hundreds of millions of pounds, is still costing us all large amounts of money and is still affecting these people, despite all that has happened. What are the Government intending to do to drill into and come to terms with those failures in the machinery of the state and what the real lessons learned might be? Some of us in our working life have seen these same kinds of failures in other areas of public life, in the NHS and in the public sector. What lessons are going to be learned from this, given the human tragedies that we can all clearly see in this set of affairs in plain sight?
The noble Lord is right. From the top down, we all bear some responsibility for this, although I pay tribute to the MPs and the Members of this House who used their positions to highlight and eventually bring to account some of the individuals involved in this scandal. The Green Paper is attempting to address exactly those issues about the machinery of state and whether the Post Office should be reconfigured and run in a different way. We want to make sure that it is financially viable on a longer-term basis. This is an opportunity for us to make sure that the future of the Post Office is robust and that we learn the lessons from previous scandals for how government listens and flags issues going wrong at the kind of level that occurred with the Horizon scandal. We will look at whether there are any crossover lessons from other scandals that we can take forward. I understand that the second volume of Sir Wyn Williams’s report will also look at some of those wider issues.
(4 months, 3 weeks ago)
Grand CommitteeThat the Grand Committee do consider the Online Safety Super-Complaints (Eligibility and Procedural Matters) Regulations 2025.
Relevant document: 29th Report from the Secondary Legislation Scrutiny Committee. Special attention drawn to the instrument
My Lords, as the Online Safety Act sets out, the Secretary of State must make these regulations under Sections 169(3) and 170(1) of the Act. They enable the super-complaints regime to operate by establishing the eligibility criteria that entities must meet to submit a super-complaint, as well as the procedural matters relating to Ofcom’s assessment of super-complaints.
Super-complaints are an integral part of the Act’s complaints handling, reporting, and redress mechanisms. They provide a means for eligible entities, including civil society groups with expertise in online safety matters, to raise systemic issues about the features or conduct of one or more regulated services with Ofcom, the Act’s independent regulator.
Super-complaints cannot be made by individuals, nor can they be made about individual pieces of content. The Act establishes, under Section 169, the scope of issues that super-complaints can address. This includes where the features and/or conduct of regulated services may be causing significant harm to, significantly adversely affecting the freedom of expression of, or otherwise adversely impacting users, particular groups or the public. We expect super-complaints to typically be about cross-platform, systemic issues. However, a complaint may cover a single service if the complaint is particularly important or impacts a large number of users or members of the public.
The SI sets out several eligibility criteria that an entity must meet to be able to submit a complaint to Ofcom. Entities must: represent the interests of users of regulated services, particular groups, or members of the public; have a composition, governance and accountability arrangements that mean it can be relied on to act independently from regulated services, although funding, or representation in the entity’s governance from platforms, is allowed; contribute to public discussions on online safety matters as an expert; and be capable of being relied upon to have due regard to any guidance published by Ofcom. These criteria aim to ensure a wide range of entities are eligible while safeguarding the integrity of the process and reducing the risk of vexatious complaints.
In addition to the eligibility criteria, this SI also sets out the process and timeline for assessing super-complaints. Ofcom must assess the would-be complainant’s evidence against the eligibility criteria and determine whether an entity is eligible within 30 days. Ofcom must then inform an entity whether they are eligible or not and explain why. The time for assessing eligibility reduces to 15 days where entities have been found to be eligible within the past five years. In such circumstances, an entity must submit information to show that it is still an expert contributing significantly to public discussion on online safety. Eligible entities must also present current, objective and relevant evidence to support their view that one of the grounds for a complaint under the Act is met.
When assessing the admissibility of the complaint and the substance of the complaint itself, Ofcom must typically respond 90 days following the eligibility determination. This means that, as standard, the entire super-complaints process will conclude within 120 days, or 105 days where there is retained eligibility status. Ofcom may however stop the clock in certain circumstances, such as if additional information is required from the entity and the complaint cannot be progressed without it. But Ofcom may only stop the clock by the amount of time it takes to receive the requested information. Where Ofcom has determined that an entity is eligible, it must consider the complaint and evaluate the evidence presented to it. At the end of the process it must publish a response, including its determination on the matter. This may include what further action, if any, it anticipates.
In developing these regulations, the Government have consulted Ofcom and there has been a public consultation. We have listened closely to the views of stakeholders and, where possible, made changes to the policy consulted on. These changes are set out in further detail in the Government’s policy response published in June this year. In tandem with this SI being laid, a round table was also held with key civil society groups to set out the changes and our response to the concerns raised during the consultation process. These changes include lowering the bar for eligibility to enable new expert organisations to make complaints and removing the requirement to pre-notify Ofcom ahead of submitting a complaint.
The online world is complicated and ever-changing. As the Government, our aim is to remain agile and keep pace with emerging online harms. These regulations have been drafted to do just that, by ensuring Ofcom is made aware of emerging technologies, market operators and subsequent harms. I beg to move.
My Lords, I welcome my noble friend’s comments, which set the context for this interesting statutory instrument.
In the process of consultation that led to the final decisions, was there time for the department to begin to implement the Parkinson rule? When my noble friend and I last met some time ago, we discussed how and under what conditions one might be able to allow Select Committees in the Commons and here with expertise in these matters to look at SIs before they are laid. I notice that this was laid on 9 June, which is well after that meeting. Was there time to let the Select Committees see this and were there useful results from that? If not, can she give us some indication of when the department will be in a position to begin to process the Parkinson rule in relation to this?
I am grateful to the Secondary Legislation Scrutiny Committee for its very full 29th report, which went through this SI in somewhat surprising detail—we do not normally get four or five pages on an instrument each time, but that tells the story behind some of my concerns about the department’s approach to this. The committee’s first conclusion is that:
“The draft Regulations are drawn to the special attention of the House on the ground that they are politically or legally important or give rise to issues of public policy likely to be of interest to the House”.
We are grateful to it for doing that. These are interesting and important issues.
The committee’s first point for consideration is that it worries whether the regulator, Ofcom, will have the resources to carry out the sort of work envisaged in this SI and the much larger scheme of work that it is involved in. I would be grateful if my noble friend could give some thought to that in her response. I do not think she mentioned it. We understand the basis on which Ofcom makes its funding needs available—there has been notification of that recently around the level of fees to be exercised on the companies in scope of the regulator—but that is not the narrow point raised here. It is more about the question of capacity and scale, and the ability to think more widely about the system it is trying to regulate, than it is just about the money. I would be grateful if my noble friend would say a few things about how the department judges that and how it thinks Ofcom will be able to scale up its current work, which is immense. It is very important to include this activity, which in the Bill was originally intended to be of assistance to Ofcom, although some of the way it has come out does not seem to have delivered on that.
Secondly, I recollect that we spent quite a long time on the Bill working out why the Government of the day did not think it necessary to have some form of ombudsman system in place for internet matters. I am sure the noble Lord, Lord Clement-Jones, will make some points about this. This was well argued and well thought through in our debates, and we had many meetings offline to try to find a way forward. We did not get what we wanted, but it was a very big Bill and other things perhaps took priority. However, we did get agreement from Ministers, in the Bill, that there would be a review shortly after its implementation— I think within two years—of how the complaints processes for users of IT systems in this country, particularly in new media, were being dealt with by individual companies. Clearly, the expectation is that each company will have its own structure but that, on occasion, issues would be raised across more than one provider. The question was how an ordinary citizen would cope with that if there was not some form of ombudsman system. I strongly believe that there needs to be an ombudsman system for this whole area, and I hope that the review to be carried out by Ofcom within two years will recommend that. This is not referred to in this SI. Will the Minister say a few words about the department’s current thinking on that?
To pick up exactly where I left off, as with any regulatory mechanism, transparency is key to ensuring public trust and parliamentary accountability. We therefore urge the Government to clarify how the outcomes of this process will be communicated to Parliament and the public, particularly where serious harms are identified. Only then can we be confident that this mechanism will not only protect users but uphold the openness and scrutiny that must underpin all aspects of the Online Safety Act.
My Lords, I thank all noble Lords for their valuable contributions to this debate, including those who have rightly identified that we have taken the comments from the stakeholder engagement to heart and made changes to the eventual proposals. I will go through the very many questions that noble Lords have asked. I pay tribute to the work of the Secondary Legislation Scrutiny Committee; we welcome its report and the scrutiny it has given to our proposals.
In no particular order, I will first pick up the question of scrutiny. The noble Lord, Lord Stevenson, asked about Parkinson’s law—if I can put it that way. We have spoken about this and there have been a number of different discussions about it. We recognise that the Science, Innovation and Technology Committee and the Lords Communications and Digital Committee play a vital role in scrutinising the regime. The SI was shared with those committees in advance. He will know that Parkinson’s law is not as emphatic as it might be—it is a caveated law—but we nevertheless take on board the concerns raised about it and have met the chairs of those committees to talk about how we can take these issues forward. We have had a very good dialogue with them, on the understanding that we do not want to delay what can sometimes be very important and game-changing regulations by having a long extra scrutiny process. Nevertheless, we are trying to find a way to resolve this issue and discussions are continuing with officials.
I am sorry to interrupt the Minister, but she said 2028. When will the actual review begin? That sounds an impossible end date for anybody to be satisfied with progress on an ombudsman being considered, let alone appointed. Does the review start in 2028, or in 2026? When does it start taking input?
The only information that I have is that we are anticipating that the report would be published and available in early 2028—so, obviously, it would need to start well before then. The noble Lord will know that setting up ombudsman schemes is not a simple process. However, we look forward to the outcome of that report, because we recognise some of the issues being raised.
But if the report will be available only then and the regulations need to be made, the prospect of having an ombudsman is not there until 2029—something like that—or maybe 2030. Does not the Minister find that rather unsatisfactory, especially given her knowledge of the benefits of ombudsman services?
I can only repeat what I said. Ofcom is going to produce a report on this; it will look at the pros and cons of the issue and it may decide that there are other ways in which to deal with individual complaints that would not necessarily be an ombudsman service. We have to give it the space to do that thinking and develop that work; it will also need to look at how the tech companies themselves respond to complaints and what gaps need to be filled by that process. So it is not a simple process—but I understand the noble Lord’s frustration with this. If we have any more information about the timescale for this, I shall write to the noble Lord.
I am sorry to interrupt again, but it partly depends on how much confidence we have in the tech companies in terms of how they deal with complaints.
We will know the outcome of that much sooner than 2028, because I am sure that we will all have experience of complaints that go forward and whether they are responded to efficiently in the coming months, because there will be the opportunity to do that. In the regulations, as the noble Lord knows, all the regulated companies are required to have a named individual and a process for people to raise complaints.
The noble Lord, Lord Stevenson, asked about appeals. I reassure noble Lords that Ofcom’s response will be informed by its regulatory experience, as well as the information presented as part of the complaint and any additional information that has been requested, before arriving at an appropriate determination. I also remind the Committee that the objective of a super-complaint is, ultimately, to bring to the attention of Ofcom an issue, a risk or a harm that it might otherwise have been unaware of. It is not to adjudicate an individual decision or necessarily to trigger enforcement action. Ofcom has the flexibility to use any of its online safety regulatory powers to address issues raised by the super-complaint. This may include a formal enforcement action, a change in guidance or codes of practice or, indeed, no action at all.
I may not have made the point as clearly as I should have. It is not the fact that Ofcom will be unaware of an issue that is being raised as much as that the need to get a super-complaint going may frustrate Ofcom finding out about small but high-risk activity that is remote from its main activity. We went through this in some detail towards the end of the Bill and in recent SIs that have stemmed from it. Size is never the only issue that will affect how individuals are being attacked or treated by these companies. I feel very uncomfortable about a situation where a super-complaint cannot be mounted because of lack of experience or a lack of quality in its processes, when the issue itself will then get ignored. I ask the Minister to perhaps reflect on that later.
As I have said, small organisations can get involved in the super-complaint process. The wording is designed as it is to allow new campaigning organisations, if you like, to come through, because this is a new territory that we are operating in, and we do not want to consult with or hear messages from just the usual, established organisations. I think that Ofcom will be sensitive about all this, but it will also, as we know, be able to enforce against small but risky services.
Ofcom is looking at what is happening in the smaller sphere, if I can put it like that. Ofcom has already started enforcement action against some of the non-compliant small but risky services. For example, it is investigating whether small services such as 4chan are complying with the illegal safety duties. There are other small services that Ofcom is now taking action against as well. I hear what the noble Lord has said, and I am confident that Ofcom will want to hear from all voices, not just the large players in this sector. I should also say that Ofcom is subject to standard regulatory redress mechanisms, such as judicial review.
The noble Baroness, Lady McIntosh, asked when the guidance will be in place. The Government expect Ofcom to have finalised the guidance by quarter 1 of 2026. This instrument comes into force on 31 December 2025. The guidance does not need to be finalised before the regime can come into effect. The guidance will contain important and useful information, so complainants may wish to wait until the final guidance is published before submitting a complaint, and Ofcom will consult on that guidance. But those organisations who know exactly what consumer complaints they wish to pursue do not have to wait for the guidance.
The noble Lord, Lord Wrottesley, and the noble Viscount, Lord Camrose, asked about Ofcom’s transparency and whether it will produce statistics on the evidence that it is acquiring. Ofcom recognises the importance of transparency around the work that it does and is considering how best to publish that information about super-complaints as it implements the new regime. Ofcom will publish responses to accepted super-complaints, including if they are rejected on admissibility grounds, and summaries of these complaints as required under the regulations.
Again, Ofcom and the Government will continue to communicate and develop those risks and make sure that the codes are kept under review. It is about not just producing the reports but communicating to the wider public if new risks are identified. We all accept that one purpose of the super-complaints is to bring things to Ofcom’s attention of which it might not otherwise be aware to enable it to move quite quickly to address those issues.