Energy Prices Act 2022: Expenditure on Energy Schemes in Q4 2022

Grant Shapps Excerpts

Friday 3rd February 2023 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Grant Shapps)]

I am tabling this statement to update hon. Members under the Energy Prices Act 2022, in line with the requirement under the Act for quarterly reporting to Parliament on expenditure incurred under it.

This is the first quarterly report on energy scheme expenditure under section 14 of the Act and covers the period from 1 October to 31 December 2022.

Energy prices are extremely volatile, and changes will affect the outturn cost of the schemes.

Strikes (Minimum Service Levels) Bill

Grant Shapps Excerpts

Committee stage
Monday 30th January 2023 Commons Chamber

[The Secretary of State for Business, Energy and Industrial Strategy (Grant Shapps)]

I beg to move, That the Bill be now read the Third time.

While I am sure that the House would like me to enter back into some of the key arguments at this hour, I think I will for the purposes of brevity stick to the main principle at stake here, which is quite simply this: in many democratic countries throughout the world, and particularly among our European neighbours, we find that strikes are often banned entirely in what we would refer to as the blue light services. Yet in this country, the only blue light service to have strikes banned was the police in 1919 by a Liberal Prime Minister. I know of not a single member of the police who has ever lost their job as a result of that sensible restricted right to strike.

We are not proposing a Bill that would prevent people from being able to strike in other blue light services or in other areas. We are not doing what we have done with the police or with the Army in this country. We are not doing what they have done in other European nations or in countries across the world, including Canada, Australia and large parts of America. We are not doing any of those things because we respect the right to withdraw labour. Rather, through this legislation, which I note was receiving large majorities in the House this evening, we are simply proposing to protect people’s lives and to protect people’s livelihoods.

I ask you, Mr Deputy Speaker, how is it that Members in this House can look at their constituents and say to them that they should not have the right to an ambulance if they have a heart attack, a stroke or a serious illness? Why should that be left to a matter of chance, depending on their postcode as to whether those vital services turn up? Furthermore, after years of disruption through covid, why should our children have to miss school? Why should it be that people who work for themselves and rely on their own ingenuity to get their jobs and to take home money be denied over months and months the opportunity to get to work? We move this Third Reading this evening because we care about people in our workforce and their livelihoods and about our constituents and their ability to access vital services. That is why I commend this Bill to the House.

Oral Answers to Questions

Grant Shapps Excerpts

Tuesday 17th January 2023 Commons Chamber

[Peter Gibson (Darlington) (Con)]

1. What steps his Department is taking to support businesses with energy costs.

[The Secretary of State for Business, Energy and Industrial Strategy (Grant Shapps)]

The energy bill relief scheme provides discounts on the wholesale element of gas and electricity bills to ensure that all eligible businesses are protected from high energy costs over the winter period. The support is applied automatically to bills.

[Peter Gibson]

I thank the Secretary of State for that answer. The Government have already awarded Cummins, the engine maker in Darlington, £14.6 million to develop a hydrogen combustion engine, which will help the road haulage industry to decarbonise and reduce business energy costs. Does my right hon. Friend agree with me that investment in alternatives such as that will benefit businesses into the future, will he look at the regulation to enable this technology to be exploited and will he visit Darlington to see Cummins?

[Grant Shapps]

I think the answer is three yeses. My hon. Friend is absolutely right to highlight the importance of that hydrogen technology; it is one of the reasons the UK has a global lead. I am looking very closely at how off-road hydrogen vehicles could also be a big part of our decarbonisation strategy.

[Sarah Champion (Rotherham) (Lab)]

Some 440 redundancies have just been announced across Liberty Steel, including 185 in Rotherham. It cites soaring energy costs as a major factor behind the decision. It is no surprise that its announcement comes just days after the Government said that they were going to start withdrawing support for business energy costs, and inflated energy markets have placed British steelmakers at a profound disadvantage. When will Ministers step up and address this, as our competitors’ Governments do?

[Grant Shapps]

As the hon. Lady will know, I am of course very concerned about the Liberty Steel position, and I am working very closely with it and everyone else involved. There has been £18 billion of support to business, and we have just announced a further £5.5 billion specifically on energy bills. On energy-intensive industries, there is further support through an 85% measure, which we are also reviewing to take up to 100%. We will work very closely with the company, and I will undertake to work, with my Ministers, with her as well.

[Boris Johnson (Uxbridge and South Ruislip) (Con)]

Does my right hon. Friend agree that, in addition to the excellent solution proposed by my hon. Friend the Member for Darlington (Peter Gibson), now is the time for the Government to exploit this country’s technological lead, and build a fleet of small modular nuclear reactors as part of our Great British Nuclear programme? While I am at it, is it not time that the Labour party apologised for 13 years of bone-headed hostility to any new nuclear power in this country?

[Grant Shapps]

I think it is fitting if I start with the apology, because I inadvertently airbrushed my right hon. Friend out of a picture on Twitter last week. I think my team were confused: I simply told the team that he needed hair brushing, not airbrushing. No one did more to progress space than my right hon. Friend as Prime Minister, and although the space launch was not successful last week, I know it is the start of a very important new sector for this country.

On my right hon. Friend’s point about small modular reactors, he is absolutely right. We will be announcing the creation of Great British Nuclear very shortly, and small modular reactors—Rolls-Royce and the others—will play an amazingly important part in this nuclear mix, which will get us back up to 25% of our power being from nuclear.

[Mr Speaker]

I think Lancashire would be a great place for it.

[Jessica Morden (Newport East) (Lab)]

As my hon. Friend the Member for Rotherham (Sarah Champion) said, high energy costs and competitiveness were cited by Liberty Steel when it also announced the idling of the Newport site, which is really hard news for the dedicated and skilled workforce there. No more warm words from the Government: what will the Government practically do to work in partnership with our industry, as other European countries are doing—and they are far more generous, which is the point here—to ensure that this key strategic industry is competitive?

[Grant Shapps]

The Government have worked very hard with the steel industry, to the sum of hundreds of millions of pounds, and will continue to do so. We do recognise the strategic importance of steel, and we also recognise that energy prices are very high. As I mentioned to the hon. Member’s colleague, the hon. Member for Rotherham (Sarah Champion), a moment ago, we have already consulted on and will be in a position to say more soon about greater discounts in the energy-intensive industries, but we need to work together to make sure we can deliver that, and I look forward to extending the invitation to her as well.

[Mr Speaker]

I call the shadow Secretary of State.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

Last Monday the Government presented the next stage of their energy support scheme, but it got a decidedly mixed response. The Federation of Small Businesses calculated that it is worth just 2p per kilowatt hour of electricity to the average small business, which it says is not enough to be material to a business’s decision to close or not, despite that element of the scheme costing £2 billion of taxpayers’ money. The worst of all worlds would be a scheme that costs a large amount of money, while failing to improve the situation facing businesses in any significant way. Will the Secretary of State respond to that criticism and explain the Government’s thinking behind the design of that stage of the scheme?

[Grant Shapps]

The hon. Gentleman will know that UK gas wholesale prices—the forward price—peaked at £600 in August. I looked this morning before coming to the Dispatch Box, and it is currently at 136p per therm, which is a massive reduction. We are very much of the view that we must continue to provide support to business, on top of the £18 billion, which is why the Chancellor has announced up to another £5.5 billion. We also recognise that prices are lower now than they were before the invasion of Ukraine, so we will track the issue carefully and continue to provide that support to business.

[Jonathan Reynolds]

As we heard from colleagues, energy prices are inextricably linked to our country’s competitiveness. Last week, Make UK published a survey of manufacturing businesses. That report was damning, with businesses saying that under the Conservatives they pay a premium for doing business in the UK. They can see that the political instability caused by this Government has driven investment away from Britain, and after three Prime Ministers, four Chancellors and three Business Secretaries last year, it is hard to disagree. Does the Secretary of State accept that the low investment the Conservatives have presided over is at the heart of our economic problems? What is he planning to do this year finally to change that?

[Grant Shapps]

No, I do not accept the hon. Gentleman’s analysis. He must recognise that in countries such as Germany, for example, where he is right to say that energy costs for business are lower, that cost is reflected in typically higher costs for domestic bills, and he would need to say whether he supports that. In addition, £18 billion is a huge amount of support. Taxpayers are having to pay that money, and it is a question of getting the right balance between the taxpayer and industry. I have already explained the ongoing support we will put in, in addition to the energy-intensive industry consultation that has already gone out, and we will say more about that shortly.

[Theresa Villiers (Chipping Barnet) (Con)]

2. What steps he is taking to support households with energy bills.

[James Grundy (Leigh) (Con)]

8. What steps he is taking to support households with energy bills.

[The Secretary of State for Business, Energy and Industrial Strategy (Grant Shapps)]

The Government are supporting households with their energy bills through the energy price guarantee, the energy bills support scheme, and alternative fuel payments for households that use alternative fuels such as heating oil to heat their homes.

[Theresa Villiers]

Will the Government take action to decouple the cost of gas supplies from renewables, because that is a way to get the cost of renewable energy down, helping households and also helping the taxpayer fund the important package of support that the Government have introduced for energy bills?

[Grant Shapps]

My right hon. Friend makes an excellent point, and it is noticeable that gas prices are high, but the price of renewables is typically much lower. Indeed, for a whole load of days in a row more than half our electricity has been provided through renewables, in particular offshore wind. That decoupling is important, but it is also not straightforward, as my right hon. Friend will know. It is something that the Minister for Energy and Climate and I are actively working on.

[Paul Holmes]

Eastleigh has a diverse housing mix that includes pensioners, those living in park homes and lower-income families, who are all struggling to pay their energy bills. What steps is the Secretary of State taking to pass on any falls in wholesale energy prices to consumers, so that they pay less as prices come down?

[Grant Shapps]

My hon. Friend raises a good point. What concerns me is the idea that when wholesale prices go up we get a rocketing in domestic prices, but as wholesale prices fall again, as they have done, we get a sort of feathering down, very slowly. I am concerned about that and I have written to Ofgem asking it to look at the market. Energy companies are forward buying their energy by several months, but we need those changes to come through in reductions to households, and we will be pressing to make sure that happens.

[James Grundy]

Will my right hon. Friend confirm that the support the Government have provided to households to help with their energy bills will continue once current arrangements come to an end later this spring, and until international energy markets have fully stabilised?

[Grant Shapps]

I am pleased to confirm that the energy price guarantee has been extended to April 2024, so that support will continue. As I mentioned earlier, we are seeing some of the prices moderate, but the problem is that that combination of higher prices could still continue to lead through, which is why we will keep the energy price guarantee in place.

[Mr Clive Betts (Sheffield South East) (Lab)]

May I ask the Secretary of State about two groups who have not had much support so far? One group is households on a communal heating scheme who get their heating bills from their landlord. The Government have announced measures to rectify that situation, but could registered housing providers such as housing associations and local authorities be allowed to apply jointly for their tenants, to ease them into the scheme? Secondly, people on housing benefit do not get the additional help for being on a low income that those on universal credit receive, because housing benefit is not a Department for Work and Pensions benefit. Why is there discrimination against housing benefit recipients? It really is unfair, is it not?

[Grant Shapps]

I know that the hon. Gentleman and the whole House recognise how complex it has been to put in place the schemes to pay money to people in a system that is usually meant only for people to pay money to energy companies. That has been easy to resolve through the simple direct debit billing method but much more complicated in edge cases including combined energy and heat power and other off-grid measures. It is probably best if I ask my right hon. Friend the Energy and Climate Minister to speak to him specifically about the cases that he raised, because they are so complex that that probably requires a meeting and a further clarification letter.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Domestic energy companies are routinely raising people’s direct debits above the level of energy that they use and need to pay for. In the process, they are building up credit balances—sometimes of hundreds of pounds of people’s money—when those people cannot afford that. Will the Minister meet me to discuss how to hold the energy companies to account and ensure the automatic repayment of overcharging?

[Grant Shapps]

I entirely agree with the hon. Gentleman. I have had the experience myself where the energy company arbitrarily decided to put an outrageous figure into the direct debit. Once someone challenges that figure, the company will fall back from that—but that is if they can get through on the helpline.

[Drew Hendry]

indicated dissent.

[Grant Shapps]

I absolutely share the hon. Gentleman’s concern and will offer him a meeting with the Energy and Climate Minister specifically on this matter.

[Clive Efford (Eltham) (Lab)]

I wonder what discussions the Secretary of State has had with the energy companies following the report last week from Citizens Advice showing that hundreds of thousands of customers are being forcibly moved on to prepayment meters. Has he had discussions with his colleagues in the Ministry of Justice? Forcible entry to make hundreds of these changes is being approved on an industrial scale in minutes flat in magistrates courts. It is a real scandal. What is he doing about it?

[Grant Shapps]

The hon. Gentleman is right on that point. My right hon. Friend the Energy and Climate Minister and I have instructed our officials to draw up measures that could be helpful. We also have a letter to go to Ofgem once we have that advice. I am very concerned about this happening through an enforced process. We are on the public’s side and trying to fix it.

[Helen Morgan (North Shropshire) (LD)]

The alternative fuel payment scheme is being applied to people’s electricity bills where they have their own direct supply, but, for people in park homes or on houseboats without their own electricity, such support is difficult to access, and they are often the types of people who struggle to get online. Will the Secretary of State consider a better public information campaign for those households and support with access to applying for the scheme for those who struggle to get online?

[Grant Shapps]

The hon. Lady points out another one of the edge cases in park homes. Many hon. Members have park homes in their constituencies, including me, and it has been more complex to get the money to them. She will be pleased to hear that the pilot scheme to get that money out to them launched yesterday. It will be a process through the local authority, and we are making sure that it is expedited as much as possible.

[Mr Speaker]

I call the shadow Minister.

[Kerry McCarthy (Bristol East) (Lab)]

According to Citizens Advice, someone is being cut off from their energy supply every 10 seconds. With millions unable to afford to top up their prepayment meters, self-disconnections have rocketed. Is it not the Government’s and the energy regulator’s responsibility to ensure that people are not sitting at home in the cold and in the dark? As temperatures once again reach freezing point across the UK this week, will the Government introduce an immediate moratorium on the forced installation of prepayment meters while their use is reviewed?

[Grant Shapps]

It is a matter of considerable concern that anybody should be removed from their power or heating. We have specifically asked the energy authorities not to go down that line and asked Ofgem to do the same. As I mentioned just moments ago, officials are actively working on this issue, with a letter ready to go to Ofgem as well. She is right to highlight this issue. We do not want to see people cut off during this cold weather. We will return to the House with more detail.

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

3. What steps he is taking to support small and medium-sized businesses.

--- Later in debate ---

[Holly Mumby-Croft (Scunthorpe) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Business, Energy and Industrial Strategy (Grant Shapps)]

On Thursday, I will be flying our flag on the global stage for the CBI in Davos, making sure the world knows that Britain is the place to invest. At the World Economic Forum, I will be setting out a bold vision to scale up Britain, backing British business, empowering our entrepreneurs and driving disruption.

[Holly Mumby-Croft]

Will my right hon. Friend give further detail on whether the Government think that the non-domestic energy support package will help to provide a level playing field for British steelmakers?

[Grant Shapps]

My hon. Friend, who has done more than many others to fight for and support steel in her constituency, is right to highlight the energy bills discount scheme, but other schemes, including the one I was talking about, the energy-intensive industries scheme, where we have the consultation to take the level up to 100%, may in the end be much more meaningful. I want to assure her, Opposition Members and the whole House that the Government are very focused on this issue.

[Mr Speaker]

I call the shadow Minister.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

Tomorrow, the Retained EU Law (Revocation and Reform) Bill comes back before us. It will see vital employment rights such as holiday pay, TUPE and maternity protections scrapped at the end of this year if Ministers do not act. Labour Members believe in strong employment protections, so will the Government vote with us tomorrow to ensure that those vital rights are saved?

[Grant Shapps]

There is absolutely no truth whatsoever in this idea that employment rights, environmental rights or other rights will be scrapped, and the sooner the Opposition stop peddling this stuff the better.

[Selaine Saxby (North Devon) (Con)]

T3. What progress has my right hon. Friend made on promoting community energy?

--- Later in debate ---

[Dame Andrea Leadsom (South Northamptonshire) (Con)]

My right hon. Friend knows only too well our energy triple challenge of keeping the bills down, keeping the lights on and decarbonising. As chairman of the 1922 Backbench committee on Business, Energy and Industrial Strategy, I draw his attention to the fact that we have just published a report on the future of energy. In my humble opinion, the report is packed full of incisive and actionable policy suggestions. May I invite him to meet me and my vice-chairs to discuss it and the implications for his Department?

[Grant Shapps]

My right hon. Friend is absolutely right in her analysis: I have not yet read her report but I look forward to receiving a personalised copy of it, and I certainly look forward to meeting her, alongside the Minister for Energy and Climate, my right hon. Friend the Member for Beverley and Holderness (Graham Stuart).

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

The west midlands has the highest fuel poverty in the country. How many west midlands homes will benefit from the new energy company obligation plus scheme when it comes online this year? Will the figure be nearer 4,000 or 20,000 homes?

Strikes (Minimum Service Levels) Bill

Grant Shapps Excerpts

2nd reading
Monday 16th January 2023 Commons Chamber

[The Secretary of State for Business, Energy and Industrial Strategy (Grant Shapps)]

I beg to move, That the Bill be now read a Second time.

The Government firmly believe that the ability to strike is an important element of industrial relations in the UK. That ability is rightly protected by law, and we understand that an element of disruption is likely with any strike. However, we also need to maintain a reasonable balance between the ability of workers to strike and the rights of the public, who work hard and expect the essential services that they pay for to be there when they need them. We must be able to have confidence that when strikes occur, people’s lives and livelihoods are not put at undue risk. As has become clear from recent industrial action, that is not always the case, so we need a safety net in place to ensure that the public do not become collateral damage.

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

Will the Secretary of State give way?

[Grant Shapps]

I will make a little bit of progress first. Right now, up and down the country, households are struggling with the repercussions of high inflation caused by covid and Putin’s invasion of Ukraine. The UK is not alone in feeling the pressure, which is also felt by many other countries, particularly within the European Union. Recently, the Prime Minister outlined the Government’s priorities: to build a better, more secure and more prosperous future, one that this country and our workforce—public or private—fully deserve. By halving inflation, growing the economy and getting debt down, we can ensure that our vital public services are fit. As the Government get on with those priorities, we also have a duty to protect access to vital public services which, let us not forget, the public are paying for through taxation.

[Jim Shannon (Strangford) (DUP)]

Secretary of State, I believe in the fundamental right of a worker to withdraw their labour, whether that happens to be from an employer or against the Government. I understand that at this time many people feel the same, and for those who are toying with this idea, let me say that the ambulance service, nurses and doctors, for example, have been able to ensure that there was an emergency service. Do the Government really believe that withdrawing the right of a worker to withdraw their labour is what they are about?

[Grant Shapps]

I always think that people think very carefully about this issue, and they are right to do so. We are operating within the context of a crisis in global growth. The International Monetary Fund states that a third of the world will be in recession this year, caused by Putin’s illegal invasion of Ukraine—[Interruption.] I am surprised to hear Labour Members yawning and moaning. Putin invaded Ukraine—[Interruption.] What Labour Members do not seem to realise is that what then happened to energy prices caused a crisis that has put up inflation throughout the western world.

[Steve McCabe]

rose—

[Grant Shapps]

I will just make this point because I think Labour Members may find it useful. Those prices going up throughout the rest of the world, including here, has also pushed up wage claims. But I do not think we should get into a 1970s spiral, where we end up with higher wage claims and higher wage settlements, with higher wage claims and inflation continuing for ever. That is a cycle we must break. Clearly, if we were to meet all the inflation busting demands of the unions, that would make life harder not only for some but for every single family in this country. That is why we cannot do that. The Government are therefore absolutely clear: we want constructive dialogue with the unions, and the public have had enough of the constant, most unwelcome, and frankly dangerous, disruptions to their lives.

[Richard Burgon (Leeds East) (Lab)]

I thank the Secretary of State for giving way. Last week, Human Rights Watch warned that

“fundamental and hard-won rights are being systematically dismantled”

in the UK. Is this anti-strike legislation part of the danger that Human Rights Watch is warning about?

[Grant Shapps]

The International Labour Organisation itself says—I will cover this shortly in my speech—that it is perfectly proper to have a balance between minimum service levels and people’s right to strike. I support the ILO in saying that; I absolutely agree it is right. I note, however, that the hon. Gentleman did not mention the fact that he has received £94,000-plus from unions. Now, I have no issue with him receiving that money from unions—I do not think that we should have taxpayer-funded political parties in this House—but I think it is only right that when Opposition Members stand up, they reflect what is on their records, which is that they have received a lot of money from unions and now seek to represent them in the debate.

Millions of people who rely on essential transport to get to work or to family commitments now every day have the extra stress of worrying about making alternative, sometimes costly, arrangements because of the forever strikes. There are those who, at the most terrifying time of their lives—perhaps with a poorly loved one—do not know whether an ambulance will arrive, because the unions have refused to provide a national safety net. [Interruption.] I hear the barracking and understand that Opposition Members do not want to hear what people throughout the country are feeling, but it is a fact that when strikes are on and ambulances are unable to find out from their unions whether they will operate, that is an additional concern for members of the public—including Opposition Members’ constituents, whom they seem rather not to care about in this case. I am surprised about that.

[Several hon. Members rose—]

[Grant Shapps]

I will make a little progress.

Then there are children, who are desperately trying to catch up on the lost learning—

[Karl Turner (Kingston upon Hull East) (Lab)]

Will the Secretary of State give way?

[Grant Shapps]

I will give way shortly; I will make a little bit of progress.

Those children are desperately trying to catch up on learning that they missed throughout covid, and again they are unsure about whether they will be able to get to school. There are also the businesses throughout the land whose sales and productivity are suffering. They are terrified that, at a time of high inflation, their livelihoods are at risk along with those of their employees.

[John Redwood (Wokingham) (Con)]

Could the Secretary of State give us a little more indication of how he will consult on and agree minimum standards in the railway industry?

[Grant Shapps]

I will set out in a bit more detail the way in which the legislation will work in a while, but, briefly speaking, secondary legislation by regulation will be used in each individual sector to come to the right balance. I will explain that in more detail, if my right hon. Friend is patient.

[Several hon. Members rose—]

[Grant Shapps]

I will give way in just a moment. I have already taken more interventions from Opposition Members than from Government Members.

I think it is true to say that there comes a time when we cannot let such a situation continue. That is why we need minimum safety and service levels to keep livelihoods and lives safe. It is frankly irresponsible, and even surprising, for the Opposition to suggest otherwise.

[Karl Turner]

I am grateful to the Secretary of State for giving way. He wants to talk about minimum safety levels. The reality is this: after 12 years of a Tory Government, minimum safety no longer exists in our NHS. A paramedic contacted me directly at the weekend to say that he had begun his shift at 7 am expecting to sign off later that evening, and spent the entirety of that shift sitting outside Hull Royal Infirmary because there was no bed available for his patient, whose life he had saved. There is not any safety in the NHS as a result of the Tory Government. The Secretary of State needs to acknowledge that before we move on to discuss anything else.

[Grant Shapps]

I am surprised by how the hon. Gentleman, who normally speaks a lot of sense in the House, put his point across. Yes, of course it is the case that the NHS has been under unbelievable stress, not least because of two years of covid and all the backlog that has been created. It is worth reminding Labour Members that, had they had their way, we would have been in lockdown for a heck of a lot longer and those cases would have been even worse. I do not follow the logic of his argument. He seems to be arguing that just because there are times of danger, we ought, by design, to enable a system that prevents unions in the ambulance service from telling the NHS when ambulances will be there and what the minimum service would be. That is the issue that we seek to address today.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

If this is all about safety, why is the word “safety” not used once in the Bill or its explanatory notes?

[Grant Shapps]

It is fairly obvious to say that a minimum service level in railways, for example, is about people’s livelihoods rather than safety, but that the NHS and the ambulance service not agreeing nationally is a minimum safety level issue. I would have thought that was pretty straightforward.

[Several hon. Members rose—]

[Grant Shapps]

I will just make a little bit of progress.

The Bill will ensure that we protect the ability of workers to take industrial action, but that we also protect the public from disproportionate disruption to their daily lives and that, to put it simply, one person’s right to strike does not infringe on someone else’s right to life and limb.

[Several hon. Members rose—]

[Grant Shapps]

There is an array of riches. I will give way to the hon. Member for York Central (Rachael Maskell).

[Rachael Maskell (York Central) (Lab/Co-op)]

I refer the House to my entry in the Register of Members’ Financial Interests. The Secretary of State has never negotiated a minimum service agreement in the NHS. I have. The Secretary of State is completely fabricating what happens. It is the trade unions who work with the staff and the employers to put a safe agreement—

[Rachael Maskell]

Thank you, Madam Deputy Speaker, for your guidance. I will rephrase what I was saying. The reality is that safe agreements are negotiated between the staff and the employers. That happens on the ground; the process and the outcomes protect the NHS, because that is what staff want to do. Will the Secretary of State ensure that he reflects the truth of what happens in the NHS?

[Grant Shapps]

I would just say to the hon. Lady, who I know has received money from GMB, the National Union of Rail, Maritime and Transport Workers, Unite the union, CLP among others—nothing wrong with that; I am just putting it on the record—that she is wrong factually about the way the last two strikes, last week and in December, occurred.

[Sir Chris Bryant (Rhondda) (Lab)]

rose—

[Grant Shapps]

I am actually answering the hon. Gentleman’s colleague’s point. One at a time.

The way that ambulance strike worked was that the NHS was unable to find out in advance from the ambulance unions where and when, nationwide, cover would be provided. It is the NHS that said that, not the Government. As a result, the NHS has not been able to put the appropriate level of cover in place in advance. If by chance we are wrong about that, there is a safety mechanism in the Bill for that. Although we are taking primary powers, should Parliament so decide, we have said we do not want to use them if voluntary arrangements can be made. I refer Opposition Members to the voluntary arrangements—

[Several hon. Members rose—]

[Grant Shapps]

Let me finish the first point and move on with the speech.

I refer Opposition Members to the voluntary arrangements that were successfully made with the Royal College of Nursing, which did provide a national guarantee. In that case, it would not be necessary to put the measures in place.

[Several hon. Members rose—]

[Grant Shapps]

I hope the House will appreciate that there are a lot of people who want to contribute. I want to give people the opportunity to do that in their own speeches. [Interruption.] If Members do not mind, I will turn to the detail of the Bill.

The Bill establishes a legal framework to implement minimum safety and service levels during periods of strike action. It will achieve that by amending existing legislation, the Trade Union and Labour Relations Concili —[Hon. Members: “Consolidation”] Thank you folks. The Trade Union and Labour Relations (Consolidation) Act 1992. I was trying get the word “conciliatory” in there for Opposition Members. The legislation will allow regulations to be made to ensure that specified services cannot shut down completely when workers strike. That is to maintain crucial and, in many cases, life-saving services. The relevant sectors specified in the proposed legislation are: health services; fire and rescue services; education services; transport services; decommissioning of nuclear installations and management of radioactive waste and spent fuel; and border security.

[Joanna Cherry (Edinburgh South West) (SNP)]

Can the Secretary of State help me with this? The human rights memorandum that accompanied the Transport Strikes (Minimum Service Levels) Bill last October stated specifically that the Government’s legal advice was that it is not justifiable or necessary in a democratic society to have such restrictions in emergency and patient care services, in fire and rescue, or in education—only in transport. That does not appear in the human rights memorandum that accompanies this Bill. Has the Government’s legal advice changed or have they just changed their mind for reasons of political convenience?

[Grant Shapps]

The hon. and learned Lady must surely have noticed that we have subsequently had disruption in the NHS, including in the ambulance service. What has happened in that disruption is that although the nurses have very sensibly provided a national level of safe service, unfortunately the same has not happened in the ambulance service. That is why this legislation is required in other areas at this time.

[Joanna Cherry]

rose—

[Richard Graham (Gloucester) (Con)]

rose—

[Grant Shapps]

I have given way once to the hon. and learned Member for Edinburgh South West (Joanna Cherry), so I give way to my hon. Friend the Member for Gloucester (Richard Graham).

--- Later in debate ---

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. Before the Secretary of State answers the hon. Gentleman, I remind the House that it is important that we use moderation in our language and that we do not impugn the motives of others. That is not how we want the debate to continue. It is an important subject, so let us try to introduce moderation into our discussion.

[Grant Shapps]

My hon. Friend the Member for Gloucester is absolutely right about the reason for requiring minimum standards.

[Amy Callaghan]

Will the Secretary of State give way?

[Grant Shapps]

I will in a moment, if I can make a little progress.

Using the powers proposed in the Bill, regulations will set out the specific services within each sector in which a minimum level of service will be applied; they will also set out the levels themselves. Those regulations will be tailored to each relevant service, taking account of the different risks to public safety or the impacts on daily life and on the economy. The Bill is clear, however, that such regulations may be made only after appropriate consultation and the approval of both Houses. Of course, the Government may choose not to use the regulation-making powers in the Bill if adequate voluntary agreements, where necessary, are already in place between employers, the relevant sectors and the relevant unions.

[Amy Callaghan]

I thank the Secretary of State for acknowledging my presence in the Chamber after so many attempts to intervene. Will he now pass comment on the fact that life-and-limb cover already exists in legislation and that the true purpose of this shameful Bill is simply to erode workers’ rights?

[Grant Shapps]

I simply do not accept that point. Although it is true that life-and-limb measures exist, we have seen through the many months of rail closures and the strikes that took place last week and in December that unfortunately minimum service levels in one case, and actually minimum safety levels in another, have simply not been available. I know that Opposition Members do not want to accept this fundamental point, but their constituents’ lives are being put at risk by the NHS’s inability to put the correct cover in place with sufficient notice. They seem to imagine that the Army will just be there at no notice and with no ability to organise which areas of the country it needs to be in. That, I am afraid, is not a practical way to run the—[Interruption.]

[Madam Deputy Speaker]

Order. I cannot hear the answer that the Secretary of State is giving to the question. There is no point in just shouting when he is actually answering the question.

[Grant Shapps]

I suppose the fundamental point is that we hope very much that, in many cases, we will not need to use the powers conferred by the legislation, but we have seen that that will not always be possible.

[Sir Chris Bryant]

I am a member of the GMB. I happen not to have received any money from the GMB, although I would be proud to do so—certainly a lot prouder that I would be of receiving £2.5 million from Lubov Chernukhin. Can the Secretary of State confirm that this legislation cannot possibly be used to sort out the present winter of discontent? If anything, it will make it far more difficult to secure a resolution of any of the individual strikes, and therefore it is just political posturing.

[Grant Shapps]

I think the GMB will have heard the hon. Gentleman’s pitch for some money. If he gets that money, it will join the £120 million that the unions have supplied to the Labour party since 2010.

I make this point only because it is relevant to today’s debate. We must be here to represent our constituents, and our constituents know from paying attention to the recent strikes that when the Royal College of Nursing worked with the NHS, it was able to provide timely assurances at a national level to ensure that the most critical services—including chemotherapy, critical care, paediatric and A&E—were not affected, which shows that even when parties disagree, they can do so in a mature manner. Unfortunately, however, that is not always the case.

During recent strike action by the ambulance service—this has been referred to a couple of times, and I want to read it out because it is written down—the NHS has not been reassured by the relevant union that it can rely on the current system of voluntary local derogation, which I think is what the hon. Member for York Central was talking about earlier. It could not rely on those arrangements to ensure that patient and public services were provided. Last week, and in December, arrangements were being disputed right up to the wire—right up to the last minute—which created uncertainty and left officials with little time to organise contingency measures such as military support. That is the situation that we cannot, in all conscience, allow to continue.

[Charlotte Nichols (Warrington North) (Lab)]

I declare that I am a proud member of a trade union, and was a trade union officer for a number of years before coming here. In fact, I have probably been part of 1,000 or so pay-and-conditions negotiations, all of which were resolved, with employer and employees all perfectly happy with the outcome. That is something that the Secretary of State has been unable to do, whether in relation to the railway or much more widely, which is why we are having this debate. Can he accept that he has failed, and it is time to get the trade unionists into the room and to put this legislation in the bin, where it belongs?

[Grant Shapps]

Let me say this, in fairness to the hon. Lady. It is the case that the employers and the unions, and more recently Ministers as well, have been meeting, and it is also the case that even when there have been ministerial meetings—including in Scotland and Labour Wales—the disputes have continued. So we clearly cannot continue to rely on voluntary arrangements to ensure the safety of the people we represent. After all, strokes and heart attacks do not respect boundaries such as trust borders. I am intrigued to know what Labour Members would say to their constituents, perhaps grieving constituents who have lost loved ones because of some sort of postcode lottery.

[Saqib Bhatti (Meriden) (Con)]

Last week, during my weekly surgery, a constituent asked me why the Labour party was too scared to ask its trade union colleagues to come to the table and negotiate a peaceful resolution—[Interruption.]

[Saqib Bhatti]

I could not figure out why Labour was scared to encourage trade unionists to come to the table. Why does the Secretary of State think Labour is so scared of securing a peaceful resolution of the strikes?

[Grant Shapps]

I think there are 120 million very good answers to that question. We have an opportunity to keep people, their families and their jobs safe during periods of disruption, and that is what we intend to do.

[Several hon. Members rose—]

[Grant Shapps]

I will give way in a moment, but I want to make a little progress first.

The Bill and subsequent regulations are designed to enable employers to specify the workers required to meet minimum safety and service levels during strikes within relevant sectors. This will be done through work notices.

[Nadia Whittome (Nottingham East) (Lab)]

Will the Secretary of State give way?

[Grant Shapps]

As I have said, I will in a moment, but I want to make some progress.

Should a union notify an employer of a strike in accordance with the existing normal rules, the Bill will allow the employer to issue a work notice to the union specifying the workers needed to work during a strike to secure the minimum level of safety and service. Employers will be required to consult the union on the number of workers to be identified in the work notice and the work to be undertaken, and have regard to the union’s views before issuing that work notice.

[Dawn Butler (Brent Central) (Lab)]

Members on the Government Benches seem to think that none of those who are striking lives in their constituencies, which I find quite strange. Will the Minister confirm that, once his words have been scrutinised in this Chamber, if any are found to be misleading or incorrect, he will return to the Chamber and correct the record as soon as possible—preferably by the end of the week?

[Grant Shapps]

I am sure that the normal parliamentary rules apply, so I would never stand here and seek to do such a thing. In the interests of transparency, I will mention the £11,100 that the hon. Member has received from the CLP union in this House—[Interruption.] Sorry, that the CLP received from Unite the union, I should say to satisfy Opposition Members.

Officially, the work notice—[Interruption.] If Opposition Members would let me just explain how this operates—

[Madam Deputy Speaker]

Order. It really is important that we hear what the Secretary of State has to say. It is also important that any reference to donations or payments is accurate.

[Grant Shapps]

I should have referred to what the CLP received from Unite the union. Hon. Members are absolutely right to correct me at the Dispatch Box.

The work notice must not list more people than reasonably necessary to meet the minimum level of safety and service. Employers must have no regard to whether someone is or is not a member of the union—or even the CLP—when deciding whether they need to be included in that work notice. Each employer and union must also adhere to data protection legislation.

[Jeremy Corbyn (Islington North) (Ind)]

I am proud of my union membership, which is recorded in the register of Members’ interests, and I used to be a full-time union organiser. The Minister claims that the public’s existence and lives are at risk because of the disputes. Does he not appreciate that thousands of nurses and other workers are leaving the national health service, and thousands of teachers are leaving their profession, because of stress, low pay and underfunding? That is what is causing a great deal of stress and problems for the public. Instead of reaching for the statute book and trying to legally constrain trade unions from their legitimate action, why does the Secretary of State not address the fundamental causes: poverty pay, stress, bad conditions and inadequate service in all parts of the UK?

[Grant Shapps]

The right hon. Gentleman should note that there are 40,000 more nurses now, and more doctors too. It is important to say that I agree with him, for once, because we are trying to work constructively—as we should—to bring strikes to a conclusion, but we must not do so at the expense of the lives and livelihoods of our constituents. It is not the case that the strikes are always perfectly safe for our constituents. That is why we must act. Unions must take reasonable steps to ensure that members do not participate in strikes if they have been named in a work notice. It is up to unions to ensure public safety and not put lives at risk. Only if they fail to do so could they face civil action in court.

[Several hon. Members rose—]

[Grant Shapps]

I will make a little more progress, because I think that you, Madam Deputy Speaker, would like to hear from other Members, and I have been as generous as possible in allowing interventions.

The Government, unions, employers and workers have a role to play in ensuring that essential services continue even during strikes. That is what we are ensuring. This approach is balanced, reasonable and, above all, fair. Countries such as Australia and Canada have the ability to ban outright those strikes that would endanger lives, such as in some blue-light services. However, this legislation does not seek to ban the right to strike. The Government will always defend the principle that workers should be able to withdraw their labour. In fact, the only time that the right to strike was removed from emergency services was by the Liberal Prime Minister Lloyd George, as part of the Police Act 1919. We do not propose to follow the Lib Dems’ example.

[Vicky Ford (Chelmsford) (Con)]

We are living in a time when democracy and freedom are under threat across the world. The right to strike is an important one. [Interruption.]

[Vicky Ford]

Thank you for clarifying that, Madam Deputy Speaker. The Secretary of State just mentioned that minimum service levels exist in many other countries, including Italy, Spain and France. I do not know whether Opposition Members have ever been to France, but the French have been known to strike. Does my right hon. Friend agree that my Chelmsford constituents should have the same benefits on strike days as those living in France, Italy and Spain?

[Grant Shapps]

My right hon. Friend is absolutely right. There is no reason that her constituents should suffer lesser protection than people who live in other European nations, most of whom are recognised on most days for being particularly pro-union and helpful in their settlements. I cannot see why Opposition Members would object.

[Several hon. Members rose—]

[Grant Shapps]

I will give way in just a moment, but I would like to get through a bit more first.

All that we are saying is that, in certain services in these important sectors, the right to strike must be balanced against the needs of the public to rely on a basic level of life-saving care. The legislation simply brings us into line, as my hon. Friend just said, with many other modern European nations, such as Spain, Italy, France and Ireland. They use minimum service levels in a common-sense way to reduce the impact of strikes. The International Labour Organisation itself states that minimum service levels can be a proportionate way of balancing the right to strike with the need to protect the wider public. That is what we are doing. Our own unions subscribe to and support the ILO, as do we.

[Florence Eshalomi (Vauxhall) (Lab/Co-op)]

On the claim of minimum safety levels across Europe, is the Secretary of State aware that, according to the OECD, France lost, on average, 112 days per 1,000 workers between 2008 and 2018? Spain lost 76 strike days, and Italy lost 42. Yet the UK lost only 20 strike days. Will the Secretary of State admit that this law is just to ban people from taking the legal action to strike?

[Grant Shapps]

I agree that we have had a good working relationship for the last several decades. The hon. Lady is right to point out that, as a result, over the last two or three decades we have typically suffered fewer strikes than some in continental Europe. As I have explained a number of times, we have seen in recent months a flare-up of strikes that are putting people’s lives and livelihoods at risk. This Government will not stand by and watch that happen.

[Siobhan Baillie (Stroud) (Con)]

There is a lot of focus on in Europe, but I would like to focus on Gloucestershire, where nurses have chosen not to strike. I thank them for that and for all the work they do in Stroud. I see nothing in this legislation that will prevent them from making the difficult decision to strike, or from joining their colleagues in unions. We are protecting those rights. It is the minimal standards that the public needs.

[Grant Shapps]

My hon. Friend is absolutely right. This is about minimum standards. For anyone who cares about the ability to take industrial action and to strike, what we are doing here enshrines that. It does not remove people’s ability to strike, but it prevents union bosses who perhaps are not as reasonable as the RCN from calling strikes that potentially put people’s lives at risk. That is a very different proposition, which I am proud to support.

The Government expect to consult on minimum service levels for ambulance, fire and rail services first. It is expected that these consultations will be published during the passage of this Bill. At the same time as bringing forward the legislation, the Government are doing all they can to continue the discussions that everybody is calling for to ensure that we get a pay settlement with unions that is affordable for the unions, for the country and for the workers paying for it.

[Peter Dowd (Bootle) (Lab)]

As far as I can tell, the Government have ruled out voluntary options 1 and 2 in their assessment, on the basis that they will be ineffective, particularly where unions and employers have major disagreements. The question is: why and how have the Government arrived at that decision now, in advance of the legislation itself?

[Grant Shapps]

It is because we were given adequate demonstration from the recent strikes that unfortunately in some cases the unions involved have not acted in the national interest, whereas others—the RCN, for example—have very much done so. I want to stress what I said at the top of my speech, which is that I do not want us to have to use this legislation if it is not required. We have live strikes going on, so we will be able to see where it is required and where it is not.

[Several hon. Members rose—]

[Grant Shapps]

I feel I have been generous in allowing interventions and it is right to complete my segment so that others can get on and speak.

We are mindful of and thankful for the contribution of public service workers in this country, but where unions insist on disproportionate and sometimes plain unsafe levels of industrial action without informing the NHS, for example, and others, we must take the necessary steps to protect the public.

[Tommy Sheppard (Edinburgh East) (SNP)]

Can the Secretary of State tell the House how many people died in the care of the national health service during the recent periods of industrial unrest who would not have died had the provisions of this Bill been in force at the time?

[Grant Shapps]

The problem, as people will recognise, is that as we do not have a nationally agreed level of coverage—particularly in the ambulance service—it is difficult to know or predict what would have happened if the Army had not stepped in. I know from talking to colleagues and officials that one of the problems was that, because of the late notice and the randomised trust-by-trust agreements, they have been unable to put in a national framework that would mean that it would not matter if you lived in Islington North or somewhere else; you would still get coverage on strike days. We said in our manifesto, and I repeat now, that it is not fair to let trade union leaders undermine the livelihoods of others, and nor is it fair for them to put lives and livelihoods at risk.

[Nadia Whittome]

Does the Secretary of State see the irony in expecting unions to ensure minimum safe service levels on strike days when his own Government are failing to do so on every other day? What does he make of nurses’ reports that staffing levels are in fact safer on strike days because the unions are negotiating appropriate cover compared with non-strike days?

[Grant Shapps]

I did not quite follow the hon. Lady’s point on the railways. The railways on strike days are finding it hard to offer any services at all, even for key workers and the people the Opposition sometimes claim to represent the most, such as the hard-working cleaner or the hospital porter. The people who cannot do their jobs remotely are unable to get to their jobs and they are losing money. They are becoming fed up with the forever strikes where the unions simply will not put the offer to their members in order for the members to have a say. Minimum service levels are important for that reason, and I have covered numerous times why we think minimum safety levels protect people’s lives.

In this Second Reading debate, we are simply asking the unions to tell us when they are going to withdraw their labour so that we can agree a minimum safety level. This is hardly revolutionary stuff. It is just a common-sense safety net to keep the public safe and ease some of the enormous anxiety that they have felt over the last few months. Failing to support the Bill today will mean that Members who oppose this legislation are essentially prepared to put the safety and welfare of their own constituents at risk. I commend the Bill to the House.

[Several hon. Members rose—]

Statutory Deadline for Planning Decision: Alternative Use Boston Projects Ltd

Grant Shapps Excerpts

Tuesday 10th January 2023 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Grant Shapps)]

This statement concerns an application for development consent made under the Planning Act 2008 by Alternative Use Boston Projects Ltd for the construction and operation of an energy from waste facility at Boston in Lincolnshire.

Under section 107(1) of the Planning Act 2008, the Secretary of State must make a decision on an application within three months of the receipt of the examining authority’s report unless exercising the power under section 107(3) of the Act to set a new deadline. Where a new deadline is set, the Secretary of State must make a statement to Parliament to announce it. The current statutory deadline for the decision on the Boston Alternative Energy Facility application is 10 January 2023.

I have decided to set a new deadline of no later than 6 July 2023 for deciding this application. This is to enable my Department to seek further information from the applicant and to ensure there is sufficient time to allow for consideration of this information by other interested parties.

The decision to set the new deadline for this application is without prejudice to the decision on whether to grant or refuse development consent.

[HCWS488]

Spaceport Cornwall: First Launch of Satellites

Grant Shapps Excerpts

Tuesday 10th January 2023 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Grant Shapps)]

Last night, Virgin Orbit attempted the first orbital launch from Spaceport Cornwall. Unfortunately, the launch was unsuccessful. We will work closely with Virgin Orbit as they investigate what caused the failure in the coming days and weeks. While a failed launch is disappointing, launching a spacecraft always carries significant risks. Despite this, the project has succeeded in creating a horizontal launch capability at Spaceport Cornwall, and we remain committed to becoming the leading provider of commercial small satellite launch in Europe by 2030, with vertical launches planned from Scotland in the next year.

[HCWS489]

Industrial Action

Grant Shapps Excerpts

Tuesday 10th January 2023 Commons Chamber

[The Secretary of State for Business, Energy and Industrial Strategy (Grant Shapps)]

With permission, Mr Speaker, I would like to make a statement on industrial action and minimum service levels.

Nurses, paramedics and transport workers are called key workers for a reason. They truly are the lifeblood of this country; every person sitting in this Chamber is grateful for the work they do and I know everyone will agree that we cannot do without them. The Government will always defend their ability to withdraw their labour.

However, we also recognise the pressures faced by those working in the public sector. Yesterday I invited union leaders in for talks across Government, and I am pleased to say we have seen some progress. We want to resolve disputes where possible, while also delivering what is fair and reasonable to the taxpayer. At the moment, all households are struggling with the repercussions of high inflation caused by covid and Putin’s barbaric invasion of Ukraine, and the Government are absolutely focused on tackling that.

Granting inflation-busting pay deals that step outside of the independent pay review settlement process is not the sensible way to proceed and will not provide a fair outcome. We will instead continue to consult to find meaningful ways forward for the unions, and work with employers to improve the process and discuss the evidence that we have now submitted. In the meantime, the Government also have a duty to protect the public’s access to essential public services. Although we absolutely believe in the right to strike, we are duty-bound to protect the lives and livelihoods of the British people.

The British people need to know that when they have a heart attack, a stroke or a serious injury, an ambulance will turn up, and that if they need hospital care, they have access to it. They need to know not only that those services are available, but that they can get trains or buses—particularly people who are most likely to be the least well-off in society.

I thank those at the Royal College of Nursing, who, during their last strike, worked with health officials at a national level to ensure that safe levels of cover were in place when they took industrial action. They kept services such as emergency and acute care running. They may have disagreed, but they showed that they could do their protest and withdraw their labour in a reasonable and mature way. As ever, they put the public first, and we need all our public services to do the same.

A lack of timely co-operation from the ambulance unions meant that employers could not reach agreement nationally for minimum safety levels during recent strikes. Health officials were left guessing the likely minimum coverage, making contingency planning almost impossible and putting all our constituents’ lives at risk. The ambulance strikes planned for tomorrow still do not have minimum safety levels in place. That will result in patchy emergency care for British people. This cannot continue.

It is for moments such as this that we are introducing legislation focusing on blue-light emergency services and on delivering on our manifesto commitment to secure minimum service on the railways. I am introducing a Bill that will give the Government the power to ensure that vital public services will have to maintain a basic function, by delivering minimum safety levels to ensure that lives and livelihoods are not lost. We are looking at six key areas, each of which is critical to keeping the British people safe and society functioning: health, education, fire and rescue, transport, border security and nuclear decommissioning. We do not want to use this legislation, but we must ensure the safety of the British public. During the passage of the Bill, we intend to consult on what an adequate level of coverage looks like in fire, ambulance, and rail services. For the other sectors covered in the Bill, we hope to reach minimum service agreements so that we do not have to use the powers—sectors will be able to come to that position, just as the nurses have done in recent strikes.

That is a common-sense approach, and we are not the first to follow it. The legislation will bring us in line with other modern European countries such as France, Spain, Italy and Germany, all of which already have these types of rules in place. Even the International Labour Organisation—the guardian of workers’ rights around the world to which the TUC itself subscribes—says that minimum service levels are a proportionate way of balancing the right to strike with the need to protect the wider public. The first job of any Government is to keep the public safe, and unlike other countries, we are not proposing to ban strikes, but we do need to know that unions will be held to account.

Opposition Members who object to minimum safety levels will need to explain to their constituents why, if they had a heart attack, stroke, or life-threatening illness on a strike day, there were no minimum safety standards in place—[Interruption.] I can see that they do not want to hear it, but they will also need to explain why their leader, the right hon. and learned Member for Holborn and St Pancras (Keir Starmer), has already promised—without hearing any of these details—to stand in the way of this legislation and to repeal minimum safety levels, which are in the interests of their constituents, are in place in every other mature European democracy and neighbouring country, and would protect lives and livelihoods in this country. That is the difference between a Conservative Government who take difficult decisions to protect the welfare of our nation, and the Opposition, who too often appear to be in the pay of their union paymasters. I commend this statement to the House.

[Mr Speaker]

I call the Opposition spokesperson.

[Angela Rayner (Ashton-under-Lyne) (Lab)]

I refer the House to my entry in the Register of Members’ Financial Interests and declare that I am a proud member of a trade union.

I will start by tackling the Secretary of State’s comments. The first thing that comes to my mind in this debate and in what the Secretary of State said is what happened to my constituent Bina, who waited more than an hour for an ambulance—who died waiting for an ambulance. That was not on a strike day; it was because of the disastrous chaos we have in the system under this Conservative Government. In the past few months, we have seen ambulance workers go on their first major strike in 30 years, and the first ever strike in the history of the Royal College of Nursing. Teachers, pharmacists and civil servants—among others—are balloting as we speak. His Government offer no solution because they have caused the problem.

The economic crisis made in Downing Street has left working people facing an economic emergency of sky-high inflation and recession. I notice that in his opening statement, the Secretary of State did not even mention—let alone apologise for—the fact that the Government crashed the economy. Nobody wants to see these strikes happen, least of all the workers who lose a day’s pay. How are the Government responding to a crisis of their own making? Not with any attempt to reach a serious long-term solution in the public interest, but by playing politics and promising yet another sticking plaster.

The Secretary of State claims that he made progress yesterday, but the read-out from trade union representatives was dismal. Is there any chance of a deal this year? Where is the consultation he mentioned for a meaningful way forward, or was that all for show? That is the implication of his other proposal—his sacking nurses Bill. It is an outright attack on the fundamental freedom of British working people. How can he say with a straight face that this Government will always defend the ability to strike? Can he tell us whether he stands by his article in The Telegraph last summer, in which he listed yet more plans to attack that basic right? Does he deny that he considered banning some key workers from joining unions at all? So much for levelling up workers’ rights. Where is the Government’s promised code of conduct on fire and rehire, and the long-abandoned Employment Bill that they promised would tackle insecure work?

The Secretary of State goes in one breath from thanking nurses to sacking them. That is not just insulting but utterly stupid. There is no common sense about this at all. He says that he recognises the pressures faced by key workers, but he knows that the NHS cannot find the nurses it needs to work on the wards, and that the trains do not run even on non-strike days such is the shortage of staff, so how can he seriously think that sacking thousands of key workers will not just plunge our public services further into crisis? The Transport Secretary admits it will not work, the Education Secretary does not want it, and the Government’s own impact assessment finds that it will lead to more strikes and staff shortages.

The Secretary of State says that he is looking into six key areas. What do other Ministers think about that? Will they have to disagree on that, too? He is scraping the barrel with comparisons to France and Spain, but those countries, which he claims have these laws on striking, lose vastly more strike days than Britain. Has he taken any time at all to speak to their Governments or trade unions to learn any real lessons from them?

The Secretary of State quotes the International Labour Organisation—I am surprised that he even knows what it is—but he will know that the ILO requires compensatory measures and an independent arbitrator. Are those in his Bill? The ILO also says that minimum service levels can happen in services only when the safety of individuals or their health is at stake. That does not include transport, Border Force or teachers, as he proposes.

Excess deaths are at their highest levels since the pandemic peak. The public are being put at risk every day because of the Government’s NHS crisis and staffing shortages. The Secretary of State is right that his Government’s duty is to protect the public’s access to essential services, but livelihoods and lives are already being lost. We all want minimum standards of safety, service and staffing; it is Ministers who are failing to provide that. Does he not accept that trade unions and workers already take steps to protect the public during action? He singles out ambulance workers. Paramedics agreed to operate life and limb deals on a trust-by-trust basis, as he knows, to ensure that the right care continues to be delivered. He should know that service levels were at 82%, with ambulance workers consistently leaving the picket lines to make sure that emergency calls were responded to. He is threatening to rip up that protection, and for what?

Let us look into what this is really all about: a Government who are out of ideas, out of time and fast running out of sticking plasters; a Government who are playing politics with nurses’ and teachers’ lives because they cannot stomach the co-operation and negotiation that are needed; and, a Government desperately doing all they can to distract from their economic emergency. We need negotiation not legislation, so when is the Minister going to do his job?

[Grant Shapps]

It is almost as if covid and the pressures on the NHS never occurred, according to the Opposition. I am pretty sure I heard this straight. It is almost as if Putin did not invade Ukraine, force up energy prices and force up inflation, and it is almost as if the right hon. Lady does not think that the rest of Europe is going through exactly the same thing. I was just reading an article in The Guardian saying exactly that—that other health services are experiencing exactly the same problems.

If we are going to have a sensible debate and start working from the facts and then have a discussion, we ought to acknowledge that covid and the war in Ukraine have had a huge impact on health services here and around the world. Then we can go on to have a sensible conversation about balancing the right to strike. As I said at the top of my speech, it is a right that we fully respect and fully endorse. We believe it is part of the International Labour Organisation’s correct diagnosis of a working economy that people should be able to withdraw their labour, but that should not mean withdrawing their labour at the expense of our constituents’ lives. The right hon. Lady talks about how the ambulance service, in her words, has been reasonable and offered back-up on a trust-by-trust basis if people have heart attacks and strokes, but heart attacks and strokes do not accept or work to the boundaries of trust borders. They work nationally, and so to manage the ambulance system, we need to know that each and every one of our constituents is protected. To deny and to vote against legislation that brings in minimum safety levels to help our constituents is to attack their security and their welfare.

[Brendan Clarke-Smith (Bassetlaw) (Con)]

With the Opposition completely unable to control their own MPs and stop them from joining picket lines or to give a straight answer on whether they support the strikes, we can clearly see which Members of this House are on the side of the public. Does my right hon. Friend agree that what we have today are fair and proportionate measures equivalent to what is already in place in a number of other European countries, such as France and Spain?

--- Later in debate ---

[Grant Shapps]

My hon. Friend is absolutely right. It is worth the House reflecting on the fact that the police were banned from striking in 1919, and that agreement has been in place for more than 100 years. It would have been possible for a Minister to come to this Dispatch Box and say that we would do the same with ambulance workers and perhaps with firefighters, but that is not what we are proposing today; we are proposing to bring ourselves in line with other modern European economies. It makes every bit of sense to ensure that if strikes are going to occur, our constituents’ lives are protected with minimum safety levels. Frankly, it is extraordinary that anyone would argue against.

[Mr Speaker]

I call the Scottish National party spokesperson.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

This Government have already created the most restrictive and anti-trade union laws in Europe. This new right-wing culture war stinks, and they are using ambulance cover as a pretext to attack workers’ rights. It was the Tory membership that gave us a Prime Minister who tanked the economy overnight, put people’s mortgages up and gave us high inflation, yet it is the Tories who continue to demand that public sector workers take the hit to balance the books.

Everyone can see the irony of the Tories clapping key workers and now giving them a pay cut and threatening them with the sack for future action. Does the Secretary of State really think that ordinary people support Tory plans over the nurses? Does he realise that the public can see Pat Cullen and Mick Lynch destroying their arguments and soundbites? Does he understand that train commuters, who already suffer from appalling service, will be raging when they find out how much money train companies are making from strike days, paid for by taxpayers? How much money has been paid to train companies that could have gone to workers instead?

It has not been easy for the Scottish Government, but they have negotiated better pay settlements for Police Scotland, train crews and NHS workers. It is something that the Royal College of Nursing would be willing to discuss with the UK Government. Those actions were commended by the unions, but not even acknowledged by Labour. There are no ambulance strikes in Scotland, and that has been done within a fixed budget and negotiations with one hand tied behind our back. Now, despite working with the unions, Scotland is to have the same anti-worker or anti-union legislation imposed on it, against the wishes of the Scottish Government. It is an imposition made easier by the Labour party agreeing with the Tories that workers’ rights should remain with Westminster and not be devolved to Scotland. We do not want to be part of plans designed to sabotage workers’ rights. This situation has clearly shown once again that if Scotland is to become a fairer, more equal country that respects workers’ rights, the only way to do so is to become a normal independent country.

[Grant Shapps]

The hon. Gentleman tries to push the argument that somehow this legislation will take us out of step with other European countries, and I have already explained that it is we who are out of step with what already occurs elsewhere in Europe. If we go beyond Europe, he will be interested to hear that in Australia, Canada and many states in America, blue-light strikes, as we would call them, are banned entirely. We are taking a moderate, sensible approach. I would have thought that the hon. Gentleman would wholeheartedly support protecting his constituents in that way. While we are taking lectures from him about how the Scottish Government handle these things, I could not help noticing that Scottish primary school teachers are on strike and secondary teachers go on strike in Scotland on Wednesday.

[Selaine Saxby (North Devon) (Con)]

Strikes have a disproportionate impact in rural Britain, where there are no other modes of public transport. The nearest alternative hospital may be more than 60 miles away and ambulances have already travelled far further to get there, and that is without mentioning the vacancy rates in public services, which are so high due to our housing crisis. Can my right hon. Friend confirm how these measures will help support rural communities?

[Grant Shapps]

My hon. Friend is right. These so-called forever strikes, which have continued for month after month on the railways, are particularly hurting rural communities. It is easy sometimes for people to imagine that those affected will just sit at home on Zoom or Teams and have those conversations. That view of the world is much easier for someone in a desk job, perhaps in management. It is much harder for someone in a rural community or for a hospital porter or cleaner who needs to get to the hospital. The very people being hurt most by these strikes that never seem to come to a conclusion on the railways are the hardest-up in society. This Government will stand behind them with minimum service levels.

[Ian Lavery (Wansbeck) (Lab)]

One minute the Secretary of State is clapping the key workers, and the next he is sacking them. What is really behind this legislation? Only time will tell, but why is he looking to criminalise the great key workers who brought us through this pandemic, and whose only crime is to demand decent wages and terms and conditions, as well as a safe environment for themselves and the general public?

[Grant Shapps]

I appreciate that the hon. Gentleman is an enthusiastic supporter of everything that the unions do, and they are an enthusiastic supporter of the hon. Gentleman. [Interruption.] Perhaps not all of them. But if one of his constituents has a heart attack, stroke or serious accident on Wednesday, I do not understand why he would seriously have an objection to a national level of agreed safe services? That is what we propose and I am surprised that he would vote against the safety of his own constituents.

[Sir Julian Lewis (New Forest East) (Con)]

Will my right hon. Friend try to impress on Opposition Members, who keep referring to this as an anti-union measure, that public support for the unions will be endangered if they do not preserve minimum services for people whose lives are at risk?

[Grant Shapps]

My right hon. Friend makes an excellent point. We are trying to correct a problem that is very current. Ambulance workers and the unions have not provided a national level of guaranteed safety for the strike that is due on Wednesday. Right hon. and hon. Members on the Opposition Benches could help us get that in place across the economy, particularly in vital services, so that even though we take this primary power, we never need to use it. That would be the ideal solution. Why do they not help us bring safety to their constituents, which would help both them and the unions?

[Andy McDonald (Middlesbrough) (Lab)]

The Secretary of State has said that he supports the right to strike—by banning workers from striking. Does he not see the ridiculous position he has got himself into? The whole point of having an assessment of policy is to find out whether it will work. When the Government are told that their policy is bonkers, the sensible thing to do is to bin it. Where does he think declaring war on working people will end?

[Grant Shapps]

As I have mentioned a couple of times at the Dispatch Box, the hon. Gentleman will need to explain his position to his friends and colleagues in countries as radical as France and Spain, where they have these rules in place and act already. On the impact assessment, which is a point that has been made several times, including from the Opposition Front Bench, the final impact assessment—which will come through primary legislation, with secondary legislation in the form of statutory instruments to bring it into place—is yet to be published, so he is wrong about that as well. How can anyone seriously argue that guaranteed rescue by ambulances of somebody who is seriously ill could have a harmful impact? It is simply beyond belief.

[Richard Drax (South Dorset) (Con)]

Coming back through Heathrow recently, I spoke to someone who works there who praised the armed forces for the incredible job they did covering Border Force, and told me how the process worked without any problems at all, and what a sad reflection it was on the public service that they could not do the same thing. Does my right hon. Friend agree that Opposition Members, the unions and many who work in the public service seem to have forgotten that we spent £400 billion safeguarding their jobs, their futures and their careers?

[Grant Shapps]

I pay tribute to the Army, who did fantastic work. The Army has a no-strike clause already, along with the police. Once this primary power has been taken, it will be for Secretaries of State, including the Home Secretary, to determine and consult in other areas for secondary powers to bring in minimum service levels. Most people working in the public service are doing a hugely valuable job. They are trying to do their best, and many are frustrated by their radical union leaders who often lead them up the garden path.

[Christine Jardine (Edinburgh West) (LD)]

The right hon. Member asked whether we acknowledge the impact of covid and Ukraine. Of course we do—we live with it every day. All our constituents live with it every day. All those working in the NHS and the ambulance service live with it every day. He says that the British people need to know that an ambulance will turn up when they have a heart attack, a stroke or a serious injury, and that they will have access to hospital care. Does he not agree that a better way of ensuring that is to deal with the actual problem: to invest, recruit and retain staff in the NHS and the ambulance service, and provide the service that is being cried out for not just by us but by those people? Rather than tinkering about with what cannot solve the problem, fixing it might be a better way.

[Grant Shapps]

The hon. Lady is right in the sense that we have seen huge backlogs because of covid. We are hiring a lot more nurses as a result—thousands more since 2019. We are also funding the healthcare system more than ever in history with some £168 billion. As the Prime Minister described in his speech last week, bringing down those waiting lists is his No. 1 priority. We are doing all those things as well, but it is undeniable that not having a minimum safety level in place during strike days puts lives at risk. This Government will take the responsible decision to prevent that from happening in future.

[Lee Anderson (Ashfield) (Con)]

It is important to remember that public sector workers are employed and paid for by the great British taxpayer. I sympathise with some of their demands, but does my right hon. Friend agree that their first loyalty should be to the British taxpayer, not some power-crazed union barons who fund the Labour party and have, in the past, paid off Labour MPs’ mortgages?

[Grant Shapps]

I pay tribute to those in the NHS: there is a very good reason why, when the public sector in this country got a zero pay rise last year because of covid, over 1 million people in the NHS did receive a pay rise. At the moment it is worth about £1,400 per individual. I appreciate that in these times, with Putin’s evil war and the impact that has had on inflation, everyone would like more money as a pay rise, but the Government must consider what that would do to people’s taxes, to interest rates and to mortgage rates. We would get into a circle where we are never able to get inflation down. Inflation is the biggest evil of all. We are taking sensible steps to address it. That lot over there simply want to roll over and not address the difficult problems.

[Rachael Maskell (York Central) (Lab/Co-op)]

I refer to my entry in the Register of Members’ Financial Interests.

With the Royal College of Emergency Medicine highlighting more than 300 excess deaths every single week, where is the Government’s minimum service level agreement to the public? The best way to avert a strike is to negotiate. Within the Secretary of State’s legislation, what obligations will there be on Government to enter meaningful negotiations, and how does he describe “meaningful”?

[Grant Shapps]

I want to pick up the hon. Lady on those figures, because the NHS itself says that it does not recognise those numbers. When we have a strike such as the one on Wednesday by ambulance workers, there is no way that she or anyone else in this House can realistically argue that people will somehow be better off without a national minimum safe level of service. That is what we will focus on, and that is why she and Opposition Members should support this Bill.

[Laura Farris (Newbury) (Con)]

My right hon. Friend was right to mention other European countries, but he could have added to that list South Africa, Argentina, Australia and Canada, all of which are members of the International Labour Organisation and have minimum service levels in essential services. In every single case, the ILO has reviewed the MSL and determined it to be a necessary and proportionate restriction of the article 11 right to strike. Does my right hon. Friend agree that the British people are entitled to exactly the same lawful protection and to have their basic needs met at times of industrial action in essential services?

[Grant Shapps]

It is worth reminding the House that my hon. Friend is an acknowledged expert in employment law. I am grateful for her thoughts and clarification that the International Labour Organisation says that the legislation is compatible with article 11. I have been able to sign off the European Court of Human Rights compatibility on this measure. As she rightly points out, it is not just friends and neighbours in Europe but around the world where strikes are, in many cases, banned—not what we are proposing—and minimum safety levels are in place. There is nothing illegitimate about what we are doing. It fits with the ILO, and who signs up to the ILO? The TUC and many other unions besides.

[Chris Stephens (Glasgow South West) (SNP)]

Every single concern that the Secretary of State and all those on the Government Benches have raised so far is already covered by existing legislation, because trade unions are legally obliged to provide life and limb cover. That is the existing law. Will the Secretary of State tell us what the difference is between that and his proposed legislation? That will be the test of whether the new legislation is an attack on workers.

[Grant Shapps]

The hon. Gentleman raises a good point, which I am pleased to answer. When strikes are taking place tomorrow and we are not able to get a simple answer to the question of what the national level of emergency cover will be for people in the most urgent situations—heart attacks, strokes and other life-threatening ailments—that is why we need minimum safety levels. When for many, many months, some of the poorest in society have been unable to go to work to earn their own living, perhaps as a cleaner or a hospital porter, that is why we need minimum service levels on our railways. I very much hope he will see the point and help to represent his constituents who are being prevented from earning money or, indeed, from being safe, should they have an accident tomorrow.

[Nickie Aiken (Cities of London and Westminster) (Con)]

Last week I met Daniel Jobsz, who runs the Wardrobe Bar and Kitchen in the City. He did not open last week; he said there was no point, because of the rail strike. Before Christmas, he lost tens of thousands of pounds because people were cancelling, as they could not come into central London because of the rail strike. UKHospitality calculates that around £1 billion of business was lost in central London because of the rail strikes. Does my right hon. Friend agree that, while it is right to protect the right to strike, there must be legislation in place to protect businesses in other sectors, such as hospitality, and to protect workers from job losses?

[Grant Shapps]

My hon. Friend makes an excellent point, and it brings me on to an important consideration, which is the disparity between the public sector settlements on offer and the average in the private sector at the moment, which has typically been lower. It is right that, as a responsible Government, we have to balance off all these different considerations across the economy. It is right that we consider those running small businesses—tea rooms, pubs and the services sector—in this balance, which is why minimum service levels, as well as minimum safety levels, are right for this economy.

[Richard Burgon (Leeds East) (Lab)]

I have listened carefully to what the Secretary of State has had to say, and however he tries to dress it up, this is part of an alarming authoritarian drift. We have an attack on the democratic right to strike, an attack on the democratic right to vote through attempted vote rigging, with the introduction of voter ID, and an attack on the democratic right to peaceful protest. Is the Secretary of State not ashamed to be a member of the most authoritarian Government in Britain in living memory?

[Grant Shapps]

I have heard some stuff at this Dispatch Box, but the idea that this is the most authoritarian Government—has the hon. Gentleman seen what happens in truly authoritarian states, particularly in Marxist states? It is a ludicrous claim about British democracy. Actually, he can help, with his many union links, because all we are saying is that we will take powers to ensure that the minimum safety level exists. We are saying at the same time that we do not need to use these powers; we simply need to get agreement for his constituents and for all our constituents that on a strike day, an ambulance will be able to turn up because national levels have been agreed. That is it, and he should get on board and support this.

[Angela Richardson (Guildford) (Con)]

Last week, rail users in Guildford trying to get in and out of the constituency, including key workers, were completely cut off because there were zero trains. At no point have the Opposition condemned widespread strike action that disrupts the public. Will my right hon. Friend join me in asking the Opposition to back the measures we are putting forward, to keep the public safe and to keep our economy going and growing?

[Grant Shapps]

My hon. Friend is absolutely right. We are on the side of people who are working hard, who are trying to get on with their lives and livelihoods, and who are concerned about their lives when it comes to emergency services. Who are Opposition Members interested in? Not once have I heard them condemn these strikes, which have been inflicted on people’s lives month after month—not a word from the Opposition. When we try to bring in even the most moderate and considerate legislation, which simply says that we will ask for a minimum safety level, what do they do? They object to it and attack their own constituents in the process.

[Several hon. Members rose—]

[Colum Eastwood (Foyle) (SDLP)]

I know that the Secretary of State likes to fly around in his own private plane, but I can tell him for a fact that while he has been doing that, many nurses in my constituency have been accessing food banks. This Government seem very uncomfortable with nurses standing on picket lines but totally relaxed about them lining up to get food for their families at food banks. If this Government are serious about stopping the strikes, surely now is the time to pay these essential workers properly.

[Grant Shapps]

I would be interested to hear from those on the Labour Front Bench whether it is their policy to pay a 19% pay rise and, if so, whether they can explain how they will raise the extra money. Will it be extra taxation? Will they be putting it on borrowing, with all the hikes in interest rates, mortgage rates, car loans and the rest of it that that would bring? That is the question they need to answer, and the more they waffle around the subject, rather than bringing forward serious measures to limit the impact of these strikes at the most serious point—the life and death point—the less they will get the respect of the general public.

[Greg Smith (Buckingham) (Con)]

My right hon. Friend is absolutely right to bring forward these proportionate measures, and not least in the urgency with which he seeks to protect the safety and lives of all our constituents at risk from strike action. Children have suffered in these strikes; many children in Buckinghamshire use the railways to get to school. Does he agree that when the consultation comes forward, the ability of children to get to school on the railways must be included in the minimum service levels?

[Grant Shapps]

My hon. Friend makes an excellent point. We have talked about workers getting to work and people losing their salaries because of these strikes, but children and their education are also being impacted. That is a crying shame, particularly after two years of covid and having to study from home, and now they are being put through this again when there is a decent offer on the table for the railways. When union bosses have actually put this offer to their members—the Transport Salaried Staffs Association, for example—they accepted it, and it was a very similar offer to the ones that the RMT and other unions refuse to put to their members. We just need some common sense from these unions and, I hope, a little pushing from Opposition Members.

[Jeremy Corbyn (Islington North) (Ind)]

Can the Secretary of State not just for once acknowledge the stress levels of workers—postal workers, rail workers, health workers and teachers—who have had 10 years of frozen pay and 10 years of reducing living standards and are going through enormous stress at work, with many leaving the teaching and nursing professions as a result of it? Nobody is likely to vote to take strike action unless it is an act of desperation; they do it because they want to get decent pay for themselves, their loved ones and their families. Can he not for once face the issue of the poverty that people face, rather than trying to bring in draconian laws to prevent people from taking effective action to remedy the injustice that they are facing?

[Grant Shapps]

It is obviously not true that there has been a pay freeze for 10 years. The right hon. Gentleman stands there and makes that claim, but as I just mentioned, because the NHS was under huge pressure during covid, 1.2 million nurses and workers in the NHS were provided with an uplift of £1,200 last year, with £1,400 proposed this year—at the time, inflation was low—even though the rest of the public sector was not receiving pay increases. He talks about stress for public sector workers, and I recognise the hard work and the hours that they put in, particularly in the NHS, which is why we have expanded by many thousands the number of nurses, for example, but what about the stress for people who cannot get to work because of these strikes and have not been able to for months? What about the stress for people who are waiting for an ambulance when we do not have nationally agreed safety levels in place? That is the stress I am also worried about.

[Chris Loder (West Dorset) (Con)]

Does my right hon. Friend agree that when unions such as the RMT reduce their customary referendum period from 14 to six days to force through a false ballot result to strike and then go to strike straightaway, against what are necessarily the wishes of all members, this is an important statement to make and an important piece of legislation? Will he confirm how promptly he will bring forward this Bill?

[Grant Shapps]

The Bill is being introduced today. My hon. Friend is absolutely right about this. We have seen that the RMT has not put the offers to its members, which, as I mentioned before, is a real problem. When the TSSA put an almost identical offer to its members, it was accepted and the strike was therefore over. Any attempt not to allow members to see the full range of what is being offered is wrong. Because members have not seen the full offer, they will be unaware of the different elements of that offer. It has not been formally put to them—that is something the unions can change immediately. I very much hope that they do so.

[Joanna Cherry (Edinburgh South West) (SNP)]

I noticed a moment ago that the Secretary of State said that striking workers were in danger of pushing up interest rates. I remind him that many of those people are on strike because they cannot afford their mortgages or rent as a result of the hike in interest rates caused by his colleagues’ economic incompetence. I imagine that many essential workers are in receipt of the sort of wage that the Secretary of State would not get out of bed for in the morning.

On the legality of the legislation, the TUC general secretary has said that forcing workers who have democratically voted to strike to work and sacking them if they do not comply would almost certainly be illegal. Is that not right? Can the Minister really say that the detail of his Bill will comply in every respect with the United Kingdom Government’s obligations under both the ECHR and international labour law? On the detail, Minister, what is the position?

[Grant Shapps]

I do not know whether I am correcting myself or the hon. and learned Lady, but I was not saying—I did not mean to say, at least—that striking workers pushed up interest rates. It is inflation that pushes up interest rates. If we paid a 19% increase across the economy, we would have to borrow the money; we would then have more borrowing and more debt and, therefore, higher interest rates. Everybody would pay more on their mortgages and car loans. Businesses would pay more. That is the quite simple maths that I would have thought we have tested to destruction. It would not make sense to go ahead along those lines.

The hon. and learned Lady asked specifically about the ECHR, and I can confirm that the Bill is ECHR-compliant. My hon. Friend the Member for Newbury (Laura Farris), who is no longer in her place, talked about employment law and how the Bill fits with the ILO and the ECHR; I have been able to sign that declaration. I can further confirm that there is proof of this, as many neighbouring countries already do exactly the same thing, which is also compliant with the ECHR.

[Jonathan Gullis (Stoke-on-Trent North) (Con)]

I proudly put on the record my entry on the Register of Members’ Financial Interests as a former teacher and a former trade union member and representative for the NASUWT. I am very worried seeing teachers going on strike, because it is the pupils who will suffer most, particularly disadvantaged pupils from areas such as Stoke-on-Trent North, Kidsgrove and Talke. While I am a huge admirer of the incredible work that teachers do, they are sadly being cajoled out of the classroom by baron bosses in unions such as the “Not Education Union”, led by Bolshevik Bousted and Commie Courtney, along with their Labour mates, to make sure that kids continue to suffer. What can we do to ensure pupils will not be victims any further?

[Grant Shapps]

Minimum levels of service in education and elsewhere will of course help. Again, I want to stress to the House that we do not necessarily want or wish to introduce legislation in all these areas; that will be a matter for the House in secondary legislation and for further consultation. I very much hope, though, that this legislation gives the unions and some of their supporters in this House the opportunity to stop and think about whether minimum safety is appropriate in their particular areas. I very much hope that teachers will hold back from the threshold of strikes, which would be damaging to them and to pupils.

[Zarah Sultana (Coventry South) (Lab)]

Nurses’ pay down 20%, teachers’ pay down 20%, firefighters’ pay down 12%, junior doctors’ pay down 26%—these are the consequences of 13 years of Tory rule. Let us be honest and talk about the real problem here: it is not workers going on strike, but the Tory Government and the economy they have built, which forcers workers to strike. This new anti-worker law would make things even worse, sacking teachers and nurses for striking for fair pay. Surely the easiest, safest and fairest way of guaranteeing minimum service provision is to pay nurses, firefighters and paramedics a decent wage with good conditions and the resources to do their jobs. Why will the Secretary of State not do that instead?

[Grant Shapps]

The hon. Lady might want to inquire of Members on her Front Bench—most of them are gone now, but one or two are still here—whether they would support a 19% pay increase. If they would, nice as that would be to do, how would they explain it to their constituents and to the financial markets as interest rates rise? If they would spread that across the entire economy, what would the impact be on the economy at large? Those are the simple but, unfortunately, difficult decisions that need to be made in government. Frankly, Labour’s failure to answer those basic questions is why it is not ready to run this country.

[Jim Shannon (Strangford) (DUP)]

Thank you, Mr Deputy Speaker. It is not often I get called to speak before halfway through, but I am very pleased to have been called. The sentiments expressed inside this Chamber about seeking a solution do not appear to match the negotiations outside of it. As the Secretary of State will know, for many NHS staff, this is about not just money, but safety on the wards. Many nurses have stated that they would be happy with additional staff to lighten the load along with a modest pay rise to cover the cost of living. Will the Secretary of State indicate what assessment has been made of safety on the wards in the light of ongoing action? Will the Secretary of State guarantee safety and a cost of living wage increase?

[Grant Shapps]

Of course, one reason that we have employed tens of thousands more nurses and doctors is to help to relieve the pressure post covid. We all understand that, given what happened with covid and what is now happening with flu, which is the worst it has been for 10 years, we are seeing particularly strong pressures on our hospitals. The point I am making today is that none of this is helped by the uncertainty. It is fine for workers to withdraw their labour—it is obviously a last resort, but we understand it—but please, give us an indication or a guarantee of where the safety level will be, and do so on a nationwide basis. In fairness to the Royal College of Nursing, it has done that. The ambulance unions, I am afraid, have not. We invite them to do so.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

The Government’s failed industrial relations approach has led to the worst strikes in decades. Sadly, they have often sought to scupper talks by throwing in last-minute spanners. Now, they propose going from clapping nurses to sacking nurses. The Secretary of State will be aware that the Transport Strikes (Minimum Service Levels) Bill’s impact assessment stated that imposing minimum service levels could actually lead to an “increased frequency of strikes”. What exactly has changed in the past two months since that was published?

[Grant Shapps]

First of all, no one is talking about sacking nurses. I have just checked the figures: we have more than 44,000 more nurses since 2010, and more than 34,000 more doctors. There has been a big increase even from 2019. Nothing in the Bill we are announcing today is about getting rid of nurses, any more than any employment contract has to be followed. It is worth remembering that the pay that is on offer is as a result of the independent pay review body—bodies that the unions themselves called to be set up 20 years ago—being put into action.

I have heard union bosses make the point about last-minute spanners, which is completely untrue. I seem to be living rent free in Mick Lynch’s head at the moment—I have not even been close to these negotiations. The deal on the table is the same discussion that has always been there. Rather than parroting those lines, the hon. Gentleman might do better to check the facts and encourage the unions to put these offers to their members.

[David Linden (Glasgow East) (SNP)]

When the Tory party spoke about taking back control, none of us thought that would mean suppressing votes with voter ID legislation, a policing and crime Act that curbs the right to protest, a House of Lords with unelected clerics and a Government who are withdrawing the basic fundamental human right to strike. How much longer will this Government continue to claim that this silly little island is a functioning democracy?

[Grant Shapps]

I am pretty sure the hon. Gentleman has been in the Chamber from the beginning, otherwise you would not have called him to speak, Mr Deputy Speaker. He will therefore have heard me say, not once or twice but three times now, that this legislation is compatible with the International Labour Organisation rules that the unions themselves sign up to and many of our European neighbours follow. I am struggling to follow the hon. Gentleman’s argument that this is somehow unfair, undemocratic or against international law.

[Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

From the way the Secretary of State is speaking, one might think he is the knight on a white charger coming to rescue the system. Let us be clear, however, that it was this Government who froze pay in the public sector and then increased it below inflation, and this Government who reduced recruitment in the national health service, particularly among nurses, where we have a recruitment gap of 40,000. What we are actually hearing is chickens coming home to roost, isn’t it? He ought to take responsibility as a Minister in this Government.

[Grant Shapps]

I simply make the point that it is not the case that we have frozen recruitment, because we have 44,000 more nurses, not fewer—that is an increase rather than a decrease. It is also not the case that we have frozen pay, other than during the aftermath of the financial crash, which as I recall happened under the Labour party and we had to pick up the pieces, and through covid, although not all the way through covid, as I mentioned. Last year, even while the rest of the public sector was experiencing a pay freeze, we made an exception for NHS workers and paid them more, so the hon. Lady’s narrative is simply not true. Again, if the Opposition are saying that they would pay 19% more, I do not understand where that money would come from and whose taxes would be raised to pay for it and the increased interest rates.

[Sam Tarry (Ilford South) (Lab)]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests. It is astonishing: I did not realise that, when we were making the comparison with France and Spain, we were talking about Franco’s Spain and the Vichy regime in France. Many elements of the laws in this country already do not comply with ILO regulations; we are one of the most restrictive anti-worker countries in the world—that is a fact.

I and my constituents would like the Government to stop blowing up the talks with the trade unions, as they did against the NHS over the weekend, with Unite reps coming out of that meeting in a worse state, or against the RMT by dropping driver-only operation into the talks. The Government could end the strikes in multiple sectors; instead they have upped the ante to wage war on working people who are suffering because of their rancid governance.

[Grant Shapps]

At least we know where the hon. Gentleman stands: against the instructions of his Front Bench, it is on the picket lines. He is one of the people who has helped to extend the rail strikes. Driver-only operation has been in there from the outset and there has been no change in that at all. It makes perfect sense and operates on the line that my constituency is on. It causes no problems and is a safe way to operate. It is the kind of modernisation that would help to bring this industrial dispute to a close. I did not follow his point about Franco and the Vichy Government. Spain and France have moved on a bit from that and seem to manage to have minimum safe levels of service on strike days under the International Labour Organisation.

[Carla Lockhart (Upper Bann) (DUP)]

The Secretary of State opened his statement with warm words about our key workers, but he will be acutely aware that the longer the Government refuse to address their fair pay demands, the more staff morale will be depleted and the more people will leave the service, which will exacerbate the staffing crisis that the unions have highlighted as part of their demands. Does he not see that standing there and lecturing about safe staffing levels when healthcare workers across the UK are saying that staffing levels are unsafe is frankly ridiculous? The way to ensure staffing at all times is to pay our healthcare workers properly.

[Grant Shapps]

Of course we want to see healthcare workers paid, and I meant the words that I used at the top of the statement. Hon. Members will remember that my father was ill during covid, so I experienced the NHS at its best and most heroic while it was struggling to serve people under almost unbelievable pandemic circumstances. I absolutely agree with her about the incredible work that NHS staff do. There is a pay offer on the table that has not been invented by the Government—it has come from the independent pay review body. The Government have accepted in full and in every circumstance the recommendations of the independent pay review bodies this year. Those who say that we should ignore the independent pay review bodies need to explain why and where they will find the money to do that so that it is fair to other taxpayers.

[Margaret Greenwood (Wirral West) (Lab)]

This statement is an attack on fundamental employment rights. More than 12 years of Conservative Government failure to invest in vital public services has led to nurses, ambulance crews, civil servants and transport workers taking industrial action. I stand in solidarity with them. If the Government wanted to protect the levels of public services, they would give them the funding and staffing that they need instead of running them down. Why are the Government determined to run down our public services and national health service? Why will Ministers not engage in proper negotiations to end the disputes?

[Grant Shapps]

In the politest possible way, I think that once we have been going for an hour, some of the questions that were written in advance and possibly even handed out by the unions have been categorically disproved—as I have explained many times, this is not against international law or the ECHR, for all the reasons that I have already covered—but they continue to be read out as if they are a new contribution. Those questions ignore the basic fact that there is another side to the issue, which is the safety of the hon. Lady’s constituents and ours. Tomorrow, when there is an ambulance strike and the unions refuse to commit to national safety levels with the management of the trusts, everyone’s life will be more at risk than it should be. It is perfectly reasonable to introduce what happens throughout much of the rest of the world, and certainly our European neighbours, and to have minimum safety standards in place so that we can protect the public.

[Mary Kelly Foy (City of Durham) (Lab)]

The Government intend to use minimum service levels to force workers to work against their wishes, which undermines their legitimate disputes and imposes servitude on workers. The safest level of provision is to pay our firefighters, nurses, teachers, paramedics and rail staff a proper decent wage and to give them the appropriate resources to do their jobs effectively. Why does the Secretary of State need a new law to help the Government to effectively drive down the wages of the key workers in vital services who he clapped during the pandemic?

[Grant Shapps]

The hon. Lady described people as working in “servitude” if there are minimum service levels, but I point out to her that they would be paid for that servitude. At Network Rail, the average worker is on £46,000 of servitude and the average is £62,000 of servitude for train drivers. If we are going to have a serious debate about minimum service levels, I should say that they are designed to ensure that school kids can get to school again; that office workers, who may be on lower pay, can get to their job; and that the constituents of Members across the House can be guaranteed minimum safety levels during a strike tomorrow. The idea that that is somehow enforcing servitude is absolute nonsense.

[Paula Barker (Liverpool, Wavertree) (Lab)]

I refer the House to my entry in the Register of Members’ Financial Interests. Government Members talk about hard-working members of the public, but will the Secretary of State acknowledge that trade union members are also hard-working members of the public? Will he confirm whether the reported £320 million has been paid to the train operators during these strikes because they are indemnified? How much of that £320 million would it have taken to settle the strikes? We have heard a lot about safety measures today, so when will the Government stop trying to force through driver-only operated trains, and when will the NHS get the workforce strategy that it desperately needs?

[Grant Shapps]

The Minister of State, Department for Transport, my hon. Friend the Member for Bexhill and Battle (Huw Merriman) reminds me that driver-only operated trains were introduced under the Labour Government. They are entirely safe; as I mentioned, they operate on my Govia line and I have never had a single constituent come to me to say otherwise. The hon. Lady asks whether trade union members are hard-working; I absolutely agree that they are. Many of them work extraordinary hours, as I already said, particularly in the health context but across the economy.

A responsible Government have to balance the pay in the public sector with the pay in the private sector and across all elements of the economy, which is why we have the independent pay review bodies. Unless the Opposition are now trying to destroy the independent pay review bodies and say that we should ignore them and go beyond what they say, I do not see a better alternative.

The hon. Lady fundamentally misunderstands the way that the railways operate in this country: the receipts are collected and the train operating companies simply receive the money for operating the service.

[Gavin Newlands (Paisley and Renfrewshire North) (SNP)]

Last week, my hon. Friend the Member for Glasgow East (David Linden) and I proudly supported picketing workers at Glasgow Central. Not only did we not have to ask for permission, but nobody was photoshopped out of the photograph. Avanti West Coast and TransPennine can barely deliver a minimum service as it is. The Smith commission could have devolved employment rights to ensure that the right to strike was sacrosanct and fire and rehire was banned, but Labour blocked it. Mick Lynch has said that Scottish Ministers “want to resolve” issues, but “politicians down here” want to “exacerbate” them. Is it not therefore the case that Scottish workers will be fully protected only with independence?

[Grant Shapps]

Well, I never expected that contribution from the SNP Benches. I should just point out to the hon. Member that I would never knowingly remove the former Prime Minister, whom I served enthusiastically, from anything I put out. He makes a point about Scottish independence, somehow shoehorned into a statement about minimum safety levels, but his constituents will be among the first to benefit when there are national strikes and we are able to run a minimum safe level of service, for example, between ambulances and the hospitals.

[Mick Whitley (Birkenhead) (Lab)]

The measures outlined today represent a profound attack on the right of key workers with whom the Government are still in active negotiation. The Government’s strategy is clear: when they cannot get what they want through negotiation and compromise, they simply legislate to get their own way. However, does the Secretary of State accept that these proposals risk breaching human rights legislation and potentially even modern day slavery law? Will he concede that the public interest would be better served by addressing the legitimate grievances of the nurses, firefighters, teachers and rail workers who are now in dispute, rather than by curbing their democratic right to take industrial action?

[Grant Shapps]

How many times—I am going to check the Hansard record afterwards—do I need to explain that the ILO says itself that it is perfectly proper to have minimum safety levels in place? Many of our European neighbours already have that in place. Many other countries—Australia, Canada, parts of America, South Africa and elsewhere—actually ban strikes in blue-light services. We ban them ourselves for the police, but I am not even proposing going that far. All I am saying is, “Please tell us if you’re going to withdraw your labour, and let’s agree a minimum safety level.” I do not think there is anything unreasonable about that whatsoever, and I have to say that I am shocked that the Labour party does.

[Andrew Gwynne (Denton and Reddish) (Lab)]

I refer to my entry in the Register of Members’ Financial Interests as a proud member of the GMB and Unite the union.

The reality is that the Government have refused for months to discuss pay with nurses, they have failed to avert the transport strikes and they are now introducing these shoddy plans to distract from their own failure to negotiate. I know the Secretary of State said earlier that he does not knowingly erase the former Prime Minister from his tweets, but that is exactly what he did recently, so perhaps he should spend less time on Photoshop and more time on the day job—sitting down and negotiating.

[Grant Shapps]

That was a slightly stretched question, but I think the basis of it was quite straightforward. As I have mentioned, it makes perfect sense to have a situation where we can guarantee national minimum safety standards for our constituents, and I am interested in what the hon. Gentleman would say to his constituents tomorrow when they may or may not be able to call an ambulance, depending on the trust he is in, about the failure to support such standards. I do not think his constituents should suffer from a postcode lottery, and I am prepared to legislate to make sure that does not happen, even if he does not want it.

[Peter Grant (Glenrothes) (SNP)]

In the five years I had the privilege of leading the third largest council in Scotland with a workforce of 20,000, we had our share of industrial disputes. Every single time the unions came to us well in advance, and they told us what parts of services they wanted to exempt from industrial action, because they cared as much for the welfare of vulnerable people as we did. Is it not the case that if the Government cared half as much about education as teachers do, if they cared half as much about the health service as nurses and ambulance drivers do, and if they cared half as much for a decent public transport service as train drivers do, this bullyboy legislation would not be needed? The enemies of the health service are not on the picket line; they are on the Government Front Bench.

[Grant Shapps]

SNP Members make it sound as if they did not have any industrial strife. I think it is fantastic if the unions and the management get together to resolve these things—that is exactly what we want to see happen—but the reality is that, where it does not happen, strikes evolve sometimes. This legislation is about making sure those strikes are less damaging, particularly when it comes to people’s health and the security of the nation. The hon. Member makes his point as if they do not have strikes in primary schools and as if secondary schools in Scotland, where this is devolved, are not going on strike on Wednesday. The reality is that sometimes strikes do break out and, when they do, we want to make sure the public are properly protected.

[Mike Amesbury (Weaver Vale) (Lab)]

Just before Christmas, I went to the ambulance station in Warrington, which is in the North West Ambulance Service NHS Trust. I spoke to workers there who have withdrawn their labour—paramedics, ambulance workers. They have done that with a heavy heart and as a last resort. They have done that because they are fighting for a fair deal, because their mortgages have gone up and the food bills have gone up. By the way, while I was there, they were providing a minimum level of service—I saw the ambulances going out, and rightly so, to deal with critical care incidents—so the current arrangements actually facilitate that. This is very un-British: it is a fundamental attack on the democratic right to withdraw one’s labour. How many teachers are going to be sacked, how many ambulance workers are going to be sacked, how many social workers are going to be sacked and how many rail workers will be sacked for standing up for their right to strike and withdraw their labour?

[Grant Shapps]

The answer to the question is none. I have not seen a single police officer sacked or a member of the Army sacked, and they have no-strike deals. We are not proposing no-strike deals here; we are simply saying, I think very reasonably, that the level of emergency service provided by the fantastic workers—and I accept what the hon. Member said about people going on strike with a heavy heart—in his particular ambulance trust should be provided to all Members across the House, no matter where they are. In the case tomorrow, the union has failed to agree that with the management. I rather hope that he and Members on the Opposition Front Bench will join us in persuading people to provide that minimum safety level. If not, they will need to explain to their constituents why they are failing to vote to support the safety and security of their own constituents’ lives.

[Cat Smith (Lancaster and Fleetwood) (Lab)]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests as a proud member of Unite and the GMB trade unions.

During the pandemic, my constituents and I stood on our doorsteps and clapped our key workers—we clapped the nurses at the Royal Lancaster Infirmary and the Blackpool Victoria, and we clapped the postal workers working out of our delivery offices in Lancaster, Fleetwood and Garstang—and now this Government are putting more effort into putting those workers’ jobs at risk than into trying to resolve the strikes. It is clear that the Secretary of State is obsessed about the ongoing strikes. I can assure him that many of the workers who are losing days and days of pay are upset, too. Can I try to help him and suggest that he puts more effort into sitting down with trade unions and finding a resolution than into trying to stamp on workers’ rights?

[Grant Shapps]

As the hon. Lady will know, various different unions have been invited in, there have been discussions across the different sectors and we are doing everything we can to encourage a settlement. I do need to gently point out to Opposition Members that this is not a Government who have ignored the independent pay review bodies, come up with our own number and, say, halved the amount of money that was suggested should be paid. We have actually accepted in full the recommendations of those independent pay review bodies, so we are actually following the science and following the evidence. She is wrong to suggest, and to continue frightening people by saying, that their jobs could be at risk. Nobody’s job is at risk. I have already explained that we are hiring more, particularly nurses and doctors, and this legislation will simply say that, if we cannot get there voluntarily across the country—not just, for example, in the constituency of the hon. Member for Weaver Vale (Mike Amesbury), but everywhere—we will have legislative power to make sure we are able to require minimum safety levels for everybody, not just some.

[Alison Thewliss (Glasgow Central) (SNP)]

Teaching staff at my daughter’s school are on strike today and staff at my son’s school are on strike tomorrow, and I fully support their right to do so. We all know the Scottish Government’s budget is constrained, having been short-changed and underfunded in the face of soaring inflation. What discussions has the Secretary of State had with the Chancellor to ensure a fair funding settlement for the Scottish Government so that Scottish public sector workers can get the pay rise they deserve to deal with the Tory cost of living crisis?

[Grant Shapps]

All of us want our kids to be able to get to school, and the example in Scotland demonstrates that strikes occur regardless of who is in power at a particular moment, but the hon. Member and those on the Opposition Front Bench are wrong to suggest this is a UK problem that does not affect other parts of the world, because exactly the opposite is the case. We are in this situation and have this level of inflation because of the war in Ukraine, because Putin illegally invaded his neighbours’ country, because it pushed up energy prices, and because that pushed up inflation. It makes all of us poorer when that happens. If Members think the solution is simply not to worry while people’s livelihoods and safety are put at risk, that will be up to them to decide when they vote. This party will be voting to ensure people’s security and safety no matter which strikes come next.

[Kate Osborne (Jarrow) (Lab)]

The Minister’s proposals criminalise workers for taking action in legitimate disputes, threatening to turn the clock back on workers’ rights by 200 years. The Tolpuddle martyrs were criminalised for withdrawing their labour and deported to Australia, as were the seven men of Jarrow for protesting about their working conditions. These proposals would see NHS, education and other key workers sacked for the same crime. Workers need a pay rise, not a P45. When will Ministers put our country first and invest in, not attack, key workers?

[Grant Shapps]

The hon. Lady is wrong on several fronts. First, it cannot be criminal if in fact that is a law that this House has passed. Secondly, it is no more criminal than breaching an employment contract; that is the level of, as she describes it, criminality. Is this going to be the line—is this how they are going to explain things to their constituents on the doorsteps over the next few days or weeks when ambulances are not necessarily going to turn up in one area and may in another? If their only answer is, “We didn’t think we should put in place the same measures that exist in countries such as France, Spain and Italy,” may I suggest that, rather than raving on about criminalisation, which is utter nonsense—nobody is criminalising anything— she simply agrees that minimum safety levels are a proportionate, sensible and modern way to go about things and she should support that?

[Beth Winter (Cynon Valley) (Lab)]

As the TUC says, public sector workers have experienced the longest pay squeeze in 200 years, with workers losing out on £20,000-worth of wages due to pay not keeping up with prices since 2008. Now, when we are experiencing historically high inflation, the Government want to both reduce real-terms pay and legislate to enforce it. Is it not the case that the Government are proposing yet another authoritarian, draconian act to enforce their attack on our living standards?

[Grant Shapps]

The questions from Labour Members have remained remarkably consistent throughout, and I am not sure whether they have been handed out by their Front Bench or their union paymasters. But the fundamental facts are that the independent pay review bodies decide on the level of pay and the Government have accepted that in full. If these questions are being handed out by Labour Front Benchers, they will need to explain what they plan to do with the independent pay review bodies. Are they now going to routinely ignore their advice, which is not something we have done? Are they going to tell their constituents that they will not have a minimum safe level of service if they have a heart attack or a stroke, or are they going to pay the 19%, in which case they need to explain to their constituents why their tax is going up, why inflation is going up further and why interest rates are going up as well.

"Help to Grow: Digital”: Scheme Closure

Grant Shapps Excerpts

Thursday 15th December 2022 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Grant Shapps)]

This statement concerns the Government’s decision to close the Help to Grow: Digital programme. Help to Grow: Digital will close to new business applications for discounts on 2 February 2023. Discounts issued for eligible software must be redeemed within 30 days from issue date.

The scheme has supported businesses to grow, but with take-up lower than expected, the Government cannot justify the continued cost of the schemes to the taxpayer. The decision has been taken to refocus efforts towards other support mechanisms for small businesses, ensuring businesses get the backing they need in the most efficient and productive way possible. The Help to Grow: Management scheme remains in place.

The Government continue to support small businesses, such as through the Government-backed British Business Bank’s start-up loans, which are available to help aspiring entrepreneurs start and grow their businesses. The Government have taken action to protect all eligible UK businesses, including small businesses, from rising energy costs through the energy bill relief scheme.

[HCWS450]

Post Office Horizon Scandal: Compensation

Grant Shapps Excerpts

Wednesday 7th December 2022 Written Statements

[The Secretary of State for Business, Energy and Industrial Strategy (Grant Shapps)]

The Post Office Horizon scandal, which began over 20 years ago, has had a devastating impact on the lives of many postmasters. Starting in the late 1990s, the Post Office began installing Horizon accounting software, but faults in the software led to shortfalls in branches’ accounts. The Post Office demanded sub-postmasters cover the shortfalls, and in many cases wrongfully prosecuted them between 1999 and 2015 for false accounting or theft.

The High Court group litigation order case against the Post Office brought by 555 postmasters exposed the Horizon IT scandal, which had seen many postmasters forced to “repay” to Post Office sums that they had never received. In March 2022, the then Chancellor announced that further funding would be made available to ensure that members of the group litigation order will receive similar levels of compensation to that which is available to their non-group litigation order peers.

On 2 September my predecessor wrote to all postmasters in the group litigation order group to ask for their views about whether BEIS or the Post Office should deliver the compensation scheme, and whether it should be organised along the lines of the historical shortfall scheme or based on an alternative dispute resolution approach. There was very strong support for the alternative dispute resolution scheme, to be delivered by BEIS. Today I am announcing that this is the route that we will follow.

The informal consultation also requested views on other issues related to the scheme. Unsurprisingly, there was considerable concern among postmasters that the scheme should be subject to properly independent input. In the light of this, we have decided to create an independent advisory board chaired by Professor Chris Hodges, an expert in alternative dispute resolution. The membership of that board will include Lord Arbuthnot and the right hon. Member for North Durham (Mr Jones), who are recognised by colleagues across Parliament for many years of outstanding campaigning for the wronged postmasters. The advisory board will be supported by a BEIS secretariat.

Since the consultation closed a great deal of work has been done to develop the details of the scheme, drawing on the detailed comments made in response to the consultation. I am today writing to members of the group litigation order with further information about how the scheme will work.

We are now asking claimants to prepare preliminary information about their claims. In parallel, we are working to engage alternative dispute resolution specialists and lawyers to deliver it. Those experts should be on board in early spring, and at that point full claims will be submitted. I hope that compensation will start to flow before the summer, and that most cases can be resolved before the end of 2023.

We have already announced that we will meet postmasters’ reasonable legal costs in claiming under the scheme. To enable lawyers to get to work on preparing claims, we are today announcing details of the costs tariff for the early phases of the scheme, which have been set by independent costs draftsmen. We will shortly be inviting claimants’ lawyers to make proposals for the expert evidence which they will need. I am also pleased to say that the compensation payments will be disregarded for benefits purposes—once secondary legislation is in place.

I will deposit a copy of my letter to group litigation order postmasters dated 7 December, the group litigation order consultation report, the group litigation order process map and the draft group litigation order claim form in the Libraries of the House.

Overturned historical convictions

I am also pleased to provide an update on Post Office’s progress in delivering compensation to those with overturned historical convictions.

Lord Dyson considered the awards available for non-pecuniary damages, which are personal damages such as mental distress and loss of liberty, in an early neutral evaluation process earlier this year. Since then, the Government have supported Post Office’s approach to deliver compensation more swiftly by settling non-pecuniary claims first using the framework established by Lord Dyson. As of 1 December, 51 claims for non-pecuniary damages have been received and 37 offers made, worth £4.7 million in addition to interim payments already paid.

Regarding pecuniary damages, which are financial damages such as loss of earnings, only eight claims have been received to date, two of which have been settled in full and final settlement alongside their non-pecuniary damages. Government continue to encourage Post Office to process these claims as fast as possible.

As of 1 December, 82 claims for interim compensation have been received and 77 payments made, worth £7.7 million. Post Office has also identified potential cases of hardship and offered and paid further hardship payments of £100,000 to three postmasters. Furthermore, following the recent statutory tax exemption and early neutral evaluation, Post Office decided to increase the upper limit of interim payments for all future applicants to £163,000—from the original upper level of £100,000. For those claimants who received the original interim payment amount of up to £100,000, Post Office has rightly been focusing on progressing and settling their non-pecuniary claims. However, where claimants who had received the original interim payment amount of up to £100,000 and were not able to submit a non-pecuniary claim by early December—and it is therefore unlikely that their non-pecuniary claim would be settled by the end of the year—Post Office has offered top-up payments of £63,000.

Historical shortfall scheme

I am also pleased to see the progress that the Post Office has made in delivering compensation to postmasters through the historical shortfall scheme. As of 30 November, 93% of eligible claimants have been issued offers of compensation, totalling £70.8 million.

The cases that remain are some of the most complex and the Post Office is working to process these claims as soon as possible. However, the Government recognise the fact that those claimants who are yet to receive offers or payments may have been waiting for a considerable period of time for their cases to be settled. For these reasons, the Government are pleased that the Post Office will introduce interim payments for those who have yet to receive an offer or who have chosen to dispute their offer. This will be in addition to the existing hardship payments that the Post Office has already been providing to claimants in particularly difficult circumstances.

The Government announced in October that they are providing funding to Post Office to enable eligible late applications to be accepted into the historical shortfall scheme. Post Office is beginning to process the late claims it has received to date, and I would encourage anyone else who thinks they might be eligible to get in touch with the Post Office at the earliest opportunity to discuss their claim.

Benefit disregard

The Government are aware of the impact of the Horizon scandal on affected postmasters, resulting in significant financial hardship, including bankruptcy for some. Many postmasters have now received compensation payments which would take them over the £16,000 capital limit, rendering them ineligible to receive means-tested benefits and reducing pension credit entitlement. This risks prolonging the impacts of the Horizon scandal on these postmasters by affecting their eligibility to apply for benefits.

We are therefore introducing a benefits disregard for all Post Office and Horizon-related compensation. Once the secondary legislation for this disregard is in place, payments received by postmasters will no longer count towards the capital limit for means-tested benefits and pension credits and will therefore not affect their eligibility to claim for these.

The Government will legislate to put this disregard in place at the earliest possible opportunity.

[HCWS420]

Points of Order

Grant Shapps Excerpts

Wednesday 7th December 2022 Commons Chamber

[Jason McCartney (Colne Valley) (Con)]

Further to that point of order, Mr Deputy Speaker. I spoke to Mr Speaker about an hour ago about my intention to raise a point of order. While I have been in this Chamber for the past two hours, as the secretary of the all-party group on Ukraine I have been made aware of the fact that the Lawn Tennis Association has been sanctioned by the Association of Tennis Professionals, the governing body of tennis, for the LTA’s announcement of a ban on Russian and Belarusian players from its tournaments last year. The LTA has been fined $1 million as well. What would be the best way for this House to show its unity with the LTA and urge that any fines levied are given to the humanitarians efforts in Ukraine, perhaps to fund some more generators for the Ukrainian people, who are suffering from Putin’s barbaric invasion?

[Grant Shapps]

Further to that point of order, Mr Deputy Speaker. I am very much aware of the hardships being caused by a lack of power and utilities in Ukraine. We have three Ukrainians who live in our home and still work online with Ukraine. They have been explaining that it is very difficult to work with people in Ukraine because half the time their equipment is down and they cannot get access to the workplaces and data. So I know the problems are very acute. I also know that the UK led the global community when we were asked previously and we provided generators; we were the first country in the world to do so in significant numbers. I believe that almost 1,000 generators were supplied to Ukraine at the time.

My right hon. Friend the Member for Rayleigh and Wickford (Mr Francois) will be interested to know that I was speaking to the Ukrainian ambassador just last night about this issue, and I regularly speak to Oleksandr Kubrakov who is, in part, in charge of energy and infrastructure in Ukraine. I will be taking those conversations forward. My right hon. Friend was absolutely right to raise this issue. The way that Putin is now prosecuting this war, going after civilian infrastructure, is illegal and indefensible.

On the Lawn Tennis Association, which is not quite in my area, that fine is, of course, absolutely outrageous.

[Mr Deputy Speaker (Mr Nigel Evans)]

I shall also add my words to that. The right hon. Member for Rayleigh and Wickford (Mr Francois) is an experienced Member, and I am sure that he will use Question Time, Adjournment debates and the statements that we will inevitably have in future to put on the record his disgust and his feelings of unity with the people of Ukraine.