Employment Rights Bill

Lord Hunt of Wirral Excerpts

Committee stage
Thursday 5th June 2025 Lords Chamber

[Baroness Coffey (Con)]

My Lords, I am quite concerned about this amendment, although I rarely disagree with my noble friend Lord Holmes of Richmond. I am just concerned about the number of agencies or government bodies that keep being created. We already have considerable regulation in this country; I am not convinced that this will add value. Although I recognise the reasons why my noble friend put this forward, I hope he might reconsider tabling it again on Report, if he was so minded.

[Lord Hunt of Wirral (Con)]

My Lords, I start by saying how pleased we are to see my noble friend Lord Holmes of Richmond in his place. I had the privilege of moving his previous amendments in his absence, but we are delighted to see him back with us and I thank him for proposing this important amendment.

The way my noble friend did it was very welcome because, at the heart of his speech, was a recognition that the labour market—especially the supply of temporary and agency workers—has to be fair and transparent. He used those particular words and stressed their importance. I agree with him that it is essential that all companies involved in these arrangements operate under the same clear set of rules. Too often, we see instances where umbrella companies or certain intermediaries do not meet the standards expected of traditional employment agencies, whether on pay, workers’ rights or transparency. This inconsistency undermines the integrity of the labour market and can put vulnerable workers at risk. Licensing could, in theory, help address this by ensuring that any business participating in employment arrangements meets minimum standards and is subject to proper oversight.

However, as my noble friend Lady Coffey stressed, the amendment raises some other important questions. Clause 34 broadens the definition of “employment business” to encompass a range of activities connected to supplying workers who are employed by one party but work under the control of another. This means that the regulatory net will be set much wider than before, potentially to cover businesses beyond traditional recruitment agencies.

Moreover, it is worth considering whether the same objectives could be achieved through improved enforcement of existing regulations rather than by introducing a new licensing framework. In this Chamber, we have to weigh carefully the costs and benefits, particularly to smaller businesses that may struggle with additional compliance burdens. We must also consider the impact on businesses and the wider economy. Many employment businesses operate with tight margins; for them, licensing means added costs, added paperwork and longer lead times to launch new services or respond to labour demand.

This is not an argument against regulation per se; it is simply a recognition that badly designed or poorly phased licensing can create barriers to entry, reduce competition and even push some providers underground, where abuses are harder to detect. In sectors that are already experiencing labour shortages, such as social care, hospitality and logistics, the cumulative impact could be significant.

As my noble friend Lady Coffey pointed out, there is also the risk of regulatory duplication or conflict. Some sectors already have licensing or registration schemes; others are subject to sector-specific standards set by Ofsted, the Care Quality Commission or the Financial Conduct Authority. Without co-ordination, we risk creating overlapping regimes, with businesses subject to multiple audits, rival codes of conduct and inconsistent enforcement. Workers too may be confused about their rights and the mechanisms available for redress.

I also note that the amendment does not contain any provisions for parliamentary oversight or consultation. The power it seeks to create is broad and, while it is subject to the discretion of the Secretary of State, it is not constrained by any statutory duty to consult stakeholders. In a sector as economically important and socially sensitive as this, there must be consultation. Against that background, I look forward to hearing the Minister’s response.

[Lord in Waiting/Government Whip (Lord Katz) (Lab)]

My Lords, I thank the noble Lord, Lord Holmes of Richmond, for his amendment concerning the licensing of employment businesses. I join the noble Lord, Lord Hunt, in saying how nice it is to see him in his place this afternoon. I share the privilege that the noble Lord, Lord Hunt, noted as I responded to the amendments that were tabled in the name of the noble Lord, Lord Holmes, and these were on important issues that he was right to raise. As the noble Lord, Lord Hunt, said, these are around fairness, transparency, equity and the problems that some less than scrupulous umbrella organisations and employment agencies currently raise in the market. He is not raising unimportant issues.

As the noble Lord, Lord Hunt, has already noted, through Clause 34, the Government have sought to amend the definition of “employment business” in the Employment Agencies Act 1973, so that it includes the concept of employment arrangements. This expanded definition will capture so-called umbrella companies and place them in the scope of regulation. As your Lordships know, employment businesses are subject to regulation through the Conduct of Employment Agencies and Employment Businesses Regulations 2003, which were enforced by the Employment Agency Standards Inspectorate and subsequently will be enforced by the new fair work agency that Part 5 of the Bill creates.

The Government acknowledge that the current regulations are not appropriate for application to umbrella companies so, following consultation, we will set out a new regulatory framework that will apply to umbrella companies. In our view, these regulations are the most proportionate way of reducing non-compliance in the umbrella company market, without introducing a new regime that would add complexity for business. The creation of a licensing authority at this time would therefore not be appropriate. I am happy to say that on this rare occasion, we share the concerns of both the Opposition Front Bench and the noble Baroness, Lady Coffey, from whom we heard earlier on this amendment.

The regulation-making powers in the Bill have been carefully considered and included only where the Government consider it justified and necessary. We are not convinced that the amendment will provide additional benefits for businesses or workers significant enough to expand this power, as it proposes.

The Government want to take care to get the regulations right. We have heard throughout our wonderful time spent discussing the Bill in Committee so far that there is a balance to be sought between the burdens that we create through new legislation and regulation on businesses, including small businesses, and protecting the rights of workers. It is a balance we get right, and we want to make sure that we get regulations right in relation to the new definition of employment businesses in this case. Our focus will be on that, alongside the establishment of the fair work agency.

Taking all these factors into consideration, I therefore ask the noble Lord, Lord Holmes of Richmond, to withdraw his amendment.

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[Lord Prentis of Leeds (Lab)]

I thank the noble Baroness for that comment.

The whole intention appears to be to limit the scope of any collective bargaining. It is as clear as day. Different forms of words can be come up with concerning who is involved, who should clear what, and so on. That delays things, and that is the intention of the amendments before us.

Noble Lords have to understand that the proposals legislate for the Secretary of State or their nominee to be involved in the negotiating body. I personally have no reservations about that. We want to talk to the people who have the power and the influence to make decisions that improve the service and teaching in our schools. This proposed new body is intended to improve schools and education. What better way of doing it than to bring people together, give them a voice, allow it to be heard and come to conclusions which are for the benefit of all?

[Lord Hunt of Wirral (Con)]

My Lords, this has been a very important debate, and I thank my noble friends Lady Barran and Lady Coffey for their amendments in this group. We have had some very interesting real-life examples given by my noble friend Lord Agnew of Oulton, and an important dimension from the noble Lord, Lord Prentis of Leeds, to which I will return in a moment.

I am, however, pleased to speak in support of Amendment 151, introduced by my noble friend Lady Barran. This amendment highlights an essential but often underappreciated part of our school workforce: the support staff. That is where I would agree with the noble Lord, Lord Prentis of Leeds. Those support staff keep schools running smoothly every day. From teaching assistants to catering teams, their work is vital, and as my noble friend put it, they form the backbone of the whole system.

The Government’s Bill takes a step forward by proposing the creation of a school support staff negotiating body, and I make it clear that I believe that is a welcome move. However, the Bill’s current approach, with its push for a single set of national pay and conditions, risks overlooking the real differences which exist between schools, as my noble friend Lord Agnew of Oulton pointed out, especially between maintained schools and academies.

What this amendment does so well is to recognise the need for a flexible framework for academies, one that they must consider and may depart from only in exceptional circumstances. This respects academies’ independence while still promoting fairness and consistency.

We must of course remember that “support staff” is a broad term covering a wide range of roles and responsibilities. The needs of a small primary school and a large multi-academy trust are not at all the same, and any framework has to reflect that diversity. Like in most areas of the Bill, the Government have taken a rigid, one-size-fits-all model that I am concerned could create confusion and strain resources. Instead, a balanced framework such as the one my noble friend proposes offers a practical way to support staff fairly, without unnecessary bureaucracy.

My noble friend also raised an important point about the potential costs and bureaucratic complexity that come with establishing another negotiating body such as the school support staff negotiating body. This is not just about money but about the practical demands placed on schools and trusts, especially smaller ones with limited administrative capacity.

Setting up and maintaining a new national negotiating framework involves significant resources: time, personnel and funding. Schools will need to engage with the school support staff negotiating body’s processes, potentially adapt to new systems for pay, terms and training, and ensure compliance with frameworks that may be complex and constantly evolving.

For large multi-academy trusts, this might be manageable, but for smaller schools—already stretched thin—it adds a layer of bureaucracy that can divert valuable time and resources away from teaching and supporting pupils. Moreover, the negotiation and implementation processes risk becoming slow and cumbersome, delaying important decisions on staff pay and conditions. This could lead to uncertainty and frustration among support staff and their employers alike.

I particularly thank my noble friend Lady Coffey for her insightful remarks. She makes a compelling and important point: the Secretary of State is already required to consult the prescribed school support staff organisations, which represent the full spectrum of support staff voices, yet this amendment rightly challenges why the Trades Union Congress should be given a special, privileged position with an additional mandatory consultation in primary legislation that risks unnecessary delay, added bureaucracy and potential obstruction.

Although the TUC is of course a major trade union umbrella—many colleagues across the Chamber will remind us of its history—it does not have a monopoly on representing school support staff. Many staff organisations operate independently and effectively without TUC oversight. Therefore, by insisting on formal TUC consultations, we risk entrenching a narrow set of interests, potentially sidelining smaller or non-TUC affiliated groups that also deserve a seat at the table.

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[Lord Prentis of Leeds (Lab)]

My Lords, many of my noble friends have spoken about the possible collapse of the social care system. The toxic combination of chronic underfunding and the dysfunctional market system means that thousands of elderly and disabled people do not get the care that they need. I welcome the proposals in the Bill to establish a framework to establish legally binding agreements that, at long last, would set pay, conditions and terms for workers in the adult social care sector: an adult social care negotiating body in England made up of relevant employers and trade unions.

Staff in the sector are voting with their feet. They are leaving in droves. The vacancy rate is one of the highest in the economy and 130,000 jobs remain unfilled. Low pay is endemic. Over 400,000 adult care workers live below the real living wage, and 40% of the whole workforce live below the real living wage. A quarter are living on the verge of poverty and one-tenth are living with food insecurity. That is hardly a vote of confidence in our social care system.

Perhaps the most important reason for not delaying the action that is so desperately needed rests in the costs to our National Health Service. The latest State of Care report from the Care Quality Commission stated in April this year that waits for care home beds and home-based care accounted for almost half the delays in discharging patients who had been in hospital for more than 14 days. Nearly 4,000 people were delayed on an average day. The proposed fair pay agreement for adult social care staff has the potential to do so much good. Low pay, the lack of any career ladder and limited professional recognition are all inextricably linked in the social care sector. Experienced care workers with over five years’ service are paid, on average, just 8p an hour more than a new starter. There is little or no incentive for care workers to remain in the service; there is no meaningful career progression.

I cannot support the idea, which has been floated, that the new negotiating body would not apply to providers of care in the private sector. The whole point of the proposed fair pay agreement is that it will address low pay across the whole sector, not just those who are publicly funded. It would be deeply divisive, creating a two-tier care workforce with some benefiting and others shut out.

Privately funded providers should be requested to sit on the proposed adult social care negotiating body. We need that body to cover the whole sector, not just the public sector. If it is to work and to be successful in driving up pay standards across the whole sector, it must apply to the broadest definition of care workers. The proposed fair pay agreement is the first step towards a more structured pay system that over time should enable employers to offer a career pathway into social care, rather than low-status, low-paid employment with a high turnover rate.

So many of our citizens who need social care will benefit from the suggestions in this Bill. It is the first building block to a national care service. It will help with one of the most intractable problems facing our public services. The chief executive of the National Care Forum stated:

“We welcome any measures to strengthen the rights and improve the pay, terms and conditions of the social care workforce who make a significant contribution to our economy and the lives of millions of people”.


I ask that we allow this proposal, which will do so much good, to go forward, and that any amendments are no longer pursued.

[Lord Hunt of Wirral (Con)]

My Lords, I say at the outset what an important debate this has been. We on these Benches support fair pay, decent working conditions and recognition of the vital work that social care workers do. I join the noble Lord, Lord Palmer of Childs Hill, in his tributes, and welcome and thank all noble Lords for their contributions in this group. I want to say how pleased we all are that the noble Baroness, Lady Merron, has decided to come and deal with this issue, in a Bill for which she has no immediate responsibility but certainly does in the context of the social care negotiating body.

I had no part in deciding which group of amendments I would respond to, and I find myself in some difficulty, because the noble Lord, Lord Hendy, gave us the most brilliant exposition of the 126 years since the ILO was established in 1919 and the right to collective bargaining. However, in a way, that was directed not so much to the Minister but to his noble friend Lady Jones of Whitchurch, who, under the European Convention on Human Rights, signed to say that:

“In my view the provisions of the Employment Rights Bill are compatible with the Convention rights”.


Therefore, is it not the noble Baroness who should be responding to the tour de force that we received from the noble Lord, Lord Hendy? Perhaps she has already communicated to the noble Baroness, Lady Merron, what she would say in response.

We on these Benches cannot support a structure that hands over the steering wheel of national employment frameworks to a narrow group of trade union and employer representatives with little regard for broader public interest, service user experience or the realities of a publicly funded care system. By insisting that the chair be chosen exclusively by agreement between union officials and employer representatives, and in the event of disagreement by ACAS, these amendments would introduce unnecessary complexity and risk deadlock. By removing ministerial appointment, a crucial source of impartial leadership and accountability disappears. We cannot afford a negotiating body that stalls at the first sign of disagreement.

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[Lord Hunt of Wirral (Con)]

My Lords, we all owe a great debt of gratitude to the noble Lord, Lord Faulkner of Worcester, and my noble friend Lord Parkinson of Whitley Bay, for introducing a fascinating debate. My own relationship with heritage railways goes back some 45 years, to when I participated in all those wonderful railways in north Wales. I took my daughter Daisy to the top of Snowdon in one of these wonderful train rides. Sadly, the Western Mail had a picture of Daisy and me driving the locomotive, illegally, with the headline, “Daisy drives Dad around the bend”. I shall never forget that.

Therefore, like my noble friends Lady Neville-Rolfe and Lord Mendoza, the noble Earl, Lord Clancarty, and the noble Lord, Lord Palmer of Childs Hill, I approach this debate with some degree of positive expectation, because the noble Lord, Lord Katz, is going to reply. If ever there was anyone who would understand the need for this amendment, it is the noble Lord, Lord Katz. Whether his brief will allow him to show that level of understanding, we will have to wait and see.

This amendment brings welcome clarity and common sense to an area where outdated legislative definitions risk interfering with well-established and valued community practice. Heritage railways and tramways are not industrial undertakings in the conventional sense. They are, overwhelmingly, charitable or volunteer-led organisations dedicated to preserving history, offering educational experiences and engaging communities, often in rural or heritage-rich areas. This amendment recognises the important distinction between exploitive industrial labour and safe, structured, voluntary participation. Many young people who volunteer on heritage railways gain practical skills, develop a sense of responsibility and form connections across generations. It is, for many, their first taste of civic engagement and teamwork and is often a path into engineering, public service or the arts.

By inserting this narrow and well-defined exemption into the 1920 Act, this clause would ensure that young volunteers can continue to participate safely and legally in activities that benefit not only themselves but the broader public. Importantly, this does not in any way dilute protections against child labour or weaken employment law. It simply makes sure that our legal framework does not unintentionally penalise or prohibit what is clearly a public good.

[Lord Katz (Lab)]

My Lords, my reputation seems to precede me on this amendment. I am very grateful to my noble friend Lord Faulkner of Worcester for tabling Amendment 201 and have enjoyed a slight diversion in subject matter on the Employment Rights Bill. It is truly a pleasure to be able to continue the discussions that I have had with my noble friend Lord Faulkner about the railways for many years, both inside and outside this House. My noble friend is a true champion of heritage railways across the whole piece, not simply on this issue. I pay tribute to his role as president of the Heritage Railway Association.

It has been fantastic to hear from a number of noble Lords, including the noble Earl, Lord Clancarty, the noble Baroness, Lady Neville-Rolfe, and the noble Lords, Lord Mendoza and Lord Palmer of Childs Hill, all of whom extolled the virtues of heritage railways in providing a positive way of involving young people in transport, industry and civic engagement—as the noble Lord, Lord Hunt, was just saying—as well as contributing to the tourist sector and the Government’s mission for growth. The noble Lord, Lord Parkinson of Whitley Bay, spoke very strongly about that, and, as he pointed out, it is the 200th anniversary of the railway this year. We are doing a lot to commemorate that, and heritage railways will have their own role in that. I pay special thanks to the noble Lord, Lord Parkinson of Whitley Bay, for being the first person to out me as a rail nerd in this debate, and the noble Lord, Lord Hunt, also had that pleasure.

The noble Lord, Lord Parkinson, took us on a little tour d’horizon of the Private Member’s Bill debate we had in this House on this topic a few years ago, and mentioned a number of heritage railways. I can speak of the pleasure I had as a young child travelling on the Ruislip Lido railway, which was small in scale but mighty in reputation for those of us in north-west London. The noble Lord is right to point to the virtues of heritage railways, both as an economic activity and in individual engagement.

As a Government, we recognise and support the valuable opportunities young people have through volunteering to do a wide range of different work activities, including on heritage railways. Obviously, it is important that these things are carried out in a safe way, with employers, organisers and volunteers supervising activities to make sure that risks are properly controlled. To give some background, I will say that noble Lords will be aware that the Health and Safety Executive is responsible for regulating health and safety at work, but, in the case of the heritage railways, the Office of Rail and Road is the enforcing authority. Both these regulators have considered carefully what powers they have and how these would be applied in the case of young people aged between 14 and 16 volunteering on a heritage railway.

The Employment of Women, Young Persons, and Children Act 1920, which my noble friend Lord Faulkner of Worcester referred to, is a long-standing piece of legislation intended to prohibit the employment of children carrying out high-risk work, such as construction in industrial settings. To be honest, amending or repealing it would not be a straightforward matter.

The law protecting children in the UK is also a complex area, and this amendment touches on not only health and safety protections but other legislation and local authority by-laws. These are all devolved matters in Northern Ireland, and this amendment would impose changes there too. The 1920 Act is old legislation; amending it should be considered only after a thorough review of the impact on other areas of law, as there may be unintended consequences. It is worth pointing out that the primary legislation governing child employment, including light work, is the Children and Young Persons Act 1933. Amending or repealing the 1920 Act would still leave the 1933 Act in place, which—together with any by-laws made under it by local authorities—limits children to undertaking only light work. So repealing the 1920 Act could have unintended consequences across a number of sectors, and a full impact assessment would be required.

As we have heard, modern health and safety legislation does not prevent children and young people volunteering on heritage railways. I was pleased that my noble friend Lord Faulkner of Worcester referred to the Heritage Railway Association survey, which demonstrated that there are around 800 under 16 year-olds volunteering on heritage railways across the country. There may be activities that are unsuitable for young volunteers to carry out—for example, safety-critical tasks such as train diving—but I am pleased to say that both regulators are very willing to work with the Heritage Railway Association, as we have heard from my noble friend Lord Faulkner of Worcester, to determine what sorts of activities would be safe, appropriate and suitable for young volunteers aged 14 to 16 to perform on the railways.

Of course, regulators should, and do, take a proportionate approach to enforcement action. It is worth noting that the last time the 1920 Act was used to support health and safety enforcement was in 2009. As my noble friend Lord Faulkner of Worcester told us, there have been no prosecutions under the 1920 Act, either of public bodies or private individuals, which proves that the status quo is not absolutely terrible.

The aim of this amendment is to remove any barriers to allow children to gain valuable experience volunteering on heritage railways and tramways. Nobody wants to see more young men and women developing an interest and, indeed, a career on the railway more than I do. It is not clear that there is an overwhelming amount of evidence that this legislation is creating any barriers and, as we know, many heritage railways run very successfully with young people volunteering in a wide range of activities to support those ventures.

Both the Office of Rail and Road and the Health and Safety Executive remain very willing to work with the Heritage Railway Association to develop additional guidance and, possibly, examples of good practice to ensure that young volunteers can continue to work safely in heritage railway settings. While this is a sensible and proportionate way forward to address this issue, I have heard the strength of opinion on this matter from across the Committee. I am more than happy and willing to facilitate a meeting with my noble friend Lord Faulkner of Worcester—other noble Lords may be interested—with the HRA, DfT, ORR and HSE to further pursue this issue. Without making any further commitments, I therefore ask my noble friend to withdraw this amendment for now.

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[Baroness McIntosh of Hudnall (Lab)]

My Lords, I had not expected to speak at any point during this Bill, and I will do so now only very briefly to express my thanks to the noble Earl and his colleagues for praying my name in aid in relation to this amendment. I really just want to say that I may be the only person in the House—and I am certainly, I think, the only person in this Chamber—for whom a casting directory was the bible of my life for many decades. Therefore, I know exactly how important it is to performers that there should be a trusted published work of some kind to which they can refer their information which can then be the source of potential employment through the work of casting directors and other industry professionals.

I just say to the Minister, when she comes to consider this amendment—which, by the way, I do support, and I have nothing to add or anything I wish to contradict in what has been said so far—that it is important to recognise that this is an extremely delicate ecosystem in which there are many, many people who need to avail themselves, and have done over decades, as we have been told, of the kind of service that a casting director and a casting directory provide. Frankly, for most of all of our lives, it has been Spotlight, but it could be others. The people who need to avail themselves of that service are many in number, and the people who need to use it in order to find out about those people are much fewer in number—mostly casting directors. It is very important that they have a trusted source, that performers can rely on their information being carefully curated, looked after and protected in the way that the noble Earl and the noble Lord, Lord Freyberg, have already outlined, but that we do not disturb the particular delicate relationship between those two aspects of the way that the business works. While I am not in favour of exceptionalism on the whole, I think we do have to understand that this industry operates not always perfectly but certainly in an unusual kind of way, and it is necessary that it continue to do so with the right protections in place.

[Lord Hunt of Wirral (Con)]

My Lords, we are very grateful to the noble Earl, Lord Clancarty, the noble Lords, Lord Freyberg and Lord Hendy, and the noble Baroness, Lady McIntosh of Hudnall, for bringing this very important subject to the attention of this Committee. All sectors of the economy, including the creative industries, deserve fair and proportionate attention in the development and review of employment law, particularly when, as the noble Earl pointed out, the workplace is changing so fast and at such speed.

As the noble Earl reminded us, we need a framework which strikes the right balance. We are all grateful to him for not commenting in any detail about an ongoing dispute, which we will all carefully avoid mentioning any more, although we all agree we must keep a watching brief on what is happening as regards that particular instance.

However, as we consider wider reforms to employment rights and protections, we must ensure that we are not unintentionally leaving out those in less conventional work arrangements. Performers and others working in the creative industries often operate outside the normal employer and employee model. They frequently rely, as we have heard, on casting directories and digital platforms to access work—platforms that are increasingly central as to how creative labour is bought and sold, and have been for a number of years. Yet this part of the labour market is rarely the focus of legislative scrutiny. That must change.

I hope we are all agreed that we cannot claim to be modernising employment law if we ignore how it interacts with one of the fastest growing and culturally significant sectors of our economy. This amendment does not, of course, call for regulation but for understanding. A review will help us grasp better whether existing protections are functioning as they should, and whether any further action is needed to ensure fairness and transparency in the systems on which performers so clearly depend. I look forward to hearing from the Minister as to how he would like to respond to what is a fast-changing situation.

[Lord in Waiting/Government Whip (Lord Leong) (Lab)]

My Lords, I thank all noble Lords who have contributed to this very short but very interesting debate, and declare an interest that many and perhaps all my actor friends are registered with Spotlight. I take this opportunity to thank the noble Earl, Lord Clancarty, and the noble Lord, Lord Freyberg, for tabling Amendment 204C.

Providers of work-finding services, which can include digital services, are regulated through the Conduct of Employment Agencies and Employment Businesses Regulations 2003, which are enforced by the Employment Agency Standards Inspectorate, and in due course they will be enforced by the fair work agency. I hope that answers the question of the noble Lord, Lord Freyberg, on who enforces regulations in this area.

The conduct regulations also allow for employment agencies to charge work-seekers in specific occupations, such as actors, musicians and singers, fees for their inclusion in a publication for the purpose of work finding. These costs can be no more than a reasonable estimate of the cost of production and circulation of that publication.

I am sure that all noble Lords will appreciate that I cannot say anything more about the ongoing litigation between the actors’ union and that particular organisation. However, I will share with all noble Lords how the Government are supporting the creative sector.

The UK is home to world-class creative industries. Every single day, our arts and culture bring joy to millions of people, not just in our four nations but all over the world. Every second, someone somewhere will be listening, reading or hearing one of our creative artists. They are part of our soft power, part of our economic power and part of the joy that we so generously give the world. They enrich our lives, bring our communities together and drive our economy. The creative industries have been identified as a growth-driving sector in our strategy, Invest 2035.

People and skills are an important part of this strategy. The Government have been working closely with the sector, including through the creative industry sector plan task force, to develop a plan for the sector. The Creative Industries Taskforce includes Creative UK, the British Fashion Council and the Royal Shakespeare Company, and I hope that it will address some of the issues that were asked about earlier by the noble Lord, Lord Freyberg. I appreciate the noble Lord’s efforts to improve the working conditions of those in the creative industries, and I will discuss this further when we debate a later amendment on the performing arts and entertainment sectors tabled by the noble Lord, Lord Freyberg.

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[Baroness Jones of Whitchurch (Lab)]

I make my case. The only reason those interest rates were cut was that our economy has been improving. Some £63 billion of private investment was announced at the investment summit last year. Introducing this Bill within 100 days will boost protections and quality of work for the lowest-paid, raising living standards across the country and creating opportunities for all.

I turn to the actual amendments. Amendments 205 and 207, in the name of the noble Baroness, Lady Noakes, would introduce exemptions to this measure based on the size of the business. The new duty on employers to inform all employees of the right to join a union is a key part of the Government’s wider commitment to strengthen workers’ voices in the workplace, enhancing their representation and ultimately improving working conditions through increased trade union membership and participation. Making exemptions of this kind risks creating a two-tier system in which some workers benefit from this important information while others do not, based purely on the size of their employer. We are committed to striking a fair and proportionate balance, ensuring that workers are aware of their rights without placing undue burdens on employers.

The statement will be provided at the start of employment, alongside the written statement of particulars, which employers are already required to give under Section 1 of the Employment Rights Act 1996 and on a prescribed basis. Therefore, I say to the noble Lord, Lord Jackson, that we do not believe that this is a particularly significant extra burden to justify exempting certain employers because of their size, because they already have to give that information anyway.

The noble Baroness, Lady Coffey, and others asked about the frequency. We will consult on the specific details, such as the frequency, manner, form and content of the statement before it is outlined in secondary legislation, and I can let noble Lords know that that will be via the negative procedure. We will particularly encourage input from both businesses and unions of all sizes to share their views.

[Lord Hunt of Wirral (Con)]

The Minister just referred to the negative procedure. Is that a final decision? Given that the Bill takes so much power to make a series of important decisions by statutory instrument, I think the general expectation would be that such an important decision would be made by affirmative resolution. Would she perhaps contemplate whether that might be the better solution?

[Baroness Jones of Whitchurch (Lab)]

I thank the noble Lord for that introduction, because I was going to go on to say that the Government think that the powers taken in Clause 55 are necessary and proportionate. Indeed, the Delegated Powers Committee said that

“it is heartening that in a Bill with so many delegated powers”

it had

“only found four on which to raise concerns”.

Clause 55 was not one of those four, and we will of course respond to the committee’s recommendations in due course.

[Lord Hunt of Wirral (Con)]

While we are considering what the Delegated Powers and Regulatory Reform Committee concluded, I recall that the last time I raised the use of the Henry VIII powers, the Minister said that this Committee would see her draft implementation plan, to which my noble friend referred just a short time ago. We have not yet seen that plan, and a lot of businesses are very concerned about the uncertainty that is being created by not knowing, certainly by now, when these various powers are going to be brought into effect. Will she give some timescale by which we will see the implementation plan, if only in draft?

[Baroness Jones of Whitchurch (Lab)]

I know we have discussed the implementation plan several times now, and I can assure noble Lords that we are working at pace to finalise that. I do not think it would be helpful to see it in draft or imperfect form. We want people to have a categorical road map which shows the way forward. We absolutely understand that businesses need to see that; we are working on it. I am very confident that when businesses see it, they will be reassured that none of the things that we are proposing in this legislation will be rushed through. They will have time to prepare for it—I think we had a debate about this earlier. We know that businesses need time to prepare, we are absolutely aware of that, and we are going to make sure that they have it.

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Moved by

[Lord Hunt of Wirral]

208A: Clause 56, page 74, line 34, leave out “or communicate with workers (or both)”
Member's explanatory statement
This amendment to section 70ZA(2)(a) removes the reference to union officials being able to “communicate with workers” as part of an access agreement.

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[Lord Hunt of Wirral (Con)]

My Lords, I rise to speak to Amendments 208A, 209A, 210, 210A, 213A and 213B, standing in my name. Those first amendments remove the reference to communication with workers as an element of access agreements between unions and employers. They further remove provisions that attempt to cement that right to communicate by any and all means, and which prohibit a party from relying on the availability of physical or non-physical communication as a reason to limit the other. Taken together, these provisions amount to a significant and unjustified broadening of what has traditionally been a clearly understood and workable arrangement: namely, the right of union officials physically to enter a workplace for legitimate access purposes.

This access, by its nature, has always been specific, scheduled and carried out in a manner agreed upon by both parties. It is bounded in both scope and form. The Bill as drafted risks blurring those lines in ways that introduce legal ambiguity, managerial uncertainty and operational disruption. The reference to communication

“by any means, whether directly or indirectly”

is particularly concerning. This is an extremely wide formulation that is open-ended in both language and intent. It creates uncertainty not just in principle, but in practice. What exactly does indirect communication mean in the context of an access agreement? Does it encompass digital platforms, printed material, third-party intermediaries, or perhaps the passive dissemination of content in workplace systems? Without clear boundaries, employers will be left navigating uncharted waters, unsure of what they are obliged to permit and what may lawfully be resisted.

We must also think about how such broad phrasing sits alongside an employer’s duty to maintain a safe, orderly and productive working environment. Workplaces are complex ecosystems. They are governed by routines, procedures and, crucially, the employer’s ability to direct the operation of their business. If union officials are granted sweeping rights to communicate “by any means”, without the tether of physical presence and supervision, there is a genuine risk that communications will occur in ways that distract, disrupt or even divide—not necessarily through bad faith, but a lack of structure.

Equally problematic are the provisions that state that physical entry to a workplace should not be refused simply because non-physical means of communication exist, and vice versa. These clauses, while perhaps intended to protect flexibility, in fact remove the very discretion that employers must retain in managing their own premises. They suggest that the availability of one channel of communication can never justify the refusal of another, regardless of context. Surely that is both inflexible and unrealistic.

There may be very good practical reasons for an employer to prefer one form of engagement over another; a highly secure site may welcome scheduled, in-person access, but find unsolicited, off-site communications disruptive or invasive. A remote or hybrid workforce may prefer written updates to physical visits. By attempting to lock in symmetrical rights to both physical and non-physical communication, the Bill as drafted risks creating conflict where co-operation is needed and rigidity where discretion would be more effective.

Moreover, we should not lose sight of the fact that union engagement can and does occur outside the framework of statutory access agreements. The purpose of this legislation is not to create an open-ended entitlement for unions to interact with workers in any manner they choose; it is to provide a draft legal mechanism for arranging workplace access for legitimate purposes—access that must be reasonable, structured and proportionate. That mechanism surely must not become a Trojan horse for a much broader intervention in the management of communications within private enterprises.

The cumulative effect of these provisions, if left unamended, would be to tilt the balance too far, away from the well-established equilibrium between union representation and employer control. They would introduce legal uncertainty, operational disruption and potential privacy concerns, all under the banner of modernising union access.

It is vital that we place Amendment 210 in the proper context. The idea that unions could gain access to employers’ digital platforms, including internal communication systems, company email servers and private digital infrastructure, was not part of the original Bill but was added by the Government in the other House only on Report, with minimal explanation and no real opportunity for detailed parliamentary scrutiny. That is simply not acceptable.

This House is now the first truly to consider the full implications of what would, without question, be a major expansion of union access rights into employers’ private and operational space—not their physical space, but their digital infrastructure which is, in many ways, just as sensitive, just as regulated and potentially far more vulnerable. I believe that we must take our scrutiny role very seriously and that this House must now do what the other House was denied the opportunity to do: we have to probe this new power fully and openly.

We are now confronted with a proposal that, for the first time ever, would allow trade unions to reach employees via internal platforms such as company intranets, corporate email systems, Zoom, Microsoft Teams and other work-based communication tools, many of which are governed by strict internal policies, compliance frameworks and even sectoral security requirements.

This is not a theoretical concern. The Bill now provides a broad enabling power, with the detail to be filled in later through secondary legislation. We do not yet know which platforms will be in scope, how frequently unions will be permitted to post or engage, or what rights employers will have to review, edit or even be informed of the content beforehand. We are being asked to legislate on the basis of a skeleton—a blank cheque—with the flesh to be added later by statutory instrument, and that is precisely when parliamentary control is at its weakest. It is in secondary legislation where the balance of scrutiny too often shifts from robust parliamentary debate to rubber-stamping.

So what are we really dealing with here? Employers will, under the current drafting, be expected to engage constructively with union requests for digital access and will be given as little as five working days to respond. This is not merely hypothetical; this is a system designed to operate particularly in workplaces where physical access may be difficult or impossible—for example, remote teams, field-based staff and distributed or digital-first organisations. This may sound practical in theory, but it raises serious unresolved operational questions in practice. Who controls the messaging? Who controls the content? Who approves it? Can unions directly upload material on to a company’s internal platforms, or is it the employer’s responsibility to upload union-drafted content? In that case, does the employer have the right to make edits or raise objections? Can the material be branded? Must it be neutral? Will it sit alongside or appear to compete with official communications from HR or leadership teams?

So will the Government publish guidance? If so, when? At the moment, we just do not know the answers to any of these questions. These are not small matters; they are foundational issues of governance, internal messaging and even risk. For some employers, particularly in finance, defence and data-sensitive sectors, internal systems are subject to strict regulation and security controls. Can they allow access to these platforms without compromising legal obligations? In some cases, they may not be able to grant access, even if they wish to, and in others they may face exposure to reputational or compliance risks if improper messaging is circulated without oversight.

We must also consider the precedent being set. Allowing third-party organisations, however well-intentioned, to access digital systems designed for internal business-related purposes represents a significant departure from current practice. The potential for confusion, conflicting messaging and unintended consequences is high. This should not be rushed through under cover of secondary legislation.

For all those reasons, the amendment before us is entirely justified. It places a necessary brake on an overreach that has not been debated or examined and certainly not consented to by both Houses. If the Government believe that digital access is necessary and can be sensibly and safely managed, then let them bring forward a fully detailed proposal in the proper way. Let us have the opportunity to debate that openly, with all the facts in front of us—not as an afterthought or implication and certainly not as a quietly drafted regulation.

I therefore strongly urge your Lordships to support this amendment. Let us draw a clear line around what “access” means in this legislation and what it does not. If Parliament is to grant new powers, it must scrutinise them fully, which is what this Chamber is supposed to do.

I turn to Amendment 213B, which goes directly to the operational realities of the modern workplace—the way in which access is exercised, whether it involves scheduled meetings, ad hoc visits, group briefings or one-on-one discussions. That all can have a substantial effect on day-to-day operations. The frequency and timing of those visits matter enormously. Daily interruptions at peak hours are not the same as occasional meetings during quieter periods. Repeated unfocused access can, however unintentionally, become disruptive, particularly in sectors where workflow depends on concentration, safety procedures or continuous operations.

--- Later in debate ---

[Lord Katz (Lab)]

I am very happy to write. I resist the idea that I am not being candid here. The noble Baroness may not like what I am saying, but the point stands. I am of course very happy to write to her and to the noble Lord, Lord Leigh of Hurley, with more detail.

In conclusion, we expect that, in many cases, employers and trade unions will be able to agree the terms on which access takes place, including for digital access. In the event that there is no agreement, the CAC can impose terms, including terms dealing with digital access. I repeat: the precise details of how this will work in practice will be set out in secondary legislation following further consultation. I therefore ask that Amendment 208A be withdrawn and that noble Lords do not press their other amendments.

[Lord Hunt of Wirral (Con)]

My Lords, first, I say to the House authorities that we greatly appreciate the way they have tolerated the fact that we have gone way beyond the normal rising time on a Thursday, particularly as we are sitting tomorrow at 10 am. In mitigation, I note that we have tried to truncate what is a hugely important group of amendments. There are many things that we would want to probe further, so we will have to return to this on Report.

I thank my noble friends Lord Jackson of Peterborough, Lady Lawlor, Lord Leigh of Hurley and Lady Coffey for their contributions. I was interested, as always, to hear the noble Lord, Lord Hendy, and the noble Baroness, Lady O’Grady, although I hope that she will mitigate the damage she may have done with her remarks about one of the biggest investors in the UK, Amazon.

[Baroness Bousted (Lab)]

This is the second time the noble Lord has taken on my noble friend Lady O’Grady, who made perfectly reasonable comments. I do not think it is a good idea to be patronising in the House.

[Lord Hunt of Wirral (Con)]

I am sorry about that discordant note, introduced into what has been a really useful day in Committee on this important Bill.

I hope that people outside will realise that we have been debating a group of amendments that were made at the last moment in the House of Commons. They have not had any scrutiny at all in Committee in the Commons. That is why this House has so much responsibility to ensure that, in a fast-moving digital world, we do not transgress in a way that places employers and employees in an impossible position.

I thank the noble Lord, Lord Goddard of Stockport. He asked some direct questions, but we have not yet had the answers to them. It may well be that the Minister will write generally to us all to respond to the points he did not have time to answer today. I appreciate that he has limited time too, but he might like to respond in writing to us all, covering the points that he has not yet been able to deal with.

[Lord Katz (Lab)]

I am very happy to write, particularly to the noble Lord, Lord Goddard.

[Lord Hunt of Wirral (Con)]

On that positive note, I beg leave to withdraw the amendment.

Amendment 208A withdrawn.

Employment Rights Bill

Lord Hunt of Wirral Excerpts

Committee stage
Wednesday 21st May 2025 Lords Chamber

[Baroness Watkins of Tavistock (CB)]

My Lords, I support this amendment and declare my interest as the chair of a small housing association, Look Ahead, where we employ a lot of care workers and are encouraging apprenticeships to keep people in care work and to develop proper careers. We have not yet got the Casey review on care workers, but we know that the Government intend to reduce visas for overseas workers in this area. However, when you go into care work, you always find a small proportion of people who, when they realise some of the challenges of giving intimate physical care, feel unable to go on with that particular work. That is perfectly appropriate for both the apprentice themselves and the people they are supporting. I urge us to try to reach an agreement on this that is more flexible, so that people can have the opportunity of an apprenticeship in care, while recognising that, sometimes, a different kind of work is more appropriate.

[Lord Hunt of Wirral (Con)]

My Lords, this has been such a valuable debate, for a number of reasons. We are grateful to the noble Lords, Lord Aberdare and Lord Knight of Weymouth, and the noble Baronesses, Lady Wolf of Dulwich and Lady Garden of Frognal. In many ways, it gives us an opportunity just to see where we are going, and to identify the fact that, for many of us, apprenticeships mean something deep and profound.

I am delighted to see the noble Lord, Lord Monks, in his place. He probably will not remember but, 32 years ago, he came to see me when I had responsibility for this area of policy. Accompanying him was the noble Lord, Lord Jordan, and they said to me, as Secretary of State for Employment, that apprenticeships needed to be brought into the modern age and that there had to be something deeper, wider and more productive for the individual than the idea of standing by a machine for five years and then qualifying. They were talking particularly of young apprentices. I was persuaded, and, slowly but surely, modern apprenticeships have evolved.

I do not think that the noble Lord, Lord Monks, remembers this, but that was followed by a cartoon in the Guardian, which my children still show me—I should not talk like this on my birthday. The cartoon demonstrates me getting into a large four-poster bed with the noble Lord, Lord Monks, who was in the form of a large cart-horse—the cart-horse had the face of John Monks. This gives me an opportunity to apologise to the noble Lord. I suppose that the Guardian was saying that it looked as though the Conservative Government were listening to the TUC. We did, and modern apprenticeships have taken off ever since.

The levy though, as the noble Baroness, Lady Garden of Frognal, reminded us, has shifted the emphasis and the whole intention, which was to encourage younger people to get more involved. In a way, we need to identify that—and I hope that the Minister will recognise that apprenticeships are the lifeblood of the new economy, in particular, provided that they receive that special status. It was very helpful that my noble friend Lady Coffey reminded us about age, and that perhaps 25 is a better age in this regard. My noble friend Lady Stowell of Beeston also put it much more into context, and the noble Baroness, Lady Watkins of Tavistock, gave an additional dimension. It has been a valuable debate.

I remind the Minister that we are talking about specific instances where there has to be an apprenticeship contract containing often wide-ranging provisions but giving security and opportunity. So it is a balanced and measured amendment that acknowledges the critical reality that apprenticeships are not just simply jobs—they are a structured training programme, often the very first experience that a young person has of the workplace. For many of these individuals, particularly those youngsters, an apprenticeship is a gateway not just to employment but to the habits, responsibilities and expectations of adult working life.

We are already in a time, as many of my noble friends pointed out, when young people are struggling to access secure employment. The noble Lord, Lord Londesborough, reminded us about the serious problems affecting NEETs, which have cropped up several times in this debate already—and also the fact that, in other European countries, apprentices have a special legal status. In many ways, that is recognised in this amendment, because it talks about a contract. We can identify that we are talking about a very special situation, and I hope that the Minister sees that.

I will just add that, without legal clarity around probationary periods, particularly in the case of apprenticeships, many employers will be left uncertain—and uncertainty breeds hesitation. It becomes less likely that they will take on the risk of hiring an inexperienced young person, especially under a regime of day one unfair dismissal rights, with no allowance for the formative nature of apprenticeships. I shall be very interested to hear the Minister’s response on that matter, on how the Government seek to balance the protection of apprentices with the practical realities of probationary periods. I support the amendment.

[Lord Leong (Lab)]

My Lords, first, I take this opportunity to wish the noble Lord, Lord Hunt of Wirral, a very happy birthday. It is a fine way to spend a birthday this evening.

I thank all noble Lords who have contributed to this debate, notably the noble Lord, Lord Aberdare, for speaking on behalf of the noble Baroness, Lady Wolf of Dulwich. I thank the noble Baroness for her amendment and for all the work that she has done in primary and secondary education—especially her book, The XX Factor, which should be read widely by every person involved in education policies.

This group relates to apprenticeships; a later group delves deeper into unfair dismissal and probation. The Government recognise the significant value of vocational learning, and on-the-job training will continue to be fundamental to building the skills that the economy needs to grow. We recognise that employers value building knowledge and skills through apprenticeships, and this Government are committed to apprenticeships.

The Government are providing day one protections against unfair dismissal to all employees, including apprentices. Maintaining a qualifying period for apprentices will leave them open to being fired without any recourse to legal challenge on the grounds of unfair dismissal during their apprenticeship. This amendment would not create a probation period, as the noble Lord, Lord Londesborough, said; it would deny young people their day one rights. The Government’s preference is for statutory probation to be a period of nine months; in some instances, when an apprentice completes their apprenticeship, an employer may not have a permanent job for them. Most apprenticeship contracts are around two years in duration; in this case, the apprenticeship contact will expire and the normal tests for unfair dismissal will apply.

--- Later in debate ---

Moved by

[Lord Hunt of Wirral]

113ZA: Clause 26, page 45, line 24, after “sought” insert “without good reason”
Member’s explanatory statement
This amendment and another in the name of Lord Sharpe limit the application of the clause to cases where the employer sought, without good reason, to vary the employee’s contract of employment in relation to their pay or benefits.

[Lord Hunt of Wirral (Con)]

My Lords, as we move to consider Clause 26, I believe Amendments 113ZA and 113B bring essential clarity, balance and proportionality to the Bill’s treatment of contract variation.

In last week’s debate, we discussed how recent changes to statutory sick pay might prompt employers to scale back or modify enhanced sick pay schemes. Such adjustments would require changes to contracts, and under the Bill’s current wording could be caught by these provisions. This raises the question: is it really the Government’s intention to classify necessary contractual changes prompted by those reforms to statutory sick pay as grounds for unfair dismissal?

The Government’s plan to make work pay rightly criticises cases where these practices have been used to enforce lower pay or to reduce terms and conditions. That is a legitimate concern. However, as currently drafted, Clause 26 goes far beyond this intention. It would cover any contractual change, no matter how minor, technical or reasonable, even those entirely unrelated to pay or benefits. This creates serious practical problems. Employers would be exposed to legal claims of unfair dismissal, even when seeking to modernise contractual terms; for example, aligning shift patterns with contemporary trading hours or updating disciplinary procedures drafted decades ago. In effect, this clause could fossilise employment contracts, preventing businesses from adapting to economic, operational or technological change, unless they meet a narrow and restrictive test.

I acknowledge that the phrase “without good reason” in Amendment 113ZA may introduce some degree of ambiguity. However, any dispute from it would fall to the employment tribunals to determine. While we have previously argued—and I maintain—that the Government have no credible plan to resolve the serious backlog and underfunding of the employment tribunal system, the fact remains that these tribunals will be the ones to judge whether a variation was sought with good reason.

In the current economic climate, businesses may need to make reasonable changes to pay structures to remain viable. Without these amendments, I believe employers may be deterred from offering pay increases or promotions, unless employees accept other contractual changes, potentially creating a two-tier workforce. In more extreme cases, employers might choose to make roles redundant altogether, rather than risk costly litigation over sensible and necessary variations.

I will speak also to Amendment 114 in this group. The clause’s reliance on language such as

“the employer’s ability to carry on the business as a going concern”

and “financial difficulties” implies that only in the most extreme circumstances—insolvency or imminent closure—can dismissal and re-engagement be considered. That is surely far too narrow a test. Businesses are not static and responsible employers must often adapt to evolving market conditions, consumer behaviour and, of course, technological innovation. These changes are not about survival, they are surely about growth, competitiveness and investment, as we expressed in earlier debates.

Medium and large businesses may face particular challenges here. They may need to apply changes to specific segments of the workforce, not the entire business, yet the Bill appears to treat the business as a whole, creating further uncertainty and limiting proportionate action.

It would be very helpful if the Minister could explain how the Government define business. The revised wording in this amendment, “could reasonably be expected”, better reflects how responsible employers assess risk and manage their operations. It would give them the legal certainty to act proactively to avoid crisis, rather than reactively once a crisis is already upon them. The existing wording could penalise businesses for prudent foresight, discouraging early intervention and increasing the likelihood of greater harm to jobs and continuity of business.

--- Later in debate ---

I hope I have managed to convince some noble Lords, and I respectfully urge the noble Lord to withdraw Amendment 113ZA.

[Lord Hunt of Wirral (Con)]

My Lords, I have a feeling that although the Minister was doing his best, he was reading from a script that had been drafted before this debate took place. I listened to my noble friend Lord Lucas and the noble Lords, Lord de Clifford and Lord Goddard of Stockport. They were just giving ordinary examples that need clarity. We did not get from the Minister a clear exposition of how, in those individual cases instanced by colleagues in the debate, they could prevent the Minister’s overall objective. We all agree with him that we have to try to prevent the sort of situation that arose, which we all condemned, ever happening again. But do not let it be so wide that it will stop just minor organisational changes.

[Lord Leong (Lab)]

I thank the noble Lord for giving way. The principle here is that we have to consult with employees before the final resort. Fire and rehire should be the final resort and remedy. Before we even reach that, the whole process of consultation and sitting down and finding a solution should be an underpinning principle.

[Lord Hunt of Wirral (Con)]

I think we are all in agreement, except that the Bill goes too far. For a minor change of address when a company moves offices to be caught by all this in the way that we have exemplified—I think we need greater clarity. But, of course, the hour is late and I do not want to prolong the debate. In the meantime, I beg leave to withdraw the amendment.

Amendment 113ZA withdrawn.

Employment Rights Bill

Lord Hunt of Wirral Excerpts

Committee stage
Monday 19th May 2025 Lords Chamber

[Baroness Kramer (LD)]

My Lords, I am a signatory to this excellent amendment, but I am also speaking as a winder from these Benches. I shall speak very briefly, because I will touch on many of the issues in a later group, but this is so important. I am so glad that the noble Baroness, Lady Morrissey, brought forward an amendment that focuses on the issue of investigation and action.

The noble Baroness has made the case powerfully, but for many people, it is such a shock to realise that it is the victim of sexual harassment—usually a woman, sometimes a man—who finds themselves, in effect, on trial. That is how the investigative process, when it happens, generally progresses. We all know that that is wrong and has to change.

If you talk to people who have been victims and ask them what they want most as a response to having spoken out, despite what they have gone through, the answer, again and again, is twofold. First, they never want this to happen to anybody else; secondly, they want investigation and action. The systems we have in place never focus on that issue and drive it as the primary response when somebody speaks out with a serious complaint of this nature; we will be talking later about complaints of another nature. I hope very much that people will become engaged with this issue, which has been so well represented here today.

[Lord Hunt of Wirral (Con)]

My Lords, I commend my noble friend Lady Morrissey on moving this important amendment. She speaks from her own personal experience with wisdom and understanding, in particular on the whole issue of investigation and action. I also agree with the noble Baroness, Lady Kramer: the victim can so often find themselves on trial, and that is unacceptable.

So I have some sympathy with this amendment, in that it seeks a more proportionate approach to the matter than the Bill currently contains. We all agree that harassment, particularly when it is persistent—and, even worse, when it comes from a senior colleague—is a stain on society. Not only does it poison the workplace; it can ruin lives.

The amendment emphasises the need for employers to act reasonably, particularly in cases involving serious allegations such as sexual assault or harassment by senior management, and to protect the well-being of the employee involved.

Of course, many businesses already follow best practice, and we believe that proper measures to address the issue are critical in building safer and more respectful workplaces. Clause 20 as drafted also raises concerns about free expression, and it is our view that the amendment would be better placed elsewhere in the Bill, where it can be more thoroughly examined and discussed in its own context, without the issue of freedom of expression being engaged.

I want to emphasise from these Benches that we are committed to tackling sexual harassment in a meaningful way, but we also believe in ensuring that the right to free expression is carefully protected. We will listen very carefully to the Minister’s response to these concerns, and we will continue to advocate for a balanced approach that protects the dignity and safety of individuals while preserving fundamental rights.

Employment Rights Bill

Lord Hunt of Wirral Excerpts

Committee stage
Monday 19th May 2025 Lords Chamber

Moved by

[Lord Hunt of Wirral (Con)]

97: After Clause 22, insert the following new Clause—
“Employer duties on harassment: impact assessment(1) The Secretary of State must carry out an assessment of the likely impact of sections 19 to 22 of this Act on employers.(2) The assessment must report on the extent to which the prevalence of third-party harassment makes the case for measures in sections 19 to 22 and—(a) include an assessment of the impact of sections 19 to 22 on free speech;(b) include an assessment of the likely costs to employers of sections 19 to 22;(c) include—(i) an assessment of which occupations might be at particular risk of third-party harassment through no fault of the employer, and(ii) proposals for mitigations that can be put in place for employers employing people in such occupations.(3) The Secretary of State must lay a report setting out the findings of the assessment before Parliament.”Member's explanatory statement
This new clause requires the Secretary of State to assess the impact of the provisions of Clauses 19 to 22.

[Lord Hunt of Wirral (Con)]

My Lords, Amendment 97 stands in my name and that of my noble friend Lord Sharpe of Epsom. I am delighted that my noble friend Lord Jackson of Peterborough and the noble Baroness, Lady Fox of Buckley, have also signed this amendment.

As we look back over the debates we have had on Clauses 19, 20, 21 and 22, we quickly reach the conclusion—as the Minister said in winding up the last debate—that there is a great deal of misunderstanding about the effect of these clauses. That is because the Government’s impact assessment is simply not fit for purpose. This proposed new clause would require the Secretary of State to assess the impact of the provisions of Clauses 19 to 22.

In many ways, I am only repeating what I have said on several other occasions throughout the passage of the Bill: there has not been enough homework done on the impact of the various clauses. That is particularly true in relation to the clauses concerning the requirement for employers not to permit the harassment of their employees by third parties.

I say to the noble Lord, Lord Fox, that my noble friends Lord Young of Acton and Lady Noakes have not exhibited synthetic rage but genuine concern. They have raised a number of important and serious concerns about the clauses as drafted. Yet the Minister, although I was hoping she might, failed to commit to undertaking a comprehensive and robust impact assessment. That is just not good enough.

In fact, on all three of the standard criteria used to evaluate regulatory proposals—rationale for intervention, identification of options and justification for the preferred way forward—the Regulatory Policy Committee has given a red rating to the Government. That should be deeply concerning to all of us in this Committee.

The Government are, of course, absolutely right that harassment in the workplace is unacceptable. That is a point on which there is strong consensus right across the Committee, and rightly so. Many noble Lords have spoken powerfully and persuasively on this matter during our debates, including many, very eloquently, on the Government Benches. Given that, it is all the more baffling that the Government should have taken such a lacklustre and superficial approach to the impact assessment for these specific clauses.

The assessment surely needs to provide a much more rigorous analysis of the risks. There is, for example, no mention at all of the very risks and impacts that led to the Worker Protection (Amendment of Equality Act 2010) Act 2023 being amended during its passage through Parliament. That legislation originally included provisions around third-party harassment, which were dropped after those serious concerns were raised, particularly in relation to freedom of speech and the cost burdens on employers. Surely no justification is offered here for ignoring those previous conclusions.

--- Later in debate ---

[Lord Leong (Lab)]

My Lords, this has been a very thought-provoking debate, and I thank all noble Lords who have contributed. I thank the noble Lord, Lord Sharpe of Epsom, for tabling Amendment 97. The noble Lord is seeking to add a new clause that would require the Secretary of State to assess the impact on free speech and on employers of Clauses 19 to 22 when the Bill becomes an Act. We have already produced and published an extensive set of impact assessments. Indeed, we have produced and published no fewer than four impact assessments covering provisions in the scope of the noble Lord’s amendment.

[Lord Hunt of Wirral (Con)]

In order to get his speech off to a really good start, can the Minister include his defence of the red rating given to those impact assessments by the Regulatory Policy Committee, a completely independent assessment?

[Lord Leong (Lab)]

I thank the noble Lord for reminding me of this; we covered it last week. The RPC did not question the policy of the Bill. It just questioned the evidence—and I will go further on this Bill.

These assessments are based on the best available evidence of the potential impact on businesses, workers and the wider economy. We plan to further define this analysis in the future, working with a range of stakeholders including businesses, trade unions, academics, think tanks and the Regulatory Policy Committee to do so.

The Government are steadfast in their commitment to tackle all forms of harassment in the workplace. We know that harassment at work can have a huge impact on affected individuals, as well as broader economic impacts. The burden of holding perpetrators to account and of driving change is too great to be shouldered by employees alone. These measures send a clear signal to all employers that they must take steps to protect their employees from harassment, including from third parties, to encourage a cultural change.

We know that the vast majority of employers agree that harassment is unacceptable and are working to ensure that their employees are treated with respect. We will work in partnership with them towards this shared goal and will support them with these changes. We will publish an enactment impact assessment once the Bill receives Royal Assent, in line with the Better Regulation Framework. This will account for amendments made to primary legislation during the Bill’s passage through Parliament that would significantly change the impact of the policy on business. This impact assessment will be published alongside the enacted legislation. Additionally, we will publish further analysis, alongside carrying out further consultation with stake-holders, ahead of any secondary legislation, to meet our Better Regulation requirements.

According to our best estimates, across all our harassment measures the monetary cost to businesses will not be significant. Other than the initial one-off familiarisation cost, repeatable costs to businesses are very low. All three measures will also bring benefits to businesses in avoiding the harassment of staff.

--- Later in debate ---

[Lord Hunt of Wirral (Con)]

We are all very grateful to the Minister for sharing that personal experience. I believe he can be comforted by knowing that there is a shared desire right across this House to ensure that all workplaces are safe, respectful and free from harassment. I hope that he would also expect, in the light of his personal experience—and I think several of us could probably share our personal experiences—that we must, however, act as a Parliament should act, which is that well- intentioned legislation has to be workable, proportionate and underpinned by clear evidence.

The noble Lord, Lord Hendy, made the point about the benefits, but any impact assessment will not be restricted to looking at the costs but will also look at the benefits. Any proper impact assessment should give the full picture, so that when the legislation is presented to Parliament, we can adjudicate on it. In many ways, the consultation he instanced is coming the wrong way round. The consultation should accompany the intention to legislate. Then, once the consultation is complete, we are subject to parliamentary scrutiny. Consultation is no excuse for lacking accountability to Parliament. That is, I think, where the issue divides us.

[Lord Leong (Lab)]

I take on board every contribution made by every noble Lord. This is a very important aspect, and we need to get it right. Rather than me reading a couple of sentences provided by my officials in the Box, I make an offer to all noble Lords that I will organise a meeting so that we can sit down and go through this in more detail.

[Lord Hunt of Wirral]

There is no need for me to say any more. Thank you very much. I accept that offer, and I beg leave to withdraw my amendment.

Amendment 97 withdrawn.

Employment Rights Bill

Lord Hunt of Wirral Excerpts

Committee stage
Tuesday 13th May 2025 Lords Chamber

Moved by

[Lord Hunt of Wirral]

74A: After Clause 11, insert the following new Clause—
“Impact assessment: Statutory Sick Pay provision on absenteeismWithin 12 months of the day on which this Act is passed, the Secretary of State must publish an assessment of the impact of the provisions in this Act relating to Statutory Sick Pay on levels of absenteeism.”Member's explanatory statement
This new clause requires the Secretary of State to publish an assessment of how the Statutory Sick Pay provisions in the Act impact absenteeism, within 12 months of the Act being passed.

[Lord Hunt of Wirral (Con)]

My Lords, after what has been a fascinating, wide-ranging and important debate on statutory sick pay, I would like to focus on the impact that these changes are going to have in particular on absenteeism, on short-notice shifts and on enhanced sick pay schemes. So I shall speak to Amendments 74A, 74B and 74C. We will continue to make the point that this Bill brings with it a raft of unintended consequences.

The importance of Amendment 74A cannot be overstated. Absenteeism is a critical issue for many businesses, especially those in hospitality, retail and other service-based industries, where staff shortages can lead to disruption, cancellations and even closures. With the removal of waiting days for SSP and the expansion of eligibility, it is essential that all of us should understand fully how these changes will affect absenteeism patterns across various sectors.

One of the sectors most concerned with the potential rise in absenteeism that these changes will cause is, of course, hospitality. Many businesses in this sector rely on part-time, hourly or zero-hour contracts, often employing younger workers, students or those with fewer financial responsibilities.

As we know, a significant portion of the workforce in hospitality earns below the lower earnings threshold for statutory sick pay, and may be employed for only limited hours. These workers are typically less dependent on their income, often still living at home or with fewer financial obligations. This brings us to a major concern. If these workers know that they will still receive statutory sick pay regardless of their financial needs, there may be little incentive for them to attend work when they feel under the weather, or even when they would simply prefer a day off. The concern is that the reforms could result in workers taking sick leave when it may not be strictly necessary, as the financial implications of their doing so would be mitigated by the statutory sick pay payment.

For example, if a student worker or part-time employee knows that they will still receive statutory sick pay, even if they do not meet the earnings threshold, they may not feel the same level of obligation to attend work. This is particularly true in a sector such as hospitality, where work provides either temporary or supplementary income. As such, the absence of financial pressure could lead to increased absenteeism in the short term, which could, in turn, lead to operational challenges for hospitality businesses, especially those that already operate with small teams, a high turnover of staff, or both.

As I mentioned, we believe it is essential that the Government thoroughly evaluate how these statutory sick pay provisions would affect absenteeism, particularly in sectors such as hospitality, where the risks of absenteeism are most pronounced. The impact assessment called for in Amendment 74A would enable us better to understand the extent to which these reforms would result in higher absenteeism rates and whether there are any other unintended and undesirable consequences, such as workforce disengagement, or a lack of motivation to work, in sectors where employees may not be so financially reliant on their income.

It is vital to understand, first, how absenteeism levels might change, especially in sectors with a younger, less financially reliant workforce; secondly, the operational challenges businesses would face due to potential increases in absenteeism; and, thirdly, the wider economic effects of these changes, including potential impacts on service quality, customer satisfaction and employee morale.

I turn to Amendment 74B. The proposal to remove the waiting period for statutory sick pay and the lower earnings limit represents a substantial shift in how sick pay obligations are structured. It carries serious financial implications, particularly for low-margin sectors, such as retail and hospitality, and for small and medium-sized enterprises more broadly. This amendment seeks a modest but necessary safeguard. It asks the Government to publish, within six months, a report on the impact of these statutory sick pay reforms on employers’ ability to offer enhanced sick pay and occupational health and well-being services.

As of 2024, 28% of UK employers offer occupational health services, while 27% provide sick pay that goes beyond statutory minimums. While we certainly want to see those numbers improve, we must surely understand why provision remains relatively low. A survey conducted last year found that 43% of business leaders cite financial constraints as the primary barrier to offering enhanced sick pay. Another 31% highlighted legal complexity; 28% cited administrative burden; and 31% cited staffing challenges as further obstacles. Rather than addressing those challenges, surely the Government have to recognise that the Bill threatens to amplify them.

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[Lord Fox (LD)]

It would be very useful if she could share it with the other Front Benches as well.

[Lord Hunt of Wirral (Con)]

I am very grateful to the Minister. We have had a very important debate. I am particularly grateful to the noble Baroness, Lady Fox of Buckley, because we have not really spent enough time worrying about the people who are just unable to cope. Working conditions have changed so much. Stress-related sick leave is a huge issue, as is what the noble Baroness referred to as “losing the habit of work”. These are issues that we have to think about very carefully.

There is an important and complex issue of so-called presenteeism, which deserves greater attention in our discussions about workplace health and productivity. I came across some research—perhaps the noble Baroness had this in mind—carried out by Robertson Cooper: its 2023 data, drawn from over 3,000 UK respondents, revealed that almost two-thirds, 60%, of employees reported working while they were unwell, so-called presenteeism, in the last three months. That is an important issue, which has to be taken into account in any impact assessment.

The distinction is essential because not all forms of working while unwell are inherently harmful. Some, such as pragmatic or therapeutic presence, can be beneficial for both the employer and the employee. The challenge lies in identifying when presenteeism becomes detrimental and ensuring that workplace policy, including statutory sick pay reform, supports businesses in managing that balance effectively.

I am also grateful to the noble Lord, Lord Vaux of Harrowden, for reminding us of the finding of the Regulatory Policy Committee. We just need to be aware of the severe criticism that was meted out about a Bill that is making such profound changes while in the gloom of uncertainty, because no one can be actually sure what effect these changes are going to have.

Employment Rights Bill

Lord Hunt of Wirral Excerpts

Committee stage
Tuesday 29th April 2025 Lords Chamber

At first sight, Amendment 283 might seem like a long list but, in fact, it is not half of how this Bill will reach into working life. The amendment would require the Secretary of State to publish a code of practice that provides employers with guidance on complying with the Act. The code should set out best practice, compliance monitoring and enforcement procedures. It should ensure necessary consultation with stakeholders and would enshrine a review every five years. We need to see a draft of this code before this Bill progresses to its final stage; I would be happy to discuss with the Government how to make this happen. I beg to move Amendment 1.

[Lord Hunt of Wirral (Con)]

My Lords, briefly, I thank the noble Lord, Lord Fox, for bringing forward this important purpose clause amendment, which I must tell him—I know he is always surprised when I praise him—is a very cleverly worded amendment to which my noble friend Lord Sharpe of Epsom and I were very happy to add our support.

I do not know why this Bill has had to be rushed through within 100 days. Given the significance of this legislation, surely it would have been better if the Government had committed themselves to ensuring thorough and proper scrutiny. However, we have seen the introduction of 160 amendments on Report in the House of Commons—amendments which, in many cases, received no or little meaningful examination.

Even more concerning is the fact that the Government have tabled 27 amendments for Committee in this House. We have received a letter from the Minister warning us that there are more amendments in the pipeline on fire and rehire, the fair work agency, employment Bill time limits, trade union reform and maritime employment. What on earth is going on? Why was not this Bill properly prepared? This has meant that the letter to which the noble Lord, Lord Fox, referred is virtually saying to the House of Lords, “Please, on behalf of all the employers—and, indeed, all the businesses in the UK—we rely on you in the House of Lords to scrutinise this Bill properly”. I just do not think that this is the right way to treat Parliament. We owe it to the legislative process and to the public we serve to ensure that our scrutiny is neither rushed nor compromised.

No doubt the Minister will argue that a purpose clause is completely unnecessary. However, we respectfully disagree, and not only for the reasons raised by the noble Lord, Lord Fox. It is vital for the Bill clearly to articulate its overarching aims: not simply to modernise employment rights in name but to set out a clear ambition to create a fairer, more secure labour market; to encourage genuine co-operation between employers and workers; to protect rights and well-being in the workplace; to ensure proper standards for pay and conditions across sectors; and to guarantee robust enforcement of labour protections. I have to say that, without a purpose clause, this Bill risks being directionless and, worse, risks unintended consequences that neither workers nor businesses can possibly afford.

I think also—and I hope the noble Lord, Lord Fox, will agree—that a purpose clause is particularly important where there are a large number of delegated powers to make regulations within it. In effect, the Government are saying, “Please give us the power to do whatever we would like to do whenever we would like to do it”. The committees of this House have, time and again, urged Governments to turn their back on these Henry VIII clauses and present Parliament with clear cases to amend primary law, not do it through secondary legislation.

Well, there is growing concern about this Bill, which is why the British Chambers of Commerce, the Confederation of British Industry, Make UK, the Institute of Directors and, in particular, the Federation of Small Businesses, which between them represent thousands of businesses across the country, have published this open letter to the House of Lords, asking for urgent changes to the Bill. They did so because they are deeply concerned that, as drafted, the Bill will make it harder, not easier to create fair, secure and co-operative workplaces. They warn that the Bill will increase risk and uncertainty for businesses precisely at the moment when we need businesses to invest, to hire and support in particular those who are at the margins of the labour market.

I do not think that the substantive concerns of all the businesses quoted by the noble Lord, Lord Fox, have been listened to. I just hope that the Minister can respond when she winds up this debate. I look forward to the speeches from all sides of the House. I will not quote in detail from the letter, but it does remind me of the words of Milton Friedman. If I am ever to find myself quoting Milton Friedman, I suppose that this is the moment. He said:

“One of the great mistakes is to judge policies and programmes by their intentions rather than their results”.


Well, fine phrases about modernising employment rights and updating legislation are no substitute for carefully considered, properly scrutinised measures that deliver real-world improvement. So that letter from all those businesses is not a warning but a plea to this House. It is a recognition that we as the revising Chamber have a unique and critical responsibility to ensure that this Bill works. They are not closing the door on the Government but offering, at the end of the letter, to work with us all and with Ministers to help improve legislation.

In conclusion, if we are to get all these amendments, can we hear from the Minister how many more amendments we are going to get and when? The Government Chief Whip is constantly referring us to the Companion. I have never quoted from the Companion before, but it has pretty severe words for a Government who choose to table amendments at the last moment, without proper notice. So could we hear from the Minister what further amendments are planned, when we will receive them, and which parts of the Bill will be fundamentally altered? Here we are, at the start of Committee, still not knowing what the Government are proposing.

In an unguarded moment, the Minister disclosed to me that she has an implementation plan, which I understood from her was in draft. This House ought to see the draft implementation plan. Why can we not see it? Perhaps we could help the Minister produce the final draft. We should not get an implementation plan half way through Committee. Could we hear from the Minister on when we will see the implementation plan? A lot of businesses up and down the length and breadth of this country are totally uncertain about what the detail of this Bill will be. It is about time that we heard from the Minister about what the Bill seeks to do, what its purpose is and whether we can see it in its full form before we go any further with Committee.

[Lord Monks (Lab)]

My Lords, I will speak to Amendment 1 and avoid the temptation to engage in a mini-debate across the whole width. So far, I feel I have been sitting in a Second Reading debate. I have given speeches in this House before, reflecting similar sentiments to those in this amendment about fairness and co-operation. These are the words used in the amendment from the noble Lord, Lord Fox. I gave them in the context of the debates on Conservative anti-union laws, which we have addressed in this House in my time. Sadly, no one on the Conservative Benches, except for the noble Lord, Lord Balfe, who is in his place, paid any heed. The laws then proceeded to the statute book and the result was an imbalance in British employment law very much in favour of employers.

The Bill goes some way towards correcting that. Once it has been implemented, I hope we can look again at a system of mature collective bargaining of which we all can be proud. But first, we must replace the imbalance, and do so speedily, because it is glaring. Change is desperately needed; our labour market is characterised by high inequality—only two OECD countries have a bigger gap between rich and poor and between top earners and the very low-paid.

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[The Parliamentary Under-Secretary of State, Department for Business and Trade and Department for Science, Information and Technology (Baroness Jones of Whitchurch) (Lab)]

My Lords, I thank the noble Lord, Lord Fox, for his detailed engagement with our Bill and for Amendments 1, 283 and 327. I thank all noble Lords who have contributed to this wide-ranging debate, which has revisited many of the debates that we had at Second Reading.

Amendment 1 seeks to insert a new clause of the beginning of the Bill to set out the overarching purpose and to provide a framework for understanding the aims of the legislation. I thank the noble Lord, Lord Fox, for his challenge on this issue, but it is important to reflect on why we are bringing the Bill forward and what we hope to achieve through it.

The plan to make work pay sets out a significant and ambitious agenda to ensure that workplace rights are fit for the modern economy, to empower working people and, importantly, to contribute to economic growth. Delivery of that plan was, as we have heard, a manifesto commitment and part of the mandate on which the Labour Government were elected. On 10 October, the Government fulfilled their manifesto commitment to bring forward legislation within 100 days of entering office by introducing the Employment Rights Bill.

The noble Lords, Lord Fox and Lord Hunt, and others have asked about the later amendments that have been tabled. I reassure noble Lords that these are technical amendments and that the Committee will have adequate opportunity to scrutinise them all properly. The noble Lord, Lord Hunt, and others asked about an implementation plan. I reassure noble Lords that that will be shared as soon as it is available. We agree that businesses need guidance on the timescale and implementation of the measures in this Bill. We are working at pace to ensure that they have that information.

There is strong support for the measures included in the Bill. The Institute for Public Policy Research found that every constituency in the UK has a majority or plurality of people who believe that workers’ rights should be strengthened. My noble friend Lady O’Grady mentioned the latest poll. In addition, the TUC’s polling and that of HOPE not hate of over 21,000 people across the political spectrum has found strong support for key policies in the Bill. More than seven in 10 of UK voters—72%—support a ban on zero-hours contracts. Three-quarters of voters support giving all workers the right to statutory sick pay and ensuring that it is paid from the first day. Three-quarters of voters support giving all workers protection from unfair dismissal from the first day in their job.

This is a comprehensive Bill which delivers on a clear mandate from the British public. Once implemented, the Bill will represent the biggest upgrade of workers’ rights in a generation. Good employers support this package, because many of them are already delivering these standards. What they do not want is to be undercut on an uneven playing field.

I can give a few examples; I know the Opposition like to ask this question. Centrica, the Co-op, Richer Sounds, Nationwide, IVC Evidensia and IKEA UK and Ireland have all given their support to the measures in the Bill, and a lot of SMEs have done likewise, so it does have resonance with the business community.

Modernising the world of work will raise standards and tackle undercutting so that businesses are empowered to compete in a race to the top. I can reassure noble Lords that the Government, of course, recognise the concerns about the costs to business. The £5 billion figure from our impact assessment is a top-end estimate of the costs, which will largely represent a direct transfer to the lowest paid in society, with the bottom end of the range close to £1 billion.

The costs, therefore, are likely to be under 0.4% of our national wage bill and could even be as low as 0.1%. Furthermore, improving workers’ well-being, increasing productivity, reducing workplace conflict and creating a more level playing field for good employers would grant significant benefits worth billions of pounds per year. That is why delivering the benefits of the Bill would offset the costs.

I can reassure noble Lords that a number of these measures, as I have already said, have strong support from businesses, and we will of course carry on consulting them as we put these plans into practice to ensure that they are as effective as possible. The noble Baroness, Lady Stowell, mentioned the tech sector and will know that I am very minded of this. We will continue to engage with the tech sector on a regular basis to make sure that it contributes everything it can to the Government’s growth strategy.

The noble Lord, Lord Fox, and others have mentioned SMEs, and we will have the chance to debate this later in the Bill. In short, we do not agree that there should be two-tier employment rights: employment rights for all is a fundamental principle.

The noble Lord, Lord Empey, and the noble Baroness, Lady Stowell, talked about skills. We are absolutely committed to a new skills agenda, which is why Skills England is modernising our skills provision. It is an area where, traditionally, the unions and employers have made common cause to make sure that the upskilling of the workforce happens on a comprehensive basis.

This Bill shows the Government’s commitment to strengthening collective bargaining rights and trade union recognition. Our approach will foster a new partnership of co-operation between trade unions, employers and the Government. In response to the point made by the noble Lord, Lord Fox, our reforms remove hurdles that frustrate the voices of workers, but trade unions will still need to win a majority of workers’ votes in a ballot to be recognised by an employer. If workers do not want to be represented by a trade union, they will have the option to vote against recognition in that ballot.

On Clause 1 and the proposed list of priorities, I agree with my noble friends Lord Hendy and Lady Carberry that the purposes are already covered in the Bill. My noble friend Lord Hendy pointed out that the Long Title already addresses the purposes within the Bill, and as my noble friend Lady Carberry pointed out, the list is not exhaustive. If we are to have a list, it would need to be a whole lot longer than it is at the moment and cover a whole range of other aspirations already covered in Labour’s Plan to Make Work Pay.

The noble Baroness, Lady Neville-Rolfe, raised other issues that could be included in that list. Again, I assure her and others that all these issues have been consulted on extensively in the Bill. I would like to reassure noble Lords that there is no need for such a clause to be inserted to achieve this aim. The Explanatory Notes set out the purpose of the Bill clearly and provide further detail on the aims of the legislation. These notes were updated when the Bill transferred to this House and will be updated again when it receives Royal Assent. The Government have also published a series of fact sheets, which are available on GOV.UK and aid the understanding of the Bill’s aims.

Finally, from a legal perspective, inclusion of such a clause could risk producing unintended consequences on the interpretation of specific provisions within the Bill, which have been drafted to achieve the particular purposes concerned. While I understand what the noble Lord, Lord Fox, is trying to achieve, and I appreciate the debate that he has created, I hope I have persuaded him that it is not appropriate to include this in the Bill.

Amendment 283 seeks to require the Secretary of State

“to publish a code of practice providing employers with guidance on complying with the Act”.

This has had much less attention in the debate but, nevertheless, I will attempt to address the concerns that the noble Lord raised.

We have consulted and remain committed to consulting widely on the detail of implementation. The Government have also committed to ensuring that, where appropriate, guidance is published to ensure that all stakeholders have the information they need to make necessary adjustments. However, a Bill-wide code of practice, as suggested in the amendment, would be duplicative of the policy-specific guidance and codes of practice that the Government will already produce to support workers, employers and trade unions in implementing the reforms.

There is existing provision for the issue of guidance and codes of practice across employment law. Where relevant, the Bill amends those provisions to reflect that they will need to be updated to take account of the changes made by the Bill. This includes codes of practice issued by ACAS under the Trade Union and Labour Relations (Consolidation) Act. Such codes are subject to consultation requirements and must be laid in draft in both Houses for approval, and we are already working closely with ACAS to plan ahead for this work.

Where new statutory guidance is required, this is also provided for, such as in Clause 30, which inserts new Section 83D into the Procurement Act to make provision for the issue of codes of practice on relevant outsourcing contracts by appropriate authorities.

By requiring a single Bill-wide code of practice, this amendment would also risk delaying the Government in offering certainty on the details of policy and regulation on individual issues as they become available. I hope I have persuaded the noble Lord that this would therefore result in duplication and unnecessary delay.

Amendment 327 would prevent the implementation of measures in the Bill until the point at which the Government produce a Bill-wide code of practice. Some measures in the Bill will not require any further guidance before they are implemented—for example, the repeal of the Strikes (Minimum Service Levels) Act 2023. Delaying the date on which these measures can commence would unnecessarily delay the point at which workers can benefit from measures in the Bill.

Codes of practice are used to provide guidance to employers on how to comply with employment law. By nature they are detailed, building on and clarifying requirements set out in statute. There are several measures in the Bill where further consultation will be required to develop regulations setting out key details of reforms. Within six months, it would not be possible for all the outstanding policy details to be finalised to inform the content of a Bill-wide code of practice. Codes should bring clarity, but these timelines would risk patchy or unclear content if we were to go ahead on the basis of these amendments.

I agree with the need to ensure that workers, trade unions and employers are sufficiently supported for the implementation of the Bill, but this amendment is unnecessary and duplicative. I hope I have persuaded the noble Lord that the codes of practice that he envisages would not help to provide the detailed guidance that employers and workers require. I thank him for raising the issue, but I hope I have persuaded him not to press those amendments.

[Lord Hunt of Wirral (Con)]

The Minister has shared with the Committee that there is an implementation plan. As we are now moving to consider each clause, the first few in particular, it would be helpful for the Committee to be made aware of the part of the implementation plan that governs each and every clause. Is she able to share it with the Committee and, if so, by when? Might we at least see a draft of the implementation plan, so that businesses across the UK know what lies ahead?

[Baroness Jones of Whitchurch (Lab)]

I know the noble Lord has already raised this, and he tempts me, but there has to be further consultation. He will understand that. Part of the legislation obviously requires further consultation to take place. We are still looking at the timescales for all this, and we obviously understand the need to provide guidance as soon as we can, but what I can say that will be reassuring to everybody concerned is that this will be a phased process; this is not a day-one process. We just need to make sure that the phasing of all this makes sense for employers so that it can be done on a proper basis and with the appropriate guidelines behind it. We are working on it, we will share it as soon as we can, and we understand the need for it, but it is not available at this time.

--- Later in debate ---

[Baroness Kramer (LD)]

My Lords, I am channelling the noble Lord, Lord Fox, who has been called away. He, on behalf of these Benches, cannot accept a two- tier workplace in regard to employment rights, which obviously form the content of this Bill, so we will not be supporting these amendments.

[Lord Hunt of Wirral (Con)]

My Lords, I am very grateful to the noble Baroness, Lady Kramer, for setting out the position so clearly, but I am particularly grateful to my noble friend Lady Noakes because, as a result of her moving the key Amendment 5, we have had a remarkably positive debate about what I believe is the lifeblood of the UK economy, namely the small and medium-sized business sector. The noble Lord, Lord Londesborough, of course, is a great authority on all this, and it was good to hear from the noble Lord, Lord de Clifford, as well.

When we reflect for a moment on the speeches that have been made in this debate—apart from that of the noble Baroness, Lady Kramer—we have not had any contributions from the Government Benches. But, as my noble friend Lord Leigh of Hurley pointed out, the most important contribution will be made by someone who really does understand. The noble Lord, Lord Leong, knows all about small businesses, and I am thrilled and delighted that he is summing up the debate because he understands what so many of my colleagues have tried to point out. The noble Baroness, Lady Neville-Rolfe, said that bureaucracy can get in the way of success. Look at the amount of rules and regulations and bureaucracy.

I agreed with all my noble friends, including my noble friend Lord Ashcombe when he pleaded for a sensible and measured response. We all want to see bereavement leave—all good employers allow for bereavement leave. We want to see rights established very clearly, but my noble friend Lady Verma pointed out that if we impose them on the small and medium-sized sector in the way that my noble friend Lady Noakes outlined, three, four or five employees will suddenly have to deal with all this legislation.

Let us remind ourselves of the importance of small businesses. As several of my colleagues pointed out, at the start of last year there were 5.45 million small businesses with up to 49 employees, making up a staggering 99.2% of the total business population in the UK. We are talking about a massive sector, and therefore we have to worry and concern ourselves about the effect of the Bill. As the Federation of Small Businesses put it, in its current form the Bill risks becoming nothing short of a disaster for small and micro-businesses.

The noble Baroness from the Liberal Democrat Benches spoke about a two-tier workforce system, which those Benches object to. But as my noble friend Lady Noakes pointed out, we do in fact have tiering alive and well throughout the UK economy. It is not trying to impose one size fits all; it is recognising that over 99% of businesses in this country are small and cannot possibly cope with the burden of this Bill.

It just so happens that I already have a quotation from the noble Lord, Lord Leong, which I readily move to. We have heard from the Government on multiple occasions that they are committed to supporting SMEs and ensuring that they are not burdened with excessive costs or red tape. The noble Lord, Lord Leong, made a very important point during the passage of the Product Regulation and Metrology Bill:

“we do not want to burden SMEs with additional regulatory or financial cost”.—[Official Report, 25/11/24; col. GC 138.]

What wise words: we would love to hear those words from him again tonight. He will realise that the reality of this Bill is starkly different. The only thing this Bill seems to do for SMEs is to burden them with additional regulatory and financial costs. It is incredibly difficult to reconcile the Government’s stated intentions with the actual impact this legislation will have on small and micro-businesses across the country.

I know that my noble friend Lord Sharpe of Epsom and I have Amendment 282 in this group, but I do not want to go into it. I was taking the old Companies Act definition, and I do not need to go into all the findings of the Bolton committee and all those who have sought to define this, because I think my noble friends have done a great deal to define small and medium-sized enterprises.

We just need to know what the Government intend to do to alleviate the burden on small and micro-businesses. The impact assessment has highlighted the significant challenges that these businesses will face in implementing these reforms, and at the moment there is no adequate plan to support them.

I would like to ask the Minister these questions. First, will he please outline what the three main expected benefits of this Bill will be for small and micro-businesses? Secondly, how will the Government support small businesses in complying with the provisions of this legislation? What kind of guidance, training and resources will be made available to ensure that these businesses can navigate the new regulations without inadvertently falling foul of the law? Finally, can the Minister provide an assessment of the risk of unintentional non-compliance by small businesses? What steps are the Government taking to mitigate this risk and ensure that these businesses are not unduly penalised as a result of a lack of guidance in the legislation?

The Government have not consulted the small and medium-sized sector. If they have, can we please have a great deal more detail on what their conclusions were? If they have not consulted, will they please do so now?

[Lord in Waiting/Government Whip (Lord Leong) (Lab)]

My Lords, I thank all noble Lords who contributed to this group of amendments with such passion. The noble Baroness, Lady Noakes, together with the noble Lords, Lord Sharpe and Lord Hunt, tabled several amendments—Amendments 5, 124 and 282—that seek to remove micro-businesses and small and medium-sized businesses from the scope of large sections of the Bill.

Employment Rights Bill

Lord Hunt of Wirral Excerpts

Committee stage
Tuesday 29th April 2025 Lords Chamber

[Baroness Kramer (LD)]

My Lords, I am going to stick with being very brief. We have had three exceptionally powerful speeches. Amendment 16 is, in a sense, tackling a subset of a debate that this Committee has already had on Amendment 7 in the name of my noble and good friend Lord Goddard. I hope that the Government are beginning to accept that not all work comes in steady flows; it can have peaks and troughs and be disrupted by events way beyond anybody’s control. I hope that the Minister is going to take this away and work out how the current drafting needs to change in order to make the necessary allowances, whether it is for theatres, festivals, farmers or food and drink. A whole series of activities that experience those irregular patterns must be incorporated into this Bill.

[Lord Hunt of Wirral (Con)]

My Lords, I agree with the noble Baroness, Lady Kramer, that we need to brief as we have debated this area already. But we do have a great debt of gratitude to my noble friend for bringing forward this amendment. He was, of course, a distinguished Minister for the arts. I do not think people have yet recognised the dangers of one size fits all.

We are very grateful to the noble Earl, Lord Clancarty. I join with him in wanting a detailed impact assessment, particularly for the instance he gave of front-of-house workers. I do not believe that the effect on creative industries has been properly assessed so far as this Bill is concerned, and, as the noble Lord, Lord Berkeley of Knighton, said, there is a need for flexibility.

The theatre industry has only just now recovered—or perhaps it has not yet recovered—from the effects of the Covid-19 pandemic. The last thing it needs now is to be hit by this crude instrument of a Bill, which makes no allowance for the unique nature of the work that it does, and the flexibility that is necessarily inherent in how it delivers for audiences. I really do want to hear from the Minister the extent to which theatres—the larger groups, such as ATG and Delfont Mackintosh, but also small and independent theatres—have been consulted. To what extent have they been consulted about the effects of this Bill?

I will finish off with five questions for the Minister. First, does the Minister accept that the right to guaranteed hours as drafted risks reducing work opportunities for the very people it claims to support, such as students, carers, disabled workers, et cetera? Secondly, can the Minister explain how theatres and other seasonal or project-based employers are meant to reconcile guaranteed hours with programming closures, touring breaks or production gaps?

Thirdly, what modelling have the Government done to assess the potential job losses or reduced shift allocations that could result from this policy, and will they please publish that modelling? Fourthly, why have the Government ignored the clear expert evidence submitted by the Society of London Theatre and UK Theatre to the Public Bill Committee? Finally, does the Minister seriously believe that this legislation embraces inclusion and opportunity for the creative sector, when the sector itself is warning that it will do precisely the opposite?

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Department for Science, Information and Technology (Baroness Jones of Whitchurch) (Lab)]

My Lords, I thank the noble Lord, Lord Parkinson, for tabling Amendment 16, which would require the Secretary of State to have regard to sector-specific work patterns when making regulations relating to the right to guaranteed hours. I am grateful to all noble Lords for their contributions and for highlighting the sometimes unique employment practices that occur in the creative sector and, in particular, the theatre sector.

In response to the noble Lord, Lord Hunt, I would say that we have engaged extensively with the Society of London Theatre and are happy to carry on doing so. We appreciate that some sectors—including the theatre sector, which is highlighted in the noble Lord’s amendment—do have fluctuating demand across the year.

This is a sector that I know all noble Lords recognise we need to support, for all the reasons that the noble Lord, Lord Parkinson, said, particularly for social value reasons. We therefore want to take note and make it right for the sector.

I reassure the Committee that flexibility is already built into the Bill to address issues of seasonal demand. There are several ways under the Bill that an employer could approach that issue while upholding the new rights to guaranteed hours depending on the circumstances, particularly by using limited-term contracts where that is reasonable. Those who are offered guaranteed hours will be able to turn those down and remain on their current contract or arrangement if they wish. Furthermore, through the Bill we have also allowed for employees and unions to collectively agree to opt out of the zero-hours contract measures. Unions can make these deals based on their knowledge of the industry and with a holistic view on what is best for their workers.

We will ensure that the needs of different sectors are considered when we come to design the regulations. We will continue to work in partnership with employers across the different sectors, their representatives, the recruitment sector and the trade unions to develop those detailed regulations, and we will provide clear guidance for both employers and workers in advance of implementing these measures.

The amendment from the noble Lord, Lord Parkinson, had a new concept of available hours for sectors with varying seasonal demand. We would push back on that issue. It could risk creating a two-tier guaranteed-hours framework for workers in sectors with more or less seasonal fluctuation. We believe that the reference period provided for in the Bill will ensure that qualifying workers are offered guaranteed hours that reflect the hours that they have previously worked.

I hope that, in that short contribution, I have been able to persuade the noble Lord that we are aware of the issues and are on the case. We feel that there is considerable flexibility in the Bill as it stands. We are happy to have further discussions. As we have heard from noble Lords, there are a range of issues and a range of options here, so there is not just one way of solving this problem. We are happy to get round the table and talk some more. We feel that, as the Bill is currently designed, it answers the concerns that are being raised with us, but we are happy to talk further. I therefore hope that, on that basis, the noble Lord will be prepared to withdraw his amendment.

Steel Industry

Lord Hunt of Wirral Excerpts

2nd reading
Saturday 12th April 2025 Lords Chamber

[Lord Hunt of Wirral (Con)]

My Lords, I begin by echoing the words of the Government Chief Whip: I thank all the staff of Parliament for their tremendous efforts in facilitating this recall today. It is no small task to bring us all together at short notice, and their dedication to the democratic process is deserving of recognition.

At its heart, this debate is about whether we have a steel sector in this country at all, and whether it is run in the national interest. Earlier today, the Government confirmed that they will take control of British Steel, following the collapse of negotiations with its Chinese owners. This is a pivotal moment, not just for the future of British steel-making but for the future of Britain’s industrial base itself.

Before I go any further, perhaps I may say that our thoughts today must be with the steel-workers, their families, their suppliers and the communities whose futures now hang in the balance. They deserve better than uncertainty and neglect, and they must certainly have a Government who are on their side.

This the first time that Parliament has been recalled to sit on a Saturday since I was sitting in the other place in 1982, after the Falklands war began. It is only the sixth occasion since the end of the Second World War—and for a Bill published just two hours ago. There has been no respect for Parliament whatever. I really must say that this is not the way in which to treat this precious institution.

The Bill itself grants far-reaching powers to the Secretary of State. The Government will argue that this is necessary because of the emergency we face. However, just now, in the other place, the Secretary of State said:

“I do not want these powers a minute more than necessary”.


So where is the sunset clause in this Bill? How can we be assured that these extraordinary powers will not be abused or extended indefinitely? The Government have to make clear the precise timeframe for these powers and, more importantly, they must demonstrate how they intend to ensure that public and Parliament are not left in the dark once this emergency has passed.

The choice before Ministers should never have become this stark. Faced with the collapse of British Steel, the Government had little option but to intervene. Let us be clear: nationalisation is not a triumph but a last resort made necessary by failure. Without it, Britain would indeed have become the only G7 country without primary steel-making capacity. However, today’s events are not simply the result of forces beyond the Government’s control. The truth is that nationalisation must be a platform for urgent and permanent modernisation, not a short-term bailout or a delaying tactic. Without decisive action, Britain’s steel industry will wither under the combined pressures of global competition, green regulation and technological change.

It is essential that we consider the effect and impact of green targets, which have placed immense strain on our industries. The policies driving us towards net zero by 2050 have hit our industries hard, especially energy-intensive sectors such as steel. Energy costs in the UK are now the highest in Europe, and four times those in the United States, and the current trajectory of green regulation is making it harder, not easier, for our industries to compete internationally.

We just need to ensure that our environmental goals do not come at the cost of our industrial base. The Government must urgently review their net-zero policies to ensure that they support, and do not strangle, British industry. If we do not strike the right balance, we will continue to see industries such as steel driven offshore, taking with them not only jobs and investment but the very emissions targets we champion. We cannot allow this to happen.

Let us remember that, just a few months ago, Ed Miliband banned coal and coke production in the UK and boasted about sending a signal to the world. Yet today, as we heard in the other place, the Government are going around the world with a begging bowl, trying to find enough coal to keep the last blast furnaces running. Could British Steel survive today if access to coal was not artificially restricted? Possibly, but we are in this mess because decisions such as this have been made in pursuit of political point-scoring by this Government, with no thought for the long-term health of our core industries.

How is it possible that no one in the Government saw this crisis coming? How could they have been so unprepared? The warning signs have been flashing for months: ageing infrastructure, soaring energy prices and growing global competition. We debated in this Chamber just a short time ago the fact that there had been no serious contingency planning, as yet no coherent industrial strategy and certainly no sense of urgency. Instead, the Government are now scrambling to nationalise British Steel as a last resort. That is not leadership; it is crisis management at its worst.

On 31 March, the Minister stated that

“we will be producing a steel strategy very soon”.—[Official Report, 31/3/25; col. 18.]

Following the events of the last 24 hours, and now that the Government have found time to lay an emergency Bill, it is surely time for them to publish an emergency steel strategy too. Where is it? The Secretary of State in the other place just referred to quotations from the steel strategy, so it must exist in draft. Should this House not be given a copy? Steel-workers and their families, and the taxpayer, need more than vague assurances—they need clear timelines—so when will this strategy be published? Will it commit to the urgent modernisation that our steel sector desperately needs? Will it address the crippling energy costs faced by our steel-makers? Will it set a clear and credible path to return British Steel to private ownership?

We have to learn from industry. The last time steel was nationalised, back in the 1960s, the results were disastrous. I will cite figures from Hansard. Grants and loans to the British Steel Corporation between 1967 and 31 March 1980 totalled £4,925 million, and the net total loss for BSC since 1967 has been £1,552 million. Rather than revitalising the industry, nationalisation led to bureaucratic inefficiencies, losses, a decline in productivity and widespread industrial action.

The Government’s approach to the steel sector is compounded by the broader challenges they face and are imposing on employers right across the country. The Government increased employers’ national insurance contributions and they are rushing through the unemployment Bill, which, in its current form, will add further strain to the already fragile labour market. It is difficult to see how these measures align with any credible strategy to attract private investment. Surely the Minister must acknowledge that the Government’s policies have made it more difficult to deliver the investment that the steel industry so desperately needs. If they are serious about a future where British Steel is returned to private hands, they must urgently reconsider their policies. We agree that uncertainty has to end, so will the Government confirm today that, should nationalisation be pursued, it will be only a temporary measure? Will they clearly set out the timeline for that transition to private ownership?

We cannot afford to hear again the standard vagueness of “all options are on the table”. This does not provide the certainty that workers, who deserve clarity about their future, need. It does not provide certainty for the taxpayer, who is now footing the bill. Which brings me to my final point: can the Minister tell us what estimate the Government have reached of the cost of nationalisation to the taxpayer? This is not leadership; this is not planning; this is a crisis, and one that should never have been allowed to happen in the first place.

--- Later in debate ---

[Baroness Jones of Whitchurch (Lab)]

I thank the noble Earl for raising that question. I am sure that we would be happy to consult with the relevant committees within your Lordships’ House as well.

A number of noble Lords, including the noble Lord, Lord Hunt, asked about the cost of providing these safeguards. We are directing British Steel to act in a way that safeguards its assets, and this funding should be provided by the company. If the Government need to spend money, we will look to recover that from the company if we can and where reasonable. We have committed up to £2.5 billion for steel, via the National Wealth Fund and other routes, and no further government borrowing is envisaged to support any intervention. The alternative would be importing steel at considerable extra cost to our economy. As noble Lords have pointed out, we would then be the only country in the G20 without domestic steel production. There is a cost either way, and we must balance those costs when we make decisions going forward.

The noble Lord, Lord Sikka, asked what was happening in Port Talbot and whether we are nationalising British Steel in response to this situation. As I made clear in my opening comments, we are not nationalising anything. We have put forward a Bill to ensure the continued safe operation of the blast furnaces. Without swift intervention, there was a risk of accelerated closure, jeopardising the safety and production outcomes of British Steel.

Tata Steel decided to close the blast furnaces at Port Talbot in January 2024 under the previous Government, and the decision to provide a grant agreement towards Port Talbot’s transition project was made by the previous Government. This transition was already well under way by the time we came into office. This is the point that the noble Lord, Lord Davies, made. However, I say to the House that we negotiated an improved deal with Tata, after just 10 weeks in office, with better terms for workers, future investment opportunities for the area and the highest voluntary redundancy package Tata has ever offered. Since then, we have provided more than £50 million directly to the local community, from the £80 million available from the UK Government to help people learn new skills, to support the supply chain and to protect people’s mental health.

The noble Lord, Lord Kerr, the noble Baroness, Lady Jones, and others asked about the endgame for British Steel. Our long-term aspiration for British Steel remains a co-investment agreement with a private sector partner to secure a long-term transformation. We are determined to see a bright and profitable future for steel-making in this country.

A number of noble Lords asked about energy prices and the cost of energy. The Government are committed to tackling high industrial prices in the UK. The British industry supercharger package of measures for energy-intensive industries came into force in April 2024 and brings energy costs for strategically important UK industries, including steel, closer in line with other major economies around the world, so that they remain competitive on the world stage. Once fully implemented in April 2025, the measures will save eligible businesses on average £24 to £31 per megawatt hour on their electricity costs. The total value of reduced electricity prices is estimated to be between £320 million and £410 million in 2025 and around £5.1 billion over 10 years. This will help keep business energy costs down.

To reiterate the point about future scrutiny of the implementation of the Bill, as the Secretary of State said in the other place, we are happy to engage with relevant committees, and I am happy to keep the House updated on these matters. We will continue to update the House every four sitting weeks on the use of these powers.

[Lord Hunt of Wirral (Con)]

Can I just say to the Minister how grateful we are that she understands the House’s concern about the use of these powers? As I understand it, she has told the House that she will return every four weeks to update the House on the use of the powers. However, she was intervened on by the noble Lord, Lord Fox, to suggest that she might go a little further than that and have a clear debate after six months. I still think that this whole question of a sunset clause is very relevant indeed. Can the Minister expand on what she said earlier—that she believes that a fixed sunset clause would not be workable or acceptable? Why not? It is generally accepted in this House that powers of this nature should have a sunset clause. Can she perhaps expand on that and give a little more detail before we consider whether to table such an amendment?

[Baroness Jones of Whitchurch (Lab)]

My Lords, I thought I had answered that point. The Bill, as it stands here, is to deal with one emergency. As we know, it is a volatile sector and we might need to use those powers at other times. We will use them judiciously and with care, and, as I keep saying, we will continue to update the House as to the use of those powers. We do not feel that a sunset clause is necessary or desirable in this Bill. To clarify, my general comment to the noble Lord was that we would continue to engage with the Lords committees to make sure that they are fully updated with progress going forward.

In concluding this debate, I convey my thanks to all noble Lords for their thoughtful contributions and for helping us to pass this legislation so that we can retain steel-making capacity in the UK—for British workers’ security, for British industry’s future and for the future of British Steel workers and their families. That is our priority and that is how we intend to go forward.

Steel Industry (Special Measures) Bill

Lord Hunt of Wirral Excerpts

Committee stage
Saturday 12th April 2025 Lords Chamber

Moved by

[Lord Hunt of Wirral)]

1: Clause 2, page 1, line 6, after “undertaking” insert “within a period ending one year after the passing of this Act”

[Lord Hunt of Wirral (Con)]

My Lords, as I indicated earlier today, in this House we have a responsibility to ensure that legislation is properly scrutinised and debated, and that it does not give unlimited powers to the Executive without the essential checks and balances that are largely portrayed in the work in depth of this House, in particular.

My noble friend Lady Laing of Elderslie reminded us that, in its report, Fast-track Legislation: Constitutional Implications and Safeguards, the Constitution Committee stated that

“whenever possible sunset clauses should be incorporated into emergency legislation particularly in relation to legislation that impacts upon civil liberties”.

It continued,

“emergency legislation should automatically be subject to post-legislative review”.

A number of us have had a chance to reflect not only on the debate we have just had but on the words of the Minister, who, in her closing speech, said that she would regularly update the House every four weeks. Reflecting, though, on what the Constitution Committee said, we do not believe that that goes far enough. That is why my noble friend Lord Davies of Gower and I have tabled this amendment, to ensure that there is a sunset clause. We look forward to hearing from the Minister as to whether or not she accepts the need for some check on the power of the Executive.

A number of noble Lords quoted from the Bill, which we have, of course, seen for the first time only today. One such quotation was the unfortunate wording in Clause 3 that:

“The Secretary of State may do anything for the purpose of securing the continued and safe use of the specified assets”.


It is essential that that power is there available for the sake of the future of the Scunthorpe steelworks, but should it be there available in perpetuity? That is the key question that this Chamber must now decide.

The fact that the Government are saying that they may need to return to Parliament to extend these powers is not, as they seem to believe, an argument against a sunset clause. I believe that it is imperative that emergency powers are subjected to constant oversight, and I hope that the House will agree with me. These amendments that we are proposing would simply allow Parliament to do its job. Emergency powers should never be allowed to become permanent by default. Surely, they have to be justified continually, not assumed indefinitely.

We recall the Coronavirus Act, as my noble friend pointed out. That was a piece of emergency legislation containing a sunset clause. That was in recognition of the fact that the Bill provided extraordinary powers—it was not power that should ever be delegated to the Government indefinitely. What we are now proposing has a strong precedent, and we would strongly encourage the Government to adopt this. If these are emergency powers designed to allow the Government to intervene in Scunthorpe’s steelworks in the short term, why would the Government resist a sunset clause? Indeed, in the debate in the other place, the Secretary of State said in response to an intervention that these are short-term measures to deal with an emergency situation, and he used “temporary” in opening. Why can the Government not accept that these are temporary but necessary powers?

I suppose there is also the argument that there is greater certainty if we know exactly where we are so far as the powers devolved to the Government are concerned. Earlier today, I agreed with the noble Lord, Lord Fox, in calling for a sunset clause, and heard his further comment that a debate might perhaps help to focus attention in a way that would then enable Parliament to understand the motivation behind it. I am slightly nervous at that. There is no substitute for an out-and-out sunset clause, which I believe is the right thing to do in these circumstances. I hope that the Minister, particularly accompanied by the wording of the Bingham lecturer, the person sitting alongside her—with which I agreed and have quoted on many occasions—agrees that it is time for a reset between Parliament and the Executive. This is the time. I beg to move.

[Baroness Freeman of Steventon (CB)]

My Lords, I speak very briefly to my Amendment 2. Clause 3(4) makes it clear that the Secretary of State has power to enter premises and make orders on the premises, but the wording in subsection (4)(a), in which it says that

“the Secretary of State may … be accompanied by any person”

could be read to imply that the powers are invested in the Secretary of State in person—that is, that the Secretary of State themselves would need to be present on the premises. After speaking to the Public Bill Office, I wanted to give the Government the opportunity to clarify that a designated representative of the Secretary of State would be imbued with these same powers, so that any intransigent company could not seek to delay government action by demanding that the Secretary of State was present in person.

--- Later in debate ---

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Department for Science, Information and Technology (Baroness Jones of Whitchurch) (Lab)]

My Lords, I am sure that by now noble Lords will be more than familiar with what the Government are seeking to do with this legislation. It will allow us to take control of British Steel’s blast furnaces, maintaining steel production and, by extension, protecting the company’s 3,500-strong workforce. As such, I will turn swiftly to the amendments at hand.

Noble Lords across the House have raised a number of important issues relating to the parliamentary scrutiny of this Bill. I want to reassure noble Lords that this Government take these concerns very seriously. With regard to the amendment in the name of the noble Lord, Lord Hunt of Wirral, that seeks to add a sunset clause to the Bill, I will reiterate what I said earlier: because of the speed at which this legislation has been drafted and the uncertainty of the situation, it was neither necessary nor appropriate to set a timeline on those specific interventions. As noble Lords are keenly aware, the current international situation is unpredictable. A fixed sunset clause would not be practical and would cause an unacceptable amount of uncertainty if a solution to the issue at hand became protracted. In those circumstances, we might have to come back to Parliament and go over this whole process again.

We can revoke directions given to a particular steel company at any time once the need for intervention has passed. As I have said, we would welcome working with the Business and Trade Select Committee in the other place and relevant committees of your Lordships’ House, to make sure that we work with your Lordships and Members of the other place and keep everyone updated, so that these powers are not in place any longer than is absolutely necessary.

I was clear in the debate earlier today that the Government will provide an update to Parliament every four sitting weeks, as well as providing information to relevant Select Committees. I do not want to pre-empt discussions in the usual channels across both Houses about the nature of these updates, but it is our intention that the first instance will be an Oral Statement and that subsequent updates will be made in an appropriate manner. What this means in practice will be subject to further discussion but could, for example, be determined by the reality on the ground at that time.

Given the interest in both the steel sector and the use of powers in this Bill, I can confirm that my noble friend the Chief Whip will facilitate a fuller debate on the Floor of the House on the operation of what will then be the Act. This will take place within six months, with exact details to be subject to further discussion in the usual channels. In addition, as stated in the Government’s letter to all Peers this morning, we intend to publish our steel strategy in the spring. We will continue other related work, such as on our modern industrial strategy, and we will of course update noble Lords on that as well. All of these moments will allow scrutiny of the Government’s use of the powers in this Bill and of our wider efforts to support the vitally important steel industry.

The noble Lord, Lord Hunt, draws attention to Clause 3(2) and his concern about the words that the Secretary of State can do “anything”. I have to say to him that those words need to be read in conjunction with the rest of that sentence, which limits them to anything that a

“relevant person in relation to that undertaking could do”.

It is for only a very specific purpose. I hope that this commitment satisfies the concerns raised by the noble Lord, Lord Fox, and the noble Baroness, Lady Coffey.

I underline that a sunset clause would create further uncertainty for thousands of workers, who need to know that their jobs are secure on a long-term basis. Inserting a sunset clause would create an arbitrary deadline by which the long-term future of that plant would need to be settled. As I said before, nothing is off the table in our response to securing the future of steel in this country. We should send a strong message today to those whose livelihoods depend on the steel sector that this Parliament stands behind them.

The amendment of the noble Baroness, Lady Freeman, seeks to add to Clause 3(2), after “the Secretary of State”, the words,

“or a responsible person they designate”.

I can confirm that Clause 3(2) entitles the Secretary of State to do

“anything … that the steel undertaking, or any relevant person … could do”.

So officials can act in the name of the Secretary of State.

Regarding the question of the noble Lord, Lord Moylan, about using force if necessary, this will be a statutory power to be carried out by those acting on behalf of the Secretary of State. Officials or their agents could use force to enter the premises, but this would have to be lawful force; therefore, they could not assault anyone, and there would have to be clear barriers on their actions. It is up to police judgment as to whether they would intervene, based on usual policing principles.

I hope I have been able to provide reassurance on all these matters. I therefore respectfully ask that all the amendments in this group are not pressed.

[Lord Hunt of Wirral (Con)]

My Lords, I join the Minister in wanting to send a strong message from Parliament to all those involved in the Scunthorpe steelworks that we are solidly in support of them, and that everything we do today is directed to that end.

Turning to my amendment and the debate we have just had, I think that the noble Baroness, Lady Freeman, made a very important point about civil servants being able to act in the name of the Secretary of State. My noble friend Lady Coffey confirmed that that was the case, so at least we know where we are.

I thank the noble Lord, Lord Fox, very much indeed. He and I have been working together on this as hard as we possibly can to find a way through, because we do not want to stop this action in its tracks—far from it. We just feel that Parliament—in particular, the House of Lords—and the words of our Constitution Committee should not be disregarded. The committee has a right to stress the importance of sunset clauses.

However, having heard this debate, I am quite happy, following discussions through the usual channels, to indicate that such a debate could be postponed until we know a little more clearly where we are. In six months’ time, if we are to have—as the noble Lord, Lord Fox, and the noble Baroness, Lady Brinton, have suggested—what he referred to as a substantive debate, and, as the Minister said, further debate on the operation of this legislation, we have made a great deal of progress. The voice of this Chamber has been heard, and I am very pleased to have been able to speak in this debate. I say to my noble friend Lord Moylan that he and I still await the reply to the question that he posed, but no doubt the Minister will write.

I do not think that the noble and learned Baroness, Lady Butler-Sloss, has had an answer to her point about force. That is something that we will have to leave for another day, but it is a very important issue. We should not be giving powers in this Parliament to individuals to use force without clarifying exactly the circumstances in which they can be used.

All in all, we have reached a reasonable conclusion, and I am very grateful to the Minister for having listened so carefully and taken to heart the concerns of this Chamber about the need for this legislation to have an end date. We will return to that in the debate that we will have in October on a substantive Motion, as the noble Lord, Lord Fox, said. In the meantime, I beg leave to withdraw my amendment.

Amendment 1 withdrawn.

Employment Rights Bill: Productivity

Lord Hunt of Wirral Excerpts

Monday 31st March 2025 Lords Chamber

Asked by

[Lord Hunt of Wirral]

To ask His Majesty’s Government how the Employment Rights Bill will “support the Government’s mission to increase productivity”, as stated in their factsheet for the bill, and what evidence they have to suggest that it will increase productivity.

[The Parliamentary Under-Secretary of State, Department for Business and Trade and Department for Science, Information and Technology (Baroness Jones of Whitchurch) (Lab)]

My Lords, last year we published a comprehensive package of analysis showing how the Bill could increase productivity. Evidence included in that impact assessment shows that making workers happier and healthier helps boost productivity. This analysis draws on the best available evidence and consultation with external experts and stakeholders. For example, research from the University of Cambridge shows:

“The consensus on the economic impacts of labour laws is that, far from being harmful to growth, they contribute positively to productivity”.

[Lord Hunt of Wirral (Con)]

My Lords, the Minister will be aware that small and medium-sized enterprises are the lifeblood of our economy. What analysis have she and her colleagues in Government carried out of the effect on small and medium-sized enterprises of day one rights?