Employment Rights Bill

Debate between Lord Watson of Invergowrie and Lord Sharpe of Epsom

Committee stage
Tuesday 3rd June 2025 Lords Chamber

[Lord Watson of Invergowrie (Lab)]

My Lords, I am pleased to speak in support of my noble friend Lady Warwick on an issue that, as far as I am aware, has not appeared anywhere else but is of some importance. There is growing unease in the higher education sector about the potential implications of Clause 30. Universities UK has said it is frustrated that its letters to both officials and Ministers—they would be the same thing, I imagine—remain unanswered. UUK is probably being a bit polite in saying that it is frustrated; I suggest that it is unacceptable for a letter from any UK-wide organisation not to receive a response. If nothing else, I hope my noble friend will be able to give an assurance in her reply that she will ensure that Universities UK receives a considered response to its very legitimate concerns.

As my noble friend said, the higher education sector is concerned at the potential impact of measures proposed in Clause 30, which relate to outsourcing, on current arrangements within the sector and on the viability of steps that universities have taken or are planning to take in order to stabilise their financial position. Many universities consider themselves as falling within the definition of contracting authorities and may therefore be inadvertently caught in this clause of the legislation.

As originally introduced, the public sector outsourcing provisions applied to contracting authorities in England only. However, Ministers introduced an amendment in Committee in another place, and provisions now apply to contracting authorities in England, Scotland and Wales. Again as my noble friend said, the major point on which clarification is essential is whether and in what circumstances universities will be considered to be contracting authorities for the purposes of this legislation.

There is also the question of whether the planned separate outsourcing rules for different UK nations will or even might create complex and prohibitive arrangements for universities. As an example, if an institution is working across the UK nations—a good example would be the Open University—that could mean it is subject to two or more sets of outsourcing rules, potentially providing a conflicting legislative framework for its operational practice. I hope my noble friend will be able to clarify how the Government envisage such separate outsourcing rules will operate, and that in doing so she will provide reassurance to many in the higher education sector who, as my noble friend Lady Warwick said, are very supportive of the Bill in general but fear that universities could become victims of unintended consequences.

[Lord Sharpe of Epsom (Con)]

My Lords, I thank both noble Lords for their contributions, and I thank the noble Baroness, Lady Warwick of Undercliffe, for her introduction to her Amendment 143B. We think it is important to recognise the unique position of higher education providers when considering worker protection in public sector outsourcing. Because universities and similar institutions operate outside the traditional public sector framework, they possess a level of autonomy that sets them apart from government bodies, so applying the same regulatory requirements to these institutions clearly risks imposing unnecessary burdens that could affect their ability to focus on their core missions of education and research.

The amendment seems to us to thoughtfully acknowledge that difference by excluding higher education providers from the scope of these specific worker protection provisions. Such an approach would allow the focus of these protections to remain on core public sector organisations, where procurement processes are more standardised and closely tied to government accountability. At the same time, it would respect the operational independence of universities.

The fair treatment of workers remains an essential principle across all sectors, including higher education. Encouraging good employment practices within universities should continue through other means, but the amendment recognises the practical realities faced by these institutions. I look forward to hearing the Minister’s answer.