Carer’s Leave Bill

Baroness Winterton of Doncaster Excerpts

Friday 3rd February 2023 Commons Chamber

[Mr Mohindra]

My hon. and gallant Friend is absolutely right to highlight that potential issue. The way I would read it, however—to go back to what the Minister said in the previous debate—is that reputation matters. For an employer, when an employee says that they have caring responsibilities, it shows loyalty. In my experience, it shows that the employee is more loyal, passionate and eager to do a good job when they are at work. If someone approached me for a job today and flexible working were part of their requirements, I would regard that as an asset. Part of the challenge is educating employers to understand that it is a benefit to have someone with that skillset in their workforce. It is, in my eyes, more important to be effective at work than just to clock in and out.

Let me continue humanising this story. I was contacted by Susan Graham, one of my constituents, a couple of years ago. She told me her personal story:

“I have been caring for my husband who was diagnosed with Parkinson's Disease 10 years ago. I have had to leave work to care for him and try to find other ways to help with our financial needs for our family.”

The fact that she has had to reach out to her constituency MP—despite the support that great third-party organisations and the voluntary sector can provide—is strong evidence that we need to do more. The Bill from the hon. Member for North East Fife is part of the long-term-solution jigsaw. I know that the Minister will understand that there will probably be an evolution in future legislation as a consequence of the Bill, but we need to balance that with employers and combat any unintended consequences.

A lot of work has been done in this particular policy area. Back in 2017, the Work and Pensions Committee found that carers often choose between taking a sick day or using a day’s annual leave. The Committee concluded that there was

“a strong case for five days’ statutory paid carer’s leave based on the existing statutory leave system.”

That is where I think this place does excellent work. Although we are all eager to make a positive impact on people’s lives, our work needs to be evidence-based and involve all sides of the debate. In my experience, Select Committees are typically a good way of doing that, as are all-party parliamentary groups.

Information gathered for the 2021 census showed that 92,781 people in Hertfordshire provided care to friends and family. That number is just a portion of the national one, which shows the huge scale of the matter. The organisation Carers in Hertfordshire supports people who care for family or friends with physical or learning disabilities, dementia, mental health problems and much more. It has approximately 32,500 registered carers, so caring affects a huge number of people. Open Door, an excellent charity in my constituency, hosts a “memory café” every Friday. I have attended and seen at first hand the excellent work that it does by ensuring that those who are suffering have a support network. It also allows carers to get a bit of respite from the 24/7 challenges that they face. I take this opportunity to thank each and every one of those organisations and all the carers throughout the country.

To return to the topic of employers, we need to legislate properly, but we also need to ensure that this is not a one-sided debate. I referred earlier to my own experiences as a small business owner. We need to be conscious that although the unpaid aspect of the legislation is important, the time off may have a material impact on smaller businesses. I therefore think that the pro rata five days’ annual leave is proportionate. My hon. and gallant Friend the Member for Bracknell (James Sunderland) suggested that it could be 10 half-days, and I think that is appropriate, because things are sometimes a bit ad hoc when a family carer needs to step up and help someone with, for instance, an appointment.

Employers who support their employees have lower staff turnover. In my experience, it inevitably takes a bit of time for a person joining the workforce to learn the nuances of a new employer, because while all employers will have the requisite skills and, probably, tradecraft, each one will have unique aspects. Treating employees well should be regarded as a bonus because it makes them better employees, so in terms of reputation and legacy that is the right thing to do. The Bill has tangible benefits for the employer as well as the employee.

Informal carers are forgotten about in parts of our legislation. They are currently not entitled to any dedicated statutory leave, and have to rely on other forms of leave. A tenth of all adults in the UK provide unpaid care for a friend or family member. I do not think that any Member, on either side of the House, wants unpaid carers to feel forgotten about, and I hope that the flexibility that the Bill allows will demonstrate, in a very small way, our gratitude for the selfless work that they do.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Minister.

Protection from Redundancy (Pregnancy and Family Leave) Bill

Baroness Winterton of Doncaster Excerpts

3rd reading
Friday 3rd February 2023 Commons Chamber

[James Wild (North West Norfolk) (Con)]

Like other hon. Members who have spoken, I welcome this important Bill. I congratulate the hon. Member for Barnsley Central (Dan Jarvis) on introducing it to the House and on his efforts to successfully secure cross-party and Government support so that it can make it to the point that it has today. Hopefully, later today it will pass through to the other place.

This Bill will address a gap in current protections by giving the Secretary of State power, by regulation, to extend protection against redundancy to cover a longer period during or after a period of pregnancy. The Secretary of State would have the power to make regulations to extend equivalent protections for those on adoption leave or shared parental leave after that period of leave has concluded.

This Bill has been a long time in the making, and comes too late for the hon. Member’s constituent Natasha, as he said. It was back in 2015 that the EHRC, working with the then Department for Business, Innovation and Skills, commissioned research into this issue, precisely to establish the prevalence and nature of pregnancy discrimination and disadvantage in the workplace. Other hon. Members have referred to the data, but it bears repetition. There was a shocking estimate that around 54,000 mothers may be forced out of their jobs each year. Some 77% of mothers said that they had had a negative or possibly discriminatory experience during pregnancy, maternity leave or on their return from maternity leave.

The second piece of research I want to mention was that carried out by Pregnant Then Screwed. My hon. Friend the Member for Orpington (Gareth Bacon) referred to the findings that more than 11% of women on maternity leave had been made redundant or expected to be made redundant, of whom 60% believed that their maternity leave was a factor in the decision. Those are the statistics, but behind them is the terrible impact on individuals and their families.

We in this House are here to protect people from such discrimination. That is what this legislation will do. As well as the surveys and work outside Parliament, it is right to recognise the action that the Government and other Members have taken to address the issue, including my right hon. Friend the Member for Basingstoke (Dame Maria Miller), who proposed a number of Bills on this issue. In 2019, the Department for Business, Energy and Industrial Strategy launched a consultation to extend the current protection to cover pregnancy and the period after—an extension of six months. In response, the Government pledged to extend the redundancy protections and to extend equivalent protections for those taking adoption leave or shared parental leave. That measure was included in an outline of an employment Bill in the Queen’s Speech in 2019, shortly after the election. Understandably, the Government had to focus on leading the country through the pandemic, but happily, that employment Bill, rather like the break-up of AT&T and the creation of the Baby Bells, has now allowed a number of smaller Bills to flourish. Hopefully other Bills that we are discussing today will take forward what was in the employment Bill.

I warmly welcome the Government’s support for this Bill, which demonstrates a commitment to protecting people’s employment rights while maintaining important labour market flexibility, which has seen unemployment at its lowest in 50 years. It is important that employers and employees are aware of these new protections. I would be interested to hear more from the Minister about the Government’s plans to work with business organisations such as the Federation of Small Businesses, the British Chambers of Commerce, the CBI and the Institute of Directors, as well as the TUC and other organisations, to promote the changes, so that companies know what they have to do, and individuals know what their rights are.

This is a framework Bill, and it is important to get the detail of the regulations right, which is why the affirmative procedure is appropriate in this case. Could the Minister update the House on when he expects to bring forward those regulations and how much consultation there has been with the groups I have mentioned and others, to make sure we get this right?

We always have to be mindful of the need to minimise as far as possible the cost to business of the legislation we pass. Paragraph 24 of the explanatory notes states:

“The one-off cost to business of familiarising themselves with the new legislation, for example to amend their HR policies, is estimated at £30.4m.”

I expect—and knowing the Minister, I am pretty sure this will happen—the Government to issue simple, clear guidance for companies to follow, to make this legislation as simple as possible to implement. There is a broader point about the need to revitalise our deregulatory agenda in other policy areas, to reduce the cost to business and back enterprise, as the Chancellor set out in his recent speech. There are lots of opportunities to do that, without the limitations of our being a member of EU.

In conclusion, there is a great consensus across the Chamber today, and I look forward to the Bill completing its remaining stages and delivering the greater protection for new mums during and after maternity leave that they deserve.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Minister.

Strikes (Minimum Service Levels) Bill

Baroness Winterton of Doncaster Excerpts

Committee stage
Monday 30th January 2023 Commons Chamber

[Several hon. Members rose—]

[The Chairman of Ways and Means (Dame Rosie Winterton)]

Order. A great many Members are trying to get in. I cannot impose a time limit because we are in Committee, but I strongly advise colleagues to speak for rather less than 10 minutes. I also intend to prioritise those who have tabled amendments.

[Dr Mullan]

Let me begin by making it clear that I do, of course, want everyone working in the emergency services and the wider NHS to earn a decent living and to work in conditions that help them to perform at their best. I think that everyone wants that.

There is no doubt that our NHS has been under enormous pressure, and that continuing state of affairs has been the subject of much of the debate on this Bill, but I think we must recognise the record investment in the NHS. Demand has soared, and there are pressures on the service run by Labour in Wales and by the Scottish National party in Scotland. We hear the narrative of, “This party this” and “this party that”, but Labour Members keep their heads down when we are discussing the NHS in Wales. That just shows that they are making political capital out of the challenges in the NHS. The right hon. Member for Ashton-under-Lyne (Angela Rayner) shakes her head, but the problems in the NHS are exactly the same in the Labour-run NHS in Wales. That is a fact—and there is more money per head for the NHS in Wales than for the NHS in England.

That said, I welcome the additional steps to support the NHS that the Government have taken today. We need to come to terms with the existence of an ageing population and increasing demand, although I recognise that issue is separate from what we are discussing today, which is what reasonable legislative steps we might take whether public services are performing well or not, and whether or not there is pressure on employees and wages.

I will always defend workers’ right to strike as important, but it has always been a qualified right, not an absolute right. I intervened on the deputy Leader of the Opposition to make the point that we already have legislation—not a voluntary agreement—that states that police officers cannot strike. I have not yet heard of the Labour party putting in their manifesto that they would repeal that if they were lucky enough to win the next election, because they think that legislation on mandatory strike control is unacceptable. That makes the politics of this issue very obvious. Any successful society must balance the right of workers in certain sectors of the economy.

--- Later in debate ---

[Dr Mullan]

No, I have given way a couple of times and I want to make progress. [Interruption.]

[The Chairman of Ways and Means (Dame Rosie Winterton)]

Order. The hon Gentleman says that he will not give way.

[Dr Mullan]

As I said, Opposition Members need to make up their minds. On the one hand, they want to constantly castigate this Government for moving away from what they say is the gold standard of employment relations in Europe—I do not agree with that—but when we come up with something that is done in Europe and that we want to do here, they are not interested. They talk about differences in how ballots are run and other elements that are separate from the issue of whether to have minimum service legislation.

--- Later in debate ---

[Several hon. Members rose—]

[The Chairman of Ways and Means (Dame Rosie Winterton)]

Just a little reminder that I said under 10 minutes would be helpful, otherwise not everyone will get in.

--- Later in debate ---

[Joanna Cherry]

What the hon. Lady is saying is very interesting, but does she accept that, as we are in Europe, any analysis of the legality of these proposals has to start with article 11 of the European convention on human rights? Can she point to any country in Europe with Government-enforced minimum standards that can lead to the sacking of workers on strike? [Interruption.] The Minister should listen to the question carefully, because the answer will be on the record. Can the hon. Member for Newbury (Laura Farris) point to any other country in Europe that has Government-enforced minimum standards, without negotiation and without arbitration—

[The Chairman of Ways and Means (Dame Rosie Winterton)]

Order. The hon. and learned Lady will be trying to catch my eye later, and I do not want interventions to be too long.

[Joanna Cherry]

I was interrupted.

[The Chairman]

I know, and I was going to say that it is important that interventions are not interrupted. Has the hon. and learned Lady finished?

[Joanna Cherry]

Can the hon. Member for Newbury point to any country in Europe in which, as a result of Government-enforced minimum standards, without any negotiation and without any arbitration, a worker can lose his or her job, other than—wait for it—Hungary or Russia?

--- Later in debate ---

[Several hon. Members rose—]

[The Chairman of Ways and Means (Dame Rosie Winterton)]

Let me say to the hon. Lady that she was not being annoying; I thought she made a thoughtful speech. I also want to emphasise that I cannot impose a time limit. I simply make a plea to colleagues that if everybody is going to get in, a little discipline might not go amiss on the time front.

[Christine Jardine (Edinburgh West) (LD)]

I rise to speak against this Bill and in support of amendment 2, which stands in my name and that of my party. Having listened to the debate so far, it strikes me that we can dance on the head of a pin all we like, but this legislation would not, in any way, resolve the situation the country is facing. The Bill does not address the problem; it simply seems to take a mallet to peel a peach.

My amendment, which I ask the Committee to support, would address the problem, because it calls on the Government to look at the level of minimum service they are calling for and ensure that it did not exceed the relevant service recorded on any day of the 12 months previously. It also seeks to ensure that before making regulations on minimum service the Secretary of State would lay before Parliament a report showing that that condition as to the previous 12 months had been met.

I proposed that because I would like the Government to ensure that we can depend on a minimum service level in this country regardless of whether there are strikes and that their attention is to the service provided to the public rather than to attacking the unions. In his comments, the right hon. Member for North East Somerset (Mr Rees-Mogg) confirmed that this legislation has been on the books, or in thoughts, for some time and that it is not simply about the present strikes but rather about addressing the issue of industrial relations. I would like the Government to think about whether, in talking about setting a minimum service level, the level of service we have at the moment is acceptable or whether they have run public services into the ground, and whether all they are doing with this Bill is shifting the blame on to workers rather than accepting their own failures.

This Bill is yet another attempt to use the workers and the situation we are in, with crisis after crisis, as a political football to distract from the mismanagement of public services that has led us to this point. If the Government truly want to find a solution to these problems, surely the answer is to take a step back and look at the poor levels of service on days when there is no industrial action. Those poor levels of service have not arisen through anyone’s will to have low services. It has happened simply because of lack of resources and investment in our public services, which for many years, including through the pandemic, staff have struggled to improve on and work through, in conditions that they believe in many cases are unacceptable.

--- Later in debate ---

[Chris Stephens]

The hon. Gentleman makes an excellent point. That is the problem, is it not? The Bill says “transport services”, and that could be anything. It could be buses, taxis or the horse and cart for all we know, because the Bill is so open-ended.

Madam Deputy Speaker, I hope that the Government will look at the amendments that my hon. Friends and I have tabled, which are an attempt to improve the Bill. Our main reason for opposing the Bill is that the Government will be impinging on devolution and on human rights, and they do not know what happens in a trade union-organised environment. That is why the Bill should not get a Third Reading.

[The Chairman of Ways and Means (Dame Rosie Winterton)]

Just a tiny point of information: when I am sitting at the Table, I am not Madam Deputy Speaker; I am either Dame Rosie or Madam Chair. I call Rachael Maskell.

[Rachael Maskell]

Thank you, Dame Rosie. I rise to support many of the amendments. Not only is this Bill bad law, but it will make the industrial landscape far worse. The Minister is trying to make a monster out of something that does not exist and a problem that does not occur.

The Bill needs correcting to comply with international law. I am grateful to Members for tabling amendments 39 and 34, which highlight how the Bill is at odds with ILO convention 87. That is why my hon. Friend the Member for Middlesbrough (Andy McDonald) tabled amendment 83, which would bring that convention into law by creating a framework by which the Bill must go forward—otherwise, it will just spend months in the courts, and I expect that that is where it will end.

We are talking about safety, so not having an impact assessment is quite unbelievable, not least when we know that many of the clauses could well result in services being more unsafe than they are currently. I draw the Minister’s attention to the fact that we already know that those services are unsafe. On Second Reading, I raised statistics from the Royal College of Emergency Medicine about the health service being unsafe, with 500 additional deaths every single week. The Secretary of State dismissed those figures. However, a witness from the Royal College of Emergency Medicine set out his peer-reviewed workings when he appeared before the Health and Social Care Committee.

--- Later in debate ---

If we saw this happening anywhere else in the world, we would be outraged. We would call it draconian, undemocratic or evidence of a dictatorial regime. The Government should be ashamed of themselves. They style themselves as espousing the best of British values, but they would undermine one of the most fundamental British rights, all because they have lost the argument. Let us make no mistake: they have lost the argument on pay and conditions, which is why teachers, nurses, train drivers, physios, firefighters and others are all striking or set to strike. The Government are doing this because disputes are being won, right across the country, and they do not want to see any more wins for our trade unions. This unprecedented situation is no ringing endorsement of this Government; it is further evidence that it is time they left office, taking their shoddy legislation with them.

[The Chairman of Ways and Means (Dame Rosie Winterton)]

I call Liz Saville Roberts.

[Liz Saville Roberts]

Diolch yn fawr iawn, Dame Rosie. I refer hon. Members to my entry in the Register of Members’ Financial Interests: I am the co-chair of the justice unions parliamentary group. I am not employed by it and do not receive a penny from it, but I still have to declare it. It would be very useful if other hon. Members had to declare their support from employers as well.

I rise to speak to amendment 76 and new clause 3 in my name. It is telling that amendment 76 is one among many amendments—including those tabled by SNP colleagues and by the hon. Member for Cynon Valley (Beth Winter)—designed to prevent the UK Government from interfering with primary legislation passed by Senedd Cymru or the Scottish Parliament. Powers to amend or revoke workers’ rights legislation on a whim have no place in a modern democratic society. The protections that my amendments would afford are critical in a period when it is becoming increasingly clear not only that devolution is under attack from Westminster, but that our fundamental rights and freedoms as citizens are not safe from an increasingly authoritarian Government in Westminster.

New clause 3 would require the UK Government to conduct an impact assessment of the effect of the Bill on industrial relations in Wales. Actually, it does not go as far as the amendments tabled by the hon. Member for Cynon Valley. It seems a very reasonable request to see what the effect of this legislation is on a sister Parliament in the United Kingdom. The assessment under the new clause would have

“particular reference to the intended outcomes of the Social Partnership and Public Procurement (Wales) Bill”.

That Bill, which is currently being debated in the Senedd, will place a duty on certain public bodies to work with trade unions when setting and delivering on wellbeing objectives.

In Wales, we seek to include workers in the making of the very public policy decisions that will have an effect on their working lives. We want to chart a different path: one whereby workers are empowered and valued, not bullied as they are by Westminster. That brings us to the very heart of the question why the right to strike is so important. Giving workers the opportunity and the choice to be represented collectively in the work environment by a trade union enables them to be heard and to bargain collectively. Okay, those are good words, but why do they actually matter? They matter because this is the key tool for improving living standards and tackling inequality. That is especially important in a country like Wales, where sadly a third of children are growing up in poverty.

We have a duty to tackle inequality and poverty. Undermining the effectiveness of industrial action at a time when the cost of living crisis is biting will only perpetuate the cruel poverty cycle that has trapped so many people in so many communities. Amplifying workers’ voices can also bring significant benefits to employers, as it can be a way of identifying issues at an early stage and ensuring that the valuable insights that workers have into how services can be improved are heard and acted on. This is about facilitating meaningful discussions and negotiations that lead to real solutions—which is not to say that such an approach is always easy, but in the long term it is far more effective than actively sowing the seeds of discord between workers and their employers.

Economic Crime and Corporate Transparency Bill

Baroness Winterton of Doncaster Excerpts

Report stage
Tuesday 24th January 2023 Commons Chamber

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Kevin Hollinrake)]

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

[Madam Deputy Speaker (Dame Rosie Winterton)]

With this it will be convenient to discuss the following:

Government new clause 9—Disqualification on summary conviction: GB.

Government new clause 10—Disqualification for persistent breaches of companies legislation: NI.

Government new clause 11—Disqualification on summary conviction: NI.

Government new clause 12—A limited partnership’s registered office: consequential amendments.

Government new clause 13—Removal of limited partnership from index of names.

Government new clause 15—Reports on the implementation and operation of Parts 1 to 3.

New clause 16—Reporting requirement (objectives)—

“(1) The Secretary of State must publish an annual report assessing whether the powers available to the Secretary of State and the registrar are sufficient to enable the registrar to achieve its objectives under section 1081A of the Companies Act 2006 (inserted by section 1 of this Act).

(2) Each report must make a recommendation as to whether further legislation should be brought forward in response to the report.

(3) Each report must provide a breakdown of the registrar’s annual expenditure.

(4) Each report must contain the details of the steps the Registrar has taken to promote the registrar’s objectives under this Act; and

(5) Each report must provide annual data on the number of companies that have been struck-off by the registrar, the number and amount of fines the registrar has issued, and the number of criminal convictions made, and of cases of suspected unlawful activity identified by the registrar as a result of the registrar’s powers as set out in this Act.

(6) Each report must provide annual data on the number of cases referred by the registrar to law enforcement bodies and anti-money laundering supervisors.

(7) Each report must provide annual data on the total number of company incorporations to the registrar, and the number of company incorporations by authorised corporate service providers to the registrar.

(8) Each report must detail all instances in which exemption powers have been used by the Secretary of State, as introduced by this Act.

(9) The first report must be published within one year of this Act being passed.

(10) A further report must be published at least once a year.

(11) The Secretary of State must lay a copy of each report before Parliament.”

This new clause creates an obligation on the Secretary of State to submit an annual report to Parliament on progress of the reforms in this Bill, data on the register, breaches, use of exemption powers by the Secretary of State and penalties imposed.

New clause 17—Checks on persons with significant control status—

“(1) The Companies Act 2006 is amended as follows.

(2) After section 790LP (Offence of failing to comply with sections 790LI to 790LN) insert—

‘790LQ Duty to check person of significant control status

(1) This section applies when a registrable person’s identity is verified under section 1110A(1) and a risk assessment carried out under section 1062A(1A) has identified a matter of concern in relation to the registrable person.

(2) The registrar must take steps to ensure that the registrable person whose identity is being verified is a person with significant control over the company.

790LR Duty of registrar to cross-check identity of person with significant control

(1) This section applies where—

(a) the registrar has received—

(i) the information required by subsection (6) of section 853G (Duty to deliver shareholder information: certain traded companies), or

(ii) relevant membership information as required by subsection (2) of section 49 (Membership information: one-off confirmation statement) of the Economic Crime and Corporate Transparency Act 2023; and

(b) the risk assessment carried out under section 1062A(1A) has identified a matter of concern in relation to any of the information in paragraph (a).

(2) The registrar must carry out a further assessment to establish whether the people notified to the registrar as persons with significant control of the company are not people notified to the registrar as holding at least 5% shares of the company, and that the reason for the discrepancy is that the company is involved in economic crime.

(3) If following the assessment required by subsection (2) the registrar considers that there is a real risk that the people notified to the registrar as persons with significant control of the company are not people notified to the registrar as holding at least 5% shares of the company, the registrar must carry out the check required by subsection (4).

(4) If this subsection applies, the registrar must take steps to ascertain whether the people notified to the registrar as persons with significant control of the company are people notified to the registrar as holding at least 5% shares of the company.’”

This new clause creates a duty on the registrar to check whether the person declared as the “person of significant control” (PSC) does indeed have significant control of a company, by cross checking company records, on a risk-based approach.

New clause 18—Disclosure of control of 5% or more of shares in a public company—

“(1) This section applies to shareholdings in public companies as defined by section 4 of the Companies Act 2006.

(2) A person who controls 5% or more of the shares in a public company must declare this fact to the registrar.

(3) The duty in subsection (2) applies whether the person controls the shares directly or indirectly.

(4) The registrar may impose a penalty on any person who fails to comply with the duty in subsection (5).

(5) Subsection (6) applies where—

(a) a person has made declaration under subsection (2), and

(b) the registrar has identified a matter of concern under subsection 1062A(1A) of the Companies Act 2006 in relation to the person or the declaration.

(6) The registrar must—

(a) verify the identity of the person, and

(b) verify the number of shares the person claims to control.”

This new clause requires any person holding 5% or more shares in a public company to declare this fact, and empowers the registrar to penalise non-compliance.

New clause 19—Risk-based examination of accounts of dissolved companies—

“(1) The Companies Act 2006 is amended as follows.

(2) After section 1062A (analysis of information for the purposes of crime prevention and detection) insert—

‘1026B Risk-based examination of accounts of dissolved companies

(1A) In a case where the registrar’s risk assessment under section 1062A(1A) has identified a matter of concern in relation to a dissolved company, the registrar must examine the accounts of the dissolved company with a view to establishing whether any economic crime has been committed.

(1B) The registrar must share details of any evidence gathered under subsection (1A) with the relevant law enforcement agencies.’”

This new clause creates new duties for the registrar to examine the accounts of dissolved companies with a view to establish whether an economic crime has been committed, using a risk-based approach.

New clause 20—Fees and penalties—

“(1) Section 1063 (Fees payable to registrar) of the Companies Act 2006 is amended in accordance with subsections (2) to (4).

(2) Before subsection (1) insert—

‘(A1) The registrar must charge a fee of £100 for the incorporation of a company.

(B1) The Secretary of State must once a year amend the fee in subsection (A1) to reflect inflation.’

(3) In subsection (1)—

(a) after ‘fees’ insert ‘other than the fee in subsection (A1)’,

(b) in paragraph (a) after ‘functions’ insert ‘other than the incorporation of a company’.

(4) In subsection (5), in paragraphs (a) and (b) after ‘regulations’ insert ‘or subsection (A1)’.

(5) The Secretary of State must lay before Parliament a report examining the case for fees paid under section 1063 of the Companies Act 2003 being paid into a fund established for the purposes of tackling economic crime.

(6) The report must also examine the case for penalties received by the registrar under section 1132A of that Act being paid into the same fund.

(7) The report must be laid before Parliament within six months of this Act being passed.”

This new clause raises the fee to incorporate a company to £100 (amended annually for inflation), and requires the Secretary of State to report on the case for these fees, along with penalties received by the registrar, to be paid into a fund to be used for tackling economic crime.

New clause 22—Person convicted under National Minimum Wage Act not to be appointed as director—

“(1) The Company Directors Disqualification Act 1986 is amended as follows.

(2) After Clause 5A (Disqualification for certain convictions abroad) insert—

‘5B Person convicted under National Minimum Wage Act not to be appointed as director

(1) A person may not be appointed a director of a company if the person is convicted of a criminal offence under section 31 of the National Minimum Wage Act 1998 on or after the day on which section 32(2) of the Economic Crime and Corporate Transparency Act 2022 comes fully into force.

(2) It is an offence for such a person to act as director of a company or directly or indirectly to take part in or be concerned in the promotion, formation or management of a company, without the leave of the High Court.

(3) An appointment made in contravention of this section is void.’”

This new clause would disqualify any individual convicted of an offence for a serious breach of the National Minimum Wage Act 1998, such as a deliberate refusal to pay National Minimum Wage, from serving as a company director.

New clause 24—Application for administrative restoration to the register—

“In section 1024 of the Companies Act 2006 (application for administrative restoration to the register), for subsection (3) substitute—

‘(3) An application under this section may only be made by a former director, former member, former creditor or former liquidator of the company.’”

This new clause would make it possible for a creditor or liquidator to apply to restore a company administratively.

New clause 34—Report on the authorisation of foreign corporate service providers—

“(1) Within six months of the day on which this Act is passed, the Secretary of State must publish a report on the authorisation of foreign corporate service providers.

(2) The report in subsection (1) must include but is not limited to—

(a) the number of authorised corporate service providers with a head office based in a territory outside the United Kingdom,

(b) the number of foreign corporate service providers authorised as set out in section 1098I(1) of the Companies Act 2006, and

(c) the number of foreign corporate service providers identified in subsection (2)(b) by territory.”

This new clause creates an obligation for the Secretary of State to publish a report into the number of Authorised Corporate Service Providers with a head office based outside the United Kingdom and the number of foreign corporate service providers authorised by the regulations set out in new section 1098I(1) of the Companies Act 2006.

New clause 35—Supervisory functions of registrar—

“(1) The Companies Act 2006 is amended as follows.

(2) After section 1081A (inserted by section 1 of this Act) insert—

‘1081B Supervisory functions of registrar

(1) The registrar must carry out supervisory duties, and must uphold standards and compliance with money laundering and terrorist financing legislation.

(2) The Secretary of State must ensure that the registrar has adequate resources to enable them to carry out this new role.’”

This new clause seeks to make the Registrar an AML supervisor in their own right.

New clause 36—Integrity of the register—

“(1) The registrar must ensure that information set out in the register prior to the provisions of this Act coming into force is accurate, up to date, and meets the requirements set out in the Act.

(2) The duty under subsection (1) includes ensuring that each entry lists the unique identification number of the Director of a company.

(3) The registrar will also make an annual report to Parliament on the status of its work to update existing company registrations.

(4) The report under subsection (3) must include—

(a) information on how many existing company registrations the registrar has evaluated to check the accuracy of the information provided, and

(b) details of how many existing company registrations have still to be evaluated by the Registrar to check the accuracy of the information provided.”

This new clause seeks to ensure that existing company registrations contain accurate, up to date information. It also imposes a requirement for the Registrar to update Parliament on the progress of updating the register.

New clause 37—Prevention of continued trading for companies repeatedly declared insolvent—

“(1) A company may not be registered under the Companies Act 2006 if, in the opinion of the registrar, it is substantially similar to a company which has been subject to winding up procedures under the Insolvency Act 1986 on more than three occasions in the preceding five years.

(2) For the purposes of subsection (1), ‘substantially similar’ can include, but may not be limited to, a company having the same or similar—

(a) name;

(b) registered office;

(c) proposed officers; or

(d) principal business activities

as another company.”

This new clause seeks to prevent companies from repeatedly becoming insolvent and then continuing to carry on the same business activities through a new company (the practice of “phoenixing”).

New clause 38—Bar on directors in breach of duties receiving public funds—

“(1) A company with a director or directors which are in breach of the general duties outlined in Chapter 2 of the Companies Act 2006, or who have been found to have committed statutory breaches of employment law or avoided taxation, may not receive Government provided funds or financial support, unless subsection (2) applies.

(2) A company whose director or directors meet the criteria outlined in subsection (1) may receive Government provided funds or financial support if such funds or support are provided solely and specifically for the direct benefit of the company’s employees.”

This new clause seeks to prevent directors who fail to comply with their duties as a company director or with employment law provisions and/or tax obligations from being able to access funds in instances where these funds are for the benefit of the company and not the company’s employees.

Amendment 104, in clause 1, page 2, line 13, at end insert—

“Objective 5

Objective 5 is to act proactively by—

(a) making full use of the information, intelligence and powers available to the registrar in order to identify issues of concern, and

(b) sharing information about any issues of concern with relevant public bodies and law enforcement agencies.

(4) In this section, an ‘issue of concern’ includes—

(a) inaccurate information,

(b) information that might create a false or misleading impression to members of the public,

(c) an unlawful activity.”

This amendment would insert a fifth objective requiring the registrar to act proactively.

Government amendments 1 to 9.

Amendment 108, in clause 62, page 46, line 41, at end insert

“and that the individual has signed a confirmation statement stating whether they already have a unique ID on the register.”

This amendment would add a requirement on ACSPs to confirm the individual they’re verifying has signed a confirmation statement stating whether they already have a unique ID on the register.

Amendment 101, page 46, line 41, at end insert—

“(2A) No verification statement may be made by an authorised corporate service provider until—

(a) the Treasury has laid before Parliament a report confirming that the Treasury’s reform of the UK’s anti-money laundering supervisory regime, as set out in the document entitled ‘Review of the UK’s AML/CFT regulatory and supervisory regime’ published by the Treasury in June 2022, has been completed and implemented; and

(b) the registrar has put in place a risk-based approach to review the work of authorised corporate service providers which includes spot checks of providers’ data to ensure providers are properly and accurately carrying out processes to verify identification documents and other data submitted by authorised corporate service providers.”

This amendment would ensure that Corporate Service Providers are not authorised to carry out ID verification until the consultation on anti-money laundering supervision announced by the Government is completed and implemented.

Amendment 103, in clause 63, page 52, leave out from line 20 to line 4 on page 53, and insert—

“1098H Duty to provide information

(1) The registrar must carry out a risk assessment in relation to any authorised corporate service provider to establish whether the verification of identity by the authorised corporate service provider is likely to give rise to a risk of economic crime.

(2) If the risk assessment identifies a real risk of economic crime, the registrar may—

(a) require an authorised corporate service provider to provide information to the registrar; or

(b) require a person who ceases to be an authorised corporate service provider by virtue of section 1098F—

(i) to notify the registrar;

(ii) to provide the registrar with such information relating to the circumstances by virtue of which the person so ceased as may be requested by the registrar.

(3) The registrar may require information to be provided on request, on the occurrence of an event or at regular intervals.

(4) The circumstances that may be specified under section 1098F(2) or 1098G(1) (ceasing to be an authorised corporate service provider and suspension) include failure to comply with a requirement under subsection (1)(a).

(5) A person who fails to comply with a requirement to provide information under this section commits an offence.

(6) An offence under this section is punishable on summary conviction by—

(a) in England and Wales a fine;

(b) in Scotland and Northern Ireland a fine not exceeding level 5 on the standard scale and, for continued contravention, a daily default fine not exceeding one-tenth of level 5 on the standard scale.”

This amendment creates an obligation on the registrar to carry out a risk assessment to establish whether the identity checks carried out by authorised corporate service providers are accurate and valid.

Government amendment 10.

Amendment 105, in clause 66, page 55, line 14, leave out “power” and insert “a duty”.

This amendment would ensure that all directors would be issued with a unique director identifier to be used for all their directorships regardless of whether they or an ACSP form the company.

Amendment 106, page 55, line 18, at end insert—

“(iii) To link the unique identifier to the person and to any other entries they have on the register under the same name or a different name.”

This amendment would allow the registrar to link all unique identifiers to any other entries the person has on the register whether under the same name or a different name.

Government amendments 11 and 12.

Amendment 102, in clause 89, page 68, line 37, at end insert—

“(1A) As part of the risk-based approach under subsection (1), the registrar must carry out a risk assessment to identify where the information it holds might give rise to a matter of concern.

(1B) Where the assessment identifies a matter of concern, the registrar must—

(a) carry out whatever further analysis it considers necessary; and

(b) share any evidence of unlawful activity it identifies with the relevant law enforcement agency.

(1C) For the purposes of this section, a ‘matter of concern’ includes—

(a) inaccurate information;

(b) information that might create a false or misleading impression; or

(c) evidence of economic crime.”

This amendment requires the registrar to carry out a risk assessment of the information it holds, and act on any matters of concern identified.

Government amendments 13 to 38.

Amendment 107, in clause 136, page 123, line 28, at end insert

“and,

(d) be published on the registrar’s website and remain published on the registrar’s website for a minimum of 20 years from the date on which it was first published.”

This amendment would require the limited partnership dissolution notice to be published on the registrar’s website and remain published for a minimum of 20 years.

Government amendments 39 to 43, 52 and 53.

Amendment 109, in schedule 2, page 172, line 40, at end insert—

“167GA Unique identification number for directors

(1) On receipt of notification of a person becoming a director, the registrar must allocate that director a unique identification number, unless such a number has already been allocated to that person.

(2) Any information supplied to the registrar under or by virtue of this Act about a person who has been allocated a unique identification number under subsection (1) must include that number.

(3) The Registrar should ensure existing registrations allocate a unique identification number to Directors.”

Government amendment 54.

Amendment 111, page 174, line 38, at end insert—

“167KA Limit on number of directorships held

(1) Where notice has been given to the registrar that a person (P) has become a director, the registrar may determine that P may not hold that directorship.

(2) The registrar may make a determination under subsection (1) if the registrar considers that P holds an excessive number of directorships.

(3) The factors that the registrar may take into account in making a determination under subsection (1) are the experience, expertise and circumstances of P, as well as the nature of the industry/company they are operating within and the time commitment their role as a director requires.

(4) If the registrar makes a determination under subsection (1), P may not hold office as a director of the company.”

Amendment 110, page 174, line 41, after “167G,” insert “167GA”.

This amendment would provide for penalties to apply to anyone failing to provide their unique identification number to the registrar.

Government amendments 55 and 56.

New clause 26—Beneficial owners in overseas territories—

“(1) The Sanctions and Anti-Money Laundering Act 2018 is amended as follows.

(2) In section 51, after subsection (5) insert—

‘(5A) The Secretary of State must ensure that the Order in Council under subsection (2) above comes into effect on date no later than 30 June 2023.’”

This new clause would amend the Sanctions and Anti-Money Laundering Act 2018 to ensure that an Order in Council requiring open registers of beneficial ownership in the British Overseas Territories comes into force no later than 30 June 2023.

Government amendments 50 and 51.

[Kevin Hollinrake]

It is a pleasure to speak to the Government’s amendments to the Economic Crime and Corporate Transparency Bill. I know that all hon. Members agree with its core ambition to bear down on the kleptocrats, criminals and terrorists who abuse our open economy and, critically, to strengthen the UK’s reputation as a place where legitimate business can thrive.

Retained EU Law (Revocation and Reform) Bill

Baroness Winterton of Doncaster Excerpts

Report stage
Wednesday 18th January 2023 Commons Chamber

[Geraint Davies]

That is a lie.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. No, no.

[Geraint Davies]

I withdraw that. It is untrue.

[Madam Deputy Speaker]

Does the Minister wish to take an intervention? No. Okay. The hon. Gentleman has withdrawn what he said. Thank you.

[Ms Ghani]

If his remark had not been withdrawn, I would have read out the quotation.

To return to hazardous substances, the UK Government and the devolved Administrations, within their respective territories, will follow the usual procedures but take into account the principles set out in the hazardous substances common framework. Part of the process we are going through is identifying what the laws are so that we can take a decision.

On animal welfare, there has been a lot of mis-information. Especially since 2010, we have regulated for chickens, battery cages, mandatory CCTV in slaughter-houses, mandatory microchipping in dogs—a huge amount of work has been done.

When it comes to the environment, many of our standards started here, and we should be proud of them. We have the world-leading Environment Act, which has dramatically strengthened environmental regulations. Moreover, the EU model has not stopped the decline in our natural world. Of course there is much more that we need to do, and we will: we have our own legally binding targets, we are committed to halting the decline in nature by 2030 and we are among the first countries in the world to commit to net zero by 2050.

A point was raised about flight compensation. The Department for Transport published the aviation consumer policy reform consultation back in 2022, and the proposals will look into aviation consumer protection, redress for breaches of consumer rights and reform to compensation for delays or for damaged wheelchairs and other mobility equipment. When I was a Minister at the Department for Transport, we went much further than our European counterparts in ensuring protection for the most vulnerable people.

--- Later in debate ---

[Ms Ghani]

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

I wish to thank all the right hon. and hon. Members who have contributed today. It has been a long day, but this Bill has been around for a whole year and I wish to thank everybody who has been working on it for a year. In particular, I wish to thank the Bill team, Lorna, Janet, Ryan, Jenna, Mahsa, Sam, Sagar and Sol; and the policy team, Fergal, Lizzie, Walter, Zach, Rachel, Nikoli, Jess, Hannah, Anita, Jon, Miranda and Ruth. I also wish to thank my hon. Friends the Members for Bosworth (Dr Evans), for Beaconsfield (Joy Morrissey) and for Wolverhampton North East (Jane Stevenson) for doing such fantastic work behind the scenes.

I know that a few Members wish to speak, so I shall be brief. I just want to thank all Members for their contributions as regards the constitutional importance of the Bill—ending the supremacy of EU law and restoring Acts of Parliament as the highest law in the land is, of course, of paramount importance. I am proud that this Bill will build on the European Union (Withdrawal) Act 2018 and ensure, by default, that no Act of Parliament is subordinated by the retained EU law any longer.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Secretary of State.

--- Later in debate ---

[Mr Rees-Mogg]

First, may I congratulate the Minister for Industry and Investment Security, my hon. Friend the Member for Wealden (Ms Ghani), on her brilliant performance today and on taking on this Bill and driving it through? I will now confess to this House that a year ago, as Leader of the House, I thought it was going to be impossible to get this Bill done, written and ready for Parliament. I know I am not meant to mention people in the Galleries, Madam Deputy Speaker, but I hope you will indulge my saying that some of the Bill team are there and they were fabulous. They made the impossible happen and they deserve great thanks, because this is about restoring British law, with the common law replacing European law.

The Bill is a tidying-up law, but it is of great constitutional importance. It has been sent from this House with technical amendments from the Government but no fundamental amendment. I hope that the other place will note that carefully; the Bill goes with a strong democratic mandate and a wind behind it. It is one of the really important completions of Brexit and the people who oppose it are, in their hearts, the ones who opposed Brexit all along. The Bill is a reclamation of democracy, of parliamentary sovereignty and of our proper law.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the SNP spokesman.

--- Later in debate ---

[Bell Ribeiro-Addy (Streatham) (Lab)]

I am sure that many other Members have said this already, but this has nothing to do with Brexit. These are all pieces of legislation that are in British law. If the Conservatives want to remove them, they should come to this House and debate each and every one of them on an individual basis. Removing these pieces of legislation will have far-reaching consequences. Unfortunately, I believe that consequences will be brought to bear on Conservative Members at the next election. If you are not thinking about the destruction to our democracy, you should at least think about your constituents—

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. The hon. Lady must not keep using the word “you.” She must speak through the Chair. I think that she has made her point.

Strikes (Minimum Service Levels) Bill

Baroness Winterton of Doncaster Excerpts

2nd reading
Monday 16th January 2023 Commons Chamber

Second Reading

[Madam Deputy Speaker (Dame Rosie Winterton)]

I must inform the House that the reasoned amendments have not been selected.

--- Later in debate ---

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

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

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I am afraid I will have to ask the hon. Lady to withdraw her remark about fabricating. She will do that, I know. I am sure that is not what she meant to say and will indicate that that is not what she meant to say—yes?

[Rachael Maskell]

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

--- Later in debate ---

[Richard Graham]

My right hon. Friend is under a constant onslaught of noise from Opposition Members, who show terrific support for those in the unions in their constituencies and for those in the unions funding their constituency offices, but who seem to forget the interests of all our constituents, which are in the minimum service level agreements that my right hon. Friend is proposing. Ultimately, what people in our constituencies need to know, whether or not we know them, is that in those six sectors a minimum service will be provided regardless of the right of people in the sector to hold back their labour on a pay negotiation or for any other reason. [Interruption.] That is a reasonable proposition, and we should be heard. [Hon. Members: “Speech!”]

[Madam Deputy Speaker (Dame Rosie Winterton)]

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

[Grant Shapps]

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

--- Later in debate ---

[Madam Deputy Speaker]

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

[Grant Shapps]

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

--- Later in debate ---

[Saqib Bhatti (Meriden) (Con)]

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

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. Members must not shout other Members down.

[Saqib Bhatti]

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

--- Later in debate ---

[Grant Shapps]

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

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

[Madam Deputy Speaker]

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

[Grant Shapps]

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

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

--- Later in debate ---

[Vicky Ford (Chelmsford) (Con)]

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

[Madam Deputy Speaker]

Order. Please do not shout down the right hon. Lady.

[Vicky Ford]

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

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

As colleagues can see, well over 50 hon. and right hon. Members are wishing to catch my eye. Before I call the Deputy Leader of the Opposition, I want to inform colleagues that there will be an immediate four-minute time limit on Back-Bench speeches so that we can try to get everybody in.

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

First, let me declare an interest as a proud lifelong trade unionist. I regret the tone of the Secretary of State’s speech today. If he is implying in any way that Members of the House do not care about their constituents or put their constituents first, or that members of our vital public services who got us through the pandemic do not take the safety of the people they look after seriously and would walk away, I think he should reflect on his comments.

I have been a Member of this House for some seven years now, and I cannot recall a measure that is at once so irrational and so insulting. Not only is this legislation a vindictive assault on the basic freedoms of British working people, but it is as empty of detail as it is full of holes. We will oppose the sacking of nurses Bill, and it is not just about nurses but about the many key workers who we clapped and who kept our services going in the face of the pandemic. We will vote against this legislation tonight, and the next Labour Government will repeal it.

We are in the middle of an economic crisis of the Government’s making. Working people are facing the largest fall in living standards in a generation. [Interruption.] The Secretary of State keeps shouting “Putin”, but what about Liz Truss?

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order.

[Angela Rayner]

What about the Conservatives crashing the economy? The Secretary of State forgets the fact that inflation has gone through the roof under their watch. Thirteen years of Conservative failure. Members watching this debate and constituents up and down the country know the truth, and they will tell this Government what they think, come the next general election.

Working people are facing the largest fall in living standards in a generation. In-work poverty, insecure work and financial insecurity are rampant. Inflation is in double digits. It is in this context that we have seen the greatest levels of strike disruption in 33 years, with ambulance workers taking their first major strike action in decades and the first ever strike in the history of the Royal College of Nursing. Our posties, train drivers, Border Force, health workers, train cleaners and even Ministers’ own officials have taken action too. The Prime Minister will not admit it, but this is a crisis and it is a crisis of the Government’s making. This legislation does nothing to resolve the problems that they have caused. There is no common sense in it at all.

Prepayment Meters: Self-Disconnection

Baroness Winterton of Doncaster Excerpts

Thursday 15th December 2022 Commons Chamber

[Catherine West]

The hon. Gentleman is right to emphasise that point. He lives on the cold Gloucester plain, which can get very chilly and snowy at this time of year, so he will understand the desperate anxiety that many people in this situation are feeling. I hope the Minister will take urgent action on this, because it is not a situation that affects people in only one part of the country. It is often people in privately rented accommodation, and these prepayment metres are literally taking all the money they have.

I want to briefly mention the inherited debt problem, which some Members will be aware of. When a tenancy changes, new tenants move in and inherit the debt from the tenants who were there before. In some cases, they put their £10 in thinking that it will keep them going for a couple of days, not realising that they are carrying the debt of the tenants before. That £10 then disappears, and they find themselves having to put in £50 or £60—which they may not have readily accessible, given all the costs that go with a new tenancy—and negotiate with a completely new provider. There has to be a way of regulating that more and getting the regulator to be much more proactive and agile in these situations, so that we do not have this inherited debt problem and new tenants do not have to suddenly find hundreds of pounds just so that they can switch on their heating. I hope that the Minister will address that problem in his remarks.

Will the Minister also comment on the practical difficulty when a supplier changes? I am aware of a constituency case in which service was very disrupted when a prepayment meter switched from npower to E.ON, which eventually got on top of the mess it inherited from npower, but the tenants had a very difficult time with only basic information. What can be done to clarify and explain the enormously costly standing charges and unit cost prices currently being charged to those in the most vulnerable housing in the UK?

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the SNP spokesperson.

Britain’s Industrial Future

Baroness Winterton of Doncaster Excerpts

Tuesday 15th November 2022 Commons Chamber

[Emma Hardy (Kingston upon Hull West and Hessle) (Lab)]

Does my hon. Friend share my frustration that the Government are playing hokey-cokey with Northern Powerhouse Rail, first putting it in their manifesto and then taking it out under Boris Johnson, then putting it in under Liz Truss and taking it out again under Rishi Sunak?

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. The hon. Lady knows she must refer to other Members not by name but by constituency.

[Emma Hardy]

I apologise, Madam Deputy Speaker.

Does my hon. Friend the Member for Sefton Central (Bill Esterson) agree that, if we want to deliver an industrial strategy, we need Northern Powerhouse Rail to be delivered in full?

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. Before I call the SNP spokesperson, colleagues will see that this is a very well subscribed debate, so I will have to put a time limit on. I will start with six minutes, but I warn that it may go down quite quickly.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I will have to reduce the time limit to five minutes after the next speaker. Just a reminder that if interventions are taken, to keep to the time, as the right hon. Gentleman did. Otherwise, it takes away from others who have put in to speak.

Retained EU Law (Revocation and Reform) Bill

Baroness Winterton of Doncaster Excerpts

2nd reading
Tuesday 25th October 2022 Commons Chamber

[Graham Stringer (Blackley and Broughton) (Lab)]

The right hon. Gentleman will not be surprised to know that I agree with the core of his speech about returning supremacy to British law and getting rid of EU supremacy. The way in which statutory instruments and the negative procedure have been used in this House has not always been satisfactory. For instance, covid regulations, past the time they had been implemented, were brought into operation and were inappropriate in many cases. I could give many other examples. As somebody who campaigned to leave the EU and is glad to get back control of our laws, I am disappointed that the process will not see full transparency of debate, because our regulations and laws are better when they are transparent and when different people can bounce their ideas off each other. Does the right hon. Gentleman agree with me?

[Madam Deputy Speaker (Dame Rosie Winterton)]

We must not have such long interventions.

[Mr Rees-Mogg]

The hon. Gentleman makes a valid point. The scrutiny of statutory instruments in this House is not all that it should be. I actually think that the other place does it better. I think there are too many statutory instrument Committees that look at things for two minutes before they all go home, but that is an issue we must face as a House to decide how we want to improve it.

My final point is that those who oppose the Bill seem to think that British politics and the British electorate count for nothing. They stand up and say that we will have no employment law protections—practically arguing that we will be sending children up chimneys. Do they think the British voter was born yesterday? Do they really think the British electorate and the British people will accept or vote for a party that takes away the protections they already have and enjoy? Are they unaware of the fact that our maternity leave protections antedate the European Union’s regulations, and have always gone further than those regulations?

What sort of a country do opponents of the Bill think we are? Why do they have no confidence in our democracy? Do they think that right hon. and hon. Members on this side, when standing on a parliamentary platform and going before our constituents, will say that we are going to have a burning of everything they like? Of course we are not. We will stand up for people’s rights, we will stand up for people’s dignity and we will stand up for the rule of law. Most of all, we will stand up for that fundamental right, that overarching right, that right on which all our constitutional freedoms are built and on which all human rights depend—the right of the ballot box.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. The debate is well subscribed. I do not want to impose a time limit, but my advice is that contributions should be around eight minutes, to make sure that everyone has equal time. I call Sir William Cash.

--- Later in debate ---

[Several hon. Members rose—]

[Madam Deputy Speaker (Dame Rosie Winterton)]

Order. I gently remind hon. Members that, if we are to be fair to each other, I did say that speeches should last about eight minutes, as opposed to 11 minutes.

Energy Prices Bill

Baroness Winterton of Doncaster Excerpts

Committee stage
Monday 17th October 2022 Commons Chamber

Question proposed, That the clause stand part of the Bill.

[The First Deputy Chairman of Ways and Means (Dame Rosie Winterton)]

With this it will be convenient to discuss the following:

Amendment 10, in clause 2, page 3, line 5, leave out “negative” and insert “affirmative”.

Clause 2 stand part.

Amendment 11, in clause 3, page 4, line 7, leave out “negative” and insert “affirmative”.

Clauses 3 to 8 stand part.

Amendment 19, in clause 9, page 8, line 3, at end insert—

‘(2A) Within two weeks of this Act coming into force the Secretary of State must make a statement to Parliament as to whether he intends to introduce regulations under subsections (1) or (2), and including any indicative reductions that will be implemented.”

This amendment would require the Government to state within two weeks of Royal Assent whether it will introduce regulations under clause 9.

Amendment 7, in clause 9, page 8, line 16, at end insert—

‘(4A) Regulations under this section must apply to non-domestic customers—

(a) that signed a fixed agreement with their energy provider after 1 December 2021, and

(b) on variable rates tariffs.”

This amendment would ensure that non-domestic customers who signed a fixed tariff agreement between 1 December 2021 and 1 April 2022 also benefit from the reduced energy charges.

Amendment 17, in clause 9, page 8, line 17, leave out “may” and insert “must”.

Amendment 18, in clause 9, page 8, line 18, after “section” insert “, and provide a report to Parliament setting out the amount of money paid to electricity and gas suppliers over the 6 month period, an estimate of how many businesses have been supported, and a business sectorial breakdown of the financial support provided.”

This amendment is to enable analysis of the cost of the scheme, the types of businesses supported, and the approximate sums paid to different business sectors.

Clauses 9 to 12 stand part.

Amendment 16, in clause 13, page 10, line 26, at end insert—

‘(1A) The Secretary of State may establish a domestic fuel reduction scheme in Great Britain for off gas grid homes heated from supplies of fossil fuels such as LPG and oil.”.

Amendment 6, in clause 13, page 10, line 37, at end insert—

‘(3A) The Secretary of State must make alternative fuel payments to non-domestic consumers of energy who are not connected to the gas or electricity grid and who will not benefit from the non-domestic energy bill relief schemes, and these payments must be at a level which provides such consumers with a cost reduction equivalent to those consumers benefiting from the non-domestic energy bill relief schemes.”.

This amendment would provide non-domestic customers that are off grid and who are not covered by the Energy Bill Relief Scheme with support which has parity with that given to other non-domestic users.

Amendment 9, in clause 13, page 10, line 37, at end insert—

‘(3A) Any payments made to energy users not connected to the gas or electricity networks must be provided direct to those users’ bank accounts.”.

This amendment would ensure that those receiving payments under the Alternative Fuel Payments schemes do so through their bank accounts rather than through their electricity bill.

Clause 13 stand part.

Amendment 12, in clause 14, page 11, line 24, leave out “as soon as reasonably practicable” and insert “within 28 days of the expenditure being incurred”.

Amendment 13, in clause 14, page 11, line 25, at end insert “; and in calculating the period of 28 days, no account is to be taken of any whole days that fall within a period during which—

(a) Parliament is dissolved or prorogued, or

(b) either House of Parliament is adjourned for more than four days.”.

Clauses 14 and 15 stand part.

Amendment 14, in clause 16, page 14, line 40, leave out “The first”.

Amendment 15, in clause 16, page 14, line 41, leave out “any other regulations under this section are subject to the negative procedure”.

Clause 16 stand part.

Amendment 8, in clause 17, page 15, line 24, at end insert—

‘(2A) The Secretary of State must place any information received in response to a direction under subsection (1) in the Library of the House of Commons.”.

This amendment would require the Secretary of State to place in the Commons Library the responses to any direction to an electricity generator to provide information under the power in clause 17(1).

Clauses 17 and 18 stand part.

Amendment 4, in clause 19, page 16, line 37, at end insert—

‘(1A) Regulations under subsection (1) must provide that the pass-through requirements on intermediaries are in force until at least 30 September 2024.”.

This amendment would ensure that the requirement on intermediaries to pass through to end users the benefit of Government price support will last for two years.

Clauses 19 to 26 stand part.

Amendment 1, in clause 27, page 22, line 40, at end insert—

“(c) anything done or proposed to be done to prevent electricity generators and oil and gas producers from passing on the costs of any levy imposed on them or payments they are required to make under this Act.”.

This amendment is a power for the Secretary of State to undertake consequential actions in order to secure the full reduction in the cost of domestic or non-domestic energy bills in Great Britain.

Clauses 27 to 30 stand part.

New clause 1—Impact assessment on VAT zero rating insulation works for tenement buildings in Scotland—

‘Within six months of the date of Royal Assent to this Act, the Secretary of State must carry out an assessment of the impact of zero rating value added tax on work and materials to insulate tenement buildings in Scotland.’.

New clause 2—Marginal cost of electricity—

‘Within two years of the date of Royal Assent to this Act, the Secretary of State must consult on and implement a scheme to disaggregate the cost of production of natural gas from the cost of production of other energy sources with a view to reducing the cost of electricity to domestic and commercial consumers.’.

This new clause requires the Secretary of State to devise and implement a scheme to disaggregate the cost of production of natural gas from the cost of production of other energy sources in order to reduce the cost of electricity to domestic and commercial consumers.

New clause 3—Report on additional expenditure treated as incurred for purposes of section 1 of the Energy (Oil and Gas) Profits Levy Act 2022—

‘(1) The Secretary of State must, within six months of the date of Royal Assent to this Act, publish and lay before Parliament a report on the effect of reducing the amount of the allowance under section 2(3) of the Energy (Oil and Gas) Profits Levy Act from 80% to 5%.

(2) The Report must set out projections of the effect of the reduction set out in subsection (1) on domestic and non-domestic energy bills.’

This new clause requires the Secretary of State to produce a report assessing the impact of reducing the investment allowance for oil and gas companies as set out in the Energy (Oil and Gas) Profits Levy Act from 80% to 5%, and in particular to assess such a reduction’s impact on domestic and non-domestic bills.

New clause 4—Energy cost support for users of heat networks—

‘(1) The Secretary of State must make energy cost support payments to users of heat networks who will not benefit from the Energy Price Guarantee.

(2) These payments must be at a level which provides such users with a cost reduction equivalent to that received by those benefiting from the Energy Price Guarantee.

(3) These payments must apply from 1st October 2022 and run for two years.’

This new clause would ensure that users of heat networks will receive energy cost support for two years.

New clause 5—Report on support for business after six months—

‘Within one week of the date of Royal Assent to this Act, the Secretary of State must lay before Parliament a statement about the support that will be offered to non-domestic customers in Great Britain and Northern Ireland when the initial six-month period of support has ended.’

This new clause would require the Government to produce a report on support for business after the initial six months one week after the Bill receives Royal Assent.

New clause 6—Impact assessment of a housing decarbonisation scheme—

‘(1) Within six months of the date of Royal Assent to this Act, the Secretary of State must work with the devolved authorities to carry out an assessment of the potential impact of a housing decarbonisation scheme.

(2) The assessment must set out the different impacts of reaching the following Energy Performance Certificate (EPC) ratings—

(a) all domestic properties in the UK to EPC rating “A” by 2030;

(b) all domestic properties in the UK to EPC rating “B” by 2030;

(c) all domestic properties in the UK to EPC rating “C” by 2030.

(3) The assessment must consider the impact of a housing decarbonisation scheme under the different scenarios outlined in subsection (2) on—

(a) average domestic energy bills for households across the Wales, England, Scotland and Northern Ireland;

(b) the number of households living in fuel poverty in Wales, England, Scotland and Northern Ireland;

(c) the Welsh Government’s climate targets;

(d) the UK Government’s climate targets;

(e) the Scottish Government’s Climate Targets;

(f) the Northern Ireland Executive’s Climate Targets.

(4) The impact assessment must be co-authored by—

(a) the UK Government;

(b) the Welsh Government;

(c) the Scottish Government;

(d) the Northern Ireland Executive.

(5) A report on the findings of the impact assessment must be laid before Parliament within three months of its publication.

(6) The Secretary of State must make an oral statement to the House of Commons when any report under subsection (4) is laid.’

This new clause would require the Government to work with the devolved authorities to assess the impact of a UK-wide housing decarbonisation scheme.

New clause 7—Impact assessment of setting the Domestic Energy Price Reduction Scheme at the pre-April Ofgem cap levels—

‘(1) Within one month of the date of Royal Assent to this Act, the Secretary of State must carry out an assessment of the potential impact of using the Domestic Energy Price Reduction Scheme to set domestic energy bills for Scotland, Wales and England at the following levels—

(a) £1,277 for standard-variable tariffs;

(b) £1,309 for pre-payment meters.

(2) The Impact assessment must consider the impact of the policy set out in subsection (1) on—

(a) the number of households living in fuel poverty in Scotland, Wales and England;

(b) the number of children living in relative income poverty in Scotland, Wales and England;

(c) the number of children living in absolute income poverty in Scotland, Wales and England.’

This new clause would require the UK Government to assess the impact of using the price reduction scheme to set energy prices at the pre-April Ofgem cap levels.

New clause 8—Review of forecast and outturn revenue and profits of electricity generators and UK oil and gas producers—

‘(1) The Secretary of State shall, within one month of the passing of this Bill and every six months thereafter, publish an assessment of forecast and outturn revenue and profits of electricity generators and oil and gas producers.

(2) This review must cover all electricity generators as specified in section 16(10) of this Act and all companies carrying on a ringfenced trade as defined in Clause 1 of the Energy (Oil and Gas) Profits Levy Act 2022.

(3) This review must consider total revenue and profits from UK production and generation that are forecast in each financial year from 2022/23 until 2025/26, as well as outturn revenue and profits in these years when data becomes available.”

This new clause would require the Government to assess the revenue and profits of electricity generators and oil and gas producers every six months until 2025/26.

New clause 9—Removing regional variation from standing charges—

‘The Secretary of State must make provision to ensure that electricity standing charges are uniform throughout the country, including England, Northern Ireland, Scotland and Wales.’

This new clause would end regional variations of electricity standing charges.

New clause 10—Establishment of a domestic home heating oil voucher scheme for households in Northern Ireland—

‘(1) The Secretary of State must establish a domestic home heating oil voucher scheme for households in Northern Ireland.

(2) A “domestic home heating oil scheme for Northern Ireland” is a scheme that makes provision for making voucher payments to households in Northern Ireland to provide either 1000 litres of home heating oil, or a quantity that is substantially consistent with the support offered to domestic gas customers.’

New clause 11—Energy Profits Levy—

‘(1) The Secretary of State must lay before the House an assessment of the additional revenue that would result from the following policy measures—

(a) amending the Energy (Oil and Gas) Profits Levy so that it applies to oil and gas profits incurred since 1st October 2021,

(b) removing from the Energy (Oil and Gas) Profits Levy allowances for investment in oil and gas extraction,

(c) increasing the rate of the Energy (Oil and Gas) Profits Levy beyond its current level of 25%, and

(d) implementing a windfall tax on the excess profits of coal and gas-fired power stations.

(2) In addition the Secretary of State must lay before the House an official estimate of the oil and gas super profits over the next two years.

(3) The Secretary of State must lay the report no later than 31st October 2022.’

This new clause would require the Secretary of State to lay a report before the House detailing the impact of expanding the government’s Energy (Oil and Gas) Profits Levy.

New clause 12—Energy cost support for off-grid consumers—

‘(1) The Secretary of State must make energy cost support payments to users who are not connected to either the gas or electricity grid and who will not benefit from either the Energy Price Guarantee or Energy Bill Relief Scheme.

(2) These payments must be at a level which provides such users with a cost reduction equivalent to those benefiting from the Energy Price Guarantee.

(3) These payments must apply from 1st October 2022 and run for two years.’

This new clause would ensure those off-grid will receive energy cost support for two years.

New clause 13—Report into effectiveness of energy efficiency programmes in reducing energy costs—

‘(1) The Government must review the impact of energy efficiency programmes in reducing energy costs in accordance with this section and lay a report of that review before the House of Commons within 6 months of the passing of this Act.

(2) A review under this section must consider the impact of—

(a) the number of homes and business properties which have increased their EPC rating,

(b) the number of homes and business properties which have undergone retrofitting programmes, including—

(i) solar panels, and

(ii) replacement of gas boilers,

(c) increases in renewable energy sources, and

(d) public messaging campaigns in changing energy usage habits.’

This new clause would require the Secretary of State to report on the impact of energy efficiency programmes in reducing energy costs.

New clause 14—Fuel poverty impact analyses of provisions of this Act—

‘(1) The Chancellor of the Exchequer must lay before the House by 31st January 2023 a report assessing the impact of this Act on fuel poverty, taking into account the following two scenarios—

(a) the energy price cap being set at its current level of £2,500, and

(b) the energy price cap being set at £1,971.

(2) A review under this section must consider the impact of the provisions of the Act on—

(a) households at different levels of income,

(b) households in receipt of the Alternative Fuel Payment (that is, not connected to either gas or electricity grid),

(c) households who use heat networks, and

(d) households in rural communities.

(3) A review under this section must include a separate analysis of each separate measure in the Act, and must also consider the cumulative impact of the Act as a whole.’

This new clause would require the Secretary of State to report on the impact of the provisions of the Act on the level of fuel poverty.

New clause 15—Report into the impact of provisions in the Act on the long term viability of the green energy industry—

‘(1) The Government must review the impact of provisions in the Act on the long term viability of the green energy industry.

(2) A review under this section must consider the impact of the Act on—

(a) the likelihood of achieving net zero by 2050, and

(b) creating allowances for investment in green energy.’

This new clause would require the Secretary of State to report on the long term viability of the green energy industry.

New clause 16—Investment in renewables—

‘In exercising the powers under this Act the Secretary of State must seek to ensure that they do not disincentivise investment in renewables.’

This new clause would require the Government not to disincentivise investment in renewables when exercising the powers under this Act.

New clause 17—Calculation of energy and gas prices—

‘The Secretary of State must publish details of how the Government has determined the relative levels of the gas and electricity price reductions brought into effect under the provisions of this Act.’

This new clause would require the Government to explain how it has arrived at the electricity and gas price reductions under the Act.

Manuscript new clause 18— Energy support after April 2023—

‘(1) The Government must lay a report before the House of Commons within 28 days of Royal Assent stating what energy price support it will provide from April 2023 onwards.

(2) The report must also contain—

(a) an estimate of what average domestic energy bills are expected to be in April 2023 if no further support provided;

(b) an estimate of how many households will be classed as being in (a) fuel poverty and (b) extreme fuel poverty if no further support is provided;

(c) what the extension of the universal support scheme for a further—

(i) 6 months;

(ii) 12 months and

(iii) 18 months is estimated to cost; and

(d) what alternative support schemes the Government will introduce to prevent any further increases in fuel poverty and protect the most vulnerable including—

(i) pensioner households,

(ii) those with disabilities and

(iii) those in receipt of benefits.’

This new clause would require the Government to make a report to the House setting out the energy support it will provide from April 2023 onwards.

That schedule 1 be the First schedule to the Bill.

That schedule 2 be the Second schedule to the Bill.

That schedule 3 be the Third schedule to the Bill.

That schedule 4 be the Fourth schedule to the Bill.

That schedule 5 be the Fifth schedule to the Bill.

Amendment 2, in schedule 6, page 36, line 17, after ”may” insert

‘provide for the reduction of the amount charged for domestic electricity supply from 8 September 2022 but’.

This amendment allows the domestic electricity price reduction scheme to begin from 8September 2022.

Amendment 3, in schedule 6, page 36, line 25, after ”may” insert

‘provide for the reduction of the amount charged for domestic electricity supply from 8 September 2022 but’.

This amendment allows the domestic electricity price reduction scheme to begin from 8 September 2022.

Amendment 5, in schedule 6, page 37, line 22, leave out sub-paragraphs (1) to (4) and insert—

‘5 (1) Regulations under section 9(1) and 9(2) must provide for the reduction of charges for electricity supply and for gas supply to last for a period of two years beginning with the operative date.’.

This amendment would require the support for non-domestic electricity and gas users in Great Britain to continue for two years.

Amendment 20, in schedule 6, page 39, line 6, leave out “three years and six months” and insert “two years”.

That schedule 6 be the Sixth schedule to the Bill.

That schedule 7 be the Seventh schedule to the Bill.

[The Minister for Climate (Graham Stuart)]

We are facing a global energy crisis, which has been exacerbated by Russia’s illegal invasion of Ukraine. This Bill puts support to help people, businesses, charities and the public sector across the UK with their energy bills on a secure legislative footing. It is a vital step in delivering the necessary package of assistance for the whole of the UK. We are putting the Bill through in an expedited way, and I thank His Majesty’s Opposition and other parties for their constructive engagement with us ahead of today. It is important that I put on record what the Bill will do, but I will seek to be brief because a number of Members are keen to speak to their amendments.

Clause1, together with clauses 2 to 8, provides for the establishment in legislation of the energy price guarantee schemes in Great Britain and Northern Ireland for electricity and gas. The EPG represents significant and bold action that will help to protect families from the spiralling cost of energy. This clause provides for the establishment of the EPG schemes and for them to be amended and revoked. For example, the schemes could be amended to change the eligible tariffs or the amount of financial support provided. The GB scheme has been operational from 1 October and delivered through contracts between the Secretary of State and energy suppliers. The Bill will put the scheme on a more secure statutory footing. The House will be aware that the Chancellor’s statement intends to refine the scheme after six months.

Clauses 9 to 12 will introduce a scheme that enables the Government to reduce the charges for electricity and gas supplied by licensed electricity suppliers to eligible non-domestic customers in Great Britain and Northern Ireland. This scheme represents significant and bold action to protect all eligible non-domestic customers, including businesses, charities and the public sector, such as hospitals and schools, from excessively high energy bills over the winter period. Without this intervention, the wider negative effects of this economic pressure would be severe and would materialise very quickly.