Plant Oxford Site

Greg Smith Excerpts

Monday 24th February 2025 Commons Chamber

[Greg Smith (Mid Buckinghamshire) (Con)]

(Urgent Question): To ask the Secretary of State for Business and Trade if we will make a statement on the Plant Oxford site.

[The Minister for Industry (Sarah Jones)]

This Government are determined to see a strong, thriving UK automotive industry. We recognise the vital role that the British motor industry plays within our manufacturing landscape, employing more than 150,000 people, with tens of thousands more working in the wider supply chain. That is why we are ploughing £2 billion into the sector’s green transition and £300 million to encourage the uptake of new, clean, green electric vehicles—a big incentive for the global automotive sector to invest in the UK. Building on this momentum, our modern industrial strategy will back automotive companies that want to invest in Britain and drive long-term sustainable UK growth.

BMW has taken a commercial decision to delay the production of two new electric Mini models at its Oxford plant. Undoubtedly, that news will be unsettling for the company’s many hard-working employees, not least those working directly on the production line, but I must stress that BMW remains committed to its investment in the UK. It is by no means unusual for a manufacturer to adjust its product line-up or production start dates for commercial reasons.

We are proud that BMW considers Oxford to be at the heart of Mini production. As a Government, we are throwing our weight behind its investment. We want big automotive brands from Britain and around the world to lie at the heart of our growth mission and plan for change, creating well-paid jobs and putting more money into people’s pockets. As part of that effort, this Government are working closely with BMW as it reviews its investment timelines, ensuring that more cars are built right here in the United Kingdom.

[Greg Smith]

I draw attention to my entry in the register of interests. I expected the Secretary of State to hide from talk of CVs, but it seems that also applies to EVs. This weekend we saw the disastrous consequences of Labour’s rigid approach to net zero: BMW hitting the brakes on a £600 million investment in Plant Oxford. That deal, from 2023, would have secured 4,000 high-quality jobs and was a strong vote of confidence in the UK. Like other deals, it was possible only because the previous Government were willing to be pragmatic. The Conservatives made the sensible decision to delay the ban on internal combustion engine cars, bringing the UK into line with major global economies such as France, Germany, Sweden and Canada, but Labour said it knew better, restoring the 2030 phase-out date in its manifesto.

When the negative impacts of that approach became clear, the Government launched a fast-track consultation on the zero emission vehicle mandate, pitifully attempting to buy themselves time. Surely, no consultation is necessary. The effects of their puritanical ZEV obsession is already clear: Jaguar Land Rover says that the ZEV mandate is causing disruption to the market; Vauxhall has confirmed that it will shut down its Luton factory, citing the ZEV mandate as making the plant less economically viable; and now the future of Plant Oxford—the home of the Mini since 1959—is uncertain.

Labour’s reckless policies have shattered industry confidence, with consumer demand for EVs dropping off a cliff and numbers only just about sustained by subsidised fleet sales. Will the Minister do the right thing: stop hiding behind consultations and acknowledge that the Government’s ideological approach to net zero will lead only to economic disaster for our automotive sector and consumers alike?

[Sarah Jones]

It is hard to know where to start. The “puritanical ZEV obsession” was, as the hon. Gentleman knows, a Conservative policy from the last Government. The only changes made to that policy under the last Prime Minister dampened demand by changing the deadline, and hampered manufacturers by not ensuring flexibility or pragmatism in how the policy operated—it was the worst of both worlds.

By contrast, Labour and the Government are acting with pragmatism. We are listening to industry and working at pace to get this right. We are also creating the conditions in which the automotive industry can thrive. That means delivering not just the economic and political stability so lacking under the previous Government, but an industrial strategy that will deliver growth, including in the automotive industry; investing £2 billion in automotive transition through the Budget; investing in research and development; supporting and talking to our industries; and understanding the global climate.

It was really clear in BMW’s statement that there were macroeconomic global and commercial reasons why the decision to delay was made, but BMW is clear that it is still committed to this investment in the UK. I have talked to my right hon. Friend the Member for Oxford East (Anneliese Dodds), who is liaising closely with workers and unions, as would be expected. We will continue to work to ensure the right economic and political climate, so that these industries can grow.

Terms and Conditions of Employment

Greg Smith Excerpts

Tuesday 11th February 2025 Commons Chamber

[Greg Smith (Mid Buckinghamshire) (Con)]

I welcome the opportunity to contribute on behalf of His Majesty’s loyal Opposition, and I welcome the introduction of these two statutory instruments, which have been a long time coming. In 2019, the Conservatives made a manifesto commitment to introduce neonatal care leave. It was a shame that in that election, and in the most recent, no such commitment was made by the Labour party, now in government. That is no surprise, however; just like with all their good ideas, it usually turns out that they were ours.

Our commitment to introducing neonatal care leave led to our support of the Neonatal Care (Leave and Pay) Act 2023, which was stewarded by the former Member for Cumbernauld, Kilsyth and Kirkintilloch East, Stuart C McDonald and Baroness Wyld. That Act is the reason why the Government are introducing these statutory instruments today.

I am pleased that, with reservations, we will support the measures, so that we can continue to build on the sensible improvements to workers’ rights that we, as Conservatives, introduced in government. We introduced shared parental leave, giving more choice and flexibility to families, and carers leave, giving employees more time off to give or arrange care for their families. We supported flexible working, giving employers and employees more flexibility over working practices, and we achieved all that while increasing employment and wages, a thing that the Government are now realising is no easy feat.

The result of our reforms to workers’ rights is that Britain has some of the most generous maternity and paternity leave globally, meaning families are able to spend more time with their newborns. Those achievements were reached by working with businesses and employees. We worked with businesses not just out of courtesy, but because we know that without consulting businesses and taking on board their concerns, no progress will be made, no matter how good the intention. That is not something this Government have done, which is why their Employment Rights Bill is driving up unemployment before it has even been passed.

In the plan to make work pay, the Government committed to rights from an employee’s first day, but for neonatal care pay, that is not the case. Will the Minister confirm whether this is the first step in rolling back on day one rights? Under the Neonatal Care (Leave and Pay) Act 2023, the right to neonatal care leave and pay will come into force in less than two months. Why have the Government waited to introduce the instruments until now, leaving businesses less than eight weeks to prepare and plan? We have heard that the Prime Minister has requested a growth test on all policies. Has the Minister conducted a growth test on this policy? If not, why not?

More generally, this Government’s record on health, in particular women’s health, has been disappointing. At the end of last month, the Health Secretary dropped women’s health targets and those for women’s health hubs. That decision will impact 600,000 women on waiting lists, lead to preventable disease progression and lead to more women attending A&E, unable to work, care or live a fulfilled life. The Labour manifesto made a commitment to prioritise women’s health, but this Government are making a habit of taking with one hand to give with the other. Will the Minister confirm whether he raised his concerns over the cancellation of health targets, which have an impact on these measures, with the Secretary of State for Health and Social Care?

[Chris Vince]

The shadow Minister talks about targets, but was it not his own Government that got rid of the targets for A&E waiting times, and then failed to meet their lowered targets?

[Greg Smith]

It is a brave Labour politician who talks about health targets when, for so long, the NHS in Wales was performing, and continues to perform, worse than in England when it was run by the Conservatives.

To conclude, we will support these statutory instruments because they will support the 40,000 families who faced the incredibly difficult and worrisome experience of having a child in neonatal care. The instruments will build on our achievements that made the UK one of the best places in the world to be the parents of a newborn, and I hope the Government can continue to make progress.

I end by again thanking the former Member for Cumbernauld, Kilsyth and Kirkintilloch East and Baroness Wyld. I also thank Bliss and the Smallest Things for their consistent work that has kept neonatal care pay and leave at the top of all of our agendas.

Draft Digital Markets, Competition and Consumers Act 2024 (Consequential Amendments) Regulations 2025

Greg Smith Excerpts

Monday 10th February 2025 General Committees

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve under your chairmanship, Ms Harris. I am pleased to see that this statutory instrument builds on the good work of the previous Conservative Government in the Digital Markets, Competition and Consumers Act, which received Royal Assent in May 2024, under the stewardship of my right hon. Friend the Leader of the Opposition.

As the Minister said, the instrument amends legislation in consequence of part 3, part 4 and chapter 2 of part 5 of the Digital Markets, Competition and Consumers Act 2024, which I shall refer to as the DMCCA henceforth. Part 3 of the DMCCA updates powers to investigate and enforce consumer protection law. Part 4 gives consumers protections in respect of unfair commercial practices, subscription contracts and prepayments to savings schemes, and regulates the provision of alternative dispute resolution for consumer contract disputes. Chapter 2 of part 5 confers statutory authority for UK regulators to provide investigative assistance to overseas regulators that have functions corresponding to those of UK regulators in relation to competition consumer protection and digital markets. The draft regulations update references across the statute book to the legislation that parts 3 and 4 of the Act replace, ensuring that regulators and others can disclose information to enable consumer enforcers to investigate and enforce breaches of consumer protections.

I welcome the measures taken by the Government in this statutory instrument, which builds on the work of the previous Government, but given the importance of the legislation, I would like the Minister to provide further clarity on a couple of points. The instrument updates various pieces of legislation that restrict disclosure of information to allow disclosure for the purposes of part 4 of the DMCCA. It also amends the Water Resources Act 1991 to allow disclosure for the purposes of part 3, part 4 and chapter 2 of part 5 of the DMCCA. Will the Minister elaborate on the protections in place to ensure that information sharing is handled appropriately and remains secure?

On perhaps more of a political note, my second question is about one of the DMCCA’s purposes, which is to provide consumers with protections against subscription traps. As the Minister well knows from our long time together in the Employment Rights Bill Committee, the Employment Rights Bill will automatically opt in trade union members to a political fund unless they expressly opt out. Will the Minister clarify the Government’s position on subscription traps? Are they holding businesses and trade unions to different standards?

Oral Answers to Questions

Greg Smith Excerpts

Thursday 30th January 2025 Commons Chamber

[Greg Smith (Mid Buckinghamshire) (Con)]

I begin by drawing attention to my entry in the Register of Members’ Financial Interests.

When consumer confidence is low, business confidence is low, and nowhere is that more visible than in our automotive sector, with UK car production slumping to its lowest level since 1954. Autocar magazine warned today that the zero emission vehicle mandate

“is currently the industry’s biggest headache, as…consumer demand is not there to meet the stringent regulations which are increasing each year.”

When policy fails, it is sensible to admit it and change course. Will the Minister accept that the ZEV mandate flies in the face of what consumers actually want, and that a radically different path is required to boost business confidence in our automotive sector?

[Gareth Thomas]

No, I do not accept that, and I would gently remind the hon. Gentleman that the policy to which he has referred was introduced by his party. I recognise that there are many aspects of the Conservative party’s record about which he and his colleagues are probably embarrassed. The Liz Truss Budget—which the shadow Secretary of State, the hon. Member for Arundel and South Downs (Andrew Griffith), helped to write—did huge damage to our country and to consumer confidence. The measures that the Chancellor announced yesterday, for example, will drive growth forward, and that is one of the reasons why businesses backed them so strongly yesterday.

[Greg Smith]

It normally takes longer than six months for a Government to drift that far from reality. The Society of Motor Manufacturers and Traders has predicted that just 775,000 cars will roll off production lines in 2025, compared to 1.3 million in 2019. Today’s edition of The Telegraph reports:

“The slump has been accelerated by a slowdown in demand across Europe, particularly by drivers shunning new electric vehicles”.

Why does the Minister persist in a policy to undermine our automotive businesses by forcing them to make a product that people just do not want to buy? Is it not time to get the state out of the way, let our innovators innovate, and boost automotive businesses’ confidence by letting them deliver to actual consumer demand?

[Gareth Thomas]

The hon. Gentleman seems to have forgotten the extra investment that Nissan has announced, and the extra investment that has been announced by a number of other car manufacturers. He and his colleagues were very clear in opposing the measures that we took in the Budget, including measures that backed investment in the automotive sector, and they set out no plans to pay for that investment. I gently encourage him to reflect a little further on the mistakes that his party made in government, which have caused some of the problems that we are having to sort out now.

Draft Register of Overseas Entities (Protection and Trusts) (Amendment) Regulations 2025

Greg Smith Excerpts

Wednesday 29th January 2025 General Committees

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve under your chairmanship, Sir Desmond. I am grateful to the Minister for outlining in such detail the provisions of the draft regulations, which build on legislation passed by the last Conservative Government. The broad picture is that His Majesty’s loyal Opposition welcome and support them and will not seek to divide the Committee on them. Essentially, they will expand the category of individuals who can apply to Companies House to have their information protected under the ROE and will allow trust information on the ROE that is currently restricted from public inspection to be accessed by application, subject to certain requirements.

Although I stress that His Majesty’s loyal Opposition support the draft regulations, I have two sets of questions to which I would be grateful for an answer from the Minister, either directly this morning or in writing later.

First, who makes the assessment of who meets the threshold for being considered at risk of intimidation or violence? Is there a published list of criteria for meeting the threshold? Is there any means for applicants to appeal the decision?

Secondly, once an applicant has been successful in their application to have their information protected, how often will they need to reapply? How frequently will Companies House review their status?

Solar Farms: Agricultural Land

Greg Smith Excerpts

Tuesday 28th January 2025 Westminster Hall

[Dr Savage]

I agree with my hon. Friend that we should be prioritising locations that do not impact on our ability to meet our food security needs.

The environmental benefits of solar farms are not as clearcut as some would have us believe. Yes, they produce clean energy, but at what cost? Large installations can alter local ecosystems, potentially contaminate soil and even increase local temperatures due to heat absorption by the dark panels—and let us not forget the human cost. Tenant farmers face eviction. Land values are skyrocketing, making it harder for new farmers to enter the industry, and we risk losing the very character of our rural communities that underpins local tourism and our national identity.

[Greg Smith (Mid Buckinghamshire) (Con)]

I agree with every word the hon. Lady has said so far. Does she agree with me that if we are to protect food security and give it equal billing with energy security and national security, not just solar installations are inappropriate, but the ancillary projects like those I am seeing in my constituency? For example, we have battery storage and National Grid coming along and saying it has to completely rebuild all of the substations on—guess what?—more agricultural land. This is a much bigger problem than just solar.

[Dr Savage]

I absolutely agree with the hon. Member’s points. I am not against solar energy—far from it—but we need to be smart about how we implement it and all the associated infrastructure. Why not require all new homes to be fitted with solar panels, as proposed by my hon. Friend the Member for Cheltenham (Max Wilkinson) in his sunshine Bill? Why not use the vast roof spaces of warehouses, public buildings and car parks? These are sensible, minimally intrusive ways to contribute to our net zero goals.

--- Later in debate ---

[The Minister of State, Department for Energy Security and Net Zero (Sarah Jones)]

It is a pleasure to serve under your chairmanship, Sir Desmond. I congratulate the hon. Member for South Cotswolds (Dr Savage) on securing this important debate and the number of interventions she received in such a short period of time reflects the strength of feeling.

Before I set out the Government’s approach, I reassure the hon. Lady and her constituents that we agree on most things in this space. We agree that we should be using renewables—whatever they are, wherever they are—in the best way possible. We agree that we need to look at our responsibilities in terms of the climate, agriculture, the countryside and food production. The Government take all those responsibilities very seriously and look them at very carefully. We agree that if we are building solar panels, for example, we should build on brownfield sites first. If we cannot, we should build on areas of lower-quality land first. We agree that food security is enormously important for this country. In the global conditions we find ourselves in, where there is more uncertainty—as we saw with the war in Ukraine and what followed with our energy prices—we need to be mindful of those things. When it comes to the principles, we agree.

I will set out the Government’s overall approach to our clean power mission, which might help to put the debate in context. We, like the hon. Member for South Cotswolds, have been clear from the start that the only way to tackle climate change, secure our energy supply, bring down bills and drive economic growth is through clean energy. The rapid deployment of clean energy infrastructure is essential for our future security and economy.

[Greg Smith]

Is it not the case that the Government are just plumping for the technology that is available right now, in the form of thousands of acres of solar, when we need 2,000 acres of solar panels to produce enough electricity for just 50,000 homes on current usage? A small modular reactor needs just two football pitches for 1 million homes. As I have said many times, why on earth are the Government messing about with solar given its impacts on food security, which the hon. Member for South Cotswolds (Dr Savage) mentioned?

[Sarah Jones]

The previous Government messed around with solar quite a lot—we are building on what the previous Government did, up to a point. The answer is to look at all the technologies that are available to us. SMRs are enormously attractive in lots of different ways, and lots of colleagues have been talking to us about them. As the hon. Gentleman knows, there is a process for the development of SMRs. We need all the tools in our armoury and we need to make sure we are using the most modern technology available. He makes a fair point on that front.

Sustainable power generated here in Britain will reduce our contribution to the damaging effects of climate change and our dependence on the volatile global fossil fuel market. It is already creating thousands of highly skilled jobs and will continue to do so. Instead of delaying the inevitable, we have set ourselves a target to push to clean power by 2030. The clean power action plan, published last month, sets out how we will get there, including the likely technology mix required. It is clear that solar will play a major role.

Employment Rights Bill (Twenty First sitting)

Greg Smith Excerpts

Committee stage
Thursday 16th January 2025 Public Bill Committees

[Sir Ashley Fox]

That would not be quite enough to offset the £5 billion-worth of costs for small and medium-sized enterprises. The advantage of the new clause is that it would not cost either the taxpayer or employers any money. However, I thank the hon. Gentleman for his contribution.

The truth is that, currently, many people simply do not have the time to offer to the role without employer support. The measure I propose would make it easier for specials to perform their duties and, I hope, help recruitment. Unlike so many of the proposals in the Bill, it would not cost either employers or the taxpayer any money.

I am pleased that this campaign has the support of the Association of Special Constabulary Officers and more than a dozen MPs from Government and Opposition. We also have the endorsement of 10 police and crime commissioners. Importantly, Assistant Chief Constable Bill Dutton, acting in his capacity as the National Police Chiefs’ Council lead for the special constabulary, has provided his written support for including special constables under section 50. The Minister has received letters from hon. Members in all parts of the House, and I believe that some of his ministerial colleagues, too, may have received letters or held meetings with Government Back Benchers.

The new clause could help with the recruitment and retention of many new special constables and it would make our streets safer. It would also finally recognise the work of the specials and put them on the same footing as the thousands of other people in this country who are allowed time off work to complete valuable civic duties. I ask the Minister to consider that.

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve under your chairmanship, Sir Christopher. I would like to add my support to what my hon. Friend the Member for Bridgwater has proposed. The first duty of Government is to protect citizens from threats abroad and keep them safe at home. Given all the other rights and extensions of rights that the Government are pushing in the Bill, it would seem unusual if support for our special constables, whom I salute for all their hard work day in, day out as part of the mission to keep the British people safe, were not included. I urge the Minister to consider the new clause in a genuine spirit of trying to work together on this issue.

I am tempted to rise to the bait set by the hon. Member for Worsley and Eccles. We have many differences of opinion about the Bill’s provisions, but, in the spirit of the Bill, surely we can find some cross-party consensus on extending employment rights to special constables going about their duty—the often dangerous duty that they carry out on behalf of us all.

[Steve Darling (Torbay) (LD)]

It is a pleasure to serve under your chairmanship, Sir Christopher. I rise to strongly support the new clause. We have seen throughout our debates in Committee that there are opportunities for changing the weather around our employment world, whether it is around foster carers, adoption or volunteering—the subject of new clause 38, championed by my hon. Friend the Member for Woking (Mr Forster), which we will discuss later.

I hope that this new clause falls on fertile ground because, as the hon. Member for Bridgwater has highlighted, volunteering across the piece has significantly reduced. We need to change the weather around the employment world and make sure that people feel able and confident to volunteer, as we know that policing is a particular challenge.

I welcome the Government’s plans to invest in neighbourhood policing. Special officers are often involved in that. People feel confident when they see a uniformed officer on the street. The public do not care whether it is a paid officer or a special officer; it is a trusted individual. The more we can drive that agenda, as I know from my residents in Torbay, the more it will be welcomed. I look forward to a strong endorsement from the Minister.

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

It is a pleasure to see you in the Chair this morning, Sir Christopher. I start by referring to my entry in the Register of Members’ Financial Interests. I congratulate the hon. Member for Bridgwater on the new clause and join him in paying tribute to his constituent Emma-Elizabeth Murphy and all special constables who perform the vital work that Members have spoken in support of. We recognise and value the vital role that special constables play, which includes supporting neighbourhood policing. We are committed to ensuring that police forces have the support that they need from the Government to tackle important matters of public safety.

Special constables, along with the full range of police volunteers, bring valuable and diverse skills that complement the roles that officers and staff play in delivering the best service to the public. We recognise that there has been a fall in the number of special constables over recent years. Further work needs to be done to understand exactly the reasons for that. Initial consideration suggests that a range of factors has led to the reduction in the number of special constables. It is not clear whether the new clause would reverse that trend or what its impact on business would be—the hon. Member for Bridgwater has been a constant critic of the Bill’s impact on businesses—so we need to understand that better.

We are already doing a range of work to support special constables and employment rights more broadly. We are introducing the neighbourhood policing guarantee, which will put thousands of additional police officers, police community support officers and special constables on our streets and restore patrols in town centres across the country.

Many employers already support their employees to volunteer in a special constabulary. Under the Employer Supported Policing scheme, led by the National Police Chiefs’ Council, a number of organisations across a range of sectors have committed to supporting members of their workforce to serve as special constables, in recognition of the opportunities to build new skills and support local communities. The Home Office is also supporting the NPCC to develop and implement initiatives to improve the recruitment and retention of special constables. That includes developing a refreshed national citizens in policing strategy and a national special constabulary working group.

I will not be able to accept the new clause, but I am sympathetic to the case that has been made. In preparation for dealing with it, I learned that that the initial legislation that introduced time off for certain public duties is now 50 years old, so it seems time to consider this issue in the round, and the role of special constables will no doubt be included in that. The Home Office will clearly have an important say. As I said, a number of factors has led to the decline in the number of special constables in recent years.

[Greg Smith]

The new clause has been tabled for some weeks now. Has the Minister engaged with the Home Secretary, the Policing Minister or any officials in the Home Office? Have they presented a view on this proposal yet?

[Justin Madders]

We have had various discussions within the Department. Information has gone over to the Home Office, and we are waiting for a response. Obviously, I cannot speak for the Home Office, so I cannot set out its position. As I say, I think it is time more generally to consider all the legislation relating to the right to time off for public duties. It is too soon to accept this new clause, but I hope the hon. Member for Bridgwater is assured that we are taking this issue seriously and considering it.

--- Later in debate ---

[Greg Smith]

I commend the hon. Member for Torbay for tabling new clause 35. It is not the Opposition’s intention to support it at this stage, but I want to be clear that the principle behind it is fundamentally good: ensuring carers are not left on a financial sticky wicket, which is a very real problem in the country. I acknowledge that the hon. Member for Torbay said that it was a probing amendment, but we believe that it is not currently fully thought through. We can all agree—I would be surprised if we did not—on saluting the incredible work that carers do up and down the land. They are all heroes in their own right and they do incredible work to look after those they care for. Their work merits a genuine use of the word “amazing”. It is a word that has been applied to far too many things in this world that are not amazing, but I think we can all agree that the work carers do genuinely is amazing.

Our rationale for saying that this new clause is not thought through enough is that it does not produce realistic solutions to solving the financial gap for carers, which we acknowledge exists. I would be interested to know the rates of payment the Liberal Democrats think would be appropriate for carer’s leave, how the rates they envisage have been benchmarked, and if they have understood the likelihood of take-up of carer’s leave and therefore the ability of employers to absorb this cost. The hon. Gentleman was very clear about that 10.6 million figure he gave. Any solution that seeks to close the financial gap must accept some of the realities and take on board the costings that will have to come from somewhere to ensure that that financial burden can be met, notwithstanding the acceptance that carers need more support for—I repeat—their amazing work. That is why we believe this new clause just does not work at this time, and I would be surprised if our position were that different from the Government’s.

[The Minister for Equalities (Dame Nia Griffith)]

I refer the Committee to my entry in the Register of Members’ Financial Interests, in particular my membership of the National Education Union and USDAW.

New clause 35 would commit the Government to introducing an entitlement for employees with caring responsibilities, to be paid at their usual wage level, while taking carer’s leave. It would give carers an entitlement of up to a week of paid leave and require employers to cover the cost.

I want to underline that the Government are absolutely committed to supporting employed unpaid carers. In the October 2024 Budget, we increased the earnings disregard for carers from £151 to £196, meaning that they can earn up to £196 without losing any of their carer’s allowance. In effect, that means that they can work 16 hours a week at the national living wage.

We have two concerns about the new clause. First, it would introduce significant new costs for employers without giving consideration to the potential impact on businesses, in particular small ones. Secondly, under the proposed approach, individuals taking carer’s leave would be treated more favourably than employees taking other forms of leave to care for family members, such as maternity or paternity leave, where a flat statutory rate is available. There is no clear rationale for taking a different approach, and it could raise questions about differential treatment of different groups. For those reasons, the Government do not support the new clause.

However, supporting carers who want to work alongside managing their caring responsibilities is an important element of our plans to modernise the world of work, which will ensure that there are good jobs for carers and a skilled workforce for employers. The Carer’s Leave Act 2023 gave employed carers a new right to time off work to care for a dependant with long-term care needs. We will review that measure and consider whether any further support is required. That will include looking at potential options for paid leave. The review will draw on evidence from carers and employers and learn from their experiences, so that we can understand what is working in the current system and identify where improvements may be needed. Through that work, we will also engage closely with smaller employers and sector bodies to ensure that we fully understand the potential impacts and benefits that further policy development could bring for them. It is right that we allow the review to run its course to enable an evidence-based decision on whether there is more we can do to support working carers while balancing impacts on businesses.

I heard what the hon. Member for Torbay said about the new clause being a probing amendment, and I hope that what I have said gives him reassurance about our commitment to that review. I therefore invite him to withdraw the new clause.

--- Later in debate ---

[Steve Darling]

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

The new clause would ensure that workers in the early stages of an employment dispute, such as a disciplinary or grievance hearing, can be supported by those who are qualified, rather than just by trade union representatives or similar colleagues. It would allow for matters to be brought to a head much sooner and prevent cases from necessarily going to tribunal, which clogs up the tribunal system. I hope the Government will take the new clause in the positive sprit in which we tabled it.

[Greg Smith]

I listened carefully to what the hon. Member for Torbay said. On one level, I would be interested to know why the Liberal Democrats think the expansion is needed, where the shortfalls are in the current right to be accompanied, and what benefits the new right would bring. I think that what the hon. Gentleman is proposing could be done through existing legislation in many respects.

That said, representatives of the charity and third sector who seek to represent those in the teaching profession have welcomed the new clause, because the teaching unions have a bit of a monopoly at the moment. Although my mother has been retired for many years, she always joined a union through considerably gritted teeth—she may have been the only Conservative in the staff room, but she gritted her teeth. In fact, she may even have taught for many years in the constituency of the hon. Member for Birmingham Northfield. The teaching unions have that monopoly because of the insurances and so on that they give to teachers. The new clause would widen things out and allow teachers who do not wish to join a union to get the support they need—accompaniment at a hearing—from a charity or third sector organisation, which may be welcome.

We need more clarity on the impact that would have on the teaching profession, which is why we do not think the new clause should be accepted at this time. However, the hon. Member for Torbay has opened the door on an area that it is important for us to explore as the Bill proceeds, and perhaps in future legislation.

[Justin Madders]

I thank the hon. Member for Torbay for tabling the new clause. I think its origins are in written evidence to the Committee from the edu-legal organisation Edapt, which has been raising this issue with successive Governments for a number of years.

It is important to set out the position under current law. Section 10(3) of the Employment Relations Act 1999 explains that when a worker is asked to attend a disciplinary or grievance hearing they are entitled to bring a companion who is either a fellow worker, an official employed by a trade union, or a workplace trade union representative that the union has reasonably certified as having received training in acting as a worker’s companion at such hearings. Employers are free but not obliged to allow workers to be accompanied by someone who does not fall into those categories. Some workers may have a contractual right to be accompanied by persons other than those listed, such as a professional support body, partner, spouse or legal representative.

As one of the initial steps in resolving tensions when the worker-employer relationship has broken down, the provisions of the 1999 Act seek to keep disciplinary and grievance procedures internal to a workplace. Expanding the types of organisations that can be involved in representing workers could lead to hearings requiring legal representation for both worker and employer. We certainly do not want to see internal disciplinary or grievance hearings ending up in a legal battle. That would invariably increase the cost of holding a hearing and potentially decrease the chances of an amicable resolution. Equally, introducing increased legal expertise from outside the workplace could increase the likelihood of a tribunal. Workers and employers may judge ACAS conciliation or mediation unlikely to resolve a dispute because legal arguments have been made during an internal disciplinary hearing. We certainly believe that amicable resolutions are the swiftest way for justice to be delivered.

The new clause would give the Secretary of State the power to set out and define in regulations the professional bodies that could represent employees in disciplinary and grievance hearings. Although, as the shadow Minister said, this measure relates specifically to the education sector, one can easily see a whole range of organisations beginning to knock on the door. It would raise all sorts of questions about regulations, standards and enforcement, and it would inevitably expand quite quickly.

As the shadow Minister said, it is not clear beyond the written submission to the Committee where the demand is for the expansion of this right. Employers are of course entitled to nominate individuals or organisations for recognition. The Government are clear that trade unions are best placed to provide workplace representation. The legislation is fit for purpose in terms of ensuring that that is done in a proportionate and balanced way. On that basis, we reject the new clause.

--- Later in debate ---

The new clause would not set things in stone. We are saying, “Let’s go and consult.” There is a real opportunity here. I thank my hon. Friend the Member for Woking, who helped to propose this measure; it is his brainchild. I think it is a real golden opportunity, and I am sure the Minister will grasp it with both hands and get it over the line for us. I will be pressing the new clause to a vote.

[Greg Smith]

I heard very clearly what the hon. Member for Torbay proposed on behalf of the Liberal Democrats. I think we all salute everybody who volunteers. We can all celebrate people who give up their time freely to do something worthy in our constituencies, communities and neighbourhoods—including the Scout and Girlguiding groups that the hon. Gentleman spoke of.

It is clear from the passion with which the hon. Gentleman spoke that the Liberal Democrats are still pining for the coalition days, when the big society was the centrepiece of the vision that the Prime Minister—now my right hon. Friend the noble Lord Cameron—had for this country. On one level, I had thought that one of the greatest successes of the coalition Government was—until the 2024 general election—the electoral annihilation of the Liberal Democrats, but they are still pining for many of the things that my party and theirs did together in that coalition period.

In theory, the new clause is actually very appealing; we all want to support people to do good and give their time freely in their communities, neighbourhoods and areas—in our constituencies. But where I take issue with the hon. Gentleman is that, time and again in this Committee, too much has been left to yet another consultation. While I hear his argument, “What harm would another one do?”, I think we are consultationed out at the moment. I do not think it would be helpful either for the Government, in achieving what they wish to achieve through this very wide-reaching piece of legislation—albeit with disagreement from the Opposition Benches—or for employers to have to take on yet another strand of burden in this regard, so the Opposition will not be supporting new clause 38.

However, we do want to explore ways in which volunteering can be more greatly encouraged in all of our communities. As a starting point, although consideration of the definition of volunteering would be included as part of the hon. Gentleman’s proposed consultation, we need a better definition before we consider any wider consultation on time off and so on. At the moment, it is far too wide-open a goal and too broad a word. If we asked everybody in the country to give their definition of volunteering, we would probably get 70 million different answers. If we had greater clarity about what we are really talking about—for example, my hon. Friend the Member for Bridgwater’s very clear and defined proposal on special constables, which of course is an incredibly worthwhile and nation-enhancing bit of volunteering—then we could potentially get somewhere, but at the moment, volunteering could mean literally anything to anyone. That is not to undermine the good work that people do day in, day out across our country, but we need greater clarity.

[Justin Madders]

Let us start where we can all agree: volunteering is a very important part of our society and we want to do everything we can to encourage it. It is a central part of civic life and has a positive impact on our society, and we all pay tribute to the volunteers in our communities. There are large employers that have impact days and corporate social responsibility days where they come into the community—there are a number of examples in my constituency where that has happened. Larger employers, in particular, have been able to pool their resources and have a real benefit in their communities.

However, as the shadow Minister outlined, the Government will be undertaking a significant number of consultations, and we do not wish to add to that at this stage. We want to focus on the priorities in our “Make Work Pay” agenda. In particular, we want to see how the enhanced right to flexible working will benefit people’s ability to volunteer. We believe that when we implement the new rights to flexible working in the earlier parts of the Bill, they will enable employees to access flexible working requests in order to fit in their volunteering, and that further legislation is not necessary at this time.

The Department for Culture, Media and Sport is delivering the Know Your Neighbourhood fund, which has a key focus to ensure that learning is shared

“on how people in disadvantaged areas can be supported to volunteer and improve their social connections”.

So there is work going on in Government, and a recognition that volunteering is an important part of the fabric of our society, but, as has been indicated, we do not wish to undertake additional consultations at this point.

--- Later in debate ---

Brought up, and read the First time.

[Greg Smith]

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

The new clause would require the Certification Officer to publish a report on the impact on various sectors of the economy of introducing a four-day week. The Certification Officer is responsible for ensuring that trade unions carry out their statutory duties, and it is important that it is aware of the impacts of this policy, which various elements of the labour movement and the trade union movement have supported.

We have seen just how effective the four-day week has been where it has been tried. Let us take the example of South Cambridgeshire district council, which introduced it for its workers in 2023. The Mail reported last week that one in six staff have a second job during their day off. That is despite the council’s website stating that the time off is to allow workers to “recover and re-energise” for the “more intense” four-day week. It is full-time pay for part-time work, and then some.

It would be extremely helpful for all concerned if we had a little more transparent information about the effects the four-day week might have on the economy as a whole if introduced more widely. That is why we have tabled new clause 42, which would require the Certification Officer, within 12 months of Royal Assent, to lay before both Houses of Parliament a report on the economic and financial impact of introducing a four-day week.

The report would be required to cover the retail and wholesale industry; the manufacturing industry; the finance and insurance industry; the health and social care industry; the construction industry; the education industry; the public sector and defence industry; the transport and storage industry; the arts and recreation industry; and agriculture, mining and fishing. To ensure that the report is balanced, the Certification Officer must consult business owners, workers and consumers, although that, of course, is not an exhaustive list.

For full transparency, we would like to make sure that any submissions that are received are published, preferably in a way that can be questioned in this House. The new clause aims to introduce a “look before you leap” ethos into the Government’s policymaking. Given the state of the Bill, I would argue that that is very much needed.

[Steve Darling]

I am delighted that the hon. Member for Mid Buckinghamshire has had a road to Damascus moment on the need for further consultation on the Bill. I am delighted that the Conservatives believe that consultation is a good thing, unlike my Conservative council colleagues in Torbay. I look forward to the Minister looking kindly on the new clause, which shows that the Conservatives believe in consultation. I would ask that he please grasp this opportunity.

--- Later in debate ---

As should be clear, no plans are included in the Bill to mandate a four-day week for five days’ pay. Compressed hours already exist in some workplaces, but that does not always mean working fewer hours. Businesses can refuse a request if it does not suit their needs. Therefore, any assessment of a four-day week is unnecessary, and I ask the shadow Minister to withdraw the new clause.

[Greg Smith]

I listened carefully to the Minister’s response. The four-day week is subject to much media interest at the moment, and it is important that we keep a close eye on moves to shorten the working week, given the impact it would have on productivity and growth in our economy going forward. For the time being, I am happy not to press the new clause, but the Opposition are concerned, and we will keep an incredibly close eye on the issue. I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 46

Adoption pay: self-employed persons

“(1) Within six months of the passage of this Act, the Secretary of State must by regulations enable statutory adoption pay to be payable to persons who are—

(a) self-employed, or

(b) contractors.

(2) For the purposes of subsection (1), the meaning of ‘self-employed’ and ‘contractors’ shall be set out in regulations under this section.”—(Steve Darling.)

This new clause extends statutory adoption pay to the self-employed and contractors.

Brought up, and read the First time.

[Steve Darling]

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

The new clause would extend statutory adoption pay to those who are self-employed or contractors. I must declare something of an interest, although I do not formally need to, because I am adopted myself, and this issue is extremely close to my heart. When I was leader of the Torbay unitary council, we went from “failing” to “good” for our children’s services within two years. That is probably the biggest achievement of my life. Again, it was something I was driven on because I am adopted. In the ’70s, I was very fortunate to be adopted by Eric and Penny. Eric was not a toolmaker, but he was a lorry driver, and would potentially have benefited had there been an opportunity such as the one I have outlined in the new clause.

I encourage colleagues to step back slightly and to reflect on the challenges in social care, and particularly children’s social care, and on the heavy costs—I am sure colleagues are only too aware of them—to local authorities, which have a responsibility for children’s services. For those kids who need support, the best people are foster carers or those who adopt. When there is a lack of such people—when there is not that capacity—kids might have to be picked up by the private sector, and hard-pressed local authorities often have to pay through the nose for that. The new clause is about changing the weather again around support for youngsters in need. By extending statutory adoption pay to those who are self-employed or contractors, we would enhance the pool of those who can participate.

I thank my hon. Friend the Member for Hazel Grove (Lisa Smart) for her help with the new clause. Earlier this week, she led a worthwhile debate on this issue, and I acknowledge the positive feedback the Minister in that debate gave on the proposals. I look forward to hearing from this Minister how the Government could take the proposals in this probing amendment forward.

[Greg Smith]

I listened carefully to the speech by the hon. Member for Torbay. The issues he raises are worthy of debate, but as he said this is a probing amendment, so these are matters for a future occasion.

--- Later in debate ---

[Chris Murray]

That is a very helpful intervention, because it draws me on to my final point. There is a distinction between what rights there are and what rights are enforced. We have seen from the discussion around the fair work agency and the Gangmasters and Labour Abuse Authority that the issue is that rights are not enforced. The good part of this Bill is that it sets up a fair work agency that will look at enforcement.

Not supporting the new clause does not mean not recognising the objective that it puts forward. The argument is that this point should and could be dealt with more effectively through other legislative avenues, such as the modern slavery legislation brought in by the previous Government, which they then completely gutted. Looking at how the labour exploitation components of that legislation could be strengthened would deal more effectively with the issues that the hon. Member is raising via his new clause.

[Greg Smith]

His Majesty’s loyal Opposition cannot support new clause 51. The horrible practices outlined by the hon. Member for Dundee Central need to be tackled, but the Bill will already do that. I actually find myself in agreement with parts of what the hon. Member for Edinburgh East and Musselburgh said. There are other routes within immigration law where such things can and should be tackled. No matter how much we disagree with parts of the Bill, if we take the view that the law must apply equally to everybody whether or not they are a British citizen, it is unnecessarily to carve out a particular section of people through new clause 51, when there is other legislation to deal with the abuses that no one on the Committee or in the House wants to see.

[Justin Madders]

Let me start by reaffirming our strong view that every worker has the full right to protection under the laws of this country. That includes migrant workers, as is clear from our plan to make work pay, which recognises that particularly vulnerable sectors are open to abuse from unscrupulous employers. The immigration framework is an important part of ensuring that those who come to this country under visas and sponsorship are protected and that modern slavery abuse is tackled.

Sponsorship is a privilege that comes with certain responsibilities for sponsors to ensure that they adhere to employment rights in the United Kingdom. They must have full responsibility for the work that workers are conducting, and in all cases they must ensure that those they sponsor are paid appropriately and that they act in compliance with relevant legislation. As my hon. Friend the Member for Edinburgh East and Musselburgh says, a lot of work is ongoing in this area, particularly from the Home Office, which recently announced that it would ban from future sponsorship any business found guilty of serious employment law breaches, including failing to pay the national minimum wage.

We are committed to strengthening the enforcement of rights more broadly through the fair work agency. The Committee has heard plenty of evidence that the current system of enforcement is fragmented. Unfortunately, as we know, that often means that not everyone gets the protection that they should have. One of the essential functions of the new fair work agency will be to produce a strategy setting out its assessment of the scale and nature of non-compliance with labour market rules. This is to ensure that the risks of abuse across all sectors and groups of workers are properly understood and captured. In producing the strategy, the fair work agency will need to consult with an advisory board made up of trade unions, business and independent experts. That will ensure that we get a broad view of the gaps and risks in the labour market.

The hon. Member for Dundee Central suggests that this area is a blind spot for the Government. I can assure him that it is not. I have had conversations with the Director of Labour Market Enforcement about the issue, and plenty of work is under way at the Home Office. The hon. Member need only consider the Low Pay Commission’s report to see that the issue is clearly on our radar. An additional report would not add anything to the work that is already under way. I therefore ask him to withdraw his new clause.

--- Later in debate ---

[Justin Madders]

I will be brief. The clauses are simple and standard, and they appear in most legislation.

Clause 113 will allow the Secretary of State to make consequential amendments—that is, amendments that are immediately consequent upon a provision in the Bill—to primary or secondary legislation. Consequential amendments are necessary changes to other legislation to ensure that the law works alongside the changes to the law made in the Bill. Subsection (2) will allow the power to be used to amend primary legislation where we would not expect to be burdened with further primary legislation to make changes. Subsection (4) sets out that regulations that amend primary legislation will be subject to the affirmative procedure, thus maintaining Parliament’s ability to scrutinise the provisions made under the power.

Clause 114 will allow the Secretary of State to make two types of provision. The first type is a transitional provision, which can be used specifically to assist the changeover from the state of the law before the Bill comes into force to the state of the law when it is fully in force. The second type is a saving provision, which can be used to preserve certain elements of the old law even after the new law comes into effect. They are used to maintain specific rights, obligations or legal effects that existed under the old law so that the changes will not apply in certain pre-existing cases.

We have ensured that the powers conferred on the Secretary of State to make provisions under clauses 113 and 114 are limited. As I say, the clauses are customary provisions. I commend them to the Committee.

[Greg Smith]

As the Minister says, the clauses are standard in a lot of legislation.

Question put and agreed to.

Clause 113 accordingly ordered to stand part of the Bill.

Clause 114 ordered to stand part of the Bill.

Clause 115

Regulations

[Greg Smith]

I beg to move amendment 164, in clause 115, page 104, line 2, at end insert—

“(3A) The Secretary of State must have regard to the following objectives when making any regulations under this Act—

(a) the international competitiveness of the economy of the United Kingdom; and

(b) its growth in the medium to long term.”

This amendment would require the Secretary of State to have regard to the objective of the international competitiveness of the economy and its growth in the medium to long term when making any regulations under the Act.

[The Chair]

With this it will be convenient to discuss amendment 165, in clause 115, page 104, line 2, at end insert—

“(3A) No regulations may be made under this Act unless the Secretary of State has—

(a) consulted such persons as they consider relevant to the proposed regulations; and

(b) laid before both Houses of Parliament a report of that consultation.”

This amendment would require the Secretary of State to consult and publish a report of that consultation before making any regulations under the Act.

--- Later in debate ---

[Greg Smith]

I think this will be the last set of amendments we discuss, so let us ensure that they are good ones. Amendment 164 would require the Secretary of State to have regard to the objective of the international competitiveness of the economy and its growth in the medium to long term when making any regulations under the Bill. Amendment 165 would require the Secretary of State to undertake consultations on all regulations published under the Bill.

The effects of the Chancellor’s Budget of broken promises are apparent for all to see. On 7 January, the yield on a 30-year gilt broke a 27-year record, at 5.198%. That is the highest figure since the Debt Management Office was created in 1998. On Monday, the yield rose to 5.461%. That is not abstract; it reflects dwindling confidence in the UK economy, puts extra pressure on the Government’s headroom against their own fiscal rules and could lead to taxpayers paying billions more just to service the Government’s debts.

The Chancellor has chosen to increase borrowing by an average of £32 billion a year for the next five years. That is the largest fiscal loosening in any fiscal event in recent years. It will add substantial pressure to those debt repayments. Earlier this week, The i Paper reported that average two-year and five-year fixed deals for those with 25% equity or deposit are now expected to rise above 5% in the coming weeks, causing more financial pain for buyers and those trying to remortgage.

The Budget, the rise in employer national insurance contributions and, importantly, the provisions in the Bill could not be described as pro-growth, yet the Government repeatedly assure us that growth is the one thing they will deliver, which will unlock everything else.

Amendment 164 would restore the Government’s good intentions and get them back on track. It would ensure that the Secretary of State has regard to the need to ensure growth when making regulations under the Bill. On the basis of all the evidence that we have seen since the general election, growth is clearly not front and centre in the Government’s thinking when they are making policy. It must be.

Amendment 165 would ensure that the Secretary of State consults properly before making regulations under the extensive powers in the Bill. It is merely to hold the Government to their word: they acknowledge that in many respects the policy in the Bill is undercooked and needs further work before implementation.

With these final amendments that the Committee will discuss, let us lay down the gauntlet and see whether the Government will put their money where their mouth is. If the Government are serious about growth, they will surely accept amendment 164.

[Steve Darling]

Throughout our debates, Conservative colleagues have been critical of the Government for not having an oven-ready Bill and emphasising the need for further consultation. I have sympathy with that, as does my hon. Friend the Member for Chippenham. However, the last Conservative amendment that we will consider in Committee would require consultation, so I wonder whether the Labour party’s proposals have worn the Conservatives down into believing in it. I am delighted by that; perhaps they have changed their minds on the rest of the Bill, too. I hope that the Minister will grasp the opportunity with both hands.

--- Later in debate ---

[Justin Madders]

The shadow Minister’s amendment 164, as he said, would require the Secretary of State to have regard to the UK’s growth and international competitiveness when making any regulations under the Bill. As the shadow Minister knows, the Government are committed to getting growth in this country back on track and to maintaining and strengthening our international standing. I noticed that in his litany of negative economic news, he forgot to mention today’s growth figures, which show us back in positive territory.

Our employment rights framework is about ensuring that the economy works for everyone. The Government believe our plan to make work pay will bring the UK back in line internationally and tackle issues with low growth, productivity and pay. The plan is not only a core part of the mission to grow the economy, but crucial to delivering on our milestone to raise living standards across the country and to create opportunities for all. It sits alongside work on planning reform, the skills revolution, tackling inactivity and launching our vision for a modern industrial strategy. The strategy will enable the UK’s already world-leading services and manufacturing sectors to adapt and grow, seizing opportunities internationally to lead in new sectors, with high-quality, well-paid jobs. It will be grounded in long-term stability, a renewed commitment to free and fair trade, and a pro-business approach focused on reducing barriers to investment in the UK.

We have committed to full and detailed engagement with businesses and trade unions alike as we develop the detail of regulations under the Bill. Our published impact assessment evaluates a wide range of evidence and concludes that the package could have a direct and positive impact on growth. Our intention is to refine our analysis as policy development continues, including by publishing updated option assessments and impact assessments, alongside future consultations and secondary legislation, to meet our better regulation requirements. In developing the detail of regulations, our officials and Ministers will pay close heed to the potential impacts on growth, as well as to our international comparability. We are committed to ensuring that we get support across the country among workers and employers alike.

Amendment 165 would require the Secretary of State to consult, and to publish a report of consultation that has been undertaken on specific measures, before making any regulations under the Bill. As was noted by the Liberal Democrat spokesperson, the hon. Member for Torbay, those on the Conservative Benches have taken a rather vacillating approach to consultation during the passage of the Bill, but we have been clear that we are pro-business and pro-worker. That is reflected in our approach, not just in Committee but with engagement since before the Bill’s publication, to ensure that our plan to make work pay is delivered.

As the Committee knows, we have committed to full and comprehensive consultation with all stakeholders. We began in October with an initial consultation package and, as set out in the “Next Steps to Make Work Pay” document, we will consult further on the implementation of the Bill’s measures. Alongside formal consultations, we have conducted extensive engagement on how best to put our plans into practice. We have already held and attended about 40 meetings of external stakeholders related to “Make Work Pay”. Eighteen of those meetings have been specific to businesses, eight specific to trade unions, and seven held in a tripartite setting.

I have written to the shadow Minister with details of the engagement that has already taken place. The figures are not exhaustive and do not include officials’ meetings or recurring meetings with external organisations to discuss a range of topics. I therefore suggest that we are engaging and consulting fully and that the amendment is not necessary.

[Greg Smith]

Well, there we have it. The Government who say they are pro-growth have shown their true colours and will not back our amendment to prove their intentions towards growth. This whole Bill is a socialist charter and we know that we cannot have socialism and growth at the same time. The history books have taught us that time and again.

We deeply regret the Government’s resistance to these two amendments. We will continue to be the party that champions business, growth and getting our economy going again, while this Government do everything they can, in this Bill and in their Budget and in so many other ways, to hold our economy back.

[Michael Wheeler]

Will the shadow Minister give way?

[Greg Smith]

Of course I will. Bring it on.

[Michael Wheeler]

I am going to try an entirely new tactic to derail the shadow Minister mid-stride. This is a genuine question, and I hope he answers it. Does he agree that throughout our line-by-line discussion of the Bill, he has been most generous with his time in accepting interventions that I believe to have been valuable?

[Greg Smith]

I am incredibly grateful to the hon. Gentleman for that intervention. It is for others to judge whether any Member of this House has been generous or otherwise.

What I can say, as we come towards the end of our debate on the final amendments and move on to the final clauses, is that we have had a good debate in this Bill Committee. It has not been one of those where those on the Government Benches are told to be quiet in the interest of getting on with it. We have had a genuine debate and a back and forth. Although we have not always agreed, and it looks like we do not agree on the amendments we are debating right now, we have had a debate. Our constituents sent us all here to represent them in arguments over ideas, concepts and values, and practical steps to meet the ideas and values that we hold dear, and we have done so. I agree with the spirit of the hon. Gentleman’s intervention.

On amendments 164 and 165, I repeat that His Majesty’s loyal Opposition regret that the Government do not wish to accept these pro-growth amendments. I will not press them for now, but we may well be seeing them very soon, when the Bill returns to the main Chamber on Report. I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

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

[Justin Madders]

I hope the Committee will agree that, like other clauses we have debated in part 6, clause 115 is a straightforward and customary provision. It sets out various procedural aspects that are relevant to the making of regulations under the Bill by statutory instrument, with the exception of commencement regulations, which I will speak to separately as they are dealt with in clause 118.

Subsection (2) sets out that regulations made under the Bill may make different provision for different purposes, and that they may contain supplementary, incidental, consequential, transitional or saving provisions. Subsections (4) and (5) explain what is meant by references in the Bill to the negative procedure and the affirmative procedure. The delegated powers memorandum sets out each power in the Bill, as introduced, and justifies the procedure set out in the relevant clause.

[Greg Smith]

I reiterate that we think the clause could have been improved by our amendments, but, for the time being, that is not to be the case.

Question put and agreed to.

Clause 115 accordingly ordered to stand part of the Bill.

Clause 116

Financial provision

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

[The Chair]

With this it will be convenient to discuss clauses 117 to 119 stand part.

--- Later in debate ---

[Greg Smith]

I am grateful to the Minister for taking us through those standard clauses at the end of the Bill. The only thing worthy of comment, which has come up during our debates on many of the clauses, is the variable commencement timings of some of the provisions, as listed in clause 118. I appreciate that that can happen in legislation from time to time, but the variable timescale adds an element of confusion for businesses. Some provisions will be commenced immediately, some after two months, and some after longer than that.

With that, we come to the end of our debates on the clauses and will move on to decide on measures that we have already debated. As I said in response to the intervention by the hon. Member for Worsley and Eccles in the last debate, we have had a good debate in Committee. We have clearly outlined a number of areas where the two major parties in the House of Commons disagree on the approach to the Bill, but let nobody be in any doubt that we have gone through it line by line and debated it in a good level of detail.

I will end simply by saying that although clause 119 gives the short title of the Bill and says that

“This Act may be cited as the Employment Rights Act 2025”,

the Opposition’s view is that it will, in reality, be the Employment (Job Losses) Act.

Question put and agreed to.

Clause 116 accordingly ordered to stand part of the Bill.

Clause 117

Extent

Amendments made: 206, in clause 117, page 104, line 22, for

“Part 3 of this Act extends”

substitute

“Chapters 1 and 2 of Part 3 of this Act extend”.

This amendment is consequential on Amendment 207.

Amendment 207, in clause 117, page 104, line 22, at end insert—

“(ba) Chapter 3 of Part 3 of this Act extends to England and Wales, Scotland and Northern Ireland;”.

This amendment states the extent of the new Chapter proposed to be formed by NC48 and NS3.

Amendment 107, in clause 117, page 104, line 24, at end insert—

“(1A) Sections (Statutory sick pay in Northern Ireland: removal of waiting period) and (Statutory sick pay in Northern Ireland: lower earnings limit etc) (statutory sick pay in Northern Ireland) extend to Northern Ireland only.”

This amendment is consequential on amendments NC5 and NC6; it limits the extent of new clauses (Statutory sick pay in Northern Ireland: removal of waiting period) and (Statutory sick pay in Northern Ireland: lower earnings limit etc) to Northern Ireland only.

Amendment 108, in clause 117, page 104, line 27, leave out “An amendment or repeal” and insert

“Except as set out in subsection (4), an amendment, repeal or revocation”.

This amendment is consequential on NS2 and amendment 109.

Amendment 109, in clause 117, page 104, line 28, leave out “amended or repealed.” and insert

“amended, repealed or revoked.

(4) In Schedule (Increase in time limits for making claims) (increase in time limits for making claims)—

(a) the amendments made by paragraph 9(3) and (4) extend to Northern Ireland only;

(b) the amendments made by paragraphs 10, 12 and 13 extend to England and Wales and Scotland only.”—(Justin Madders.)

This amendment would limit the extent of certain amendments in NS2 so that they only extend to Northern Ireland or Great Britain (where they would otherwise extend to both). This is to ensure that the increase in time limits in those cases only applies in relation to employment tribunals in Great Britain.

Clause 117, as amended, ordered to stand part of the Bill.

Clause 118

Commencement

Amendment made: 110, in clause 118, page 105, line 17, at end insert—

“(na) section (Employment outside Great Britain) (employment outside Great Britain);”.—(Justin Madders.)

This amendment would bring NC7 into force two months after Royal Assent.

Clause 118, as amended, ordered to stand part of the Bill.

Clause 119 ordered to stand part of the Bill.

Title

Amendments made: 208, in title, line 6, after

“Adult Social Care Negotiating Body;”

insert

“to amend the Seafarers’ Wages Act 2023;”.

This amendment is consequential on NS3.

Amendment 209, in title, line 6, after

“Adult Social Care Negotiating Body;”

insert

“to make provision for the implementation of international agreements relating to maritime employment;”.—(Justin Madders.)

This amendment is consequential on NC52.

Question proposed, That the Chair do report the Bill, as amended, to the House.

[Justin Madders]

I wish to thank you, Sir Christopher, and the other Chairs who have presided over this lengthy Bill Committee. I also thank the Clerks, Doorkeepers and Hansard reporters. I thank all members of the Committee who have participated in what has been a healthy and engaging debate. No doubt there will be more discussions and debates to come as the Bill progresses. I also thank the officials Cal Stewart, Jack Masterman and Shelley Torey.

[Laurence Turner (Birmingham Northfield) (Lab)]

Thank you, Sir Christopher. All good things must come to an end, and sadly that includes this Committee. I echo the thanks given by the Minister to the workers—to everyone who has supported the Committee—and I thank our Front Benchers, who have done a sterling job and from time to time gently and appropriately warded us off our individual enthusiasms. Perhaps that was just me.

Work on what became this Bill began a long time ago. It is hard to believe that almost five years have passed since my hon. Friend the Member for Worsley and Eccles and I first became involved in the discussions. To name contributors is to commit the sin of omission. That is the case too for the staff of the Labour party, due to the party’s professional code of modesty, but I would like to place a few names on the record. They include my hon. Friends the Members for Halifax (Kate Dearden) and for Gateshead Central and Whickham (Mark Ferguson), who previously ably represented the Community and Unison unions respectively, including through the Labour party’s national policy forum. That was in itself an exhaustive process. I just say to hon. Members that if they liked this Committee, they would have loved the NPF. I am sorry to disappoint Opposition Members, but there was no smoke in those rooms, and no beer. There were occasionally sandwiches.

I would be in error if I did not personally thank Jaden Wilkins in my office and the staff of the TUC for their consistently excellent research publications. I also thank some of the GMB figures who made critical contributions during that time, including the national political officers during that period—Tom Warnett, Caitlin Prowle and Gavin Sibthorpe, who put in more hours than anyone—the national legal officer, Barry Smith, and the staff of the research and policy department, Anna Barnes, Ross Holden and Cassie Farmer. Finally, I would like to mention the staff of the Trade Union and Labour Party Liaison Organisation: Robbie Scott, Kieran Maxwell and Helen Pearce—the best political organiser in the labour movement, who herded cats and moved mountains.

[Greg Smith]

I echo the thanks that the Minister gave, particularly to the Clerks of the Committee, the wider Scrutiny Unit and everyone else who has worked so hard. These Bills are an enormous amount of hard work for the staff of the House, particularly the Clerks, and it is always appreciated by His Majesty’s loyal Opposition. Likewise, from the Doorkeepers and Hansard to everyone who prepares the room for us, it is an enormous job of work, and we thank them most sincerely. The Bill will shortly move on to Report, when the battle will recommence. In the meantime, Sir Christopher, I thank you and the other Chairs of the Committee for your chairmanship. We look forward to the next round.

[Steve Darling]

I echo the thanks to you, Sir Christopher, and the other Chairs who have ably chaired the Committee. I thank the Clerks, Doorkeepers and Hansard, who have reported throughout. I thank colleagues for the good-natured way that the Bill has been debated. This is my first Bill Committee, and I look forward with gusto to my next one. I also thank Laura Green, who has ably supported me throughout the Committee.

Employment Rights Bill (Nineteeth sitting)

Greg Smith Excerpts

Committee stage
Tuesday 14th January 2025 Public Bill Committees

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

I beg to move amendment 183, in schedule 6, page 135, line 6, leave out “‘Secretary of State’.” and insert

“‘Gangmasters and Labour Abuse Authority or the Secretary of State’.”

This amendment would ensure that section 12(2) of the Gangmasters (Licensing) Act 2004, which makes it an offence for a person to be in possession or control of a “relevant document” that is false or has been improperly obtained with the intention of inducing someone to believe that the person has a licence under that Act, continues to apply in respect of documents issued by the Gangmasters and Labour Abuse Authority in connection with a licence before its abolition.

It is a pleasure to see you in the Chair this morning, Mr Mundell. As is customary, I refer to my declaration of interests and to the Register of Members’ Financial Interests.

The amendment is essential to upholding legal continuity and to preventing any ambiguity or loopholes in enforcement. It will ensure that provisions under the Gangmasters (Licensing) Act 2004 remain enforceable. Without the amendment, there is a risk that any improper conduct in relation to documents issued before the abolition of the Gangmasters and Labour Abuse Authority could fall outside the scope of enforcement.

Fraudulent licences have been used to exploit vulnerable workers and to mislead employers, particularly in industries such as agriculture and food processing. The amendment will strengthen deterrence against document fraud and ensure that enforcement agencies retain the tools that they need to protect workers effectively.

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve under your chairmanship once more, Mr Mundell.

As the Minister has outlined, Government amendment 183 will ensure that section 12(2) of the Gangmasters (Licensing) Act 2004, which makes it an offence for a person to be in possession or control of a relevant document that is false or has been improperly obtained with the intention of inducing someone to believe that the person has a licence under the Act, continues to apply in respect of documents issued by the Gangmasters and Labour Abuse Authority in connection with a licence before its abolition.

Clause 109 will abolish the Gangmasters and Labour Abuse Authority, a non-departmental public body that investigates reports of worker exploitation and illegal activity such as human trafficking, forced labour and illegal labour provision, as well as making offences under the National Minimum Wage Act 1998 and the Employment Agencies Act 1973. Significantly, the Gangmasters and Labour Abuse Authority also issues licences to employment agencies, labour providers or gangmasters who provide workers in the sectors of agriculture, horticulture, shellfish gathering and any associated processing or packaging. That is important work; we do not in any way, shape or form deviate from that.

The Government amendment will rightly ensure that providing false licences remains an offence, including where that was identified before the Bill receives Royal Assent and becomes an Act at some point this year, but I would like to be reassured about the work of the Gangmasters and Labour Abuse Authority in connection with the provisions of the Bill. For example, what will happen to the staff at the authority once it has been abolished? The Bill provides for the transfer of staff, property rights and liabilities to the Secretary of State. Does the Secretary of State envisage redundancies or envisage that the same staff will continue to do the same work under a different ultimate authority? Will the reorganisation lead to any disruption? I think we all accept that any change will bring with it some level of disruption, but how can the disruption be minimised?

Likewise, the amendment appears to ensure continuity with existing legislation once the Bill has passed. I will be grateful if the Minister can confirm that that is the case. If any new powers are being taken, please could they be explained?

[Steve Darling (Torbay) (LD)]

It is a pleasure to serve under your chairmanship, Mr Mundell. I welcome the clarity offered by the Government in the amendment.

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[Justin Madders]

Schedule 6 outlines consequential amendments to other legislation and will ensure consistency with the provisions introduced by the Bill. It will also ensure that our legislative framework is cohesive and functional.

The amendments will make essential technical adjustments to section 114B of the Police and Criminal Evidence Act 1984 to reflect the replacement of labour abuse prevention officers with enforcement officers, as defined in part 5 of the Bill. They will update references, revise definitions and ensure consistency between this Bill and existing legislation. The amendments will avoid confusion and ensure that our statutory framework functions effectively. I commend these minor technical amendments to the Committee.

[Greg Smith]

I am grateful to the Minister for explaining these further minor amendments to section 114B of the Police and Criminal Evidence Act, being made as a result of the replacement of labour abuse prevention officers with enforcement officers under part 5 of the Bill. The amendments are another consequence of centralising the different enforcement agencies that operate under the auspices of the fair work agency.

I would be grateful to have the Minister’s reassurance that all current enforcement work will still be able to be carried out to the same standard during the period of reorganisation. In the previous debate, he indicated that he did not expect disruption; I gently put it to him that that is probably on the optimistic end of the scale. No matter the good intention behind any reorganisation, or the will, endless planning and everything that goes into it from a lot of good people putting in a lot of hard work, the reality is that any reorganisation can cause disruption, either in its own right or through unexpected events.

I will give a parallel closer to home. In my constituency, Buckinghamshire unitary council was created to go live just as the pandemic was starting. Four district councils and a county council were put together at the point at which we were all sent home, so everyone was working from home and having to rise to a local authority’s duties to put in place resilience measures to support people through the pandemic.

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[Justin Madders]

It seems we have a little double act developing on the Opposition Front Bench. It reminds me a little bit of Waldorf and Statler, without the puns. Both the hon. Member for Mid Buckinghamshire and the hon. Member for Bridgwater sought similar and important assurances that the work of the agencies would be able to be carried out effectively during this period of transition. I note what the hon. Member for Mid Buckinghamshire mentioned about the Mid Buckinghamshire reorganisation.

[Greg Smith]

All of Buckinghamshire.

[Justin Madders]

All of Buckinghamshire, yes—with the hon. Member right in the middle where he truly belongs. I do recall that the previous Government decided to set up the UK Health Security Agency in the middle of the pandemic, which was a challenging time to do that. It has been shown that the people doing the job day to day can continue to do it while the institutional reform carries on, making it more likely that they will be effective in carrying out their work through the sharing of resources, evidence and expertise, as well as, hopefully, a more unified approach to enforcement. Clearly, we want those doing the day-to-day work to be able to carry on doing that and a number of these amendments enable them to do that. We hope that, as the agency forms and more joint working is developed, they will become more effective.

Amendment 104 agreed to.

Amendments made: 105, in schedule 6, page 140, line 26, at end insert—

‘(4A) In subsection (10), for “Any other” substitute “A”.’

See the explanatory statement for amendment 104.

Amendment 106, in schedule 6, page 140, line 27, leave out sub-paragraph (5) and insert—

‘(5) For subsection (11) substitute—

“(11) In this section—

“enforcement officer” has the meaning given by section 72(3)

of the Employment Rights Act 2025;

“labour market offence” has the same meaning as in Part 5 of that Act (see section 112(1) of that Act).”’—(Justin Madders.)

See the explanatory statement for amendment 104.

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[Justin Madders]

Schedule 6 makes consequential amendments to existing legislation to ensure consistency with the new provisions introduced by the Bill. The amendments make essential technical adjustments to the Employment Tribunals Act 1996 and the Small Business, Enterprise and Employment Act 2015, updating references and ensuring consistency between the Bill and existing legislation.

Government amendment 184 omits section 19A(10A) of the Employment Tribunals Act 1996, which makes provision for the disclosure of settlement terms to an enforcement officer appointed under section 37M of the same Act. Section 37M is repealed by the Bill, as it has been superseded by the new provisions of the Bill on the appointment of fair work agency officers. Clauses 98 and 99(1) of the Bill provide gateways for the disclosure of information to fair work agency officers. Government amendment 184 repeals section 19A(10A), as the provision is no longer required in the light of the new provisions introduced by the Bill. Government amendment 188 is consequential to Government amendment 184. The amendment prevents confusion and ensures our statutory framework continues to function effectively.

[Greg Smith]

For the next part of the double act —I will casually ignore the Minister’s comparison—I will speak to Government amendments 184 and 188. Amendment 184 is a minor amendment relating to part 5 of the Bill and amendment 188 is consequential on amendment 184. As the Minister said, amendment 184 removes section 19A(10A) of the Employment Tribunals Act 1996. Section 19A concerns the

“recovery of sums payable under settlements”

and subsection (10A) provides that the court may make provision as to the time within which an application to the county court for a declaration under subsection (4) is to be made. Subsection (4) states:

“A settlement sum is not recoverable under subsection (3) if—

(a) the person by whom it is payable applies for a declaration that the sum would not be recoverable from him under the general law of contract, and

(b) that declaration is made.”

 

Notwithstanding the Minister’s explanation, it is still not entirely clear to the Committee, or indeed to the whole House, why it is necessary to delete subsection (10A) from the Employment Tribunals Act 1996. I am sure there is a very convoluted reason for it out there somewhere, but it seems to us that the will of the Government in putting this legislation before Parliament does not need that deletion in order to function. I would be grateful if the Minister gave a fuller explanation of the need for that deletion in his summing-up.

[Sir Ashley Fox]

Amendment 184 proposes the removal of subsection (10A) from section 19A of the Employment Tribunals Act 1996, which deals with the recovery of sums payment under settlements, specifically addressing situations in which a party seeks a declaration from the court regarding the recoverability of a settlement sum.

Under subsection (10A), the court has the discretion to make provisions regarding the timeframe within which an application must be made to the county court for a declaration under subsection (4). Subsection (4) essentially provides that a settlement sum will not be recoverable if the person liable to pay the sum seeks a declaration from the court that, under general contract law, the sum is not recoverable from them. The removal of subsection (10A) raises important questions about the implications of the timing and procedure of such applications.

Given that the removal of subsection (10A) may have significant consequences for how significant settlement sums are handled and claims are processed in the future, will the Minister explain why this provision is being deleted? Understanding the reasoning behind the change is important for assessing its potential impact on workers and employers. Will the removal of this provision simplify the process for parties seeking a declaration regarding the recoverability of settlement sums or will it introduce new challenges or delays in the legal process? Furthermore, how will this change affect the ability of individuals to seek a fair resolution in cases where disputes over settlement sums arise? Clarification from the Minister on these points would be appreciated as it would help ensure that stakeholders fully understand the intended effects.

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[Greg Smith]

I am grateful for the Minister’s brief explanation of Government amendments 185 to 187, which enable the Secretary of State to make regulations enabling the director general of the Independent Office for Police Conduct to deal with complaints and misconduct relating to enforcement officers who exercise police powers. Amendments 186 and 187 allow the Secretary of State to make regulations to deal with complaints. Misconduct relating to enforcement officers created by the Bill who exercise the powers in amendment 185 is consequential to amendments 186 and 187. Amendment 186 states that the Secretary of State

“may make regulations conferring functions on the Director General in relation to enforcement officers acting in the exercise of functions conferred on them by virtue of section 114B of the Police and Criminal Evidence Act 1984.”

Can the Minister provide examples of the sorts of functions it is envisaged the Secretary of State will confer by regulations and how those powers will be used? Probably more significant to this debate and to give us the full picture, will the Independent Office for Police Conduct be granted greater powers to investigate misconduct claims? Will it have additional sanctions compared to that which it is already able to impose? If so, what are they and what will be the resourcing implications for the Independent Office for Police Conduct to take on oversight of the reorganisation?

We can all accept that many elements of the public sector are incredibly stretched. Whenever any reorganisation comes about or there is a need to oversee new bodies, there will be a resource implication. No matter how well intentioned the provisions of the Bill and the three amendments are, there will be a resource implication, even if it is a minor one. It is important that the Government acknowledge that and make a clear, unambiguous commitment to the resourcing of the Independent Office for Police Conduct to take on oversight of the reorganisation and future enforcement officers and their functions.

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[Justin Madders]

I beg to move amendment 190, in schedule 6, page 144, line 10, at end insert—

“Police, Crime, Sentencing and Courts Act 2022

92B In Part 2 of Schedule 3 to the Police, Crime, Sentencing and Courts Act 2022 (extraction of information from electronic devices: authorised persons in relation to all purposes within section 37), after the entry relating to section 15 of the Gangmasters (Licensing) Act 2004 insert—

‘A person who is an enforcement officer for the purposes of Part 5 of the Employment Rights Act 2025.’”

This amendment would authorise enforcement officers under Part 5 of the Bill to exercise the powers conferred by section 37 of the Police, Crime, Sentencing and Courts Act 2022 to extract information stored on electronic devices for the purposes of, among other things, criminal investigations.

Government amendment 190 is another technical amendment to ensure continuity and effectiveness of the enforcement power under section 37 of the Police, Crime, Sentencing and Courts Act 2022. The Bill provides the building blocks for us to set up the fair work agency, which involves transferring enforcement functions that are currently split between multiple bodies, including the Gangmasters and Labour Abuse Authority. The GLAA office currently exercises its power across the UK under section 37 of the 2022 Act. Without this amendment, enforcement officers in England, Wales and Scotland would not have access to critical investigatory powers under that Act. Only officers enforcing the Gangmasters (Licensing) Act 2004 in Northern Ireland would retain those powers, creating an unjustifiable enforcement gap.

Investigations increasingly rely on access to electronic data, such as payroll records and communication logs. Excluding fair work agency officers from these powers would severely hinder their ability to obtain critical information, leaving them ill-equipped to tackle non-compliance and labour exploitation effectively.

The amendment ensures that enforcement powers remain consistent across England, Wales, Scotland and Northern Ireland, aligning with the policy aim of the fair work agency to deliver robust and uniform enforcement. Fair work agency officers would exercise the section 37 power in relation to labour market offences. That expands the scope of the power, as currently the power is exercised by GLAA officers only in connection with enforcement of the 2004 Act.

This amendment would mean that the power is used by fair work agency officers to enforce the broader range of legislation under their remit, which means that the power could be exercised in relation to any labour market offence, instead of just offences under the 2004 Act. That will prevent any disparity in enforcement capabilities that could undermine efforts to protect vulnerable workers and uphold compliance.

This amendment corrects a minor technical oversight during the drafting process, ensuring that the legislation accurately reflects operational needs. It aligns with the overarching policy intention to ensure that there is no reduction in enforcement capability as enforcement bodies transfer into the fair work agency, and it directly addresses concerns and strengthens the Bill’s overall effectiveness. In conclusion, this amendment is essential to prevent enforcement gaps, ensure parity across jurisdictions, and equip enforcement officers with the tools that they need to combat exploitation in the modern economy.

[Greg Smith]

As the Minister outlined in his opening remarks, Government amendment 190 would authorise enforcement officers, under part 5 of the Bill, to exercise the powers conferred by section 37 of the Police, Crime, Sentencing and Courts Act 2022 to extract information stored on electronic devices for the purposes of, among other things, criminal investigations.

As I understand it, the power conferred by section 37 of the 2022 Act may be exercised only for the purposes of preventing, detecting, investigating or prosecuting crime; helping to locate a missing person; or protecting a child or at-risk adult from neglect or physical, mental or emotional harm. How often does the Minister envisage that that power would be needed when enforcing employment law?

It is a very important power in the cases that I have outlined—not least for the critical work of protecting children and at-risk adults from neglect or physical, mental or emotional harm—but, I repeat, how often does the Minister envisage that it will be needed in employment law? What safeguards will be in place to prevent an inappropriate or intrusive use of the power? It seems an odd fit in this Bill.

Those matters are all rightly—I have double underlined that word—covered in other parts of legislation and enforced daily by the police and other agencies. His Majesty’s loyal Opposition salute everyone involved in the prevention of harm and the prosecution of its perpetrators, but I repeat that the power seems an odd fit with this Bill.

[Nick Timothy (West Suffolk) (Con)]

Government amendment 190 seeks to amend the Police, Crime, Sentencing and Courts Act 2022 by extending the powers conferred by section 37 of that Act to enforcement officers for the purposes of part 5 of this Bill. Section 37 of the 2022 Act allows the authorities to extract information shared on electronic devices for the purposes, among other things, of criminal investigations. I have some familiarity with these issues from my time working with the police, security and intelligence agencies and other public bodies with investigatory responsibilities when I worked in the Home Office between 2010 and 2015. Then, we were confronted with the danger that changing technology meant that the ability of these important public agencies to access the communications data necessary for their work was diminishing. That was because the nature of the way we communicate was changing from conventional phone calls and written material to internet-based communication. That obviously included methods such as messaging services like WhatsApp and Signal but also messaging within other apps like Facebook or even within online gaming systems.

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[Greg Smith]

Through this morning’s debate on the 10 Government amendments to schedule 6, most of the points about the schedule have been well aired. As we consider whether it should fully stand part of the Bill, however, I genuinely believe that a number of questions posed—in particular by my hon. Friends the Members for West Suffolk and for Bridgwater—on the practicalities of the transfer of some of the powers have not been adequately addressed during the debate by the Minister.

We do not challenge or seek to undermine in any way, shape or form the intention of the schedule. I appreciate the Minister’s willingness to write to me on a couple of the points I made, and I accept the good faith in which that offer was made, but any transition involves some disruption. That is simply a fact of life, and I think that the Government would do well, given the good intent of what the schedule seeks to do, to reassure not just the Committee, but the whole House and the country at large, that that disruption will in fact be minimised and practical steps taken to make that the case.

Fundamentally, however, His Majesty’s loyal Opposition understand and accept the necessity of the schedule. We just think that some unanswered questions remain.

[Steve Darling]

I echo the shadow Minister, who sits to my right—in more ways than one. Definitely, further clarity from the Minister would be welcome.

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[Justin Madders]

The schedule sets out transitional and savings provisions. It ensures a smooth changeover from the existing enforcement framework to the new provisions introduced by the Bill. That is of course important because it makes our legislative framework cohesive and functional.

Government amendment 191 is a necessary technical provision to ensure that the transition of enforcement responsibilities under part 5 of the Bill is well ordered. By clarifying that actions taken not just “by” but “in relation” to enforcement officers will continue to have effect as if done in relation to the Secretary of State, we are safeguarding a continuity in enforcement processes and ensuring no disruption to ongoing cases or decisions, which I am sure Members will be relieved to hear.

Government amendment 192 makes a consequential change to align with Government amendment 191, and Government amendments 197 and 200 make minor drafting changes in schedule 7. They do not affect the substance of the Bill, but they improve its clarity and accuracy. I hope that hon. Members will support what I imagine are uncontroversial amendments and support achieving the aim of ensuring continuity and cohesiveness as we move forward. On that note, I commend the amendments to the Committee.

[Greg Smith]

Government amendments 191 and 192 ensure that things done “in relation to” existing enforcement officers—for example, before part 5 of the Bill comes into force—continue to have effect as if done “in relation to” the Secretary of State. I fully accept that Government amendments 197 and 200 make minor drafting changes, which look as though they ensure legal continuity—that would be the case, based on the Minister’s opening remarks—and therefore seem sensible, given the policy direction.

I can conclude my comments on the amendments only by asking the usual question, which I have asked many times in Committee and fear I will ask a few more times during the debate over the remainder of today, Thursday and next Tuesday: should the amendments have been included in the Bill on its introduction? This is yet another example of why it is foolish to rush anything, particularly getting a Bill out in 100 days and its consideration in Committee.

[Sir Ashley Fox]

Government amendments 191 and 192 are designed to ensure legal continuity for actions and decisions made regarding existing enforcement officers prior to the implementation of part 5 of the Bill. They stipulate that any actions or procedures carried out “in relation to” enforcement officers before the new provisions come into force, such as appointments, disciplinary actions or administrative functions, will continue to have the same legal effect as if they had been made “in relation to” the Secretary of State. That is important, because it prevents any disruption or confusion in the legal standing of prior actions, ensuring that they are not rendered ineffective by the changes introduced by the Bill. Essentially, the amendments provide a mechanism to ensure that the transition to the new legal framework does not invalidate or interfere with prior administrative or operational activities.

The rationale behind the amendments is straightforward: it is legal continuity. As enforcement officers are brought under a new regulatory framework, it is crucial that past actions related to their roles, such as those conducted before the Bill takes effect, are preserved and do not need to be revisited or re-executed under the new provisions. That ensures that there is no disruption in the functioning of enforcement operations and that any ongoing matters involving enforcement officers continue seamlessly under the authority of the Secretary of State. The amendments clarify that past decisions and procedures will be treated as if they were made under the authority of the new system, which will help to avoid any potential legal challenges or confusion.

Amendments 197 and 200 involve relatively minor drafting changes. Although the specifics of those changes may not substantially alter the substance of the Bill, they are important for clarity, consistency and precision in the text. These types of amendments typically address technical issues, such as language inconsistencies, ambiguities or minor adjustments to improve the readability and legal accuracy of the provisions. Although they do not represent major shifts in policy, such amendments are crucial in ensuring that the Bill’s provisions are clear, unambiguous and legally sound. Even small drafting changes play an important role in improving the overall functionality and effectiveness of the legislation.

Amendments 197 and 200 help to fine-tune the Bill’s language, ensuring that there are no interpretive uncertainties that could arise during its application. By addressing potential issues in the drafting, the amendments help to streamline the implementation process and reduce the risk of legal challenges or confusion in future interpretations of the law.

Taken together, the amendments—particularly amendments 191 and 192—help to ensure that there is no legal disruption when the provisions in part 5 of the Bill come into effect. That is an essential part of the legislative process, as it guarantees that previous actions remain valid and that transition to a new regulatory framework is smooth. In addition, the minor drafting changes provided by amendments 197 and 200 contribute to legal clarity, ensuring that the Bill’s language is precise and consistent, which will help to avoid any future complications in the application of the law.

Although these changes are reasonable and sensible, in the light of the Bill’s policy objectives, it is worth noting that they should ideally have been included at the time of the Bill’s introduction. The legal continuity ensured by amendments 191 and 192, as well as the technical refinements in amendments 197 and 200, could have been addressed earlier in the drafting process, to ensure that the Bill was as comprehensive and clear as possible from the outset. None the less, these changes at this stage still serve to enhance the legal robustness and practical application of the Bill, which will ultimately contribute to more effective enforcement and smoother implementation.

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[Greg Smith]

Government amendment 193 ensures that the transitional provision in paragraph 6 of schedule 7 would apply in relation to officers acting for the purposes of part 2A of the Employment Tribunals Act 1996, which relates to the enforcement of employment tribunal awards. The function of such officers is being transferred to the Secretary of State by the Bill. Amendments 194 and 195 are similar to some of the amendments in the previous group—I fully accept that these are minor drafting changes.

Overall, the changes introduced by this group look as though they ensure legal continuity so that the fair work agency can act as the enforcement authority. That seems sensible, given the policy direction behind the Employment Rights Bill that has been outlined by the Minister and the wider Government. However, I ask again for updates on ensuring the effectiveness of the enforcement of employment law during the period of transition, and about the processes that will be put in place to minimise disruption for businesses, which we have spoken about at length earlier, and to ensure effective enforcement. Again, it is hard to envisage why this set of amendments were not considered at first publication of the Bill; they seem entirely sensible, but it is a mystery why they were lacking the first time round.

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[Justin Madders]

Amendment 196 will ensure that there is a smooth transition in the frameworks. Amendment 198 is a transitional provision ensuring that anything done by a labour abuse prevention officer before the abolition of the GLAA continues to have effect as if done under the fair work agency. Amendment 199 is another transitional provision for warrants that have been granted under the Gangmasters (Licensing) Act 2004, but not yet executed. It allows those warrants to have the same effect as before. It is a continuation of the amendments we have debated this morning, ensuring that enforcement officers have continuity when delivering their functions.

[Greg Smith]

Amendment 196 makes it clear that the general provision in paragraph 6 of schedule 7 is subject to any more specific provision in that schedule. Amendment 198 makes transitional provision to ensure that things done by or in relation to labour abuse prevention officers before the abolition of the Gangmasters and Labour Abuse Authority continue to have effect as if done by or in relation to enforcement officers granted the equivalent powers under section 114B of the Police and Criminal Evidence Act 1984.

Amendment 199 makes transitional provision in relation to warrants under section 17 of the Gangmasters (Licensing) Act, which is being re-enacted for England, Wales and Scotland, with some changes, through clause 83. In particular, proposed new paragraph 7C of schedule 7 of the Bill provides that, where a warrant issued under section 17 of the 2004 Act has not yet been executed, the warrant is treated as if issued under clause 83, but any changes introduced by the Bill that would not have applied if the warrant had been executed under section 17 —in particular the additional requirements in part 3 of new schedule 1—are disapplied.

On the face of it, these are sensible amendments to make sure that nothing falls through the cracks as enforcement functions transfer to the fair work agency. A number of Government amendments of this nature have been considered by the Committee. This set of amendments therefore leaves me slightly nervous, not about the intention, but about whether anything else has been missed. I would appreciate the Minister’s reassurance on that point.

[Sir Ashley Fox]

Amendment 196 seeks to clarify the applicability of general and specific provisions and the relationship between the general provision outlined in paragraph 6 of schedule 7 and any more specific provision within that schedule. The amendment ensures that, in the event of a conflict or overlap between general and specific provisions, the more detailed or specific provisions will take precedence. This is an important measure for maintaining legal clarity and consistency in the application of the Bill. By prioritising specific provisions where applicable, the amendment prevents any unintended gaps or inconsistencies in the legal framework, ensuring that enforcement activities and related actions are governed by the most precise and relevant rules.

Amendment 198 introduces a transitional provision designed to ensure that actions taken by or in relation to labour abuse prevention officers prior to the abolition of the Gangmasters and Labour Abuse Authority will continue to be recognised as valid. Specifically, it ensures that any activities, decisions or functions performed by those officers before the GLAA’s dissolution will have the same legal effect as if they had been carried out by or in relation to enforcement officers who have been granted equivalent powers under section 114B of the Police and Criminal Evidence Act 1984. This is critical because it provides a seamless transition as enforcement responsibilities are transferred, making certain that actions taken by the GLAA’s officers before the abolition of the agency are not rendered void or ineffective.

The amendment is vital for legal continuity. It guarantees that there will be no disruption in enforcement activities during the transition period. Officers who previously worked under the authority of the GLAA, particularly those involved in tackling labour abuse, will carry out their roles without interruption, as their actions will be treated as if undertaken by enforcement officers with the equivalent legal powers. The measure strengthens the overall framework for worker protection and labour abuse prevention, ensuring that the enforcement of relevant laws continues smoothly as the responsibility shifts to new authorities.

Amendment 199 focuses on the transitional provision for warrants issued under section 17 of the 2004 Act, which is being re-enacted in a revised form as clause 83 of the Bill. The amendment introduces new paragraph 7C, which addresses the scenario where a warrant issued under section 17 has not yet been executed at the time of the change. In such cases, the warrant will be treated as if it were issued under the new provisions in clause 83, but with a critical distinction. Any changes introduced by the Bill that would not have applied under section 17, such as the additional requirements in part three of new schedule 1, will be disapplied.

The purpose of the amendment is to ensure that any ongoing enforcement actions involving warrants issued under the old regime are not hindered or invalidated by the transition to the new framework. By allowing the warrants to be treated as though they were issued under the new clause, the amendment facilitates a smoother enforcement process and reduces the risk of legal challenges or procedural delays. This is an important safeguard for the enforcement of labour laws and ensures that the power to execute warrants continues without disruption, regardless of the legislative changes.

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[Justin Madders]

Existing enforcement bodies will have obtained information prior to the creation of the fair work agency. This information may be needed by the Secretary of State once part 5 of the Bill comes into force. Schedule 7 therefore provides for transitional and saving provisions to enable that. Amendments 201 and 202 provide that information obtained by officers acting under existing legislation prior to the coming into force of part 5 of the Bill, and which is held by the Secretary of State, can be used or disclosed in accordance with clause 98.

[Greg Smith]

Amendments 201 and 202 provide that information that was obtained before the coming into force of part 5 of the Bill by officers acting under existing legislation and is held by the Secretary of State can be used or disclosed by the Secretary of State in accordance with clause 98. These are sensible amendments on the face of it, to make sure nothing falls through the cracks as the enforcement functions transfer to the fair work agency—very similar to the previous set of amendments that we have just considered. It is part of a continuing theme of amendments of this nature that we as a Committee are being asked to consider.

I heard the Minister’s response to the previous debate about this being an iterative process and about the need to listen and best understand concerns or practical points raised by those being asked to prepare for and ultimately do this work. It remains a legitimate point of nervousness that there will be more such cracks that need repairing as part of this Bill. Accepting the Minister’s good faith in his explanation on the previous set of amendments, I put on record that we remain a little nervous that more cracks will need that legislative repair as the Bill goes forward.

We urge the Government to get on at pace with the conversations necessary to ensure that they have best understood where any further edits may be required—preferably before Report stage in the House of Commons, but if it does have to bleed into the time when the Bill goes to the other place, so be it. However, I think it would a far more satisfactory position if we were able to consider at our end of the building any further amendments that may be required before we ask their lordships to consider the Bill.

[Sir Ashley Fox]

Government amendments 201 and 202 are designed to address a key aspect of the transition process under the Bill. Specifically, they are designed such that any information that was obtained prior to the coming into force of part 5 of the Bill by officers operating under existing legislation and is currently held by the Secretary of State, can still be used or disclosed in accordance with the provisions outlined in clause 98 of the Bill.

That is crucial because, as enforcement functions transfer to the fair work agency, there needs to be continuity in how information is handled. By allowing the Secretary of State to continue using and disclosing this information under the new framework, the amendments ensure that no critical data or intelligence gathered under the previous system is lost or becomes unusable during the transition.

This provision is particularly important for maintaining continuity in enforcement activities. The information collected by officers acting under earlier laws may be vital for ongoing investigations or enforcement actions. For instance, data about businesses that are non-compliant with labour laws, or evidence of potential worker exploitation, could be crucial for future legal proceedings or further investigations.

--- Later in debate ---

[Justin Madders]

I beg to move amendment 203, in schedule 7, page 148, line 20, at end insert—

“9A The repeal of section 9 of the Employment Agencies Act 1973 (inspection) by paragraph 3 of Schedule 6 does not prevent the use in evidence against a person, in criminal proceedings taking place on or after the day on which that repeal comes into force, of a statement made before that day by the person in compliance with a requirement under that section (subject to subsection (2B) of that section).”

Section 9(3) of the Employment Agencies Act 1973 provides that a statement made by a person in compliance with a requirement made under that section to provide information may be used in evidence in criminal proceedings against the person. This amendment enables such a statement to be used in criminal proceedings taking place after the repeal of section 9 by the Bill.

Schedule 7 sets out transitional and savings provisions ensuring a smooth changeover from the existing enforcement framework to the new provisions. That is important, as Members have debated at length already. Amendment 203 addresses the repeal of section 9 of the Employment Agencies Act 1973 and the evidentiary treatment of statements obtained under that provision. The amendment will ensure that such statements can continue to be used in criminal proceedings post repeal, subject to existing protections against self-incrimination under section 9(2B). This is a targeted, proportionate and necessary amendment, which safeguards the integrity of enforcement proceedings during a period of legislative transition. On that basis, I commend the amendment to the Committee.

[Greg Smith]

As the Minister outlined, Government amendment 203 relates to section 9 of the Employment Agencies Act 1973, which provides that a statement made by a person in compliance with a requirement under that section to provide information may be used in evidence in criminal proceedings against the person. The amendment enables such a statement to be used in criminal proceedings taking place after the repeal of section 9 by the Bill.

Similar to the previous two groups of amendments we have considered, this is a sensible amendment to make sure that nothing falls through the cracks as enforcement functions transfer to the fair work agency. It is all part of a continuing theme, and the points that I made in the previous debate apply as much to amendment 203 as they did to the previous amendments.

I understand what the Minister said about every Bill being subject, during its passage, to a number of technical amendments by Governments of all different political compositions. I gently it put back to him that this Bill seems to have had an extremely high number of technical Government amendments, and that all tracks back to the unnecessary speed with which it was presented to Parliament.

Government amendment 204 contains transitional provision to ensure that once the functions of the Gangmasters and Labour Abuse Authority under the Modern Slavery Act 2015—

[The Chair]

Order. We will debate amendment 204 separately.

[Greg Smith]

I am sorry, Mr Mundell.

[Sir Ashley Fox]

Government amendment 203 seeks to address an important transitional issue arising from the repeal of section 9 of the Employment Agencies Act 1973 by the Bill. Section 9 currently stipulates that a statement made by an individual in compliance with a requirement to provide information under that section may be used as evidence in criminal proceedings against them. The amendment ensures that any statements made under the provisions of section 9 prior to its repeal can still be used in criminal proceedings that occur after the repeal takes effect.

The amendment is a necessary adjustment to maintain the integrity of the legal process. It will ensure that evidence obtained while section 9 was in effect remains valid and admissible in criminal cases, even after the section’s formal removal from the statute. Without the amendment, there could be ambiguity and potential legal challenges regarding the admissibility of evidence, which could undermine ongoing enforcement efforts and hinder the administration of justice. By making this provision, the Government ensure that no gaps are created in the legal framework, preserving continuity and clarity in the application of the law.

As we transition enforcement functions to the fair work agency, such amendments are vital to ensure the process is as seamless as possible. The purpose of amendment 203, and others like it, is to safeguard that critical aspects of the previous legal framework remain intact, even as the functions are reassigned or modified under the Bill. The changeover to the fair work agency is a significant shift, and these amendments are an important step in maintaining enforcement consistency. Given the complexity of transferring powers and responsibilities between agencies, the amendments ensure that no legal actions or evidence will fall through the cracks during the transition. They will ensure that enforcement remains robust, and that any evidence gathered or actions taken before the changeover still hold legal weight under the new system.

Although the adjustments are sensible and necessary, the number of Government amendments made in Committee leaves me with some concern about whether every possible issue has been addressed. The amendments we have seen so far have been well intentioned and critical for ensuring legal continuity, but I would appreciate the Minister’s reassurance that nothing has been overlooked in this important process.

As we know, the task of realigning enforcement powers can be complex, and with numerous provisions being amended or repealed, the risk of something slipping through the cracks is a valid concern. Opposition Members are asking for clarity that even with these detailed and helpful amendments, the transition to the fair work agency will not inadvertently create gaps or unintended consequences. I urge the Minister to provide additional assurances that all potential legal or procedural pitfalls have been anticipated, and that the Government have taken every necessary step to guarantee that the work of enforcement officers and the legal process will continue without interruption. Although the amendments are certainly a step in the right direction, we must remain vigilant to ensure that the full scope of the transition is properly managed and that the system continues to protect the rights of workers effectively.

--- Later in debate ---

[Justin Madders]

I beg to move amendment 204, in schedule 7, page 148, line 28, at end insert—

“10A (1) Where—

(a) a slavery and trafficking prevention order requires a person to notify the Gangmasters and Labour Abuse Authority in accordance with section 19 of the Modern Slavery Act 2015 (“the 2015 Act”), and

(b) immediately before the day on which paragraph 53 of Schedule 6 comes into force, that requirement has not been complied with,

that requirement has effect, on and after that day, as a requirement to notify the Secretary of State.

(2) On and after the coming into force of paragraph 54 of Schedule 6, the reference in section 20(2)(g) of the 2015 Act (as amended by that paragraph) to a slavery and trafficking prevention order made on an application under section 15 of that Act by the Secretary of State includes a reference to such an order made on an application under that section by the Gangmasters and Labour Abuse Authority.

(3) In this paragraph “slavery and trafficking prevention order” has the same meaning as in the 2015 Act.

10B (1) Where—

(a) a slavery and trafficking risk order requires a person to notify the Gangmasters and Labour Abuse Authority in accordance with section 26 of the Modern Slavery Act 2015 (“the 2015 Act”), and

(b) immediately before the day on which paragraph 56 of Schedule 6 comes into force, that requirement has not been complied with,

that requirement has effect, on and after that day, as a requirement to notify the Secretary of State.

(2) On and after the coming into force of paragraph 57 of Schedule 6, the reference in section 27(2)(g) of the 2015 Act (as amended by that paragraph) to a slavery and trafficking risk order made on an application under section 23 of that Act by the Secretary of State includes a reference to such an order made on an application under that section by the Gangmasters and Labour Abuse Authority.

(3) In this paragraph “slavery and trafficking risk order” has the same meaning as in the 2015 Act.”

This amendment contains transitional provision to ensure that, once the functions of the Gangmasters and Labour Abuse Authority under the Modern Slavery Act 2015 have been transferred to the Secretary of State, that Act continues to operate as intended.

The amendment is essential to ensure the seamless and effective operation of the Modern Slavery Act 2015 during the transition of functions from the Gangmasters and Labour Abuse Authority to the Secretary of State. At its core, it is about continuity and clarity. Slavery and trafficking prevention and risk orders are critical tools in the fight against modern slavery. They impose important requirements on individuals for the purpose of protecting people from being victims of modern slavery, including requirements to notify enforcement authorities, and those obligations must remain enforceable.

Without the amendment, there is a clear risk that existing legal obligations could become unclear, creating loopholes for offenders to exploit. The amendment ensures that notification requirements transfer seamlessly to the Secretary of State, safeguarding our ability to hold individuals accountable and protect victims of exploitation. It also ensures that where an application is made to vary, renew or discharge a slavery and trafficking order, the courts can treat orders originally made by the GLAA as if they had been made by the Secretary of State. That provides legal certainty for courts, enforcement agencies and affected individuals alike.

This is a technical but vital amendment that protects the integrity of the legal framework and ensures continuity.

[Greg Smith]

Apologies for my premature comments on amendment 204, Mr Mundell; I accidently believed it had been grouped with the previous amendment.

Amendment 204 contains transitional provision to ensure that, once the functions of the Gangmasters and Labour Abuse Authority under the Modern Slavery Act 2015 have been transferred to the Secretary of State, that Act continues to operate as intended. I would be grateful for the Minister’s assessment of how the creation of the fair work agency will allow for more effective identification and prevention of modern slavery offences. As we debate the amendment, it is important that we are fully appraised of the detail and the assessment that the Minister, the wider Department for Business and Trade and the Government have made. This is an important matter that all Committee members, and Members of the wider House of Commons, take incredibly seriously, and I urge the Minister to do so.

Draft Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024 Draft Unique Identifiers (Application of Company Law) Regulations 2024

Greg Smith Excerpts

Monday 13th January 2025 General Committees

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to serve under your chairmanship, Mr Stringer.

I will start with the Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024. I am pleased to see that the Government are continuing this legislation, which was first proposed in May 2024 by the previous Government. The legislation will assist Companies House to identify individuals, improve efficiency, and reduce fraud.

The Companies Act 2006 required individuals who set up, ran or controlled a company to verify their identity. Individuals may verify their identity through the registrar directly or via an authorised corporate service provider, such as an accountant or solicitor. The aim of the identity verification requirements is to prevent individuals from creating a fictitious identity or from fraudulently using another person’s identity to set up and run a company.

However, prior to the Economic Crime and Corporate Transparency Act 2023, the legal framework required Companies House to accept information from entities and individuals in good faith, with no checks to confirm that someone registered as a director or person with significant control had given their consent or was a real person. This instrument sets out the procedure that must be followed for an individual to have their identity verified or re-verified by either the registrar or an ACSP. For instance, identity verification applications must contain specific information, and this SI confers a power on the registrar to require further types of information and evidence.

The instrument also provides a framework for the suspension and de-authorisation of ACSPs judged by the registrar not to be fit and proper persons, requires ACSPs to keep particular records relating to identity verification checks they complete, and introduces duties for ACSPs to provide updated information to the registrar. The aim is to prevent nefarious agents from acting on behalf of their clients.

Finally, the regulations introduce offences if the ACSP fails to comply with the duty to keep records or provide information to the registrar upon notice. The instrument makes provisions for the allocation and discontinuation of unique identifiers, which will be allocated to all individuals who have had their identity verified and to ACSPs.

I welcome the measures taken by the Government in this SI, which builds on the work of the previous Government. However, given the importance of the legislation, I would like the Minister to provide further clarity on two areas. First, what assessment has he made of how much this measure will reduce administrative costs in Companies House? Secondly, the impact assessment made no mention of the cost for small and medium enterprises, so will the Minister say what assessment he has made in that regard?

I am pleased to see that the Unique Identifiers (Application of Company Law) Regulations 2024 also build on the good work of the previous Government through the Economic Crime and Corporate Transparency Act 2023. This statutory instrument builds on the Registrar (Identity Verification and Authorised Corporate Service Providers) Regulations 2024, by extending the provisions to individuals associated with limited partnerships and limited liability partnerships. It will assist Companies House in identifying individuals, improving efficiency, and reducing fraud.

I have two questions for the Minister on this statutory instrument. First, once again, what assessment has he made of how much it will reduce administrative costs in Companies House? Secondly—and different from the first instrument—no impact assessment was carried out for this statutory instrument, but one was conducted for the first instrument, so will the Minister explain that discrepancy?

Employment Rights Bill (Seventeenth sitting)

Greg Smith Excerpts

Committee stage
Thursday 9th January 2025 Public Bill Committees

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

I beg to move amendment 84, in clause 72, page 79, line 15, at end insert—

“(4A) Accordingly, in the case of the exercise by an enforcement officer of an enforcement function of the Secretary of State, any reference in an enactment to the Secretary of State in connection with that function is to be read as, or as including, a reference to that officer or any other enforcement officer.”

This amendment ensures that, where an enforcement officer is exercising an enforcement function of the Secretary of State by virtue of clause 72(4), references in legislation to the Secretary of State in connection with that function will include references to enforcement officers, so that the legislation will apply in relation to the enforcement officer as it would apply to the Secretary of State if the Secretary of State were exercising the function.

It is a pleasure to see you in the Chair this morning, Mr Mundell. I start by making the customary reference to my declaration in the Register of Members’ Financial Interests.

Clause 72 is the first in relation to the fair work agency, and it is one of the building blocks of the agency. I will explain the main elements of the clause, as that will help us to understand the amendment. The clause confers an overarching function on the Secretary of State to enforce certain legislation set out in part 1 of schedule 4, which the clause introduces. The clause provides flexibility for the Secretary of State in how to deliver that overarching enforcement function. It enables them to appoint enforcement officers to carry out the function on their behalf, and it provides that enforcement officers will be able to exercise any of the enforcement functions of the Secretary of State and will have the enforcement powers conferred on them as set out in the terms of their appointment by the Secretary of State.

As I said, the Secretary of State has the function of enforcing the legislation set out in part 1 of schedule 4. The legislation contains references to the Secretary of State having functions and powers in connection with the enforcement of the rights set out in that legislation. It is important that those references can be read as references to the enforcement officers the Secretary of State appoints to act on their behalf; otherwise, enforcement officers may not be able to properly exercise the enforcement functions of the Secretary of State. That would make their appointment, and potentially their enforcement activity, less effective.

Government amendment 84 inserts a new subsection after clause 72(4) to ensure that references to the Secretary of State are read as references to enforcement officers where necessary. The practical effect is that the legislation will apply to enforcement officers as it would to the Secretary of State. This is a technical change, but I hope that Members will see that it is necessary.

[Greg Smith (Mid Buckinghamshire) (Con)]

It is a pleasure to see you in the Chair once more, Mr Mundell.

Government amendment 84 looks to us like a drafting correction. We will not rehearse the arguments we have had so many times in the Committee about drafting corrections, but I would be grateful if the Minister could confirm whether the powers in the Bill, which are directly related to the amendment, for enforcement officers to enter and search business premises are any wider in scope than current enforcement powers and, if so, how and why.

[Justin Madders]

I am grateful to the shadow Minister for not rehearsing the arguments, as we may end up having them every five minutes, given the number of technical amendments we will deal with today. He raises an important question about the enforcement powers and powers of entry. There are a number of clauses that deal with that. My initial understanding is that, generally speaking, we are not seeking to widen the remit of current enforcement powers. I will endeavour to write to him if there are any changes or exceptions to that. It may be something that becomes apparent when we debate the clauses in question.

Amendment 84 agreed to.

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

--- Later in debate ---

[Justin Madders]

What we are doing is transferring existing powers and responsibilities from the existing agency. There are no new police-style powers being created for these officers; it is simply a transfer over to the fair work agency.

Clause 72 is key to delivering the much-needed upgrade to the enforcement of workers’ rights so that it is more effective and fair for workers and businesses. It brings together enforcement functions currently split between several different enforcement agencies and gives the fair work agency the flexibility to respond to a rapidly changing labour market. I commend the clause to the Committee.

[Greg Smith]

A lot of the detail is in the clauses that follow this one; as the Minister said, this is very much a building-block clause. Although I totally understand and appreciate the rationale for taking enforcement powers that are currently fragmented across multiple different agencies and consolidating them into one, the devil is always in the detail.

Although it might seem sensible to consolidate the powers that are currently so spread out into one agency, this is very much a centralisation of power. The crux of clause 72 is about directly providing the Secretary of State with the overall function of enforcing labour market legislation. Whenever I see such provisions in any legislation, I cannot help but be reminded of the late, great President Reagan’s famous quote about the nine most terrifying words in the English language:

“I’m from the Government, and I’m here to help.”

As my hon. Friend the Member for Bridgwater suggested in his intervention on the Minister, the serious detail is about the practical workings of the fair work agency as it is set up. What will be the total number of enforcement officers, employees and ancillary staff required—admittedly, some will be brought across from other agencies—to form it? What will be the cost to the taxpayer of putting that together? How many people are we actually talking about? I think that, as opposed to the powers that they will hold, was the crux of my hon. Friend’s intervention.

As I said, we accept the rationale for bringing these powers together under one agency, but whenever such powers are granted to a Secretary of State, no matter what the field, there is always uncertainty and scope for never-ending expansion of the new agency, and of the size of the state, to do what is, in many cases, important enforcement work—I do not doubt that. Given the presumption that the Bill will become an Act of Parliament and that the agency will be set up in the way envisaged in clause 72, it would be good to have clarity about the plan for just how big the agency will be and whether the Secretary of State will put any cap on that from the get-go. How far does the Minister envisage the agency going?

[Steve Darling (Torbay) (LD)]

It is a pleasure to work under your chairmanship, Mr Mundell. I broadly welcome the bringing together of powers under the fair work agency. I note that the Secretary of State is due to publish an annual report, but I am sure that businesses in Torbay would be interested to know where in the Bill the critical friend is to hold the Secretary of State to account and ensure that they are being light of foot and driving the agenda we all want to see in this area, so I would welcome the Minister’s sharing that.

--- Later in debate ---

[Justin Madders]

It is pleasing to hear generally broad support for this measure. As my hon. Friend the Member for Birmingham Northfield pointed out, and as the hon. Member for West Suffolk will know better than most, this was previously a Conservative party manifesto commitment, and we are pleased to be able to move it forward.

Some detailed operational questions were asked. At this stage, how the agency will work in practice is still being fleshed out. The current understanding in the impact assessment is that this is about the consolidation of existing resources and having a single point of leadership. Members will recall that, in her evidence to the Committee, Margaret Beels, the Director of Labour Market Enforcement, talked about how her role would be much easier if she were able to combine the powers of different agencies.

The shadow Minister asked whether we will require extra staff. That will be part of discussions with the Treasury. As he will know, there is a spending review on the horizon and Departments have been asked to look at savings. Clearly, we hope that the combining of resources will lead to some efficiencies, but there is certainly a view from a number of stakeholders that enforcement is not at the level it ought to be—

[Greg Smith]

I fully acknowledge and appreciate the Minister’s point about negotiation with the Treasury, but even if we take it as read that it is right to bring powers into a single enforcement agency, there is always a cost to creating anything new, even if it is a consolidation. Surely, the Department for Business and Trade has a cost for that. There is legislation live, in front of us right now, that seeks to create the agency, so surely he must know the broad cost of setting it up and consolidating those powers.

[Justin Madders]

Yes, the impact assessment sets out the one-off set-up costs. I am sure the shadow Minister can spend the lunch break looking at the detail. In terms of the current enforcement framework, as I say, there is a view that more needs to be done. Of course, we will be adding holiday pay and social security to that, and there is a power to add further areas. We know that generally, when resources are combined, we can deliver more—the sum is greater than the parts.

The Liberal Democrat spokesperson, the hon. Member for Torbay, asked about the critical friend. This Government are always ready to have critical friends—more on the “friend” side than the “critical” side. We will come shortly to a clause about an advisory board, which will have a broad range of stakeholders able to take that role.

[Greg Smith]

Does the Minister not agree that for any power held by any Secretary of State in any Department, the critical friend is a very simple concept? It is called Parliament—it is all of us.

[Justin Madders]

Indeed it is, and the usual parliamentary scrutiny will apply, but I was talking specifically about the role of the fair work agency. There will be that role, and no doubt as more detail emerges there will be more parliamentary opportunities to talk about the role and functions of the agency.

My hon. Friends the Members for Worsley and Eccles and for Birmingham Northfield talked about the broad support for the agency’s establishment, as indeed did the hon. Member for West Suffolk. I have a list of all the supportive witnesses at the oral evidence sessions, and it is a broad and impressive cast. It includes the CBI, the British Chambers of Commerce, the British Retail Consortium, the Chartered Institute of Personnel and Development, the Recruitment and Employment Confederation, the Food and Drink Federation, the Co-op, Margaret Beels, and of course all the trade unions. There is support across the board for this single enforcement body.

--- Later in debate ---

[Greg Smith]

Amendment 169 clarifies the specific obligations relating to the payment of statutory sick pay that are enforceable under part 5. Similarly, amendment 170 will ensure that those additional obligations relating to statutory sick pay that are imposed on employers by the Social Security Administration Act 1992 are enforceable under part 5. This goes back to our old friend, drafting errors being corrected that should really have been sorted out before the Bill was presented to Parliament in the first place.

[Justin Madders]

We will probably have this conversation a number of times. It is probably a little harsh to say that this was an error, but it would be fair to say that, given the complexity of social security legislation, not every provision was identified when the Bill was first introduced.

Amendment 169 agreed to.

Amendment made: 170, in schedule 4, page 127, line 30, at end insert—

“Social Security Administration Act 1992

3B Regulations under section 5 of the Social Security Administration Act 1992 (regulations about claims for and payments of benefit), so far as relating to statutory sick pay.

3C Section 14(3) of that Act (duty of employers to provide certain information to employees in relation to statutory sick pay).

3D Regulations under section 130 of that Act (duties of employers), so far as relating to statutory sick pay.”—(Justin Madders.)

This amendment ensures that additional obligations relating to statutory sick pay that are imposed on employers by the Social Security Administration Act 1992 are enforceable under Part 5 of the Bill.

--- Later in debate ---

[Greg Smith]

I beg to move amendment 118, in schedule 4, page 128, leave out lines 11 to 16.

This amendment is consequential on NC20 and removes those regulations from the list of legislation subject to enforcement under Part 5 of the Bill.

[The Chair]

With this it will be convenient to discuss the following:

Amendment 119, in schedule 5, page 130, leave out lines 16 and 17.

This amendment is consequential on NC20 and removes an enforcement authority within the meaning of regulation 28 of those Regulations from the list of persons to whom information may be disclosed under Clause 98 of the Bill.

New clause 20—Revocation of the Working Time Regulations 1998—

“(1) The Working Time Regulations 1998 (S.I. 1998/1833) are revoked.

(2) The following regulations are also revoked—

(a) the Merchant Shipping (Working Time: Inland Waterways) Regulations 2003 (S.I 2003/3049);

(b) the Fishing Vessels (Working Time: Sea-fishermen) Regulations 2004 (S.I. 2004/1713);

(c) the Cross-border Railway Services (Working Time) Regulations 2008 (S.I. 2008/1660);

(d) the Merchant Shipping (Maritime Labour Convention) (Hours of Work) Regulations 2018 (S.I. 2018/58).

(3) In consequence of the revocations made by subsection (1) and (2)—

(a) omit the reference to regulation 30 of the Working Time Regulations in Schedule A2 to the Trade Union and Labour Relations (Consolidation) Act 1992 (tribunal jurisdictions to which section 207A applies)

(b) omit section 45A of the Employment Rights Act 1996 (protection from suffering detriment in employment: working time cases);

(c) omit section 101A of the Employment Rights Act 1996 (unfair dismissal: working time cases);

(d) omit section 104(4)(d) of the Employment Rights Act 1996 (assertion of working time rights);

(e) omit section 18(1)(j) of the Employment Tribunals Act 1996 (which refers to regulation 30 of the Working Time Regulations among proceedings to which conciliation is relevant);

(f) omit section 21(1)(h) of the Employment Tribunals Act 1996 (jurisdiction of the Employment Appeals Tribunal in relation to the Working Time Regulations);

(g) omit the reference to regulation 30 of the Working Time Regulations in Schedule 5 to the Employment Act 2002 (tribunal jurisdictions to which section 38 applies);

(h) omit the reference to regulation 28 of the Working Time Regulations in Schedule 1 to the Immigration Act 2006 (person to whom director etc may disclose information);

(i) omit paragraph 141(h) of Schedule 7A to the Government of Wales Act 2006 (specific reserved matters), but this omission does not confer any jurisdiction on the Senedd or Welsh Government.

(4) The power of the Secretary of State to make consequential amendments under section 113(1) must be exercised to make such further consequential amendments as are necessary in consequence of subsections (1) and (2).”

This new clause revokes the Working Time Regulations 1998 together with other Regulations which give effect to the Working Time Directive in UK law, and makes consequential provision.

Amendment 117, in clause 118, page 105, line 20, at end insert—

“(3A) But if the provisions of section [Revocation of the Working Time Regulations 1998] have not been fully brought into force before the end of the period of 12 months beginning with the day on which this Act is passed, that section (so far as not already in force) comes into force at the end of that period.”

This amendment is consequential on NC20 and provides that the revocation must have effect within a year of the passing of this Act.

[Greg Smith]

I rise to speak to amendments 117, 118 and 119 and new clause 20, which stand in my name and in the name of my hon. Friends on the Committee. I make it clear that they are probing amendments; it will become clear over the next couple of minutes why we seek to probe the Government on the issue.

The amendments would repeal the working time directive within one year of the Bill’s coming into force. Our reason for tabling them is not that we intend to abolish entitlement to holidays, lunch breaks and so on—far from it, and nobody is suggesting that. However, the working time directive has had a troubled history. One example is the difficulties that occurred between the Commission and member states when the Court of Justice of the European Union ruled that employers—all of them public health and emergency services—did not calculate time spent on call as working time, when they should have done. The CJEU consistently declared that practice incompatible with the directive, arguing that inactive time spent at the disposal of the employer must be counted in its entirety as working time. Then, in 2019, the Court ruled:

“Member States must require employers to set up an objective, reliable and accessible system enabling the duration of time worked each day by each worker to be measured.”

The result of that judgment was never formally brought into British law, but as a result of the European Union (Withdrawal) Act 2018, it became part of retained EU law.

Last year, the Conservative Government legislated to clarify that businesses do not have to keep a record of the daily working hours of their workers if they are able to demonstrate compliance without doing so; to amend the WTR so that irregular hours and part-year workers’ annual leave entitlement is pro-rated to the hours that they work; to introduce an accrual method for calculating holiday entitlement for certain workers; to revoke the covid regulations—it seems odd that we are still saying that—and to introduce rolled-up holiday pay for irregular hours and part-year workers. Consultation requirements under the Transfer of Undertakings (Protection of Employment) Regulations 2006 to allow smaller businesses to consult directly with employees would be another measure. That is just the start of how it might be possible to simplify the working time directive. I would be grateful to hear the Minister’s thoughts on how well the working time regulations are working, and on whether any further changes might be made for the benefit of businesses to enable growth in this country.

[Justin Madders]

The working time regulations have had a relatively long history in our legal framework. They provide vital rights: a maximum working week of 48 hours, rest breaks of 20 minutes every six hours, rest periods of 11 hours each day and at least 24 hours each week, and 28 days of annual leave each year. The regulations implement the EU working time directive; the then Government deliberately designed them to provide maximum flexibility for both employers and workers. For example, workers can choose to opt out in writing from the 48-hour week maximum. We believe that the regulations have benefited millions of workers and their families over the years. They afford workers a better balance between work and other responsibilities, as well as improvements in health and wellbeing.

A 2014 review by the previous Government of the impact of the working time regulations on the UK labour market found that since 1998 there had been a decline in long-hours working in the UK and a general trend towards shorter working hours, which is probably not a surprise. The findings also suggested that the impact of the regulations was mainly through increased employment of workers doing shorter working weeks, rather than through a reduction in total hours worked. Annual leave entitlements have increased since the introduction of the working time regulations; many workers now enjoy a more generous leave entitlement than is prescribed by law.

Limitations on working hours and entitlement to a minimum number of days’ holiday can contribute to improvements in health and safety. Most employers accept that a minimum holiday entitlement contributes to physical and psychological wellbeing. Reductions in stress and fatigue caused by excess hours can provide many benefits, including less pressure on health services and better performance at work, with fewer accidents. By establishing minimum standards, the working time regulations also support a level playing field that discourages competition that relies on poor working conditions and a race to the bottom.

New clause 20 would revoke the Merchant Shipping (Maritime Labour Convention) (Hours of Work) Regulations 2018, which provide for adequate rest for seafarers and support the management of onboard fatigue and the wellbeing of seafarers. Revoking the regulations would negatively affect the ability of the Maritime and Coastguard Agency to enforce safe and healthy working conditions for seafarers.

The new clause would also revoke the Fishing Vessels (Working Time: Sea-fishermen) Regulations 2004, which require the UK to implement the International Labour Organisation’s work in fishing convention, which underpins the safe operation of vessels. Fishing is one of the most dangerous sectors in the UK, with 50 injuries per 100,000 workers compared with a UK average of 0.4. We believe that the 2004 regulations are critical to ensuring that workers take the appropriate hours of rest to prevent fatigue-related incidents.

The new clause would also revoke the Merchant Shipping (Working Time: Inland Waterways) Regulations 2003. The Maritime and Coastguard Agency is in the process of conducting a post-implementation review of those regulations. The initial responses to the consultation have indicated a generally positive view from stakeholders.

The new clause would also revoke the Cross-border Railway Services (Working Time) Regulations 2008, which provide enhanced rights and worker protections for those engaged in cross-border rail services, such as train crew for Eurostar services through the channel tunnel. The revocation of the regulations would erode those enhanced protections.

The Government believe that the minimum standards in the Working Time Regulations 1998 and other sector-specific working time regulations have supported millions of workers and their families by enabling them to better balance work and other responsibilities. The Government have no plans to revoke the working time regulations or any of the other sector-specific regulations.

I understand what the shadow Minister says about whether we consider the regulations to be beneficial to businesses, but he will know that there was ample time under his Government to undertake those reviews. Indeed, one was undertaken just over a decade ago, as I said. We have no plans to erode workers’ rights in this area; indeed, one of the fair work agency’s main functions will be to enforce rights to holiday pay, which evidence to the Committee suggests are not being enforced properly.

The shadow Minister says that he has no intention of revoking the working time regulations and that his amendment is probing, but I can only speak to what is before the Committee. If he had tabled an amendment seeking a review of the operation of the working time regulations, that might have been more appropriate in the circumstances. This feels to me like a dog-whistle amendment, so I am pleased to hear that he will not be pressing it.

[Greg Smith]

I am always pleased to delight the Minister in these debates. It was a probing amendment, and I can confirm that we will not be pressing amendments 117 to 119 or new clause 20 to a Division. However, I will briefly comment on the Minister’s response. I entirely respect him for it, but it was a full-throated defence of the status quo.

Something that goes deep within my view of politics, of government and of public administration is there is always room for improvement in pretty much everything. I say that as much about measures passed by previous Conservative Governments as about those passed by current or past Labour Governments. I refuse to accept that something is as good as it possibly can be and is working as well as it possibly can in the interests of businesses and workers alike. There is some disappointment from the official Opposition that the Government do not seem to want to look again.

[Justin Madders]

Does the shadow Minister not accept that his party undertook this exercise, which is why regulations were introduced last year to amend the working time regulations?

[Greg Smith]

I fully and totally accept that, but it is our job as the official Opposition, here and now in January 2025, to press the current Government on further measures that could be taken to work in the interests of everybody in our country—workers and businesses alike. Perhaps I accept the Minister’s point; perhaps we could have tabled an amendment to call for a review. Who knows? Perhaps on Report we might. But the fundamental position that I come back to is one that does not just accept the status quo, but is always challenging, always reviewing and always seeking to make things better in the interests of everyone.

When the Minister goes back to the Department and prepares for the remaining stages of the Bill in the main Chamber and in the other place, may I gently urge him to consider in the round, with the Opposition’s support, whether there are tyres to be kicked and measures to be improved in the operation of the working time directive? May I also urge him to ensure—now that we are a sovereign country once more, having left the European Union—that this Parliament can make improvements should it so wish? I beg to ask leave to withdraw the amendment.

Amendment, by leave, withdrawn.

[Justin Madders]

I beg to move amendment 85, in schedule 4, page 128, line 13, at end insert—

“( ) regulations 13 to 15E (entitlement to annual leave, etc);”

This amendment would enable the Secretary of State to enforce the entitlements to annual leave conferred by the Working Time Regulations 1998.

Government amendment 85 will add to schedule 4 the additional holiday pay and entitlement regulations: regulations 13, 13A, 14, 15, 15A, 15B, 15C, 15D and 15E of the Working Time Regulations 1998. It will enable the fair work agency to take enforcement action in relation to incorrect payment or non-payment of a worker’s holiday pay and incorrect payment or non-payment in lieu of annual leave entitlement, ensuring that a wider range of complaints can be dealt with more effectively. I commend it to the Committee.

[Greg Smith]

This is another example of a tidying-up exercise that we really should not have to be discussing in Committee. It should have been sorted before the Bill was introduced.

Amendment 85 agreed to.

Question proposed, That the schedule, as amended, be the Fourth schedule to the Bill.

[The Chair]

With this it will be convenient to discuss new clause 23—Review of the effectiveness of enforcement of labour market legislation—

“(1) The Secretary of State must establish an independent review providing for—

(a) an assessment of the effectiveness of enforcement of, and compliance with, relevant labour market legislation requirements as specified in Part 1 of Schedule 4 of this Act;

(b) an assessment of the performance and effectiveness of following bodies in enforcing labour market legislation—

(i) Gangmasters and Labour Abuse Authority;

(ii) Employment Agencies Standards Inspectorate;

(iii) His Majesty’s Revenue and Customs; and

(iv) Health and Safety Executive; and

(c) recommendations on strengthening labour market legislation enforcement.

(2) The Secretary of State must lay before Parliament a report of the review in subsection (1) not more than 18 months after the day on which this Act is passed and before a new single labour market enforcement body is established.”

This new clause would require the Secretary of State to establish a review of enforcement of labour market legislation and to report findings to Parliament before a new labour market enforcement body is established.

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[Justin Madders]

Okay. I have nothing further to say, except that the shadow Minister’s new clause 23 is a duplication of existing requirements that would add nothing to the process.

[Greg Smith]

I hear what the Minister says about slowing things down, but it would be remiss of me not to comment that if the Government had perhaps taken their time a bit on the drafting of the Bill, we would not be spending so much time in this Committee considering the absolute deluge of Government amendments that tidy things up that should have been right in the first place. Sometimes it is best not to rush things. Sometimes it is better not to dive in head first and just go for the first thing available, but to be cautious, to review and to fully understand all the implications that new legislation such as this will have in the real world.

That is what new clause 23, which stands in my name and those of my hon. Friends, seeks to double-check. It seeks to ensure that the Government are getting this right—not in our interests or those of anyone in the House of Commons, but in the interests of businesses and workers in the real world, trying to get on with their daily lives, get their jobs done and get their businesses growing and providing the growth and prosperity that we all want to see in the country.

As I have said previously, we do not have a problem in principle with the establishment of a new body to oversee the enforcement of labour market legislation. I have made that clear, and hon. Friends who have spoken have made it crystal clear. But we also made a challenge in the previous debate, and that is what new clause 23 is all about. It is about ensuring that we fully understand the scope, cost and effectiveness of this new body.

Any new body, be it a Government body or in the private sector—although the creation of new bodies in the public sector tends to be slower and often cost more than the private sector would manage—will take time and resources, and we would like to be reassured that this is a good use of time and resources. I repeat that our instinct is that it probably is. Our instinct is that it does seem to make sense, but we can never rely on instinct or on that which might look good on paper as the absolute cast-iron test. It is about the real evidence.

[Laurence Turner]

We heard from the hon. Gentleman earlier in the main Chamber about sustainable aviation fuel; I wonder whether he might share with us the shadow ministerial equivalent that he seems to have discovered, because we are covering a huge amount of ground. I just say this to him. We did have the Taylor review, which looked at these matters, including the functioning of the individual enforcement agencies, so I am just wondering: does he think that something has changed, in terms of their effectiveness, since then? We have already had an assessment of the nature that he is calling for.

[The Chair]

I think we will focus on the latter part of Mr Turner’s remarks.

[Greg Smith]

Yes, Mr Mundell. I am genuinely struggling to find the connection between my questions in transport orals this morning on sustainable aviation fuel and this Bill. I will gladly offer to have a coffee with the hon. Member for Birmingham Northfield to discuss my passionate view on synthetic fuel in the future, but it really is not relevant to this Bill.

I accept the hon. Gentleman’s latter point, about previous reviews, but new clause 23 is specifically looking at the creation of this new body and is about ensuring that that is the right thing to do and that the cost of it will actually bring the benefit that the Minister and other Government Members have explained that they believe it will. It is incumbent on all of us, whether we sit on the Government or Opposition Benches or for the smaller parties, that we challenge everything put in front of us. Any culture in any organisation that does not challenge what is put in front of it is often weaker for it. That is what new clause 23 is seeking to do.

Inherent in that, notwithstanding the Taylor review, is the aim to ask and double-check whether the rationale takes into account how effectively labour market legislation is currently being enforced and understand what research this Government—not former Governments, but this one—have undertaken on what will be done more effectively or efficiently with the creation of this new body. We would like the Government to assess how effectively the labour market legislation that will be enforced by the new body is currently working in that fragmented sense that the Minister spoke about earlier, and how effective the enforcement of it is, before setting up any new quango.

Generally speaking, new quangos fill me with dread and fear, but this one may be worth while. However, we need the evidence. Will the Minister expand on how matters will change for businesses through the new labour market enforcement authority? What will feel different for them and what changes might they need to make as they prepare for it? New clause 23 tries to get to the heart of that.

[Steve Darling]

I know from my surgeries and casework in Torbay that discrimination is sadly alive and well. I ask the Minister to reflect on some of the evidence from the Equality and Human Rights Commission, which talked about the provision leading to fragmentation and the possibility of some of its standard work falling between two stools. What reassurances can the Minister give that the good work will proceed appropriately either through the fair work agency, or in a partnership approach with the Equality and Human Rights Commission?

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[Justin Madders]

Clause 73 specifies which functions are considered enforcement functions of the Secretary of State for the purposes of part 5 of the Bill. It defines enforcement functions widely and then carves out certain functions that are not enforcement functions.

Clause 73(1) specifies that the enforcement functions of the Secretary of State include the following: any functions granted under part 5 of the Bill; functions in the relevant labour market legislation that they are responsible for enforcing; and any other functions that they perform to support enforcing labour market legislation.

Clause 73(2) goes on to set out exceptions. It lists specific functions that are not enforcement functions for the purposes of part 5 of the Bill. These are generally functions that relate to the arrangements for state enforcement of labour market legislation, and the overall governance of the fair work agency. These overarching governance functions include: appointing officers under clause 72; delegating functions under clause 74; setting up the advisory board under clause 75; publishing the annual reports and enforcement strategies under clauses 76 and 77; providing for transfer schemes to move staff into the Department under part 1 of schedule 7; and powers to make subordinate legislation.

The effect of clause 73 becomes clear when it is read in conjunction with clause 72. First, the enforcement functions that are listed in clause 73(1) can be performed by enforcement officers appointed under clause 72. Under clause 72(4), the powers of an enforcement officer include the power to exercise any enforcement function. Those powers can be limited further by the terms of the appointment of those officers.

Clause 74 gives the Secretary of State flexibility about how they carry out the functions of labour market enforcement. It provides the option to delegate functions to another public authority. Clause 74(1) gives the Secretary of State the power to make arrangements with the public authority so that it can exercise the delegable function. It also enables the Secretary of State to make arrangements to appoint a public authority’s staff as enforcement officers. The Secretary of State can delegate the enforcement functions listed in clause 73(1), all of which have been highlighted already. Those functions relate to arrangements for state enforcement of labour market legislation or the overall governance of the fair work agency. The Secretary State can also delegate powers relating to the licensing of gangmasters under sections 7 or 11 of the Gangmasters (Licensing) Act 2004. The arrangements the Secretary of State makes with public authorities can also include an agreement to make payments in respect of the performance of any function by either the public authority or their staff.

Clause 74(5) means that delegating an enforcement function does not strip the Secretary of State of responsibility or control in enforcing labour market legislation. The Secretary of State can still carry out functions even when they have arranged for another public authority to do that on their behalf.

The Bill is about bringing enforcement and employment legislation into one place in order to make enforcement more effective and efficient by ensuring the better use of resources. It is about creating the right powers to carry out investigations and take enforcement action where necessary. However, it does not set out a specific approach to implementing that more joined-up enforcement, because operational flexibility will be the key to the success of the fair work agency. The clause helps to provide that flexibility by enabling the Secretary of State to delegate certain functions to other public authorities or to make arrangements for staff of other bodies to be appointed as enforcement officers. Both clauses are integral to the effective functioning of the fair work agency in the future.

[Greg Smith]

On the face of it, the clauses are not problematic: they are quite clear, and it is important that those things that are considered as enforcement functions are clearly defined. That is all well and good—until we get to clause 74(5), which states:

“Arrangements under this section do not prevent the Secretary of State from performing a function to which the arrangements relate.”

Therefore, a body with certain powers—admittedly in the Secretary of State’s name—is created; essentially, a quango is put in place, and people are given the clear job of carrying out the enforcement functions in the Bill. However, if the Secretary of State is not prevented from performing one of those functions, what is the mechanism by which they can overrule the quango they themselves set up to perform them? Of course, the ultimate buck must stop with the Secretary of State, but it is a pretty established convention that where a quango is set up and has powers delegated to it—I think of Natural England within the Department for Environment, Food and Rural Affairs and many other quangos—it is very rare for a Secretary of State to intervene, overrule and perhaps come to a different conclusion from that quango.

We will not oppose the clauses, but I would be grateful if the Minister could reflect on the circumstances in which he believes clause 74(5) would come into effect, to make clear the procedures a Secretary of State would need to follow to bring that subsection into effect.

[Steve Darling]

I broadly welcome the proposals in the clauses, and I look forward to the Minister’s explanation of the issues outlined by the shadow Minister.

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[Justin Madders]

I know you have been eagerly awaiting this clause, Mr Mundell. It concerns an important part of the fair work agency, and something that the Liberal Democrat spokesperson touched on earlier. The agency has a big job on its hands to restore trust among workers that they will get the rights that they are entitled to and that Parliament has laid down. It also important that the agency is trusted by businesses, and that they know they will be treated fairly and that if they follow the law, they will not be undercut by those who seek to avoid it. That is an important job for the fair work agency and it is important that we get it right. It must reflect the concerns of businesses and workers.

The Low Pay Commission has served the country well since the last Labour Government created it to advise on the national minimum wage. That is because it is a social partnership, comprising equal voices of workers, businesses and independent experts, and can reflect the perspectives of all those bodies when making recommendations. We want the FWA to replicate that success.

The clause requires the Secretary of State to create an advisory board for the fair work agency. Subsection (2) specifies that the board must consist of at least nine members appointed by the Secretary of State. Subsection (3) provides that board members must hold and vacate their position in accordance with the terms and conditions of their appointment. Subsection (4) provides for the advisory board to have a social partnership model, requiring equal representation of businesses, trade unions and independent experts.

We know this is a complex area that is constantly changing, but we believe that the model and approach that has proved so successful with the Low Pay Commission should be replicated here. I therefore commend the clause to the Committee.

[Greg Smith]

I hear what the Minister says in his explanation of the clause. Often, advisory boards are perfectly good and useful bodies, but I return to my earlier point that where a power rests with a Secretary of State, the accountable body to which any Secretary of State must submit themselves is the House of Commons, where they are a Member, or the House of Lords, in the rare case that they sit in the other place. Parliament is the advisory body—the critical friend—that the Secretary of State should submit themselves to.

However, accepting that an advisory board is going to be established, I want to ask the Minister about its make-up. While the Bill seems to be quite clear, there are some gaps, and some unanswered questions that the public, businesses, employees and the trade union movement will no doubt wish to have answered.

Probably the clearest definition in clause 75(4) is that in paragraph (a):

“persons appearing to the Secretary of State to represent the interests of trade unions”.

I think we can all understand that that means representatives of the trade union movement.

[Sir Ashley Fox]

There are 10 of them over there.

[Greg Smith]

There is my first question, prompted by my hon. Friend: does that include right hon. and hon. Members of Parliament who themselves are members of trade unions? Could that be the case?

We are less clear on paragraphs (b) and (c). Paragraph (b) states:

“persons appearing to the Secretary of State to represent the interests of employers”.

That is a far less easily defined body of people. On the one hand, I can hear some potentially arguing that that is the representative bodies that gave evidence to the Committee, such as the Confederation of British Industry and the Institute of Directors. That would be a legitimate answer, until somebody came forward and made a compelling case that, as an individual employer, they should be considered to sit on the board.

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[Michael Wheeler]

Will the shadow Minister give way?

[Greg Smith]

I will be delighted to in one second, when I have finished my train of thought.

Can someone be classed as independent if they are an academic or a university professor, perhaps with considerable knowledge of and expertise in employment law and matters relating to the Bill—someone we should all respect—but also a member of a trade union? Does their membership of a trade union count towards whether they are independent? Would that be at odds with paragraph (a)?

[Michael Wheeler]

I apologise for interrupting the egging of the pudding—we were definitely in the “over” area of the egging. Does the shadow Minister accept that despite what we have heard, and despite the picture that he is trying to create, this model works? It is not novel; we have the Low Pay Commission. It is an established fact. Despite the many layers and convolutions that we see being built in front of us, we are actually considering something quite straightforward here.

[Greg Smith]

I am grateful to the hon. Gentleman for his intervention and for what appears to be his support for the British egg industry. I encourage him to eat as many British eggs as possible and to support our farmers.

[Justin Madders]

Egg-cellent!

[The Chair]

We are not going down this route, thank you.

[Greg Smith]

I always bow to your advice, Mr Mundell. I will try to save the Minister the embarrassment of having that recorded in Hansard.

Let me try to return to my point. While I accept that advisory boards of Government Departments often follow this formula, we have a particular definitional problem with this one. The problem is whether, in the example I gave before the intervention of the hon. Member for Worsley and Eccles, the independence of a seemingly independent expert—most reasonable people would say a university academic, professor, doctor or whoever would normally fall into that category—would be influenced if they were a member of a trade union, and whether in that case their membership of the board would be compliant with the provision for an “equal number” of independent experts and those representing the trade union movement on the board.

This is an important problem for the Minister to acknowledge. He must be very clear to the Committee whether the word “independent” in paragraph (c) would disallow anyone who is a member of a trade union from being a member of the board under paragraph (c), for fear of contradicting paragraph (a).

[Alex McIntyre (Gloucester) (Lab)]

I refer the Committee to my membership of the GMB and Community unions. The shadow Minister is keen for us all to stress our trade union membership, and we do so at the start of every sitting. He makes the point about trade union membership potentially impacting independent experts, but he will be aware that many university professors are funded by private limited companies to support their research, just as some Opposition Members are supported by private limited companies and employers for campaign purposes, none of which is declared in this Committee. Would he not say that might impact those professors’ independence too? Would that not need to be declared to ensure that the numbers are balanced?

[Greg Smith]

I understand the hon. Gentleman’s point. I believe in freedom; I have no problem with any hon. or right hon. Government Member being a member of a trade union. The point here is clarity and transparency. We have a Bill in black and white in front of us that refers to equal numbers but fails to define whether a member of a trade union could sit as an independent expert or would have to be categorised under subsection (4)(a) as representing the interests of trade unions. This is a matter of information on which the Committee and the general public deserve to have clarity before we allow this clause to become part of primary legislation in our country. As in all walks of life, there will be points of debate on that. I want to hear from the Minister’s own mouth whether he deems it to contradict the “equal number” provision. We could dance on the head of a pin all day, but when we are seeking to pass legislation, clarity is very important, and I look to the Minister to give it.

[Steve Darling]

I am concerned about the heavy weather that colleagues on the Opposition Benches are making of this. For me, this measure is about driving a positive culture in employment, and the board’s balance is entirely appropriate. I welcome the clause.