Employment Rights Bill

Jim Shannon Excerpts

Consideration of Lords message
Monday 15th December 2025 Commons Chamber

[Kate Dearden]

We are absolutely determined to get this legislation through, and I urge colleagues in the other place to pass this Bill for the reasons my right hon. Friend outlines: 1.3 million people will be entitled to statutory sick pay from as soon as April. That is significant, and it is why it is so important to get the legislation on to the statute books.

[Jim Shannon (Strangford) (DUP)]

My colleagues in the other place all expressed concern about open-ended, unlimited compensation. That is a concern not only for them and for colleagues here, but for businesses back home. I know the Minister means well, but for goodness’ sake, this will not work for business.

[Kate Dearden]

If hon. Members allow me to make some progress, I will get to the background and reasoning for the compensation cap.

Continued delay to the Bill will put implementation at risk, which creates insecurity and uncertainty for workers and employers alike. I hope the other place acknowledges the importance of this and will let the Government deliver the Bill, which is backed by an electoral mandate, as my right hon. Friend the Member for Ashton-under-Lyne (Angela Rayner) said. We have been engaged in ping-pong for far too long, and further delay is in no one’s best interests. I hope the arguments I make today will address the reservations of those Members of the other place who have been engaging in good faith when they have had genuine concerns about the Bill.

As I told the House last week, I convened a series of constructive conversations on the unfair dismissal provisions, which resulted in a workable agreement with trade unions and business representatives and was the subject of Government amendments made last week. I can assure hon. Members, as someone who was in the room during the negotiations, that the agreement between unions and business representatives was made with good will and in good faith by all sides.

As those representatives of the British Chambers of Commerce, the Chartered Institute of Personal and Development, the Recruitment and Employment Confederation, Small Business Britain, the Federation of Small Businesses and the Confederation of British Industry said in today’s letter to the Secretary of State, the “outcome” of the

“dialogue…represented a significant step forward which will have a positive impact on growth and opportunities.”

The amendments tabled in the other place undermine that agreement, as the compensatory award cap would not be removed and instead the Government would conduct and publish a review of the impact of the cap. The removal of the cap would then require further primary legislation.

Industry and Exports (Financial Assistance) Bill

Jim Shannon Excerpts

2nd reading
Monday 15th December 2025 Commons Chamber

[Chris Bryant]

There are funds. Especially when there is a new free trade agreement, as in relation to India at the moment, we help lots of businesses. Businesses in the beauty industry, which I know my hon. Friend knows a lot about, have gone to a recent exhibition in India, because under the FTA, India will be taking the tariff down from, I think, 20% or so to zero. That is a big opportunity for British businesses. There are sometimes funds available.

I will look at how the ceramics industry in particular is treated. As my hon. Friend knows, I would like to establish stronger support for the ceramics industry in general, because we should be proud of it. As he also knows, I am looking at the presents that we as Government Ministers give to other Government Ministers; we could be a bit more ambitious about ensuring that they are things that people really want, and perhaps they could come from one of our creative industries, such as ceramics.

Free trade agreements can get rid of tariffs, and that is a very important way of enabling more exports, but we can also often do a great deal by getting rid of the non-tariff barriers that exist in many countries. Export ambition, even from companies that would like to export, often needs financial assistance. That is precisely what UK Export Finance is there for.

[Jim Shannon (Strangford) (DUP)]

rose—

[Jim Allister (North Antrim) (TUV)]

rose—

[Chris Bryant]

The hon. Member for Strangford (Jim Shannon) was there first, and then I will take an intervention from the hon. and learned Member for North Antrim (Jim Allister).

[Jim Shannon]

I welcome what the Minister has said; he has clearly underlined that all parts of the United Kingdom can benefit. As the Minister will know, we are very fortunate in Northern Ireland to have a very strong agrifood sector, which promotes itself wherever it can across Europe, across the mainland and further afield. The defence sector is also active, and the Government help to create extra procurement and extra apprenticeships is very welcome. However, there are also small and medium-sized enterprises, which are mostly involved in engineering, and this group of businesses could do more. I ask the Minister, very kindly, whether he could give us an idea of what can be done for them. We want to encourage them to be involved and to export.

[Chris Bryant]

The hon. Member is absolutely right that the vast majority of the companies we will be talking about are SMEs—88% of the companies that benefit from UK Export Finance are SMEs. We are bringing forward this Bill because we are getting to the limit of what is allowed under current legislation and we need to expand that. I have specifically spoken to UK Export Finance about looking at new ways to support SMEs. The retail banking sector in the UK also sometimes needs to understand better how it can support small and medium-sized enterprises to export around the world. One of the things that I have been trying in my own small way is to do a supermarket sweep when I have been abroad for trade missions: to see whether Rose’s lime marmalade, Walker’s biscuits, Marmite, Irn-Bru or Penderyn whisky—or whatever it may be—is available around the world. The more we can encourage businesses to export, the more likely they are to prosper.

One of the advantages in Northern Ireland in particular is that, because of the Windsor framework, it has an opportunity to enter into an EU market much more readily than elsewhere. One of the sadnesses of Brexit is that 16,000 fewer businesses in the UK now export, and that is largely because they have given up on Europe. That is one of the things I radically want to change.

Fairtrade Certification

Jim Shannon Excerpts

Thursday 11th December 2025 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is always a real pleasure to serve under your chairship, Mrs Hobhouse. I thank the hon. Member for Glasgow North (Martin Rhodes) for excellently setting the scene, for his contribution today and for his hard work on this subject over the years, which is not forgotten about and provides extra context to the debate and to his speech.

The fairtrade system sets standards across the globe on ethical sourcing, fair wages, safer working conditions and proper environmental practices—four things that probably all of us in this Chamber would fully support. Fairtrade is a well-known organisation and it plays a key part across the United Kingdom of Great Britain and Northern Ireland, including in schools, so I am pleased to participate in this debate. In Northern Ireland— I hope this is true on the mainland too—children are very much aware of the Fairtrade organisation at an early age. As a result, they are well placed to tell their parents and other adults and remind them of the role they can play. The Minister is not responsible for education, but perhaps he can give us some idea of what is done to encourage schools more strongly?

[Phil Brickell (Bolton West) (Lab)]

The hon. Member is making an important point about young children in schools. Last month, Joshua, Leyla and Elizabeth from St George’s primary school in my constituency wrote to me about their campaign to promote sustainable palm oil labelling. They are carrying on a fine tradition in Bolton, where one of the first Fairtrade shops in the country, Justicia, opened in 1985. Does the hon. Member agree with Joshua, Leyla, Elizabeth and myself that sustainable palm oil labelling is crucial for informing consumers and promoting ethical businesses, alongside greater Fairtrade initiatives?

[Jim Shannon]

I certainly do. I am greatly encouraged by what the hon. Gentleman said, and by those three young children in particular in relation to their work on palm oil. That is one of the campaigns that school children in Northern Ireland are also part of. The hon. Gentleman is right to highlight that, and I am sure that the children he mentioned will be given a copy of Hansard, where their names will be printed for posterity. I thank them for all that they are doing—well done! That encourages me when it comes to the greater picture for children.

UK businesses use Fairtrade to demonstrate commitment to ethical practices. Northern Ireland has held Fairtrade status as a region since 2004. It is something we are greatly committed to and have a great interest in. The NI Fairtrade forum works with councils, schools, businesses and communities to increase awareness. One of my staff members remembers that in primary school they celebrated a Fairtrade week, when all pupils had to bring in the labels of any foods or packaging they could find in their homes that were Fairtrade. I can imagine children scouring their cupboards to find something in their house—hopefully there were plenty of products that represented Fairtrade.

Fairtrade products are widely available in supermarkets across Northern Ireland. The hon. Member for Glasgow North referred to some of the businesses that carry Fairtrade products. I am glad to report that the likes of Tesco, Asda, Sainsbury’s and the Co-op all carry Fairtrade products that are sourced globally. Those shops are making these products practically and physically available across Northern Ireland, and they take in a large proportion of shoppers—although not all of them, of course.

Let us honest about the situation: some smaller, perhaps family-run, businesses will struggle slightly more because producers are paid a fair minimum price and premium. Smaller businesses with tight margins and sometimes unpredictable cash-flow will struggle to source Fairtrade products, for fear of passing the cost increases to customers. It is not possible for everyone to source Fairtrade products, but for those who commit to it and wish to do it, there is a way of making it happen. The smaller businesses in my constituency rely on the local wholesalers and independent distributors which, again, may not carry a whole range of Fairtrade products. Some of those suppliers perhaps need a greater awareness, so they can do more. People want to do their best, but in terms of finance they must work with what is available to them.

The hon. Member for Glasgow North also referred to the role of churches. I am pleased to say that in my Strangford constituency there are a great many churches and churchgoers—those who practice their faith in a very practical and physical way. They are committed to Fairtrade because of their beliefs. They also want to do their best to help in a physical way, which they do by purchasing available Fairtrade products so that the money goes to people who need it in the right places. It is a pleasure to thank all the people in Northern Ireland who buy from and support the Fairtrade networks. Northern Ireland has some strong Fairtrade networks, and we should be proud of that, but of course people want to do more. The hon. Gentleman was right when he said that people want Fairtrade. I think most people I meet, if not every person, wants Fairtrade, but some may be restricted by what is available on the shelf or where they shop.

I am so proud of the education on Fairtrade in schools and universities—the very thing referred to by the hon. Member for Bolton West (Phil Brickell) in his intervention. It is really encouraging to know that our children probably know more about it than their parents, and that they want to do something about it. There is an innocence that children have, where they see the good—things can be very black and white for them, but it is good that they have that.

The United Kingdom Government can do more to incentivise public bodies such as schools and hospitals to consider options for Fairtrade, such as tea and coffee, or prioritise ethical trade standards to make procurement easier for small public bodies. I should have welcomed the Minister to his place; it is always a pleasure to see him. He has been a busy man today—he has been in the Chamber and now he is here, so he has definitely earned his money today. Can he indicate what has been done to encourage public bodies to purchase Fairtrade goods? I know there is a campaign, but for those who are maybe hesitant, is there is a follow-up to encourage them?

Fairtrade plays a positive role by promoting ethical standards in Northern Ireland and further afield in the United Kingdom. It strengthens our commitments to human rights. I am a great believer in and a huge supporter of human rights, and Fairtrade helps us to support human rights across the world. We can make an impact through everyday purchasing, and to build on that I ask the Government again to do more to make the procurement process easier. If that is possible, it would be a step in the right direction. I thank all Members for their participation in advance of the debate, and I look forward to the other contributions and to the Minister’s response.

Oral Answers to Questions

Jim Shannon Excerpts

Thursday 11th December 2025 Commons Chamber

[Kate Dearden]

I thank my hon. Friend and those she mentions for their unwavering commitment to supporting parents—I was delighted to meet the Dad Shift recently. We are committed to improving the lives of working families. Alongside expanding access to paternity leave and unpaid parental leave, benefiting over 1 million more parents, we are strengthening flexible working rights and bolstering protections for new and expectant mothers. But more needs to be done. This year, we launched the parental leave and pay review to explore how the system can better support working families and reflect modern work and childcare realities. I look forward to working with her and hearing further from her constituents about the impact those changes could have for working people, especially those on lower incomes.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister very much for that helpful response. Many low-income workers often cannot afford unpaid or low-paid leave, so fathers feel obliged to return to work to receive full pay. What steps can the Government take to increase statutory paternity pay to match the reasonable proportion of wages across the United Kingdom of Great Britain and Northern Ireland?

[Kate Dearden]

The hon. Member will have heard my reference to a review. It will consider all forms of parental leave and pay, alongside current and future parental leave entitlements. I urge him to get involved in that process, and look forward to hearing from him as part of it.

Small-scale Fracking Ban

Jim Shannon Excerpts

Wednesday 10th December 2025 Westminster Hall

[Alison Hume]

I completely agree with my hon. Friend that Reform’s plans are a threat to our beautiful countryside, and our constituents do not want them.

Europa’s plans have been widely opposed by the local community. In response, campaigners launched a petition that has garnered more than 10,000 signatories calling for a Government ban on small-scale fracking. Fracking—short for “hydraulic fracturing”—is the process of injecting fluid at high pressure into an underground rock formation to release the gas or oil inside.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady for securing this debate. The Government must commit to ensuring that local people have the final say. In terms of buying property or businesses in a certain area, fracking should be unable to go ahead without the say-so of the entire local community and the Government must abide by that decision. Does the hon. Lady agree?

[Alison Hume]

I completely agree with the hon. Member. We must listen to our local communities, who are telling us loud and clear that they do not want fracking on their back door, in their beautiful fields or in the countryside.

Since 2019, there has been a moratorium on fracking across the UK—a decision taken after Lancashire was rocked by an earthquake caused by fracking operations at Preston New Road. However, not all forms of fracking are currently covered by the moratorium. The Petroleum Act 1998 uses a fluid-based definition for fracking. Section 4B(1)(b) describes it as

“the injection of…more than 1,000 cubic metres of fluid at each stage, or expected stage, of the hydraulic fracturing, or…more than 10,000 cubic metres of fluid in total.”

The volume of liquid proposed for the Burniston site is under that threshold, so despite the intent of the plans being exactly the same—to explore for and to extract gas by injecting a substance into the rock at pressure to cause it to fracture—the current legislation actually allows Europa to do exactly what the moratorium should be there to block. It is clear that the volume-based definition has created a legal loophole for oil and gas companies to evade the Government’s ban on fracking and proceed to do so under a different name—in this case, “proppant squeeze”.

The Burniston application is not the first time that planning permission has been sought in England for proppant squeeze. Between 2016 and 2019, Egdon Resources applied several times and was eventually granted planning permission for a proppant squeeze in north Lincolnshire, with a hydraulic fracture plan approved in May 2021. In November 2024 another company, Rathlin Energy, also applied to the Environment Agency for permission to carry out similar work at West Newton, an oil and gas site in East Yorkshire.

There is no evidence that the volume of fluid used can accurately determine the risk of seismic events. However, the volume of fluid proposed for use at the Burniston site in my constituency surpasses the highest daily fluid amount in the week leading up to the 2019 earthquake that triggered the existing moratorium. Seismologists have warned that our country’s geology responds unpredictably to even small injections, under- scoring that any fracking has risk, regardless of fluid volume.

Seasonal Work

Jim Shannon Excerpts

Wednesday 10th December 2025 Commons Chamber

[Nigel Huddleston]

I suggest that the hon. Lady talk to those constituents again. I do not think one has to be a sparkling economist to work out that when something has gone up, it is higher, not lower. Those people are not getting a permanent reduction in business rates. The numbers are going up. That is basic economics and facts.

It is part-time seasonal and temporary workers, young workers and people in sectors such as food production, tourism, retail and hospitality who are being hit particularly hard, but perhaps that should not surprise us. As many Members have already pointed out, Labour just does not understand economics, business, or incentives.

[Jim Shannon (Strangford) (DUP)]

I thank the shadow Secretary of State for introducing this incredibly important debate. I must say, with respect, that the Government will have a lot to answer.

In the Northern Ireland agrifood sector, the licensing process is so laborious that it is putting people off, which means that when we need workers in the sector, we do not get them. The hon. Gentleman is right to put forward the case for hospitality, but may I put forward the case for those in the Northern Ireland agrifood sector, who are also under great pressure, and who will be disadvantaged by the Government’s system?

[Nigel Huddleston]

Absolutely. The hon. Gentleman makes a really important point. We see that the hospitality sector is hard-hit, because numbers for the sector are easily available, and there have been a great many reports about the job losses there, but multiple sectors will be hit by these changes. As he points out, the problem is not just the tax hit but the regulatory burden, and that reinforces my point that the Government do not understand business.

Net Zero Transition: Consumer-led Flexibility

Jim Shannon Excerpts

Tuesday 9th December 2025 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is always a pleasure to serve under your chairship, Mr Vickers. I thank the hon. Member for Thornbury and Yate (Claire Young) for leading this debate and for setting the scene incredibly well. It is always a pleasure to see the Minister in his place; I look forward to the helpful and positive remarks he always makes. It certainly gives a lift when he answers the questions, and I am quite sure he will do likewise today.

[The Minister for Energy (Michael Shanks)]

Lower your expectations.

[Jim Shannon]

No, no—upwards! Everything upwards. It is also a pleasure to see the shadow Minister, the hon. Member for Mid Buckinghamshire (Greg Smith), in his place and I look forward to his contribution as well.

Consumer-led flexibility is so important. It refers to ordinary households and small businesses adjusting their energy use to support a cleaner and more resilient energy system. Who does not want that? It is about how we make it happen, however, and whether there is a cost factor to it. Can people make the changeover—the transition, so to speak—in a way that achieves the goals but does not inhibit their pocket financially in the way it sometimes might?

The cost of energy has been such a huge issue nationwide. I know from my constituents that it is a real problem. The two things that affect them more than anything else are the price of foodstuffs and the cost of energy. Especially as we head into winter, the cost of energy becomes a critical factor. It is about balancing one’s income at the end of the month to ensure that all those things are covered. For my constituents, that is a real problem with increasing costs and consumption, so it is good to have an opportunity to represent them in this Chamber today.

I always add a Northern Ireland perspective to the debate, and I know that the Minister always endeavours to reply to us in Northern Ireland on how Westminster can help, so it is important to put that on the record. For a just transition in Northern Ireland, any move to low-carbon energy systems must be fair, affordable and supportive of communities reliant on older heating fuels.

[Mr Gregory Campbell (East Londonderry) (DUP)]

My hon. Friend has just touched on affordability. Would he agree that, by and large, people across communities—whether in Northern Ireland or across the UK—want to embrace green energy and be environmentally friendly, but they do not want to pay a massive premium to attain a goal that is unrealistic in the timeframe? The important thing is reconciling those two things to bring the community with us.

[Jim Shannon]

I thank my hon. Friend for that; it was my next point. He is right: I have not met anybody who does not want to improve the environment or support the net zero targets, but they want to do so in a way that does not disadvantage them inadvertently. It is very important that we try to achieve that.

Back home in Northern Ireland, this is crucial, because of the point that my hon. Friend referred to. We have a very specific issue in that 68%—two thirds—of Northern Ireland homes use oil heating, which is more than anywhere else in the UK. Fuel poverty rates are also historically high, I suspect, as a result. I have oil in my house, as do all the farmhouses in the countryside, and there is very little access to gas except on specific estates in Newtownards and perhaps a bit in Ballynahinch and Saintfield as well.

Furthermore, according to the 2023 update from housing statistics, only about 39% of dwellings have a rating of band C or higher, especially in rural areas, which is a very large section of my Strangford constituency. Few homes have access to gas in Northern Ireland and there are no alternative decarbonisation pathways, so we have to be realistic about trying to achieve the goals in a way that does not bring people down to not only fuel poverty but poverty overall.

I welcome the Government’s commitment to try to address some of those things, but perhaps the Minister can give us some ideas on how we can help our constituents in Northern Ireland—both mine and those of my hon. Friend the Member for East Londonderry (Mr Campbell).

[James Naish]

The hon. Gentleman is outlining a range of issues that make it difficult for people to reduce their bills. Does that not highlight the benefit of flexibility, because it would give people greater control, empower them and give them information, so that they can control their bill as best as possible? That is why we have to lead with a flexibility-first approach.

[Jim Shannon]

The reality is that, although people subscribe to the idea and wish to develop the net zero targets, it is about how that sits in their pockets. That is the ultimate goal that people reflect on. I am no better than anybody else, and my constituents are telling me—as I am sure they are telling every other MP in here—that Christmas is coming. I stay across the river at the Park Plaza hotel, and I asked a guy last night, “Are youse busy today?”, and he said, “No. It’s much quieter than it’s been for a long, long time.” He surmised that it was because it is Christmas and people are cutting back. It is the same back home. As I said before, I have not met anybody who does not want to achieve the net zero goal, but it is about how the Government help them to reach it.

There are income inequalities and geographic inequalities in Northern Ireland, and they interact strongly with affordability—it is a key issue. There is also poor uptake of smart meters in Northern Ireland, so many people end up paying way more as a result of estimates. That is another critical factor. The Minister travels to Northern Ireland regularly, so that might be an opportunity to get his thoughts across to the relevant Minister back home on how we can achieve some of these goals.

When we talk about consumer-led flexibility, the conversation must be about giving households the ability to shift their energy use to cheaper, cleaner times of the day. There are things that can be done, and things that the Government are helping people with, which I know the Northern Ireland Assembly are also trying to take advantage of, but when it comes to smart technologies and fairer tariffs, and generating or storing energy locally, how can they be achieved? That vision will work only if ordinary people can access and afford the technology and infrastructure required, but too many households are being left behind. Rural households face higher charges and costs, and the up-front expense is simply too much. I know that this is a critical issue, but we can never move away from thinking about affordability, as my constituents tell me.

Consumer-led flexibility should be not something that happens to communities, but something that communities shape, benefit from and own. To respond to the hon. Member for Rushcliffe (James Naish), if consumers can see it as part of what they want to achieve and the Government can help them in that transition, it is a win-win for everyone. Northern Ireland and the rest of the UK have enormous potential: world-leading renewable resources, strong communities and a desire for a cleaner and more secure energy future. Let us build an energy system that works for everyone in the United Kingdom of Great Britain and Northern Ireland—not just for today, but for my children, my grandchildren and generations to come.

--- Later in debate ---

[Michael Shanks]

No, I don’t intend to—do not worry, colleagues.

This is an important debate, however, and I thank the hon. Member for Thornbury and Yate (Claire Young) for securing it. She made a point that those in the industry make regularly to me: that this is too often a footnote in the discussion about achieving our future energy security. It should not be. It should be much further up the agenda. It is not for want of trying; I often talk about it, but it is regularly the bit that gets cut out of interviews before they are broadcast. The Government are certainly talking about these issues.

The hon. Lady outlined perfectly the problem of how we get cheaper, more secure power to homes and businesses, and the three fixes: building more grid, strategically planning where energy is built in the first place, and utilising flexibility. The truth is that we need to do all three at a pace never before seen in this country. I will come back to those points, but I welcome her recognition of them.

My hon. Friend the Member for Washington and Gateshead South (Mrs Hodgson) made a fantastic speech, as always. She is a fantastic champion for the north-east and a long-standing campaigner on the issue of how we can reduce fuel poverty. She made the point that we risk losing the opportunity of getting cheaper power to people’s homes and bringing down their bills, and she mentioned the fantastic innovations out there already. I have had the pleasure of seeing a number of them. When I visited the Mining Remediation Authority recently, I had the genuine pleasure of hearing about the mine water heating scheme. That is a fantastic example of how we can utilise something that we used decades ago to power the country. There is also a social justice argument, as those communities who still have deep scars from that period can benefit from cheaper bills in the long run.

I also want to recognise the point the hon. Member for Thornbury and Yate made about the equality aspect and how we will bring everyone with us on this transition. I will return to that point, but first I want to return to first principles and say why the Government are committed to delivering clean power by 2030. At the heart of that mission is an energy system that delivers flexibility for consumers: not forcing consumers to make choices, but giving them the opportunity to make choices that bring their bills down, and to use technology for the betterment of their lives in a way they choose.

The clean power action plan outlined 10 GW to 12 GW of consumer-led flexibility. I think that in the months ahead we will be talking much more about that part of the action plan. The Government have had to move very quickly in the first 16 months to deliver on the auctions in offshore and onshore wind, to lift the ban on onshore wind and to deliver much more solar than we have ever seen, but flexibility has been hugely important in the background, and we will say much more in public about it in the coming months.

Let me respond briefly to the core argument that the shadow Minister, the hon. Member for Mid Buckinghamshire (Greg Smith), made about the clean power mission:

“The UK is a world leader in renewable energy…and we must go further. Energy security means national security. We must replace imported fossil fuels with cheaper, cleaner, domestic sources of energy. That is how we will ensure that the UK never again suffers the rising prices caused by Putin’s weaponisation of energy following his invasion of Ukraine.”—[Official Report, 22 November 2023; Vol. 741, c. 21WS.]

Those are not my words, but the words of the shadow Secretary of State, the right hon. Member for East Surrey (Claire Coutinho), in November 2023. I am not quite sure what has happened to the Conservative party in two years, but the Conservatives seem to have completely changed not just their position, but their understanding of the facts and science behind what they were saying then. The right hon. Member, who was Secretary of State at the time, made my argument just as well as I could ever seek to. I will leave it at that.

A just transition has the power to unlock enormous benefits for people right across the country. It is why we have pledged to deliver clean power, because we know it is cheaper and it removes the volatility of which all our constituents are still facing the cost. It will shield consumers from the volatility in global gas prices, over which we have absolutely no control, but it will also create new jobs in industries right across the country. It is the economic opportunity of the 21st century.

The role of storage will be important. The hon. Member for Newton Abbot (Martin Wrigley) talked about a school trip to Dinorwig; in Scotland, I think every single school child went to Cruachan, the hollow mountain, which is another pumped hydro power station. Although pumped hydro may be a technology from the last century, it is critical in this century as well. Indeed, the Government have launched the first new long-duration energy storage in 40 years. It is a critical way of dispatching clean power and storing it for when we absolutely need it, so it still plays an important role.

Consumer-led flexibility will play an important role in getting renewable energy to people’s homes. It will help us to balance the grid and ensure that we have supply when we need it. It enables us to take advantage of low-carbon energy and reduce periods of peak demand and the associated infrastructure needs. It also involves financial rewards for those who choose to shift their electricity use to times when supply is more abundant, cheaper and cleaner. Smart meters are a key part of that. As we all know from our constituencies, we would all have liked to see a more efficient roll-out of the smart meter programme over the years, but 70% of meters across Great Britain are now smart or advanced meters, with more than 40 million homes and businesses having them installed.

We will continue to monitor the roll-out in Government very closely. Indeed, I chair a working group that is looking at how we can deliver market-wide half-hourly settlements much faster. That is really important so that consumers and businesses benefit directly from having a smart meter and new technology.

[Jim Shannon]

I thank the Minister for the positivity of his answers. The take-up of smart meters in Northern Ireland has not been good at all—nowhere near expectations. In his discussions with the relevant Minister in Northern Ireland, what can be done to help us to do better back home?

[Michael Shanks]

I will come to the hon. Gentleman’s point. I always appreciate the kindness of his contributions, although he needs to lower his expectations of mine. He rightly mentioned the statistic that 68% of households in Northern Ireland have oil heating, which he raised with me in a previous debate. That figure surprised me, and it is a reminder of the complexity of the different circumstances across the United Kingdom of Great Britain and Northern Ireland. I work closely on this issue with Northern Ireland Executive colleagues in the Department for the Economy, and we share much of our good practice to make sure that everybody comes with us on this journey. I will shortly say more on the hon. Gentleman’s point about gas.

We are already seeing consumers benefiting from flexibility. Last year, the demand flexibility service saw over 2 million households and businesses save money by flexing their demand. We are committed to ensuring that all consumers have the option to participate, not just those who can afford certain technologies. The Government have committed £1.5 billion through the warm homes plan, which will help to upgrade low-income households. The Government will also work to ensure that flexibility is simplified and accessible for all consumers who want to take part, not just the tech savvy and those who are already able to. We have to remember that flexibility brings down the price for everyone, even those who are not participating, because of the benefits it brings to the overall system.

As we shift away from gas, consumer-led flexibility will become even more vital for managing an electrified system. Crucially, it will bring down bills for all consumers, not just those who actively participate. The Liberal Democrat spokesperson, the hon. Member for Newton Abbot, gave a figure on the direct benefit from consumer-led flex, and a more flexible system is estimated to save up to £10 billion a year overall because of that efficiency. It is hugely important.

The hon. Member for Strangford (Jim Shannon) asked about the transition. Obviously, connecting to the gas network is difficult in Northern Ireland, and this is a huge opportunity for many households to jump a step—from oil heating to heat pumps and other technologies. There is a real opportunity for those households to benefit, perhaps even more than some other households, if we get the transition to consumer-led flex correct. I look forward to more conversations with the hon. Gentleman on that issue.

The other point I want to make is about the role of technology. Consumer-led flexibility is becoming increasingly automated, which means that consumers can benefit from these opportunities with little or no intrusion in their daily lives. Indeed, I have seen examples where consumers have set up technology and let it run for months at a time. For example, an EV owner can plug their car into a smart charger, which will optimise charging so that it happens at the most cost-effective times of the day, while still meeting the battery charge they need the next morning, saving a significant amount of money.

I recently had a great opportunity to visit Flexitricity in Edinburgh, which is a fantastic business—not least because it has a fantastic view of Edinburgh castle, although that was not my reason for visiting. My visit brought home two things: first, the cutting-edge technology and innovation that we already have in this space; and secondly, how this is an opportunity to create high-paid, skilled jobs across the country. I met a number of apprentices and people who had changed career to be part of that innovation—the business is a fantastic example. I thank the Association for Decentralised Energy, some of whom I see in the Public Gallery today, for joining me on that visit and for the work they do.

We recently published the flexibility road map, which sets out specific, measurable actions for DESNZ, Ofgem and NESO to deliver the flexibility we need. The road map sets out a strategy and clear actions to make sure we can deliver on this. It acknowledges that the Government, in partnership with Ofgem and NESO, will need to take a leading role in making sure this is a priority for those organisations. The publication puts consumers at the heart of what we want to achieve.

The road map is a first step. To deliver it, we know we have to sustain that momentum. As many hon. Members have said, agreeing that this is the right thing to do is not enough; we have to get on with delivery. This debate is perfectly timed, because this afternoon I will attend the first clean flexibility road map quarterly forum to make sure we are driving progress on this. That was already in the diary, but this debate is perfect timing.

I thank the ADE for all its engagement and expertise on this matter, and I thank all the organisations working in this space for raising innovative and creative ideas for how we can make this happen faster. This is an area where the Government do not always know best, and the innovation from the private sector and communities across the country will help us to deliver this transition. It is crucial that the Government continue to hear that, and that we continue to be challenged to move further and faster.

We have seen good progress on leadership, which goes hand in hand with our work on the road map and on the appointment of a flexibility commissioner. We will be able to announce who we are appointing very soon, and they can then get on with driving this work forward as part of the clean power mission. Leadership is important more generally in this space. As politics moves away from a fact-based, rational discussion of the challenges this country faces, it is ever more important that we have these debates on the detail of how we deliver such important policies.

We must also recognise that we are making progress. There is sometimes a tendency to think that nothing is happening, but a huge amount is happening: the migration of consumers to half-hourly settlement has begun and is making great progress; NESO is about to consult on the next iteration of the demand flexibility service; Ofgem is assessing how to recover costs through bills in a way that is fair and efficient; and we have consulted on our smart secure electricity systems programme, including how we can make it easier for electricity consumers to participate. All that work going on in the background will start to have a real impact on people’s lives in the coming months.

I thank everyone for their contributions to this debate. The Government are committed to delivering a clean power system, because that is the only way to bring down people’s bills in the long run, to remove the volatility of fossil fuels, for which we are paying the fossil fuel penalty, and to deliver energy security in an increasingly uncertain world. Flexibility is at the heart of this, and for us to have a genuinely just transition—one that brings people with us—we have to do what is challenging. This is a new way of working. It is different, and it will require people to think differently about their energy use and about how we deliver the change as a country, but opportunity is right at the heart of this—we should never forget that opportunity is the prize if we achieve this.

We will continue to work across Government and across the energy sector so that people can take advantage of the benefits of consumer-led flexibility and so that, ultimately, we end up with a 21st-century energy system that recognises that all our lives have changed in the last few years in how we consume electricity. Every single projection suggests consumption will increase over the coming years, so it is hugely important that we take these steps now so that the people of this country benefit from the energy transition that is under way.

I thank everyone again, and I thank the hon. Member for Thornbury and Yate for securing this important debate.

Employment Rights Bill

Jim Shannon Excerpts

Consideration of Lords message
Monday 8th December 2025 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

Under Lords amendment 1, the duty would be shifted to the employee to request guaranteed hours, as opposed to it being down to the employer to offer hours. That means that the employee can request hours, and then the employer can cancel them at the last minute. Can the Minister reassure me that provision will be made to protect workers, ensuring that if they are given hours, they are compensated in the right way?

[Kate Dearden]

I will speak to zero-hours contracts later in my contribution. This is about rebalancing power —giving workers access to guaranteed hours if they need and want them.

Let me return to the unfair dismissal protections that we will bring in from 1 January 2027. Our intention is to adopt a commencement approach that would extend protections immediately from that date to employees who already have six months’ service or more. For example, under this proposal, someone employed from today will gain protection against unfair dismissal on 1 January 2027. That is almost a full year earlier than under the current law. Other employees will gain protection once they reach six months’ service; for example, someone who starts work on 1 November 2026 will qualify for protection from unfair dismissal on 1 May 2027—International Workers’ Day—which is 20 months earlier than under the current law. This approach was taken in 1999, when the qualifying period was reduced from two years to one. This approach will prevent a two-tier system, in which some people would remain on a two-year qualifying period while newly hired employees were subject to a six-month qualifying period.

The commencement of the unfair dismissal provisions will be set out in commencement regulations, as is standard practice. I am happy to commit to making those regulations early next year, implementing our commitment to commencement on 1 January 2027. This change will benefit millions of working people, who will gain greater security at work, and it will offer businesses and employers the flexibility to ensure new hires can do the job, get the skills to match, contribute to business success, and build a stable and secure working life.

To further strengthen these protections, the Government amendments will also ensure that the unfair dismissal qualifying period can only be varied by a future Government through primary legislation, and will remove the compensation cap. I know that some businesses have expressed concern about the agreement to lift the compensation cap; I can tell the House that we want to remove the scope for employment tribunal cases to be more complex and convoluted than they need to be. We need a tribunal system that works for employees and employers alike—one that is not gummed up by process and unnecessary delay nor bedevilled by bogus claims. Our aim is to make the tribunal system work more effectively and efficiently for all, so that those judged to have been unfairly dismissed get the compensation they deserve, the system works to resolve cases more speedily and unfounded claims are dismissed more urgently.

As we review the tribunal system, in the spirit of partnership, we will work with businesses and trade unions to create a tribunal process that is fairer and faster. No committed employee should lack the protection they deserve, nor should any reasonable employer fear the consequences of an unsubstantiated claim. For several other employment rights, the amount of compensation that can be awarded by a tribunal is limited by cross-referring to the unfair dismissal cap, so our amendments will ensure that these consequential issues can be considered and dealt with effectively through secondary legislation.

We know that security of work is critical for working families, and we are also acutely aware of the challenges businesses face. That is why we are committed to open and constructive dialogue with all stakeholders. If these changes are to create the conditions for lasting, fair and flexible labour laws, dialogue and co-operation must be our watchwords. I hope the other place can attach similar importance to that co-operation, and that it will let this Bill—the product of a general election mandate and the good will of both business and trade unions—proceed to Royal Assent. These discussions and the workable compromise highlight the importance of participation, and I urge those listening to today’s debate to engage with the consultations set out in the implementation road map.

I will now speak to the Government amendments in lieu that relate to zero-hours contracts and the right to guaranteed hours. We have tabled amendments that will create a statutory duty to consult on the length of the initial reference period and the length and timings of subsequent reference periods before exercising the relevant powers. These amendments will ensure that vital stakeholders can have the opportunity to contribute before the lengths of the reference periods are determined by regulations that work for worker and employer alike. By delivering this change with the input of stakeholders, we will provide a fair and balanced approach.

Let me turn to the Government amendments in lieu of Lords amendment 48B, which relate to seasonal work. In order to help address fluctuating demand, the Bill allows guaranteed hours offers to take the form of limited-term contracts where reasonable. The Government have tabled amendments that place a statutory duty on the Government to consult before making any regulations to specify what counts as a temporary need. This means that before any such regulations are introduced, employers, trade unions, and other parts of civil society with an interest in seasonal work, will be fully consulted.

I will now address the issue of political funds and the related Government amendments in lieu of Lords amendments 72D to 72H. The Government remain committed to the repeal of the Trade Union Act 2016. That includes reinstating the long-standing practice that existed for 70 years before that Act, whereby new union members are automatically included as contributors to a political fund unless they choose to opt out. This will return us to arrangements that worked well for decades, removing bureaucratic red tape on trade unions that works against their core role of negotiation and dispute resolution in the interests of working people. We have heard the concerns about how opt-out notices would take effect, and we believe our amendments will refine that process.

Under the pre-2016 legislation, an opt-out notice could only take effect on 1 January of the year after it was given. Under the Government’s amendment, opt-out notices will now take effect on either 1 January of the following year or on a day specified or determined by the rules of the union, whichever comes first. We are aware that in practice, prior to 2016, unions generally gave effect to opt-out notices before the subsequent 1 January date anyway; amendment (a) in lieu affirms that flexibility in the legislation. We have also tabled amendment (b) in lieu, which places a statutory duty on the Government to issue guidance within three months of the clause coming into effect. That guidance will set out the kind of provision that unions should include in their rules about the timing of giving effect to opt-out notices.

Finally, I will address the issue of industrial action ballot thresholds and related Government amendments in lieu of Lords amendment 62. As I have said, this Government want to end disputes and conflict in the labour market; we also want more trade union members to have a say in decisions about escalating disputes where they arise. We will repeal the 50% threshold and—as we have previously stated—align this with the establishment of non-postal balloting, including e-balloting, so that decisions about industrial action keep pace with the communication channels of modern life.

Our amendment (a) in lieu cements that intention by requiring the Secretary of State to have regard to any effects of the introduction of non-postal balloting, including e-balloting, on the proportion of those entitled to vote in industrial action ballots who actually do so. In having regard to the effects of e-balloting, the Government will monitor and assess the practical impact of non-postal balloting on rates of participation in industrial action ballots, so that we will be confident that modernising the means of balloting increases member participation. In addition, we have tabled amendment (b) in lieu, which will place a statutory duty on the Secretary of State to lay a statement before Parliament that demonstrates how the Government have had regard to non-postal balloting before making regulations to repeal the 50% threshold.

I urge hon. Members to support the Government motions before the House today, including our amendments in lieu. Together, they form a package that strengthens workplace rights, reflects the value we place on fair and flexible labour markets, and demonstrates the Government’s willingness to listen to concerns and act on them. We place a premium on dialogue and compromise as key components in modern labour relations; we want to consign the narrow, partisan, party political prejudice of previous decades to the dustbin of history, and build instead a modern industrial relations framework that values partnership, dialogue, flexibility and fairness for all sides. Our amendments in lieu fully reflect that approach, and in that light, I commend them to the House.

Advanced Ceramics Industry: North Staffordshire

Jim Shannon Excerpts

Wednesday 3rd December 2025 Westminster Hall

[Dr Gardner]

Yes, sovereign capability is vital to ensure this nation’s security.

CMCs are essential as lightweight replacements for alloys in high-temperature aggressive environments, such as turbine engines and exhaust systems. They are vital to maintaining technical advantage and capability in defence, offering high temperature resistance, low weight and superior durability. Carbon matrix and silicon carbide matrix composites will be needed in fusion energy systems, hypersonic vehicles, space vehicles and defence infrastructure.

At present, the UK has no sovereign CMC manufacturing capability, and there is no sovereign supply for critical raw materials such as silicon carbide fibres and precursors. The Rolls-Royce CMC factory is in California, and it can only supply some civil aerospace requirements, leaving UK defence turbines vulnerable to export controls, US supply chains and tariffs.

Lucideon wishes to create a UK manufacturing facility to produce CMC materials and components, including oxide and non-oxide composites. Those products would be world leading. They would replace heavy metal rotating parts in high-temperature turbines on jet engines, making them lighter and able to run at higher temperatures. They would significantly reduce fuel burn on aero engines, giving UK aerospace a huge commercial advantage.

[Jim Shannon (Strangford) (DUP)]

I talked to the hon. Lady before we came into the Chamber, and it would be really good if we could advance the ceramics industry, as she has argued. It would also be good to give opportunities to young people through apprenticeships and education in science, technology, engineering and maths. Does she see that as a critical aspect as we move forward? I congratulate her and the whole Stoke team on how well they work together.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

And Leicestershire.

[Jim Shannon]

Sorry—and Leicestershire.

[Adam Jogee (Newcastle-under-Lyme) (Lab)]

And Newcastle-under-Lyme.

Critical Minerals Strategy

Jim Shannon Excerpts

Monday 24th November 2025 Commons Chamber

[Chris McDonald]

I can assure my hon. Friend that the Government are extremely concerned about the ecological impact of deep-sea mining. The Government support a moratorium on—I choose my words carefully here—the exploitation of deep-sea mining, while allowing for the exploration of deep-sea mining. As a scientist and engineer myself, I think that the exploration is valuable, to ensure that we gather appropriate data, and I recently commissioned work from the chief scientific adviser in my Department to be fully appraised of the potential environmental impacts of deep-sea mining.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister very much for his positive statement. It is great that the Government’s critical minerals strategy aims to reduce our over-reliance on foreign suppliers and to build a more resilient domestic supply chain, which is central to our growth sectors and to clean energy. He referred to the critical and important role of Queen’s University Belfast in magnet-recycling technologies. What steps have been taken to ensure good collaboration with the devolved Governments, to unlock further incentives for extraction projects, and to support domestic improvements through our minerals strategy?

[Chris McDonald]

The hon. Gentleman is right to point out that the critical minerals strategy will benefit every nation in the UK, including Northern Ireland. I am particularly keen to learn more about the ionic liquid separation methods of Ionic Technologies, which has been a flagship project for Queen’s University Belfast. I wrote to the relevant Ministers in the devolved Governments before the launch of the strategy, and I am keen to continue working with them on it.