Oral Answers to Questions

Kate Dearden Excerpts

Thursday 2nd July 2026 Commons Chamber

[Katrina Murray (Cumbernauld and Kirkintilloch) (Lab)]

1. What recent progress his Department has made on implementing the Employment Rights Act 2025.

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

The Employment Rights Act 2025 is bringing employment rights into the 21st century, with phased implementation to give businesses and workers, including those in Cumbernauld and Kirkintilloch, time to get ready and understand their new rights at work. We have already repealed burdensome trade union legislation, strengthened statutory sick pay, introduced day one paternity leave rights and launched the Fair Work Agency. We continue to consult on measures such as zero-hours contracts and non-disclosure agreements to get the details right. Further changes will happen in October, including trade union reform and better protection from sexual harassment.

[Katrina Murray]

I draw attention to my entry in the Register of Members’ Financial Interests as co-chair of the Unison group of Labour MPs. For too long, many workers have been expected to keep themselves available for work without any certainty over the hours or income that they would receive. The right to guaranteed hours was designed to change that. As those provisions are implemented, what practical difference does the Minister expect they will make to working people across the country?

[Kate Dearden]

Through the right to guaranteed hours, we are tackling one-sided flexibility. Qualifying workers are offered contracts that better reflect their hours, and they can then plan their lives and finances. Over 1.2 million people work on a zero-hours contract, and research published by the Living Wage Foundation in 2022 found that 87% of zero-hours workers said that they want more hours in their contract. My hon. Friend will understand the terrible consequences and the impact that not knowing their regular hours or how much they will earn that month can have on people’s lives, including the severe impacts of not being able to feed their kids or know whether they can pay their bills. We are working to get the details right and to get businesses, workers and trade unions to engage in our recent consultation so that we can achieve both flexibility and security.

[Mr Peter Bedford (Mid Leicestershire) (Con)]

The Government’s impact assessment puts the costs of the Employment Rights Act at up to £5 billion, which will hit small and medium-sized businesses since they lack the human resources teams and the expertise to absorb the additional burdens. What advice does the Minister give to small and medium-sized businesses in my Mid Leicestershire constituency on how they should deal with that?

[Kate Dearden]

The hon. Member might not have read the updated impact assessment, which significantly lowered that amount, following the passing of the Employment Rights Act towards the end of last year, to £1 billion. On supporting small and medium-sized enterprises, we want to work closely with them because many across the country are already doing lots of the things that are in the Employment Rights Act. They also understand that treating their workers fairly benefits their business and makes the economy grow. I am grateful to the small and medium-sized businesses that I have worked with and which fed directly into the details of the Act. I want to work closely with them to understand the impacts and where we can get this right, and to work on the details. I thank them for their engagement, and I look forward to continuing to work with them.

[Mr Speaker]

I call the shadow Secretary of State.

[Andrew Griffith (Arundel and South Downs) (Con)]

Today, we Conservatives have launched a campaign to save the summer job. Employment rights do not help young people if they cannot get a first experience of work, and they are trapped in a Catch-22 situation of needing experience to get work but not being able to get any during their education years. Young people say it, businesses say it and Alan Milburn, the former Labour Minister, says it. Will the Government now back our plans to save the summer job, cut employment red tape, support seasonal working and lower taxes?

[Kate Dearden]

The Opposition’s suggestion of getting 13-year-olds to work later hours on a Sunday is simply not serious. What is serious is the review that we have conducted with Alan Milburn on how we can get more young people into employment. We recognise the challenge, and that is why it is an important priority for us. We inherited a situation in which nearly a million young people were not in employment, education or training. That increased by 250,000 before the general election, and the Conservatives did absolutely nothing about it. Young people written off by a legacy of rising youth inactivity and declining apprenticeship jobs. That is why we are serious about this. I appreciate and welcome Alan Milburn’s review, which is detailing how we can improve the situation. He has looked at the challenges that we are facing and laid bare the scale of them. We have already taken action to help young people by bringing forward the biggest youth employment reforms to create 500,000 opportunities for young people through our £2.5 billion youth guarantee, and we will continue to do more.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

Research by the British Retail Consortium found that over two thirds of part-time workers in the retail sector took the role because they needed flexibility around educational and caring commitments. The number of young people not in employment, education or training is over 1 million. Liberal Democrats repeatedly warned that Labour’s jobs tax would hammer job opportunities for young people and that its business rates hikes would kill off opportunities on the high street, which gives so many young people their first job. As they implement the Employment Rights Act, which will introduce some welcome measures for employees, how will the Government ensure that this is not yet another burden that prevents businesses from being able to provide entry-level and flexible jobs?

[Kate Dearden]

I am glad that the Liberal Democrat spokesperson welcomes parts of the legislation, but I wish she would not repeat lines from the Conservatives, who broke our economy and destroyed our labour market. That is why the Act is so important: it will fix problems, particularly the problem of people being in insecure work, which does not grow our economy and will not provide the stability that we need.

I thank the hon. Lady for mentioning flexibility. The problem occurs when flexibility is one-sided and workers bear all the financial risks. That is why, as part of our consultations, particularly on zero-hours contracts, we want to get flexibility and security right, so that we can rebalance them. We are working closely with employers, including in the retail sector, to understand how best to get that balance right, so that it benefits workers and businesses, too.

[Chris Hinchliff (North East Hertfordshire) (Lab)]

2. What assessment he has made with Cabinet colleagues of the adequacy of the security of UK supply chains.

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[Alison Bennett (Mid Sussex) (LD)]

6. Whether his Department has provided guidance on the potential impact of the Digital Markets, Competition and Consumers Act 2024 (Alternative Dispute Resolution) (Fees) Regulations 2026 on small businesses providing arbitration services.

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

The Department has not provided guidance on that matter. Fees relating to the accreditation and monitoring of alternative dispute resolution providers have not risen since 2015, and have been significantly eroded by the impact of rising costs. The intention behind the new fee structure is to ensure that, over time, fees are commensurate with the costs of the Chartered Trading Standards Institute performing the relevant functions to the required standards, that they are predictable for ADR providers, and that they provide costs recovery for the CTSI.

[Alison Bennett]

I thank the Minister for that response. Caroline from Lindfield owns a small business that provides arbitration services. Since the introduction of the one-size-fits-all fees set down earlier this year, her business model and that of so many other small ADR providers has become nigh on impossible to sustain. Has the Minister considered the impact on the sector from the fee changes? Can she explain why no impact assessment has been done? In particular, has she received feedback from trading standards since the legislation came into force?

[Kate Dearden]

I thank the hon. Lady for her question. A well functioning ADR system makes markets work more effectively and drives economic growth. We are committed to ensuring that consumers and businesses are able to resolve disputes early, which helps to raise consumer confidence and compliance rates. We acknowledge that there will be a period of adjustment as the new fee structure beds in, and in the autumn we will conduct a review to assess whether the fee structure should be amended further. We recognise the importance of ensuring that charges are fair and proportional for all ADR providers and the CTSI as the competent authority.

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

7. What steps he is taking with Cabinet colleagues to support the creation of jobs for young people.

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[Chris Vince (Harlow) (Lab/Co-op)]

9. What steps his Department is taking to help support unpaid carers in the workplace.

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

I thank my hon. Friend for his continued advocacy for young adult carers. I have been honoured to visit Carers Count Calderdale in my own constituency of Halifax, and I know about the important and vital support that incredible unpaid carers across the country are providing to their loved ones. We are reviewing the employment rights available to them, including through a public consultation that launched last month and which is currently open for views. We are considering the merits of additional support, including paid leave, improved guidance and a right to return, while remaining mindful of any potential impacts on businesses.

[Chris Vince]

I thank the Minister for her commitment to unpaid carers. I speak to unpaid carers across my constituency all the time, and I personally thank them for all that they do in caring for loved ones and in the wider community. However, so many unpaid carers I speak to tell me that they struggle to hold down a job, and many of them have had to give up really important careers. I absolutely welcome the Government’s commitment to a review, which has the potential to be absolutely transformative, but does the Minister agree that we must continue to support unpaid carers in Harlow and beyond?

[Kate Dearden]

My hon. Friend is absolutely right to highlight the vital contribution that unpaid carers make to their loved ones and their communities, and the experiences of families in his constituency reflect the challenges faced by unpaid carers across the country. We want to ensure that carers can remain in work and fulfil their potential. Through our review, we will ensure that we are backing our unpaid carers to balance work and care, as well as the employers who support them in the workplace.

[Andrew George (St Ives) (LD)]

10. What steps he is taking to support the hospitality sector.

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

It was a pleasure to hear the hon. Member’s contribution in the recent Westminster Hall debate on seasonal hospitality businesses, including those in his constituency. We are delivering permanently lower business rate multipliers for more than 750,000 retail, hospitality and leisure properties. That is backed by a £4.3 billion support package over three years, which includes transitional relief to protect businesses from large bill increases following the re-evaluation. We have increased the hospitality support fund to £10 million over three years, building on the previous scheme, to support larger, longer-term projects. I am committed to working in partnership with industry and across Government to support growth and resilience, including through targeted support measures and engagement, such as with the Hospitality Sector Council.

[Andrew George]

As welcome as that is, and I am not crying wolf, the hospitality sector faces a very high risk of substantial business failure in the next 12 months as a result of the tax burdens that it has to face simply for attempting to survive, rather than a tax burden to help it succeed—in other words, shifting from VAT and business rates to corporation tax. Will the Minister look again at this issue before real catastrophe comes to the sector? Will she talk to Treasury Ministers and find a way out of this extremely serious situation?

[Kate Dearden]

Unfortunately, we inherited an absolutely dire situation from the Conservatives when they left office. They left deep scars on our economy from a decade of stagnant growth. We know that hospitality thrives when our economy grows, wages rise and people have money to spend, which is why we are absolutely committed to supporting businesses and working closely with them. The hon. Member will know that the Government need to consider a wide range of factors when introducing new tax reliefs, such as whether they support wider Government objectives. He will also know that the Government keep all taxes under review as part of the policymaking process, and the Chancellor will announce any changes to the tax system at fiscal events in the usual way.

[Mike Reader (Northampton South) (Lab)]

The Northampton-based McManus Pub Company runs 18 pubs and employs 370 people. I spoke to Tom McManus yesterday, who told me that successive Governments have ignored hospitality and that in the past five years business costs have made it harder for him to turn a profit. Tom has asked me to lobby the Government to cut VAT to 10%. What message does the Minister have for family businesses such as Tom’s?

[Kate Dearden]

I thank my hon. Friend for his question, for raising the preferences of businesses in his constituency and for his continued engagement on this issue on behalf of his constituents. He will know of the recent announcements on the temporary great British summer savings scheme, which will reduce VAT from 20% to 5% on selected hospitality activities between June and September. He will also know that we keep all taxes under review. He should say to his constituents, and particularly to his businesses and pubs, that we are absolutely committed to working with the industry and the sector to support them to thrive. They are vital to our local communities, people and jobs, and I know that he knows that too.

[Max Wilkinson (Cheltenham) (LD)]

Harry Kane’s heroics last night mean that many England fans are looking forward to an early morning or a late night on Monday, depending on one’s perspective. That is a good thing, but pubs risk missing out on a real opportunity to get more money into the till if Ministers do not make a blanket extension to licensing hours. Will Ministers consider that with their colleagues in other Departments so that fans can enjoy the game in the pub?

[Kate Dearden]

I pay tribute in this House to the incredible Harry Kane, our captain, for his performance last night—he calmed my blood pressure—and we will be championing the boys on Sunday. The hon. Gentleman will know that pubs can stay open for an extra two or three hours depending on how late the match starts, so that they can still be open when the game finishes. Unfortunately that does not apply to Sunday, given the 1 am start, but going forward we are backing our pubs so that people can watch and support our lads. It’s coming home, hopefully.

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

Titanic Brewery, based in Stoke-on-Trent, makes a fabulous pint—I highly recommend the plum porter. However, the Minister will know that as an independent brewery, access to market is quite difficult because of the way that tied pubs insist that landlords buy their products. Could the Minister make an announcement before the summer recess on the access to market scheme, and in particular the guest beer arrangement that would allow 1,500 SMEs access to market? It would not cost the Government anything, and the Minister could find that lots of people raise a pint to her over the summer.

[Kate Dearden]

I sincerely thank my hon. Friend for his continued engagement—I know how important the issue of market access for our breweries is to him. I was delighted to meet him and colleagues across this House recently, and I look forward to continuing to engage and work with them as the Government consider the evidence ahead of any announcements.

[John Glen (Salisbury) (Con)]

11. What assessment he has made of trends in employment levels in the hospitality sector.

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

The hospitality sector remains a major UK employer. It supported around 2.1 million jobs last year, or around 6% of total employment. Employment has grown by over 18% in the past decade, and although growth has stabilised more recently, that follows a period of strong expansion, reflecting the sector’s continued importance to local economies and youth employment. I know myself how vital the sector is for first jobs—my first job was in a café, and that opportunity gave me the skills to go on and succeed in my career. We are supporting jobs through skills investment, including new hospitality apprenticeships, incentives for SMEs to recruit young people, and sector-based work academy programmes to help people into work.

[John Glen]

I thank the Minister for her answer and the positive news about the sector apprenticeships. Hospitality is critical in Salisbury as we move towards our 800-year celebration next year, but last summer there was a 25% drop in temporary work in the sector, and the cost of employer national insurance contributions for part-time workers in the sector—those working 15 hours—increased by 73%. I say respectfully to the Minister that I recognise that tough decisions have to be made in the Treasury; I was there for seven years, and was part of those decisions. However, this sector is under real strain, and part-time jobs for the youngest workers are not there at the moment. Something quite significant needs to change in the Government’s approach.

[Kate Dearden]

I thank the right hon. Member for raising the vital role that the hospitality sector plays in providing those first jobs and opportunities for people. I work closely with hospitality businesses, and I am really keen to continue to listen to them, to understand the challenges they face. I know that the right hon. Member will welcome our youth jobs grant, which was launched this week and is open for applications—that was welcomed by the chief executive of UKHospitality. We want to keep working with those businesses, and I thank them for their engagement so far on how we can continue to support them to crack on with the brilliant opportunities they provide in communities across the country.

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[Joy Morrissey (Beaconsfield) (Con)]

15. What assessment he has made of the potential impact of employment costs on levels of business recruitment.

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

The UK was the fastest growing G7 economy in quarter 1 of this year, and we know that we will only achieve a thriving economy once people have a wage they can count on. We want to grow our economy with people in secure work. That is why we are giving greater certainty to more than half the UK’s workforce through our Employment Rights Act 2025 and putting more money in their pockets. External analysis by world-leading experts shows that the Act could increase employment, and our impact assessment shows that it will benefit more than 18 million workers across the country.

[Joy Morrissey]

The Employment Rights Act, the minimum wage and national insurance contributions are all making it difficult for employers to keep taking on new employees, or even to keep them at all. What advice does the Minister have for small business owners in Beaconsfield and Marlow having to make the difficult decision to either cut jobs or close their businesses thanks to this Government?

[Kate Dearden]

We are focused on fixing the issues in our labour market that the Conservatives neglected: poor working conditions, insecure work, inequality, the undercutting of good employers in brilliant SMEs, and the bad industrial relations that we inherited. Since July, real wages have grown. We have the third highest employment rate in the G7, and we are focused on backing our brilliant SMEs. They are the backbone of the community. I come from a small business family, and it provided me with that first job and opportunity. We want to get more people into work and to work with our SMEs, so that we can build that thriving economy where people have a wage so that they can get on.

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

T1. If he will make a statement on his departmental responsibilities.

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[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

I thank my hon. Friend for his question. We are working closely with various stakeholders to ensure that workers understand and claim their new rights under the Employment Rights Act. I know how vital trade unions are not just to organising, but to educating workers on their rights at work. I am so proud that they have been instrumental to development and implementation of these rights, and we look forward to continuing to working with them closely.

[Douglas Lumsden (Aberdeen South) (Con)]

In Aberdeen South, there is a jobs emergency, with 1,000 jobs a month being lost from the oil and gas sector. So will the Government ditch their damaging policies that are destroying the oil and gas industry and destroying jobs in Aberdeen South?

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[Ms Julie Minns (Carlisle) (Lab)]

The owner of Palace Cycles recently told me that while explaining to a customer that he would not service the illegally modified e-bike that had been brought into his shop, the bike shot across the shop of its own accord. When will the Government regulate to ban the sale of dodgy, illegal, unsafe e-bikes and the kits that create them?

[Kate Dearden]

I thank my hon. Friend for her constant campaigning on this issue. I know how important it is and, I value working closely with her. Businesses producing or supplying those products must ensure that they are safe before they are placed on the market, including online marketplaces. Businesses should not supply products they know—or should know—are unsafe. My hon. Friend knows that taking action includes regulatory action. We work alongside other Departments on this, and our recent consultation looked at how we can go even further to ensure that products are safe.