Statutory Menstrual Leave
Kate Dearden Excerpts(1 month, 4 weeks ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
It is a pleasure to serve under your chairmanship, Mr Mundell. I thank my hon. Friend the Member for Colne Valley (Paul Davies) for opening today’s debate and for bravely sharing his wife Leah’s experience of living with endometriosis. I also thank Michelle, who joins us in the Gallery, for creating the petition, sharing her story and experiences and bringing her daughter and so many other people here today to watch this debate. Finally, I thank my colleagues here who have reflected deeply on this matter, sharing their personal experiences and the experiences of their constituents and the many campaigners they have met across the country. The drive of all Members here today, and outside this Hall, makes it clear why the issue is so important for women and girls across the country and in our workplaces; clearly, we all know somebody impacted and living with various conditions that have led to a different experience at work. We want to see change and make sure that they can thrive in the workplace. That is why this debate is welcome and important.
I want to start by recognising the enormous, admirable strength of so many woman and girls living with endometriosis, adenomyosis and other menstrual conditions today, as well as the thousands of women who have come before us outside of this room. They have lived with the conditions for so long; they have not been diagnosed for many years, and it is harrowing to hear their reflections and stories from many colleagues today. I completely understand and share the determination to turn things around. I will touch on various actions that the Government have taken in the Department for Business and Trade—looking at specific workplace policies and our work with employers—and, of course, the strategic work that my colleagues in the Department for Health and Social Care are prioritising.
Recently, with the Secretary of State for Business and Trade, I was honoured to meet with Endometriosis UK to hear the lived experiences of women and their campaigns, including with Jasmina, the director of “Dear Doctor”. For those who have not watched it, it is an incredibly powerful film that describes living with the conditions and having to navigate working through the debilitating, but invisible, pain. It was incredibly moving to watch, and I thank them for it and for their time.
Of course, the conditions did not begin this year or this century. We are listening and taking action so that we can support women and girls across the country who live with those conditions. As Members, our constituents and the petition signatories know, they can be debilitating for patients. We have heard today about the pain, fatigue and psychological impacts, which are real, significant, and often have far-reaching consequences for women’s welfare and ability to fully participate in the workplace and education. It is unacceptable that health-related issues are the leading cause of women being excluded in the workplace. Over the past six years, the number of women who are economically inactive due to long-term sickness has risen by 425,000, reaching 1.48 million—close to a record high.
It is right that the Government are taking action on this issue from all sides, with our landmark Employment Rights Act making statutory sick pay more accessible and introducing equality action plans; access to work reforms in the Department for Work and Pensions through the “Keep Britain Working” programme; and our record investment in our NHS, which has seen gynaecology waiting lists fall by almost 20,000 and made transformative endometriosis medication available.
I will turn to the points that colleagues have made in this debate, and I thank them for raising them. We remain fully committed to learning from others and continue to look carefully at international best practice, which lots of colleagues have touched on today. That includes Portugal’s approach and other international examples that offer valuable insights into how to best support employees experiencing difficulties with menstrual health conditions.
I thank my hon. Friend the Member for Bathgate and Linlithgow (Kirsteen Sullivan) for mentioning the endometriosis-friendly employer scheme. We expect employers to treat staff fairly and accommodate reasonable requests for employees suffering from menstrual health conditions. Many employers, as has been mentioned, choose to provide that voluntary support to staff, and the Government continue to encourage best practice. I thank colleagues for raising the scheme with me; two Departments—the Ministry of Housing, Communities and Local Government and the Department for Transport—have already signed up, and I will take this away for the Department for Business and Trade to consider. I thank colleagues for raising that scheme.
Turning to statutory sick pay, one of the key issues raised in the debate is ensuring that women and girls experiencing debilitating symptoms from menstrual conditions are supported and not financially punished for a condition beyond their control. Our Government’s landmark Employment Rights Act delivers that, extending statutory sick pay to employees on day one—their first day of sickness—regardless of how much they earn. No more waiting a few days and no more not being entitled to statutory sick pay if they earn a certain amount.
While it is regretful that the Opposition voted against the Employment Rights Act at every stage in Parliament, I think the shadow Minister, the hon. Member for Reigate (Rebecca Paul), welcomed our statutory sick pay introductions this month. Those will change the lives of so many people across this country—as she and colleagues in this Chamber have pointed out—because they mean that, for the first time, those with fluctuating conditions such as endometriosis and adenomyosis are eligible for statutory sick pay from the first day that their sickness prevents them from working. Before the 2025 Act, they were excluded from statutory sick pay unless absence lasted for four days. That was a draconian system that harmed the least well off, ignored the lived experience of thousands of women, and desperately needed reform. It is absolutely right that we have dragged that system into the 21st century.
The Act also ensured that the UK leads the way in supporting employees to work flexibly. Flexible and hybrid working arrangements are vital in ensuring that employees who require reasonable adjustments, such as those with health conditions, are supported at work and are able to contribute to our workforce. That is particularly valuable for those with fluctuating or unpredictable conditions, including endometriosis and other menstrual health conditions, making it easier to manage symptoms and attend medical appointments, and reducing sickness absences.
The Act improves employees’ ability to work flexibly by requiring employers to accept flexible working requests, provided they are reasonable. Where they cannot accept those requests, employers will be required to discuss the challenges in accommodating them with employees and to consider alternative options, and, if they cannot agree an arrangement, to explain their reasoning. A public consultation on these reforms is currently under way until 30 April, and I encourage members of the public and advocacy organisations to please make submissions and ensure that their views are taken into account.
Alongside the right to request flexible working, protections continue to be available under the Equality Act, where symptoms have a substantial and long-term adverse effect on day-to-day activities. Conditions such as endometriosis, adenomyosis and premenstrual disorders can meet the definition of disability under the Equality Act. Employers absolutely have a duty to make reasonable adjustments, such as flexible hours, modified duties, part-time arrangements or phased returns. Those reasonable adjustments are well established, enforceable and designed to prevent discrimination and disadvantage.
Kirsteen Sullivan
Menstrual health conditions, including endometriosis, result in an estimated cost of £11 billion a year to the UK economy. Does my hon. Friend agree that having more supportive workplaces—workplaces without stigma, where there is an understanding of the chronic nature of some of those conditions—will have a positive effect not only for the women living with those conditions but overall, for our economy?
Kate Dearden
I thank my hon. Friend for her contribution and for her powerful speech during this debate. She is a tireless campaigner on this; I really look forward to working with her and the APPG on lots of these issues, and particularly on that stigma. She raises an excellent point about the role of employers in ensuring that there are supportive workplaces that can talk about health conditions that women experience, to make sure that they thrive at work. She mentioned the cost to our wider economy, and I thank her for doing that; it really recognises the significance of this issue and why we need to absolutely support those women across workplaces, and to work with employers to do that.
Turning to equality action plans, we are also working with employers to help women to thrive at work, and on how they can support women’s health much more proactively. Ahead of International Women’s Day, we were pleased to launch voluntary action plans to help those large employers address their gender pay gaps and improve support for employees experiencing menopause. As part of that announcement, we published a list of evidence-informed actions that employers can take—ones that are proven to work—and I thank my hon. Friend for raising that throughout her contribution.
Within the action plan, we are asking employers to commit to a minimum of two actions: one to address their gender pay gaps and one focused on supporting employees experiencing menopause, including those in both the perimenopausal and postmenopausal stages. Many of the recommended actions are also likely to benefit employees managing other menstrual health-related conditions, such as endometriosis, fibroids and polycystic ovary syndrome, which can significantly affect wellbeing and contribute to workplace disadvantage. It is a real opportunity for Government and business to work together to drive forward that meaningful change to improve workplace equality, and a huge step forward in supporting women’s health in the workplace.
We are also taking further action to address the barriers that menstrual health can raise in the workplace through Mariella Frostrup’s recent appointment as the Government’s women’s employment ambassador, building on her significant achievements in the past 18 months as the menopause employment ambassador. In this expanded role, she will champion women’s health across the life course, working with employers nationwide to strengthen workplace support, raise awareness of key health conditions and highlight the vital economic contribution that women make.
Prior to my appointment as a Minister, I worked with the founder of Endometriosis UK’s Calderdale and Kirklees branch, a formidable woman named Natalie Greenwood, to connect her organisation with trade union members locally and employers and officials across the UK, to ensure that workplace policies are inclusive of women with menstrual conditions. I encourage all hon. Friends and petition signatories to take action in their constituencies so that we can all, together, work with our employers to support women in the workplace. With the right workplace support, we can unleash the full talent, creativity and potential for women across the country. That is good for women, business, our economy and our country.
Following Sir Charlie Mayfield’s independent review, we are taking broader action through the keep women working programme, which hon. Members have mentioned today, to help more women to stay in work. In response to that review, the Government have launched the vanguard phase, working with employers of different sectors, sizes and regions all across the country to test the practical ways of improving workplace health support. That vanguard phase will consider a range of insights through different lenses, including women’s health. We are also establishing a new workplace health intelligence unit to build that evidence base and support benchmarking. That sits alongside our £1 billion a year pathway to work programme.
Throughout this debate, colleagues have rightly touched on the problems with diagnosis and asked for an update on the women’s health strategy, which I will turn to, but I can reassure everyone across the House that their powerful contributions and the points they raised for colleagues across Government will be raised with my health colleagues. This is not an area that just sits in my Department and with employers; we are committed to it across Government.
I have heard personal stories, including from colleagues here today about women outside this room who have spent too many years seeking answers, being misdiagnosed, having symptoms minimised or being passed from service to service. The experiences highlighted in Endometriosis UK’s recent report underlines why that early-year diagnosis and consistent, compassionate care must be central to our approach. From our introduction of Jess’s rule, requiring GPs to reconsider diagnosis where symptoms persist, to the roll-out of Martha’s rule, which colleagues will be aware of, we want to ensure that women’s concerns are not dismissed.
The shadow Minister mentioned the impact that community diagnostic services can have, which is why we are expanding access to diagnostic services and rolling them out country wide for women. Last month, there were 106 centres offering out-of-hours appointments for women to get those vital tests around work and caring responsibilities, and I really welcome the work of my colleagues in the Department of Health and Social Care.
We are also modernising how specialist care is delivered. In September, we announced our new online hospital, NHS Online, which will be unconstrained by geographical boundaries, better aligning clinical capacity with patient demand. Earlier this year, we confirmed that menstrual problems, often a sign of conditions such as endometriosis, will be the among the first nine conditions available for referral from 2027. Those details are being worked out ahead of next year’s launch.
However, we completely understand that better care also depends on better understanding and improving public and healthcare profession awareness of menstrual health conditions, to reduce stigma and ensure that symptoms are recognised rather than normalised or dismissed. My hon. Friend the Member for Sherwood Forest (Michelle Welsh) made such a powerful point around how period pains are considered to simply be painful and women and girls across the country should expect that; improving awareness is key to dealing with that. The General Medical Council has strengthened women’s health representation in training, and since last year has required UK medical graduates to pass that medical licensing assessment, to encourage better understanding of women’s health problems. That assessment includes topics on women’s health and endometriosis.
Before I conclude, I must touch on the women’s health strategy, which is really welcome. We have made strong progress turning the commitments in the last Government’s women’s health strategy into tangible action. Our renewed strategy will set out how this Government will take further steps to improve women’s health as we deliver the 10-year health plan. It will also address the gaps in the 2022 strategy, and go further to create a system that listens to women, tackles health inequalities and makes progress on conditions such as endometriosis. Renewing that strategy will help identify and remove enduring barriers to high-quality care, such as those extremely long wait lists for diagnosis, and ensure that professionals listen and respond to women’s needs. I am sure colleagues will be—and already are—engaging with my colleagues in the Health Department on that.
To conclude, I once again thank my hon. Friend the Member for Colne Valley for leading the debate, the hon. Members in the Chamber for their powerful contributions and Michelle for her brave action that made this deeply important debate happen. I assure Members and petition signatories that I recognise the significant impact of menstrual health conditions, and I will consider all the points raised today as I continue to engage with stakeholders, with the APPG and with excellent Members across the House who are formidable in running their campaigns and raising this issue at every single opportunity—I thank them for that. We must ensure that lived experience continues to shape policy.
Trade Union Access to the Workplace and TUPE Reform
Kate Dearden Excerpts(1 month, 4 weeks ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
The Government have set the country on the path of national renewal, building a Britain for all on the firm foundations of security, respect and opportunity. That means creating an economy that delivers for working people: productive, profitable and growing, and creating the best environment for business by maximising job security to raise productivity, improve skills and cut the costs of staff turnover.
The Government’s plan to make work pay will bring employment rights legislation into the 21st century. We are building an economy based on fair competition between businesses, greater productivity in the workplace, job security for workers, and fair reward for hard work, delivered in partnership with businesses, trade unions, public sector employers and civil society.
Government response to the consultation “Make Work Pay: trade union right of access”
As part of this, last autumn we consulted on strengthening trade union access to the workplace. Respondents engaged extensively, and their feedback has been carefully analysed and used to inform the final statutory access framework.
The Government response published today sets out the decisions and how the right of access framework will operate in practice, ensuring it is proportionate and enables regulated and responsible union access to the workplace. This includes:
Clear requirements for written union access requests and employer responses, supported by Government-issued templates;
Defined time periods for responses, negotiation and any referrals to the Central Arbitration Committee, with flexibility for agreed extensions;
Circumstances where the CAC must refuse access and when it may be reasonable to do so, ensuring safeguards for all parties; and
A three-tier enforcement system and clear factors the CAC must consider when setting fines, such as the scale and resources of the liable party.
Consultation on draft code of practice on Trade Union Right of Access
Alongside the Government response, we are launching a consultation on a new draft code of practice on statutory trade union access. The code will provide clear, practical guidance for employers and unions on how to navigate the new framework and apply it across different types of workplaces. This is an opportunity for all interested parties to help shape this guidance before it is finalised, helping ensure that the new statutory right of access is well understood and supports smooth, effective implementation.
The consultation will run for six weeks, closing in April.
The final policy details for trade union access to workplaces will be set out in legislation through statutory instruments, which will be laid in Parliament this summer alongside the code of practice.
TUPE Call for Evidence
Today we are also launching a call for evidence on the Transfer of Undertakings (Protection of Employment) Regulations—TUPE. The Make Work Pay plan committed to reforming the TUPE regulations. The regulations exist to support business transfers and protect staff whose job is moved to a new employer. We believe firms should be able to smoothly transfer part or all of their business or transfer service provision, and supporting a stable workforce during transitions can in turn support a competitive business environment. The TUPE regulations should be easy to understand and follow for employers and protect staff.
We intend to consider reforms based on these principles —maintaining the right level of employment rights and protections but simplifying the process for employers.
Through this call for evidence, we will gather evidence on the prevalence and experience of TUPE, including on how many employees it affects and what types of employees and employers are affected. It will also gather evidence on whether employers understand the current rules, and whether the current required steps are followed in practice. We will engage stakeholders throughout. The information gathered will support decision making on any TUPE reforms.
Next steps
This package of consultations sets out the next steps in delivering our plans. They are critical to shaping the practical implementation of this legislation, helping the Government to deliver reforms that are both effective and inclusive. It is in everyone’s interest to get the relationship between employer and worker right. These consultations and the further consultations planned will help us make work pay for both.
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Product Safety Framework Reform: Consultations
Kate Dearden Excerpts(1 month, 4 weeks ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
We have launched three consultations setting out major reforms to modernise the product safety framework and review the UK’s furniture fire safety regulations. Using the powers provided by the Product Regulation and Metrology Act 2025, our proposals will strengthen protection for consumers from unsafe products and create a level playing field that supports responsible businesses. Proposals will clarify responsibilities and streamline regulations, which will create certainty and support growth and investment. At the heart of these proposals is a commitment to consolidate and modernise market surveillance and enforcement powers across product safety legislation.
The existing product safety framework has been stretched to its limit by increasingly globalised supply chains and the ever-changing way in which consumers buy products. The new framework must address the issues of today and be prepared to deal with the potential challenges of tomorrow. Modern-day products and supply chains have exposed UK consumers to new harms. We have seen serious incidents that have tragically caused death and personal injury, from fatal house fires caused by unsafe e-bike batteries exploding, to children being injured by swallowing powerful magnets marketed as toys. These incidents highlight the real risks posed by unsafe products and are why these consultations are so important.
A particular challenge has been the rise of e-commerce, which has rapidly changed the way consumers buy products and exposed regulatory gaps in today’s global supply chains. For too long, online marketplaces have made third-party sales of dangerous products too easy. As announced in the Budget 2025, we are consulting on proposals to introduce new requirements on online marketplaces and create a level playing field for UK “bricks and mortar” businesses and our high streets.
We must ensure that people can rely on the safety of products they buy and use every day, whether in the home or the workplace. The consultations set out how we will bring product safety protections up to date and ensure they work for the future.
The consultations cover proposals in the following areas:
Getting the basics right: proposals for the new framework to cover a wider scope of products, updating how a safe product will be defined and how the safety of a product can be assessed to reflect modern technology and new hazards. This will be monitored through updated and consolidated enforcement powers.
Accountability throughout the supply chain: proposals setting out the responsibilities of businesses in scope of the new framework, including online marketplaces and online sellers, and their core obligations to protect consumers from dangerous products.
A new approach to product information: proposals to allow product information to be provided more flexibly—both physically and digitally—and to move towards a “digital by default” approach to product information.
Building on the new foundations: proposals for additional tools to manage products posing greater risk of harm and paving the way for further reform of sector and product-specific regulations; and a call for evidence on how artificial intelligence-enabled products can best be regulated to balance safety and innovation.
A reformed enforcement framework: addressing duplication, overlap and inconsistent terminology, and establishing a single, coherent framework that is clearer for regulators, more predictable for businesses, and better able to respond to modern risks. It will also modernise and consolidate the UK’s market surveillance system, giving authorities clearer, more consistent powers to act quickly on unsafe or non-compliant products across all routes to market, including online.
The consultations will support us in determining how best to put our plans into practice. I encourage everyone with an interest in product safety to respond to the consultations and share their views to help deliver a safer future for all.
Alongside the two broad product safety framework consultations, we have published a third consultation to review the UK’s furniture fire safety regulations. This consultation sets out our intent to implement new furniture fire safety regulations that can be met by passing a smoulder test, which is consistent with the approach taken in much of the EU and the United States. This follows an evidence-led approach to craft a set of proposals that will maintain a high level of fire safety, while meaningfully reducing the reliance on chemical flame retardants.
These consultations will close after 12 weeks on 23 June 2026.
Alongside this package of consultations, the Government intend to introduce legislation to reform product labelling for certain products where the UKCA—UK conformity assessed—or CE marking applies. These measures follow the product safety review and the Government’s subsequent commitment to consider the most effective way to introduce digital labelling. The measures will give more flexibility to businesses over how these products are labelled, both physically and digitally. This is only the first step. The consultations build on this announcement and include proposals to provide greater flexibility in product labelling in the future.
I have placed copies of the consultations in the Library in both Houses.
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Oral Answers to Questions
Kate Dearden Excerpts(2 months, 4 weeks ago)
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Josh Newbury (Cannock Chase) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
This Government are committed to strengthening rights for parents. In April, we are introducing bereaved partner’s paternity leave and making unpaid parental leave and paternity leave day one rights, bringing more than 1 million parents into scope. Next year, we will further improve protections for pregnant women and those returning from maternity leave, and the parental leave and pay review will conclude, giving us recommendations and informing our next steps.
Laura Kyrke-Smith
The Government are making great strides in improving parental rights at work, but for kinship carers it is still tough. In Aylesbury, I met a wonderful lady who has become the kinship carer for her baby grandson, but she was given only 10 days of paid leave from work. She now has to take unpaid leave to care for him, which is causing serious financial strain. Will the Minister join me in paying tribute to all our kinship carers for their remarkable work and outline what discussions she is having across Government to ensure that kinship carers get the support that they deserve?
Kate Dearden
I recognise the enormous contribution that kinship carers such as my hon. Friend’s constituent make to the lives of children. The Government are committed to helping more children grow up in safe, stable and loving homes in their family network, whenever it is in the children’s best interests. I acknowledge the incredible commitment and generosity of kinship carers in opening up their hearts and homes to our most vulnerable children. Kinship carers are absolutely transforming young lives, and we should not underestimate the life-changing difference that they make every single day. Our parental leave and pay review is considering the needs of all working families who do not qualify for existing leave and pay entitlements, including kinship carers.
Sarah Russell
Since 2004, the limit on relief for small employers at which they can reclaim statutory maternity pay has been set at £45,000. Small and medium-sized enterprises want to support working parents, but they need our help to do so. Will the Minister confirm whether that will be looked at as part of the parental leave review?
Kate Dearden
I thank my hon. Friend for her advocacy on this issue. The Government acknowledge that the class 1 national insurance contributions threshold used to determine eligibility for small employers’ relief on statutory parental pay has remained unchanged for several years. Part of the relief is an additional compensation payment, known as small employers’ compensation. Last April, the Government increased the SEC rate from 3% to 8.5%, and we will increase it to 9% from 6 April 2026. The Government keep all eligibility criteria under review while balancing the needs of business and the Exchequer.
Josh Newbury
Many of us on the Labour Benches have long argued for a boost to paternity leave, which is one of the proudest achievements of the last Labour Government, but one group being let down badly is self-employed dads. Just one in six of them take leave after their children are born, and it is unpaid leave, meaning that they face a drop in income of more than £1,000 just for taking a couple of weeks off. Introducing paid paternity leave for self-employed dads would cost £38 million at most, and possibly as little as £13 million, but it would be a huge win for dads, mums and their babies. Will the Minister consider that as part of the ongoing parental leave review?
Kate Dearden
I thank my hon. Friend for his campaigning on this issue. As I have mentioned, the Government’s parental leave and pay review is under way and will conclude in early 2027. We know that the parental leave system needs to be improved and recognise that the current system does not do enough to support the many dads and partners who want to be hands-on and actively involved in caring for their children. That is why the review is so important. It will consider all current and upcoming parental leave and pay entitlements, looking at options to improve the support available to British working families and whether the support available meets the needs of working families who do not qualify for the entitlements, such as self-employed parents, as was outlined by my hon. Friend.
Jess Brown-Fuller (Chichester) (LD)
I refer Members to my entry in the Register of Members’ Financial Interests; I am the chair of the all-party parliamentary group for infant feeding and inequalities. One of the key barriers to women returning to the workplace occurs if they continue to breastfeed their children. A lot of workplaces do not provide facilities for expressing and storing breast milk. Will the Minister update the House on what the Department is doing to support women back into the workplace when they are still breastfeeding their children?
Kate Dearden
I thank the hon. Member for raising this important question in the House today. We are committed to ensuring that every parent feels secure at work, particularly breastfeeding mums when they are returning to the workplace. She will know of the different bits of legislation we are introducing through the Employment Rights Act 2025 to help women back into work, whether that is making it more unlawful to dismiss pregnant women and mothers on maternity leave or making it easier for people to work flexibly and for employers to make those provisions in the workplace. I would be keen to hear more about the work that the hon. Member and other Members from across the House are doing on the APPG.
Jim Shannon (Strangford) (DUP)
I thank the Minister for that very positive answer. There is nobody in this House or further afield who does not welcome the improvement of parental rights at work. I had a chance to speak to the Minister beforehand, so she will know where my question is coming from—I ask it on behalf of the small and medium-sized businesses that may find it difficult to cover those who are on parental leave. Has anything been done to help businesses, especially the small ones, that might find it difficult to put someone in place to cover those people’s jobs when they are off?
Kate Dearden
I agree with the hon. Gentleman that family-friendly workplaces strengthen our workforce and our economy, and are important in reducing the turnover of staff and retaining high-quality staff. That is why it is really important that we are working with businesses, small and large, on our wider parental pay and leave review. In every area of my work, I am very conscious of the need to work closely with businesses in different areas, recognising that we share the same goal of keeping people in work, and especially of supporting parents and making sure that workplaces are much more family-friendly.
Callum Anderson (Buckingham and Bletchley) (Lab)
Jerome Mayhew (Broadland and Fakenham) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
The Government recognise the central role the hospitality sector plays in supporting jobs, sustaining high streets and strengthening community life. That is why we have significantly increased the hospitality support fund, providing £10 million over three years to help hospitality businesses become more resilient, allowing them to thrive. We have permanently reduced business rates for eligible retail, hospitality and leisure properties, benefiting 750,000 properties. We are also beginning cross-Government work on a high streets strategy, developed with businesses and representatives, to be published later this year.
David Mundell
Energy costs are obviously a huge issue for hospitality businesses in a large rural constituency such as Dumfriesshire, Clydesdale and Tweeddale, but they are also an issue for hospitality business customers, because generally people travel to those businesses using their cars. Will the Minister and her colleagues in the Department lobby the Prime Minister and the Chancellor to ensure that the proposed rise in fuel duty does not go ahead in September?
Kate Dearden
I recognise that energy costs remain one of the biggest pressures facing hospitality businesses. I meet them regularly—including just this week—to make sure I am aware of their concerns and experiences on the ground. The real risk to businesses is dependence on volatile international gas markets, which we have, of course, seen; we have been left exposed to global energy shocks. The Government are prioritising on having more of our own power here in Britain. We are focusing on that to tackle the root cause of unstable energy markets. We are working closely with businesses, and across the sector, to understand the pressures, and we will continue to do so in a responsible way.
Sir Gavin Williamson
I am deeply concerned, as I am sure the Minister is, about the rising rate of youth unemployment, which is currently standing at 15%. One of the key employers of young people is the hospitality sector, as well as the retail sector. When I speak to businesses in my constituency of Stone, Great Wyrley and Penkridge, so many of them reference the fact that they have been hit by business rates and the impact of national insurance. That is discouraging investment and reducing job opportunities for young people. What action is the Minister taking to reverse that trend?
Kate Dearden
I agree that hospitality provides first jobs and career pathways for young people—a really important opportunity. As I have said many times in the House, it was my experience into employment, as I am sure it was for many other colleagues. Young people absolutely deserve that opportunity, which is why our focus is on skills and training, and getting young people into work. We will continue to back employers who take on apprentices and provide those opportunities, whether providing full training costs for young apprentices aged 16 to 21, or through employers not being required to pay national insurance contributions for all apprentices under the age of 25.
Under the previous Government, the number of youth apprenticeships was cut by 40%, and they presided over a massive increase in young people not in education, employment and training. I recognise what we are working with, but we want to provide opportunities for young people. We will not leave an entire generation of young people behind. We are looking to our £820 million youth guarantee and so much more to provide that employment support and to give them a guaranteed job, recognising the sector is vital.
Jerome Mayhew
Six hospitality venues are closing every single day under this Government. If the Government actually asked the sector why, businesses would tell them: it is because of the jobs-killing national insurance tax rises—literally a tax on jobs—as well as the red tape and additional costs of the Employment Rights Act 2025. When are the Government finally going to realise that those job losses and business closures are not happening despite the work of the Government, they are happening because of it?
Kate Dearden
The Conservative party left deep economic scars on our economy: weak growth, insecure work and a fragile labour market. This Government are restoring stability and rebuilding opportunity for people. Hospitality in particular is a vital sector for our high streets and for people. It thrives when the economy grows, wages rise, and people have more money to spend. We will always support our hospitality businesses, but do so responsibly and sustainably. They are at the heart of our high streets and community, and that is why we are backing them. We are reforming the broken system of business rates that the Conservatives left and did nothing about, and building a better support system for businesses, so they can thrive and support all employment, particularly for our young people.
Sarah Coombes (West Bromwich) (Lab)
Drivers looking for refreshment on the motorway have regular signs to point them to the available hospitality, but it is less easy for drivers of electric vehicles to see where they can get a coffee and a charge because of arcane rules that prevent EV signage on motorways. This is also a problem on A roads—one charge company told me it was quoted £150,000 to put up two signs on an A road. Given that many hospitality businesses have partnerships with EV charge providers, will the Minister work with the Department for Transport to change these mad signage rules and support hospitality and EV charging?
Kate Dearden
I thank my hon. Friend for bringing this issue to the House today. We are working closely with industry to promote consumer confidence in electric vehicles and their charging infrastructure. As at the end of February 2026, the Government and industry have supported the installation of more than 118,000 public chargers. In a move to help EV drivers to plug in to the rapidly expanding charging network, the Government are also modernising EV charging signage on major A roads, with changes allowing larger EV charging hubs to be signposted from major A roads, too. We are working with local authorities to make it easier to provide that signage to charging facilities on local roads.
Ms Julie Minns (Carlisle) (Lab)
For almost a year, the constituents of my friend and neighbour, the right hon. Member for Dumfriesshire, Clydesdale and Tweeddale (David Mundell), have enjoyed the benefits of the guest beer agreement. Given that the Society of Independent Brewers believes that a right to buy a guest beer drives customers into pubs, can the Minister update the House on when she expects to announce the results of the beer market review and the merits of introducing a guest beer agreement in England?
Kate Dearden
My hon. Friend and I have discussed this matter at length. She champions the pubs in her constituency, and I thank her for it. We recognise the importance of independent breweries and pubs, and remain committed to ensuring that the beer and pub sector remains diverse, competitive and rooted in local communities. We have reviewed the beer market to assess any barriers facing small breweries and will announce the outcome in due course.
Sarah Olney (Richmond Park) (LD)
In the Q4 2025 quarterly economic survey, 52% of businesses reported utility costs as a pressure that is driving them to raise prices, and there is a particular impact on the hospitality sector. Recent research by the British Chambers of Commerce shows that more than a quarter of businesses will struggle to pay their energy bills over the next 12 months, and this survey was conducted before the recent escalation in the middle east. Last week’s forecast by the Office for Budget Responsibility also did not take into account any potential impact from the jump in oil prices triggered by the strikes in Iran. The fuel duty hike in September is already expected to hit families and small businesses hard, so will the Secretary of State speak to the Chancellor now about scrapping this damaging policy?
Kate Dearden
The hon. Lady will have heard in my earlier remarks that I absolutely recognise those pressures and meet hospitality businesses regularly to hear their concerns; energy costs have, of course, come up as one of the biggest pressures facing them. I recognise the concerns those businesses will have when looking at the Gulf conflict and its possible impacts. As the hon. Lady will have heard in my earlier answer, the real risk to businesses is dependence on the volatile international gas markets, which has left us exposed. She will know the work that we are doing in different Departments to recognise that and to tackle that root cause in order to provide better support for businesses. We are looking at the unstable energy markets that have left us exposed and trying to ensure that we have more power here in Britain; we will work with the sector closely and across Government on that.
Tom Rutland (East Worthing and Shoreham) (Lab)
Daniel Francis (Bexleyheath and Crayford) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
Pubs and micropubs like the ones in my hon. Friend’s constituency are at the heart of all our communities. From April, every pub will receive a 15% reduction on its business rates bill, with bills then frozen in real terms for a further two years. Three quarters of pubs will see their bills stay the same or fall, saving the average pub around £1,650 next year. We are also launching a review of how pubs are valued for business rates and investing £10 million through the hospitality support fund to help pubs diversify and to improve productivity across the sector.
Daniel Francis
I recently visited the Bird & Barrel micropub in Barnehurst, which also operates the Bexley Brewery in Slade Green in my constituency. They informed me that, due to the number of tied tenants in the constituency, they have access to less than 8% of the local pub market across Bexleyheath and Crayford. They are pressing me, and I will be pressing, like my hon. Friend the Member for Carlisle (Ms Minns), to see the pubs code updated to support micropubs and breweries. Will my hon. Friend give some more detail about when we may see some more progress on that matter?
Kate Dearden
What a champion my hon. Friend is for micropubs in his constituency. From Anchor Bay to Bakewell Tart Stout, Bexley Brewery showcases an excellent range of beers, and small brewers and micropubs such as the Bird & Barrel play a vital role in supporting local communities and economies. Alongside the beer market review, the Government are carrying out a statutory review of the pubs code and the Pubs Code Adjudicator, as well as a post-implementation review to assess the code’s impact since 2016. The Government’s report covering that work will be published as soon as practicable.
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
The Government closely monitor business confidence across the hospitality sector and recognise that businesses face real and sustained pressures. That is why we have announced targeted support measures to help the sector remain resilient. They include: permanently lower business rates for eligible retail, hospitality and leisure properties; a significant increase to the hospitality support fund; and action to reduce regulatory burdens by pressing ahead with licensing reform for a new national licensing policy framework to provide greater flexibility for pubs and hospitality venues, allowing them to thrive.
John Lamont
Hospitality businesses in the Scottish borders are being squeezed by rising energy costs and wage and supply bills. Does the Minister think that this Labour Government’s jobs tax has helped or hindered the hospitality sector?
Kate Dearden
Business confidence depends on economic stability, and that is exactly what this Government are delivering: a stable economy where businesses can invest in growth. The hon. Member will have heard my commitment to the hospitality sector—both my personal investment and my absolute determination to work closely with the sector so that we can build stronger local economies with stronger high streets and thriving businesses. Businesses will see that stronger demand, especially when working people have more money to spend, and we are focused on building that stability for our local communities and for businesses to benefit too.
Lee Barron (Corby and East Northamptonshire) (Lab)
Tracy Gilbert (Edinburgh North and Leith) (Lab)
The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
I thank my hon. Friend for her work in this area. The Government believe that trade unions are absolutely essential for tackling insecurity, inequality, discrimination, enforcement and low pay. We are providing a legal framework for businesses and unions to negotiate access to the workplace. We recognise that for the framework to effectively facilitate that access, it has to be supported. That is why we are consulting on this. Officials are reviewing those responses, and we will publish a response in due course.
Sir Ashley Fox (Bridgwater) (Con)
Lauren Edwards (Rochester and Strood) (Lab)
I add my voice to that of my hon. Friend the Member for Bexleyheath and Crayford (Daniel Francis) in calling on the Government to publish the review of market access for small breweries as soon as possible. I was delighted that Moot Brew brewery from Halling in my constituency produced the guest ale for the Strangers’ Bar in the House of Commons before Christmas. Will the Secretary of State support a national guest beer agreement policy, so that more fantastic local brewers such as Moot are represented in my local pubs?
Kate Dearden
My hon. Friend is a real champion for her local breweries, especially Moot Brew in Halling, which produces excellent beer—I know she visits regularly. We recognise the importance of independent breweries and pubs, and we are of course committed to ensuring that the sector remains diverse, competitive and rooted in local communities. We have reviewed the beer market to assess any barriers, and I will keep my hon. Friend updated.
Sir Iain Duncan Smith (Chingford and Woodford Green) (Con)
Small-volume business manufacturers in the automotive sector are having a terrible time at the moment. They rely on exports, and exports to the US are critical. Although I welcome the agreement the Government struck, costs are still four times what they were before President Trump introduced his tariffs, and those businesses are also being squeezed by business rates and national insurance at home. Will the Secretary of State make urgent representations to the Chancellor? The market is very delicate, and something must be done to reduce costs.
Draft Employment Rights Act 2025 (Investigatory Powers) (Consequential Amendments) Regulations 2026
Kate Dearden Excerpts(3 months ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
I beg to move,
That the Committee has considered the draft Employment Rights Act 2025 (Investigatory Powers) (Consequential Amendments) Regulations 2026.
It is a pleasure to serve under your chairmanship, Mr Stuart. The draft regulations are narrow, necessary and strictly consequential. When Parliament passed the Employment Rights Act 2025, it took the clear policy decision to bring the criminal enforcement functions of the Gangmasters and Labour Abuse Authority into the new Fair Work Agency. Those functions include the ability for the GLAA, as provided for in schedule 4 of the Investigatory Powers Act 2016, to obtain authorisations to acquire communications data in the most serious cases of labour exploitation.
The sole purpose of this instrument is to ensure that this capability continues seamlessly when the Fair Work Agency becomes operational in April. It updates the statutory reference that currently names the GLAA, so that the same powers are available to the new agency when carrying out serious exploitation investigations that were previously undertaken by the GLAA.
Let me be clear about what the draft regulations do not do: they do not create new investigatory powers; they do not widen the scope of existing powers under the 2016 Act; and they do not lower statutory thresholds, alter authorisation routes or touch surveillance, entry or financial investigation powers. All those sit in primary legislation and remain entirely intact. This statutory instrument simply avoids an unintended enforcement gap following the transition.
Members of the Committee may also have noticed that an earlier version of this instrument was withdrawn. This was done to correct a technical drafting point where the original text duplicated a removal of the GLAA from schedule 4 that already occurs automatically under the primary Act. The corrected instrument before the Committee today makes no change to substance or policy.
Turning briefly to safeguards, communications data is not the content of calls, texts or emails—it is the who, when and where, not the what. In practice, this means information such as subscriber details, phone numbers, call durations, IP addresses, email logs and location data from mobile devices, but never the content itself. It can only be acquired by the Fair Work Agency for serious criminal investigations—that is, for offences that carry at least a 12-month custodial sentence, and only when necessary and proportionate.
In practice, the GLAA has used these powers sparingly, and only in some of the most complex and organised exploitation cases, often where victims are too frightened or unable to come forward. Those safeguards carry over in full to the Fair Work Agency. Every application will continue to go through single point of contact gatekeeping, and routine cases will continue to require authorisation by the Investigatory Powers Commissioner’s Office, which will continue to inspect and oversee use of these powers, exactly as now.
It is worth underlining that the value of these powers lies not in their frequency of use but in their precision. Communications data is a targeted tool that helps investigators build a clearer picture of organised exploitation, where victims may be isolated, threatened or unable to speak freely. It allows enforcement bodies to corroborate other intelligence and identify links between offenders and locations. Used properly, and under strict oversight, it is a vital element of the wider framework that Parliament has already put in place to confront the most serious forms of labour abuse.
To illustrate the value of these powers in practice, I can point to a recent case in which communications data played a vital role. Forty one vulnerable workers were brought to the UK with promises of decent work and accommodation, only to be exploited by an organised group. Their wages were taken, false identities were created and they were housed in unsafe and overcrowded conditions. Managers within the employing business even assisted the exploitation by diverting wages and acting as unlicensed gangmasters. Access to communications data enabled investigators to uncover the links between the organisers and those inside the firm, revealing patterns of wage diversion, false accounts, excessive deductions and, crucially, further victims. Faced with that clear evidence, the offenders pleaded guilty and received custodial sentences.
On transparency, the Investigatory Powers Commissioner will continue to report annually on the use of the powers, providing Parliament with a clear overview of how they are exercised. Additionally, the Fair Work Agency will report on its use of the powers in its annual report. As we bring three enforcement bodies together, the aim is a clearer system for workers and a simpler one for responsible employers.
Those who exploit workers, particularly through coercive, abusive or criminal practices, must not be given the opportunity to exploit gaps during transition. Ensuring the continuity of capability from day one of the Fair Work Agency is essential to that. The draft regulations provide that continuity without changing the law on when or how investigatory powers may be used, without broadening the Investigatory Powers Act and without altering any of the strong safeguards that Parliament has put in place.
This is a precise and technical instrument that ensures that Parliament’s decisions in the Employment Rights Act can operate exactly as intended when the agency becomes fully operational. I commend the draft regulations to the Committee.
Kate Dearden
I thank the shadow Minister for her contributions and the Liberal Democrat spokesperson for her support for this statutory instrument. It might be helpful for me to run through the purpose of the particular SI, which I hope I made clear in my introductory remarks. I will touch on a few things that the shadow Minister has raised.
To repeat: we are replacing one specified body with a successor. The Fair Work Agency’s remit, as debated across Parliament, is established in the Employment Rights Act, which brings together the existing functions of the GLAA, the Employment Agency Standards Inspectorate and His Majesty’s Revenue and Customs’s national minimum wage enforcement.
On what the shadow Minister alluded to, the Act does include the delegated power to add further labour market enforcement functions in future, subject to new regulations and parliamentary scrutiny. However, this SI does not use that power and does not add any new enforcement functions; it is purely consequential. No new powers have been created previously under the GLAA, as I alluded to in my opening remarks. The Fair Work Agency will only be able to request the use of these powers to investigate offences under the GLAA’s previous remit, and for other offences added to the Fair Work Agency’s remit by the Employment Rights Act—which we debated.
For the sake of detail, the only offences in the FWA’s remit that meet the serious crime threshold in the Investigatory Powers Act that I talked about in my opening remarks are as follows: offences under the Gangmasters (Licensing) Act 2004 and the Modern Slavery Act 2015 that were part of the GLAA’s remit, and offences under section 1 of the Fraud Act 2006 that was added to the Fair Work Agency’s remit by the Employment Rights Act, and was debated in the House. The Serious Fraud Office can already request the use of those powers to investigate those offences. The offence of failing to comply with a labour market enforcement order under section 139 of the Employment Rights Act supersedes an offence under the Immigration Act 2016, which is in the GLAA’s remit. The GLAA has never sought the use of these powers to investigate the offence in the Immigration Act. Offences under sections 140 and 142 of the Employment Rights Act are for Scotland only and were considered by the House in Committee.
I hope that it is clear what we are debating today. The offences to which the power relates do not change, only the remit does. We have transferred over the powers of existing enforcement bodies, but added extra safeguards—at present, a warrant is not needed to enter a dwelling, for example. It is clear what this SI will do. Continuing as normal would weaken enforcement, which would not be good for businesses or those who are on the most vulnerable side of the labour market and who need the Government on their side to make sure that their rights are enforced and that they are supported at work, and to stop modern slavery.
That is why this SI is so important. It is disappointing that the Opposition will be voting against it—I thought that we would be on the same page—because the question today is whether serious labour exploitation investigations should continue uninterrupted, and when the new agency goes live. It is quite simple and technical, as I have alluded to. I thank the Liberal Democrats for their support and urge all colleagues to support this necessary legislation so that we can crack on with enforcement and support the agency in doing so.
Question put.
Draft National Minimum Wage (Amendment) Regulations 2026
Kate Dearden Excerpts(3 months, 1 week ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
I beg to move,
That the Committee has considered the draft National Minimum Wage (Amendment) Regulations 2026.
It is a pleasure to serve under your chairship, Mr Stringer. The purpose of the regulations is to increase the national living wage and national minimum wage rates on 1 April. The Government laid the regulations before the House on 2 February.
We are committed to making work pay. The passage into law of the Employment Rights Act 2025 in December was a proud day for this Government and, indeed, this Parliament. We are raising the minimum floor of employment rights, raising living standards throughout the country, and levelling the playing field for those businesses that are already engaged in good practice. Our landmark employment rights are set to benefit over 18 million workers in every corner of the UK, and we are pleased and proud to work alongside businesses, trade unions and groups across civil society. We are currently carrying out, and will continue to do so over the coming months, comprehensive consultation with those groups as we deliver the changes together.
The creation of the minimum wage remains one of our proudest achievements. We introduced it and are continuing to back it with real-terms above-inflation increases. Before I provide the precise details of this year’s increases, I would like to pay tribute to the work of the Low Pay Commission. Its diligence, expertise and social partnership model ensure that the Government can continue to deliver on their ambitious agenda for working people without causing adverse impacts for businesses, the labour market or the wider economy.
This year’s national minimum wage regulations will take effect on 1 April, as I said—subject, of course, to the approval of the Committee. Let me provide the detail of the changes we are enacting. The national living wage will rise from £12.21 to £12.71, an increase of 50p an hour, adding over £900 to the gross annual earnings of a full-time worker. This 4.1% rise is above measures and projections of inflation, ensuring another real-terms pay increase for working people as we continue to build towards a genuine living wage.
The regulations will also implement increases to the other national minimum wage rates. The rate for those aged between 18 and 20 will increase from £10 an hour to £10.85, which is an 8.5% increase worth over £1,500 per year. Meanwhile, the rates for those above school-leaving age but under 18 will rise by 45p, or 6%, to £8 an hour.
Charlie Dewhirst (Bridlington and The Wolds) (Con)
I represent a seaside town, Bridlington, to which five million visitors come every year. It has a fantastic, successful seasonal economy that creates a large number of jobs for young people in the town every summer. Is there not a danger that the significant increases in the minimum wage for 16 to 18-year-olds and 18 to 20-year-olds will disincentivise local employers from giving young people opportunities to get on that first rung on the jobs ladder?
Kate Dearden
I pay tribute to the businesses in the hon. Gentleman’s constituency that provide those opportunities for young people. Of course, the Government sets the remit and the Low Pay Commission, as an independent body, provides guidance on the rates to ensure that we can provide a real-terms increase for people no matter what their age. We recognise that people of different ages should not be paid a different rate for the same time, while ensuring that the rates take into account the implications for young people getting the opportunity to get on the job ladder. We made that clear in the remit.
I mentioned that the rate for those above school-leaving age will increase to £8 an hour, and the same applies to the apprentice national minimum wage, which applies to apprentices who are under the age of 19 or in the first year of their apprenticeship. Finally, the accommodation offset rate, which is the maximum daily amount that an employer can charge a worker for accommodation without it affecting their pay for minimum wage purposes, will increase from £10.66 to £11.10.
The Department for Business and Trade published an impact assessment alongside the regulations. It includes a full equality assessment and received a green “fit for purpose” rating from the independent Regulatory Policy Committee. The Government estimate that this year’s national living wage and national minimum wage increases will provide a direct pay increase for approximately 2.7 million workers, with a further 5.1 million workers potentially benefiting from positive spillover effects as employers maintain pay differentials. We are really proud to protect working people in every corner of the United Kingdom. We estimate that 180,000 workers in Scotland, 140,000 workers in Wales and 140,000 workers in Northern Ireland will directly benefit from the changes.
It was a Labour Government that fought against opposition to bringing in the minimum wage when it was introduced in 1999. The headline rate—at the time, for workers aged 22 and over—was £3.60 an hour. As well as more than trebling in cash terms, based on current forecasts this year’s national living wage is expected to be 80% higher in real terms than the top rate in 1999. In hourly terms, the share of low-paid jobs has dropped from 21.9% in 1999 to just 2.5% last year. It is a testament to the success and effectiveness of the policy, over more than a quarter of a century, that all this has been achieved without the damage to the economy and the labour market that some people predicted at the time. The work continues, of course, and we will keep making progress on our manifesto commitments in this space to deliver a genuine living wage that works for employers and workers alike.
The Government will publish a new remit for the Low Pay Commission in due course. We will ask for recommendations on the national living wage and national minimum wage rates, thereby ensuring that our decisions our backed by evidence and consistent with delivering inclusive growth for working people and competitive businesses across the UK. As usual, we will ask the LPC to make its recommendations by October. The Government will subsequently confirm the new national living wage and national minimum wage rates for April 2027, ensuring there is sufficient notice for employers and workers.
We are grateful to all the employers, worker representatives and other stakeholders who engage thoughtfully with the LPC’s consultation each year, ensuring that the Government can balance the various concerns appropriately. We are proud to be driving reforms to the employment rights landscape and delivering for workers, employers and the wider economy. I commend the regulations to the Committee.
Kate Dearden
I thank the shadow Minister, the hon. Member for Arundel and South Downs, for his contribution and for his kind words at the start of his speech. However, I am not sure that I am defending the indefensible. I am defending the decision to uplift our national living and minimum wages. On 1 April, when the regulations come into effect, we will be delivering a direct uplift of around £900 for a full-time worker on the national living wage and £1,500 for someone on the minimum wage for 18 to 20-year-olds. That is not insignificant.
On the national minimum wage rate for 18 to 20-year-olds, we are absolutely committed and determined to raise living standards for working people and ensure a genuine living wage, and our manifesto made our direction clear. When recommending the 2026 youth rates, we asked the LPC to consider the risk of employment impacts, while balancing those risks with the ambition to remove the discriminatory age bands for adults. The LPC carries out extensive consultations, commissions new research and considers a range of economic, labour market and business data to assess the impact of the national minimum wage on young workers, and it concluded that there is no clear evidence that the recent increases to the national minimum wage
“have affected young people’s employment overall.”
It assesses that a range of factors are driving recent trends among young people, including the sectors they are more likely to work in.
On what the Government are doing about the situation and the figures that the shadow Minister alluded to, we announced at the Budget more than £1.5 billion of investment over the spending review period for employment and skills support, to deliver the youth guarantee and to reform the growth and skills levy for young people. I agree about the significance of jobs at a young age, and I thank the right hon. Member for Wetherby and Easingwold for sharing his experience; it is one that I can sympathise with from my own journey and career. The skills learned in those first jobs are invaluable.
That is why the youth guarantee is so important. It will provide 16 to 24-year-olds across Great Britain with enhanced support to move into work or training, including by improving employment support through expanded youth hubs and increased support in jobcentres. I have seen the impact of that in my constituency, where the youth hub has transformed the lives of over 70 young people in the year that it has been running. The hubs are clearly of significant benefit across the country, creating nearly 300,000 additional work experience and training opportunities.
Sir Alec Shelbrooke
Does the Minister agree that unpaid internships should be banned?
Kate Dearden
I know that the right hon. Gentleman has campaigned on that for a number of years. I am going to come to unpaid internships shortly, so I will respond to him then with an update on our work in the Department.
To finish on 18 to 20-year-olds, we have committed over £500 million to youth programmes and support from 2026-27 to 2029. I want to touch on the wider package, and how we are looking at opportunities for young people and their employment prospects, because it is really important. It includes over £60 million for a new richer young lives fund to improve activities and youth work; £15 million for youth workers; £70 million to rebuild and improve local youth services; £350 million to refurbish or build up to 250 youth facilities; and £22.5 million over three years to create a tailored enrichment offer in up to 400 schools, as well as the work that we are doing on apprenticeships training, which will be completely free for small and medium-sized enterprises that hire eligible young people aged 16 to 24. I wanted to spend some time responding to that point, because this is a clear Government priority and we are working at pace on it.
I thank the right hon. Member for Wetherby and Easingwold for raising unpaid internships. I know that he has been campaigning on that for a number of years, and I pay tribute to all his work on it. He will know that we ran a call for evidence from 17 July to 9 October 2025. We had hundreds of responses, which was brilliant to see, and we published our response on Friday. We committed to three key actions to tackle non-compliance: reviewing and expanding national minimum wage guidance; strengthening enforcement through the new fair work agency; and bolstering communications so that young people are aware of and understand their rights. That is a significant bit of work, and something that we are committed to reviewing and keeping an eye on. I know that the right hon. Gentleman will hold to account on that, and I thank him for that.
The regulations represent clear, discernible progress towards our manifesto commitments of delivering a genuine living wage and expanding eligibility for the national living wage to all adult workers. It is not entirely clear whether the Opposition will vote against them today and try to prevent these 2.7 million workers from getting a pay rise—we will see.
I extend my thanks to ACAS, which offers impartial and expert assistance on employment issues, and to His Majesty’s Revenue and Customs, which enforces the minimum wage on behalf of the Department for Business and Trade. We are confident that the creation of the fair work agency, which will be set up from April this year, will ensure a more effective, less fragmented enforcement system.
In closing, I again thank the Low Pay Commission; we are grateful for its expertise and its collaborative social partnership model, which brings together the perspectives of workers and businesses. The minimum wage is one of the most successful Government policies in recent decades and remains one of the cornerstones of our plan to make work pay. I commend the regulations to the House.
Question put and agreed to.
Unpaid Internships
Kate Dearden Excerpts(3 months, 1 week ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
The Government’s plan to make work pay is a core part of our mission to grow the economy, raise living standards across the country, and create opportunities for all. This will help tackle low pay, poor working conditions, and poor job security, all of which have been holding our economy back.
In our plan we committed to banning unpaid internships, unless they are part of a formal educational or training course. This Government believe that a fair day’s work deserves a fair day’s pay and employers should pay workers what they are entitled.
Today, we are publishing the Government’s response to the call for evidence on unpaid internships.
The call for evidence related to internships which are unpaid or paid below the national minimum wage, work trials, voluntary workers, volunteers, and work shadowing.
While voluntary workers, volunteers, and individuals who are work shadowing are not entitled to the national minimum wage, there are a small number of employers who are engaging individuals, particularly young people, under these terms incorrectly to avoid paying them.
This Government are committed to striking a balance between ensuring individuals have a choice in the type of work they do, and how they do it, while ensuring employers are not able to take advantage of individuals, especially young people, by making them work for free.
The call for evidence attracted responses from employers, individuals, and interested stakeholders on unpaid internships and internships paid below the national minimum wage, and other similar categories of people who may be conflated with interns.
It is important that employers can continue to offer genuine opportunities, such as work shadowing or work experience placements which are permitted under the national minimum wage law that can offer young people valuable insights into the world of work. We do not want to close the door on these opportunities which can be an enriching experience for young people, and we are clear we will not allow this opportunity to lead to exploitation.
The evidence highlighted that while the majority of employers are doing the right thing, there is a small minority who flout the law. This is fair on neither workers nor responsible employers. To tackle this problem, the Government will:
Update and expand the national minimum wage guidance so employers better comply with the law and workers are better aware of their rights.
Continue to crack down on employers breaking the law through existing enforcement channels and via the forthcoming Fair Work Agency.
Raise awareness of workers’ rights through communications campaigns to help young people understand their rights and what action they can take if they are not being paid what they are legally entitled to.
[HCWS1371]
Implementing the Employment Rights Act: Further Consultation
Kate Dearden Excerpts(3 months, 2 weeks ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
Our plan to make work pay will modernise our employment rights legislation, extending the employment protections already given by the best British companies to millions more workers across the country. Strengthening this underlying framework will help build an economy based on fair competition between businesses, greater productivity in the workplace, job security for workers, and fair reward for hard work.
We are taking a phased approach to engagement and consultation on these reforms. This will ensure all stakeholders have the time and space to work through the detail of each measure and to help us implement each in the interests of all.
Following the launch of consultations on trade union recognition, fire and rehire, agency work, tipping, and flexible working earlier this month, we are today launching consultations on trade union detriments and collective redundancy. Alongside a programme of direct stakeholder engagement, these consultations will support us in determining how best to put our plans into practice.
Consultation 1: trade union detriments
The Employment Rights Act 2025 establishes stronger protections from detriments for workers taking industrial action, in order to ensure they are treated fairly and respectfully. It prohibits the use of “detriments of a prescribed description” for the sole or main purpose of penalising, deterring or preventing a worker from taking part in official industrial action.
The power in the Act enables the Government to make regulations to either prohibit all detriments, or to prescribe the detriments that are prohibited. The consultation will seek stakeholder views on the benefits and challenges of these two options. It will run for eight weeks and close on 23 April 2026. Following consultation, the Government will develop their final policy position, with the intention to make regulations and deliver the resulting policy by October 2026.
Consultation 2: collective redundancy
The Government are consulting on the threshold number that will trigger collective redundancy consultation where employers propose to make a large number of redundancies across their entire organisation. We wish to set this number at a level that offers protections for working people, while avoiding scenarios where larger employers find themselves left in a constant state of consultation.
The consultation will seek views on the methods that may be used to set the threshold, and on the level at which the organisation-wide threshold could be set. Specifically, it will seek views on the proposed options, including their impact on employers, the extent to which they protect employees, and whether there are any other options for the threshold or method.
This consultation will run for 12 weeks and will close on 21 May 2026. Following the consultation, the Government will consider the responses carefully before developing a final policy position. Any changes will be delivered through secondary legislation, with regulations expected to enter into force in 2027.
Next steps for consultation
This package of consultations sets out the next steps in delivering our plans. They are critical to shaping the practical implementation of the legislation, helping the Government to deliver reforms that are both effective and inclusive. It is in everyone’s interest to get the relationship between employer and worker right. These consultations will help us make work pay for both.
[HCWS1365]
Draft Digital Markets, Competition and Consumers Act 2024 (Alternative Dispute Resolution) (Conferral of Functions) Regulations 2026
Draft Digital Markets, Competition and Consumers Act 2024 (Alternative Dispute Resolution) (Consequential Amendments) Regulations 2026
Kate Dearden Excerpts(3 months, 2 weeks ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
I beg to move,
That the Committee has considered the draft Digital Markets, Competition and Consumers Act 2024 (Alternative Dispute Resolution) (Conferral of Functions) Regulations 2026.
The Chair
With this it will be convenient to consider the draft Digital Markets, Competition and Consumers Act 2024 (Alternative Dispute Resolution) (Consequential Amendments) Regulations 2026.
Kate Dearden
It is a pleasure to serve under your chairship, Ms Lewell. The instruments were laid before the House on 26 January and relate to the alternative dispute resolution chapter in the Digital Markets, Competition and Consumers Act 2024, which received Royal Assent in May 2024. The Act repeals the Alternative Dispute Resolution for Consumer Disputes (Competent Authorities and Information) Regulations 2015 and replaces them with a strengthened framework in chapter 4 of part 4 of the Act.
In most instances, disputes between businesses and consumers can be resolved without the need for any formal action, but when consumers and the trader cannot come to a solution, ADR is an effective means of securing redress for the consumer without resorting to litigation. All ADR providers are independent third parties, offering dispute resolution that is usually less confrontational for the consumers and businesses involved, but not all ADR providers have the same accreditations and standards, so consumers can experience inconsistent quality.
For ADR to be effective, it must be of high quality and meet certain standards. The Act aims to strengthen the quality of ADR available to consumers by introducing a mandatory accreditation framework for ADR providers for consumer contract disputes. That will provide a robust set of accreditation criteria to assess an ADR provider’s expertise, transparency, independence and accessibility before being accredited, and ongoing monitoring and review to ensure that accredited ADR providers continue to meet those high standards.
The Act includes the power to revoke, suspend or limit accreditation, or impose further conditions if a provider is found to be non-compliant. The intention of mandating accreditation of ADR providers is to strengthen the ADR framework in the UK. The Government believe that the changes will help to deliver a trustworthy, timely and fair service that consumers and businesses can trust to resolve consumer disputes, with improved oversight to monitor standards and ensure consistency.
Section 307 of the Act allows certain ADR functions to be conferred on another person. The regulations confer on the Chartered Trading Standards Institute responsibility for managing the provision of ADR in consumer contract disputes in non-regulated sectors, including the functions of accreditation, monitoring and reporting on the operation and effectiveness of ADR provision. That includes upholding the standards of ADR providers in the UK through powers to compel or sanction ADR providers to improve performance in the event that they do not meet their obligations.
The regulations also require the CTSI to prepare quarterly and annual reports for the Secretary of State for Business and Trade. The reports will contain information and metrics on the performance of the CTSI, ADR providers and the ADR landscape in the UK to ensure accountability and transparency, and to enable the Secretary of State to maintain oversight of the operation of the system of accreditation and the provision and quality of ADR carried out in the UK. The decision to confer these functions on the CTSI has been taken in recognition of its authority, track record and expertise in that area, including its long-standing and constructive relationships with ADR providers.
Separately, the regulations make amendments to primary and secondary legislation in consequence of chapter four of part 4 of the Act coming into force and the 2015 regulations. Those consequential changes deal with redundant references to the 2015 ADR regulations and, in some cases, replace them with a reference to chapter 4 of part 4 of the Act. They do not materially change the policy or the effect of the underlying law, but simply keep the statute book up to date in the usual way.
The intention of both sets of regulations, as I hope I have made clear, is to support and strengthen the ADR framework in the UK, putting it on a stronger footing that provides a consistent, trustworthy, timely and fair service that consumers and businesses can trust to resolve disputes amicably, with improved oversight to monitor service standards. I invite hon. Members to support the instruments, and I commend the regulations to the Committee.
Kate Dearden
I thank the shadow Minister for his comments and his support for the Act and the regulations we are considering. The regulations place the CTSI on a statutory footing. I alluded in my introductory remarks to the role of the Secretary of State and the accreditation determinations, monitoring, enforcement and information sharing under the Act, as well as the mandatory and accreditation requirements.
In terms of exempt ADR providers, to avoid duplicated regulatory provision, the Act exempts ADR provision under several ombudsmen and equivalent schemes, which are already regulated under other legislation. Those are either statutory bodies performing statutory functions or redress schemes regulated by other bodies under other legislation. If a sector already has its own dispute resolution system, these new ADR rules will not apply and that avoids doubling up regulations and ensures that businesses follow only one set of rules, with no confusion about who is responsible.
There are also some statutory bodies that, to an extent, carry out ADR and it is not considered appropriate to regulate them as their remit does not cover consumer contracts as defined in chapter 4 of part 4 of the 2024 Act.
I am happy to follow up the hon. Member’s point about the specifics on the statistics afterwards if he requires any further information. On the effect of schedule 25 listing exempt ADR providers, that is quite clear, but again, if he would like further information on how we are avoiding duplication, I am happy to provide it as there is a power to add further exemptions in future, which might be used where it is more appropriate to regulate ADR elsewhere.
The important point about the legislation is that it will ensure that ADR is much easier for consumers and businesses. That is really important to reflect on. What ADR can provide in terms of support and streamlining for businesses and consumers is significant, and will offer a cheaper and faster alternative for consumers and businesses seeking to resolve disputes, compared with making a claim to the courts. This framework gives the flexibility to update those standards over time. That is important and provides a foundation for considering further reforms if required.
Gareth Davies
I totally understand that the Minister might not have the information to hand right now, so will she commit to writing to me?
Kate Dearden
Yes, I am happy to provide that follow-up information.
Question put and agreed to.
DRAFT DIGITAL MARKETS, COMPETITION AND CONSUMERS ACT 2024 (ALTERNATIVE DISPUTE RESOLUTION) (CONSEQUENTIAL AMENDMENTS) REGULATIONS 2026
Resolved,
That the Committee has considered the draft Digital Markets, Competition and Consumers Act 2024 (Alternative Dispute Resolution) (Consequential Amendments) Regulations 2026—(Kate Dearden.)
Draft Bereaved Partner’s Paternity Leave Regulations 2026 Draft Employment
Rights Act 1996 (Application of Section 80B to Adoptions from Overseas) (Amendment) Regulations 2026 Draft Employment Rights
Act 1996 (Application of Section 80B to Parental Order Cases) (Amendment) Regulations 2026
Kate Dearden Excerpts(4 months ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
I beg to move,
That the Committee has considered the draft Bereaved Partner’s Paternity Leave Regulations 2026.
The Chair
With this it will be convenient to consider the draft Employment Rights Act 1996 (Application of Section 80B to Adoptions from Overseas) (Amendment) Regulations 2026 and the draft Employment Rights Act 1996 (Application of Section 80B to Parental Order Cases) (Amendment) Regulations 2026.
Kate Dearden
It is a pleasure to serve under your chairship, Sir Desmond.
The regulations were laid before the House on 13 January. First, I express my appreciation for my hon. Friend the Member for Bridgend (Chris Elmore) and to Darren Henry, the previous Member for Broxtowe, who were both instrumental in bringing forward this new entitlement. I also pay special tribute to Dr Aaron Horsey, who joins us in the Public Gallery today. He campaigned tirelessly on behalf of bereaved fathers after the tragic loss of his wife Bernadette shortly after the birth of their son Tim.
The Paternity Leave (Bereavement) Act 2024 established a new statutory entitlement to bereaved partner’s paternity leave of up to 52 weeks for employed fathers and partners if the mother or primary adopter dies in the first year of a child’s life or adoption. The draft Bereaved Partner’s Paternity Leave Regulations 2026 outline the details of the entitlement. The two further sets of regulations ensure that those who have a baby through international adoption or surrogacy arrangements are in scope for leave.
Currently, fathers and partners in this tragic circumstance who do not qualify for paternity leave or shared parental leave must rely on the compassion of their employers to take adequate time off work to care for their child. Thankfully, the number of people who find themselves in this situation is low, but of course every death and story is devastating. We anticipate that the entitlement will help around 90 bereaved partners per year.
Bereaved partner’s paternity leave is a day one right, meaning there is no continuity-of-service requirement. Bereaved fathers and partners will be able to start taking leave from the day after the mother’s or primary adopter’s death. The leave must end on their child’s first birthday or the first anniversary of the adoption, unless it is necessary to go beyond this date to ensure that an employee is entitled to at least two weeks of leave.
To be eligible, the bereaved partner must be an employee; they must be the child’s father, or the mother or adopter’s spouse, civil partner or partner at the time of the mother or adopter’s death; and they must have the main responsibility for the child’s upbringing and be taking leave for the purpose of caring for the child. Together, the regulations ensure that employees who lose their partner in the time surrounding childbirth or adoption will have access to a guaranteed period of leave to care for a new child.
To start the leave in the first eight weeks after the partner’s death, a bereaved partner can give notice informally at any time before they are due to start work on their first day of absence. This could be by text message or phone call to their employer. To take more than eight weeks after their partner dies, an employee must give one week’s notice in writing.
The Government have assessed the impact of bereaved partner’s paternity leave on businesses and found it to be minimal. We estimate an annual cost of approximately £0.9 million to businesses, mainly from re-organising work during employee absence.
I am very proud to commend the regulations to the Committee. I thank everyone who has been involved in campaigning on this issue for a number of years and worked closely with us and the Department to shape this legislation.