Employment Rights Bill

Lord Hendy Excerpts

Consideration of Commons amendments and / or reasons
Tuesday 28th October 2025 Lords Chamber

[Lord Collins of Highbury (Lab)]

I do not accept the noble Baroness’s position at all. In fact, historically, a lot of public sector unions did not have political funds, and if they did, they certainly did not affiliate to any political party. I mentioned in my introduction that when NUPE merged with NALGO, they had two separate arrangements to ensure that the culture and traditions of those two unions could be maintained.

I come back to the point that no one was expecting the arrangement that had existed since 1945—a highly regulated arrangement, let us not forget, around political funds—to suddenly change. I know that noble Lords on the Opposition Benches expressed concern about that. In fact, such concern was expressed across all parties that it resulted in the noble Lord, Lord Burns, organising a Select Committee that actually mitigated against that sudden change of opting into a political fund. The noble Lord proposed a sort of soft landing, so that the measure would not impact on unions immediately, and it was introduced for new members. He has given us the figures about the new members, and certain unions have a churn.

I repeat: political funds are the funds of the whole union policy decision-making process. Individual members, whether or not they contract out of the political fund, still have an absolute right to determine the policy through the democratic structures of that union and can determine whether the union expresses support for one political party or another.

I come back to a fundamental principle, which I urge noble Lords to consider: that a vital ingredient of a healthy democracy is a vibrant civil society, and that is where unions can have an important voice. On many occasions I do not agree with union policies, and on many occasions we may feel uncomfortable about those policies, but they are a vital part of our democracy. What was decided in 2016 was to stop or hinder that voice, and we are trying now to recognise trade unions as a collective voice. I agree with the noble Lord, Lord Burns, that they are not like the National Trust or other such organisations. They are democratic organisations that are highly regulated through a whole host of legislation, and, of course, the political fund rules have to be submitted and approved by the certification officer.

I urge noble Lords to think back to the 2016 debate —to why all sides of this House were concerned about the impact of those proposals, and to focus on why trade unions need to have a political voice. I come back to the point made by the noble Lord, Lord Burns, about new members applying online. The old idea was that the contracting-out provisions were in a rulebook, a magazine published once every so often. Now, the Bill will make it clear to members when they join what they can do. That is an important element of choice. I urge noble Lords to consider the position and to support the Government’s Motion.

[Lord Hendy (Lab)]

I think it was suggested that it might be difficult, if not impossible, for members to find out how their political fund was expended. Does the Minister agree that Section 30 of the Trade Union and Labour Relations (Consolidation) Act 1992 gives every member the right to inspect not merely the accounts but all the accounting records of a union political fund or general fund? That means every receipt, bill and invoice. They can inspect those records, even accompanied by an accountant.

[Lord Collins of Highbury (Lab)]

I thank my noble friend for that. I apologise to the noble Lord, Lord Leigh, as I got carried away with the points I was making about contracting out and forgot to address his specific issue, which he raised with me previously. I have the letter that my noble friend Lady Jones wrote to him, and I am quite happy to be absolutely clear that we are removing the additional reporting requirement introduced by the 2016 Act for unions to provide additional information about their political expenditure in their annual returns to the certification officer. We are simply returning to the reporting requirements that existed pre 2016, with unions’ annual returns available for public inspection—an additional point my noble friend made—and they will continue to include information relating to governance and finance of the trade union, including management of their political funds, as they have done for many years. Repealing the 2016 Act is of course a manifesto commitment. But my noble friend is right that accountability on expenditure is very much through access to information that is provided for already in legislation.