Employment Rights Bill

Lord Palmer of Childs Hill Excerpts

2nd reading
Thursday 27th March 2025 Lords Chamber

[Lord Palmer of Childs Hill (LD)]

My Lords, it is a privilege to contribute to this important Second Reading today. Unlike the noble Lord, Lord Hunt, I acknowledge that this Bill contains several provisions that, if implemented properly, could have a significant positive impact on many individuals. However, as we deliberate, I am mindful that the Bill presents both promise and areas of concern. In particular, I shall focus my remarks on the challenges faced by carers, an often-overlooked but integral part of our society. As the Bill progresses, their needs must be not only considered but prioritised. I shall rely on my noble friend Lord Fox to deal with many aspects of the Bill other than the bits that I am stressing.

First, I turn to paid carer’s leave. While the Government have committed to reviewing the Carer’s Leave Act 2023, I question why we delay a measure that is both necessary and beneficial. The Government recognise that carers’ inability to work costs the economy £37 billion annually. In light of this, paid carer’s leave should be a priority, not an afterthought. This is not an expensive proposal. Carers UK estimates that introducing paid carer’s leave would cost between £5.5 million and £32 million per year, depending on the level of compensation. In return, more than 2 million working carers would benefit, businesses would save billions through improved staff retention and workforce participation would increase. Given these clear advantages, why have the Government excluded this measure? During the passage of what became the Carer’s Leave Act, Members of the now-Government challenged this omission. It is striking that they have not prioritised it themselves. Will the Government commit to including paid carer’s leave in this Bill? To neglect this opportunity would fail both carers and the economy.

Beyond paid leave, employers should be required to consider employees with caring responsibilities in their equality action plans, alongside commitments to closing the gender pay gap and supporting employees experiencing menopause. If we are serious about workplace equality, we must acknowledge the specific challenges that carers face. Furthermore, the Government must prevent discrimination against carers. One solution would be adding caring as a protected characteristic under the Equality Act 2010. Many carers face workplace marginalisation and are penalised for their responsibilities. Will the Government explore this reform? Every year, 200,000 people leave the workforce to take on caring responsibilities, costing the economy £8 billion annually. By failing to support carers properly, we harm their well-being and weaken economic potential. Paid carer’s leave would help carers stay in work, strengthening both the labour market and the economy.

Another issue is the recognition of kinship carers. I recently heard of a couple caring for their grandchildren out of love and duty, yet they receive none of the employment rights or support given to foster carers. Is this not an injustice? The Government must consider extending employment rights to kinship carers.

Additionally, I support the Bill’s provisions on third-party harassment in the workplace. I have heard from young women in retail and hospitality who feel sick with anxiety knowing that they will face harassment during their shifts. Their employers must have a duty to protect them. While the Bill takes steps in the right direction—I acknowledge that—stronger action is needed to prevent non-disclosure agreements silencing victims.

I now turn to probationary periods. A balanced approach is needed to protect both employees and employers from unnecessary tribunal costs. I note what the Minister said on statutory sick pay, but will the Government consider a standardised probationary period of, say, three to nine months to provide greater certainty?

We must ask whether this Bill will genuinely drive economic growth. We can judge that the noble Lord, Lord Hunt, thinks that it will not, but I would say there is a possibility. Economic growth is one the Government’s cornerstone ambitions. Business leaders and HR professionals I have consulted welcome the Bill’s aims, but question whether it strikes the right balance between employee rights and employer obligations. It must not stifle economic activity, but nor should it miss opportunities for meaningful reform.

The noble Lord, Lord Hunt, spoke about the number of amendments in the other place, and I will not repeat those remarks, but I think there were 200 government amendments on Report, which shows a certain amount of indecision, if nothing else.

I agree that this Bill is driven by noble intentions, but it risks becoming a tangled quagmire of complex employment bureaucracy, with uncertainty over whether it will genuinely recalibrate the balance between employers and employees in a way that promotes fair and productive employment. A Member in the other place—I like this—likened it to Snow White’s apple: appealing in appearance but ultimately sending the economy into a slumber. Let us ensure that this Bill is not a missed opportunity but a transformative step forward for carers, families and our nation’s economic future.

Employment Rights Bill

Lord Palmer of Childs Hill Excerpts

Committee stage
Tuesday 13th May 2025 Lords Chamber

[Baroness Lister of Burtersett (Lab)]

My Lords, I am grateful to those colleagues who have added their names to Amendment 76 and to the Fatherhood Institute for its help.

I welcome the Bill’s improvements to paternity and parental leave, but they only scratch the surface of a policy that is letting fathers down badly. Moreover, it is disappointing to discover that paternity pay will not be a day one right—an issue addressed by Amendment 139 in the name of the noble Baroness, Lady Penn, which I support. Could my noble friend the Minister explain in her summing up why it will not be?

The amendment calls for a review of parental leave, which was required for drafting purposes, although I know that, in the Commons, the Minister reaffirmed an earlier welcome commitment to a review. The purpose now is to ensure that the review covers a number of key issues relating to fathers’ entitlement to paid leave in their baby’s first year, namely measures designed to improve fathers’ take-up of parental leave, including a “use it or lose it” period and adequate payment, taking account of international examples of best practice; the inclusion of self-employed fathers, who are currently excluded, and others currently ineligible for statutory support; the protection through full employment rights of fathers who take the leave; and the commitment to publish adequate take-up data in future years.

The aim is a simple one, on which I hope we will all agree: to strengthen the rights of fathers/“second parents” to be active parents, which, as I will argue, would thereby also strengthen mothers and prospective mothers’ labour market position. In doing so, it would further the Government’s own aspiration to achieve greater gender equality.

The current situation is pretty woeful as far as fathers are concerned. This has practical and cultural, symbolic effects: it is, in effect, saying that fatherhood is of lesser importance to family life and that, in so far as the labour market accommodates responsibilities for childcare, it need do so only for mothers. If we want to surround boys with positive symbolic messages about masculinity, what better place to start than to give their fathers the time they need to build strong relationships in infancy that last a lifetime, thereby showing that fatherhood is valued?

I do not have the time to give details of what fathers are entitled to compared with mothers, but suffice it to quote the Fatherhood Institute’s evidence to the Women and Equalities Committee’s current inquiry into the issue:

“As well as offering one of the least generous statutory paternity offers in the OECD … the UK is an outlier, especially among higher income countries, in the huge gap (50 weeks) between mothers’ and fathers’ entitlements to leave in the baby’s first year. By 2022 most countries in western Europe had a gap of 12 weeks or less”.


The partial extension of day-one rights does not touch the sides when it comes to the current shoddy treatment of fathers, which has resulted in low paternal take-up of paternity and shared parental leave. Paternity leave is dealt with by the other amendments in this group, so I will focus just on shared parental leave.

Take-up among fathers of the shared parental leave scheme, introduced 10 years ago, is a pitiful 5% of eligible fathers, according to a 2023 government report. The scheme is also skewed against lower-income families, with just 5% of the tiny population of SPL users coming from the bottom 50% of earners. Shared parental leave does not constitute an independent right for fathers: it depends on an entitled mother transferring part of her leave. The Government were warned at the time that this was going to fail in the aim of encouraging fathers to take the leave, and it did. This is in part because of the way the scheme is constructed, in part because the low rate of payment means that many fathers cannot afford to take it, and in part because some, such as self-employed fathers, are excluded altogether.

This matters for fathers, mothers, children and family life, as well as for the Government’s number one priority of economic growth. It matters for fathers because it makes it very difficult for them to play an equal, hands-on role in the upbringing of their infant children, which, increasingly, fathers wish to do. It matters for mothers because, to quote the Women’s Budget Group, of which I am a member:

“Unpaid care is the root cause of women’s economic inequality”.


So long as women carry so much of the responsibility for childcare in the private sphere, they enter the public sphere of the labour market with one hand tied behind their back. Too many women’s careers fall off a cliff when they become mothers. As the Women and Equalities Committee’s call for evidence states:

“Unequal division of childcaring responsibilities is a key driver of … gender inequality and the gender pay gap”.


It matters for children in two-parent families, not just for their relationship with their fathers but also, the evidence suggests, for their educational and cognitive development and overall family relationships. Research indicates that paternal engagement during the first year can foster ongoing engagement until a child is aged at least 11 and that this positive effect builds over time. It matters for families, as it can affect family well-being and stability.

It matters, too, for economic growth. The Joseph Rowntree Foundation and Centre for Progressive Policy calculate that more generous provision for fathers, earmarked for six weeks, could deliver nearly £2.7 billion net to the wider economy as a result of strengthening mothers’ labour market position.

The amendment requires a review to take account of international examples of best practice, because we have so much to learn from the many countries that are way ahead of us on this issue. In particular, the experience of the Nordic countries and some others, which have for some years included a reserved period of parental leave for fathers on a use-it-or-lose-it basis in their schemes, suggests that this model, together with adequate payment—I emphasise that—is the best way of ensuring fathers take up the leave, leading to a more equitable division of childcare responsibility between parents and enabling mothers to participate in the labour market on more equal terms.

Most see this as a better and more effective model than extending paternity leave, because it separates out the caregiving function of parental leave from the health and safety function of maternity/paternity leave and, after the first two weeks, it signals clearly that the father can take it at a later date, ideally on his own, helping more mothers resume their employment earlier. As the Fatherhood Institute notes:

“Reserved parental leave for fathers is seen as key to reducing both the gender wage gap and the gendered gap in men’s and women’s participation in paid employment – both of which act as an impediment to economic growth”.


In a book I wrote many years ago on feminist approaches to citizenship, I identified such schemes as a key social policy lever for promoting greater gender equality and recognising the importance of care to men as well as women and to wider society.

Much as I would like to see this as one result of the review, I should stress that the amendment in no way ties the Government’s hands as to this or any other outcome, apart from the provision of adequate take-up data. It could be seen as the soft-cop amendment to the hard-cop amendments by the noble Baroness, Lady Penn, which would require action now—I do have some sympathy for those, but we are where we are. That said, if the review fails adequately to consider the issues that Amendment 76 raises, then I fear it will be met with widespread derision.

I hope, therefore, that my noble friend will feel able to accept the amendment, in this or some other form, as a signal of intent. If not, at the very least, I would ask her to make clear on the record the Government’s acceptance that the current situation disadvantages farmers unfairly and that it must be a clear and explicit aim of the review to create a system that properly supports fathers and other second parents to play a full role in their children’s lives.

At Second Reading, my noble friend she expressed respect for the points that I and the noble Baroness, Lady Penn, made about parental leave and the desire to go further. However, she said that

“we must strike the right balance, while continuing to ensure that this remains a pro-worker, pro-business Bill”.—[Official Report, 27/3/25; cols. 1925-26.]

But the current situation is totally unbalanced as between the rights of fathers and mothers. Moreover, workers are gendered beings, and thorough reform of parental leave is in no way anti-business. Indeed, it would help ensure business can benefit fully from the contribution of female as well as male workers and would, as I have said, thereby contribute to economic growth.

Thus, on gender justice and pragmatic economic grounds, I hope the Government will accept the amendment and send a strong symbolic message to male workers that their role as fathers is fully recognised and valued. I beg to move.

[Lord Palmer of Childs Hill (LD)]

My Lords, I speak to Amendments 80 and 136 in my name. These purely clarify an entitlement to paternity leave and really follow on from the remarks by the noble Baroness, Lady Lister, on Amendment 76. Amendment 80 would extend statutory paternity leave to six weeks and allow new fathers to take this leave at any point within the first year after their child’s birth, rather than being restricted to the current 56-day window. At present, eligible fathers are entitled to just two weeks of leave, paid at a rate of less than half of full-time earnings at minimum wage. Take-up remains low and affordability is a major factor; 62% of fathers say they would take more leave if statutory paternity pay was higher.

Greater equality in parenting is essential to achieving greater equality in the workplace. At present, the unequal distribution of caring responsibilities is a major driver of the gender pay gap. On average, a woman’s earnings fall by approximately 40% following the birth of her first child and often do not recover. By contrast, men’s earnings remain largely unaffected.

Employment Rights Bill

Lord Palmer of Childs Hill Excerpts

Committee stage
Tuesday 13th May 2025 Lords Chamber

Moved by

[Lord Palmer of Childs Hill]

77: After Clause 17, insert the following new Clause—
“Foster carer’s leave(1) The Employment Rights Act 1996 is amended as follows.(2) In the title of Part 8B, for “CARER’S LEAVE” substitute “CARER’S LEAVE AND FOSTER CARER’S LEAVE”. (3) After section 80J (Carer’s leave) insert—“80JA Foster carer’s leave(1) The Secretary of State must make regulations entitling an employee to be absent from work on leave under this section in order to undertake activities as a result of being a local authority foster parent.(2) For the purposes of subsection (1), “local authority foster parent” is defined in accordance with section 105 of The Children’s Act 1989.(3) The regulations must include provision for determining—(a) the extent of an employee’s entitlement to leave under this section;(b) when leave under this section may be taken.(4) Provision under subsection (3)(a) must secure that where an employee is entitled to leave under this section the employee is entitled to at least a week’s leave during any period of 12 months.(5) The regulations may make provision about how leave under this section is to be taken (including by providing for it to be taken non-continuously).(6) The regulations may provide that particular activities are, or are not, to be treated as providing or arranging care for the purposes of this Part.”(4) In section 80K—(a) in subsection (1), after “80J” insert “and 80JA”,(b) in subsection (2), after “80J” in both places it occurs insert “and 80JA”,(c) in subsection (4), after “80J” insert “and 80JA”, and(d) in subsection (5), after “80J” insert “and 80JA”.(5) In subsection (1) of section 80L, after “80J” insert “and 80JA”.(6) In section 80M—(a) In subsection (1)—(i) in the opening words, after “80J” insert “80JA”,(ii) in paragraph (e), after “80J” insert “and 80JA”,(iii) in paragraph (f), after “80J” insert “and 80JA”,(iv) in paragraph (g), after “80J” insert “and 80JA”,(v) in paragraph (h), after “80J” insert “and 80JA,(b) In subsection (2), after “80J” insert “and 80JA”, and(c) In subsection (3), after “80J(4)” insert “and 80JA(4)”.”Member’s explanatory statement
This new clause ensures local authority foster parents are entitled to at least one extra week’s leave every 12 months.

[Lord Palmer of Childs Hill (LD)]

In moving my Amendment 77, I shall speak to Amendments 78, 79, 135 and 144 in my name. Amendment 77 seeks to extend to foster carers the leave given to carers, and I hope that noble Lords will see this as a necessary clarification, which is all that it is. Amendments 78 and 79 focus specifically on kinship carers and would require larger employers—those with over 250 staff—to review the support they offer to unpaid carers. Amendments 78 and 79 seek to address a significant gap in employment rights for kinship carers by introducing a new entitlement to kinship care leave. Amendment 78 proposes a provision to establish this right, while Amendment 79 links the proposed entitlement to the broader provisions of the Bill.

These amendments respond to a pressing social need. Over 130,000 children across the UK are currently being raised in kinship care arrangements—more than three times the number in foster care. Despite the critical role that kinship carers play, often stepping in during times of crisis to prevent children entering the care system, they receive far less support, including in the workplace. Introducing a specific entitlement to kinship care leave would provide families with much-needed time and space to adjust, to make the necessary arrangements and to ensure the child’s well-being during what is often a traumatic transition. Not only would this improve outcomes for children and families but it would help relieve pressure on the formal care system, where costs are often excessive and the emotional toll on children is, I am sure, significant. In enabling kinship carers to remain in employment while fulfilling their caregiving responsibilities, these amendments recognise the long-term social value of keeping children within loving, familiar, family environments.

Amendments 78 and 79 would introduce a right to kinship care leave and link it to broader employment provisions. As I say, 130,000 children in the UK are in kinship care, which is more than three times the number in foster care. Kinship carers often step in during family crises, preventing children entering state care, yet they lack formal workplace protections. These amendments would provide time for families to adjust and to support a child’s transition—especially vital in sudden or emergency situations. I maintain that supporting kinship care is cost-effective and reduces reliance on costly private care providers that profit from family meltdown. This is about reshaping workplace culture to reflect the reality of modern families and ensure that children can remain in loving, stable homes. These proposals align with broader efforts to reform the care system and should be viewed as part of a compassionate, pragmatic approach to child welfare.

Amendment 135 would make carer’s leave a paid entitlement. I do not really need to add more than that.

Amendment 144 would require employers with more than 250 employees to consider what support they offer to unpaid carers within their workforce when publishing their gender equality action plans. This is a modest but important step towards recognising the hidden pressures faced by most employees, most often women, who juggle paid work with unpaid caring responsibilities.

Unpaid carers are the backbone of our social care system—where would we be without them? Yet their contribution is routinely overlooked in workplace policies and gender pay gap reporting. By including consideration of unpaid carers in gender equality action plans, we would acknowledge the real-life factors that contribute to disparities in career progression, earnings and job security. Employers cannot meaningfully address gender equality without recognising the care burden that disproportionately falls on women. This amendment is a practical and proportionate way in which to ensure that unpaid carers are no longer invisible in workplace policies.

When drafting my words for today, I did not realise how important kinship care was. One talks about the mothers and fathers, but very often it is the aunts, uncles, grandmothers and grandpas—other people who are kin to the child—who are not recognised in our system as producing the support that our system requires. I hope that noble Lords will support the amendment in my name, which I beg to move.

--- Later in debate ---

[Lord Katz (Lab)]

It will not come as a surprise to my noble friend that we cannot accept the amendment in front of us today. However, I am very happy to work with him to ensure that your Lordships’ House can consider this most important issue again on Report. So I respectfully ask him not to move this amendment and ask that the noble Lord withdraws his amendment.

[Lord Palmer of Childs Hill (LD)]

I feel humbled by this debate. It started off for me with the noble Lord, Lord Watson of Invergowrie, and the right reverend Prelate and it went on in the same vein, right across the House: the feeling that there was this Bill, the Employment Rights Bill, and that we recognise that within employment rights there are carers who have been ignored and need to be paid for what they are doing, for people and for the system that they underwrite.

The Government have not really replied in positive enough terms on this, but we will come back to this on Report with specific amendments. By that time, I hope that Government Ministers will go back to their colleagues in the other place and say that across the House, from all parts of this House, there was a feeling that unpaid carers need to be recognised in the Employment Rights Bill, and that kinship carers, who have not been recognised before, need to be recognised. We hope the Government have heard this and we look forward to a positive response by Report. I beg leave to withdraw my amendment.

Amendment 77 withdrawn.