Employment Rights Bill

Debate between Baroness Noakes and Lord Jackson of Peterborough

Committee stage
Wednesday 18th June 2025 Lords Chamber

[Baroness Noakes (Con)]

My Lords, in this group of amendments, I have the stand part notice for Clause 114. I support the several amendments in this group in the name of my noble friend Lady Coffey, many of which are probing amendments to try to find out more about this clause. I could find no clear rationale that the Government have given for Clause 114, in the sense of providing a rationale for the state—that is to say, taxpayers—funding the legal and other costs of civil proceedings in employment matters cases.

The scope of Clause 114 is huge. Not only does it cover the whole of employment, trade union and labour relations law, but the intended recipients seem to be unlimited. My noble friend Lady Coffey referred to the use of “person”. Subsection (1) refers to

“a person who is or may become party to civil proceedings”,

which covers a huge number of persons, and there does not seem to be any clear target for this clause. Of course, as we have heard, the funding can also extend to litigation involving non-employment matters, which seems extraordinary to me. All of this adds up to Clause 114 being very wide.

We already have in the UK a system for providing support for people in legal cases. It is called legal aid. It costs the taxpayer around £2 billion a year, nearly half of which is for civil litigation. That already has rules for employment tribunal support, where there is no funding for legal representation but there may be funding for advice on preparing cases. Successive Governments have had to make hard choices about what will be funded by legal aid in order to keep the cost of it within reasonable bounds for taxpayers as a whole but, now, with Clause 114, the business department is going to undermine that completely by taking powers to fund legal cases completely outside of the structures and limits that have been created for the legal aid system. The Government are again showing that they are, at heart, a two-tier Government, with unlimited legal aid by the backdoor for some favoured employment cases but tough eligibility criteria and financial limits for everybody else.

I now turn to the costings, which my noble friend Lady Coffey mentioned briefly. I could not find out what Clause 114 is going to cost. There is a limited amount of information in the paperwork that surrounds the Bill on the estimate of the overall costs for the fair work agency but, as far as I could find, there is no reference to how much the implementation of this proposal to fund legal costs will be within that totality. So my question to the Minister is really quite simple: what are the Government’s estimates of what Clause 114 will cost?

Going beyond that into the underlying assumptions, how many cases do the Government expect to bankroll every year? Will the Government support only cases with a better than average chance of success, or will they also fund no-hopers? What is the average cost of the cases that they think they will fund using the powers under Clause 114? What are their assumptions about cost recovery? I would have expected to find all these things analysed in detail somewhere in the papers, but I could not find anything. I hope the Minister will be able to answer these specific questions, and maybe also explain the lack of analysis in the documentation that the Government have prepared surrounding the Bill so far.

As I said earlier, I support my noble friend Lady Coffey’s amendments in this group, and I will listen carefully to what the Minister says in response to those amendments and, indeed, on Clause 114 standing part overall. My view is that, in the absence of good justification and a good understanding of the costs of Clause 114, it should not stand part of the Bill.

[Lord Jackson of Peterborough (Con)]

My Lords, I commend my noble friends’ excellent speeches on this clause. I press the Minister on what the Explanatory Notes say about subsection (4), because we have talked about the concept of persons and what that actually means. My noble friend spoke earlier about ministerial powers and the lack of information on costs, which should have been in a proper and more detailed impact assessment but is not. It is not in any supporting material, including the Labour Party manifesto for the general election. Presumably, the Minister will say that such information about the form and function of the clause will be developed in secondary legislation.

The sentence in the Explanatory Notes about subsection (4) is extraordinary, because it touches on what is potentially ultra vires and will certainly, I think, be subject to litigation or judicial review. Given that this is an Employment Rights Bill about labour relations and employment, it says:

“Subsection (4) makes provision for situations where proceedings relate partly to employment or trade union law … and partly to other matters”.


I just do not understand what those other matters can be. This is an employment law Bill. It is about labour relations and the relationships between employers, trade unions and a workforce. What other matters are within the bailiwick of Clause 114? I think we need to press the Minister on that, because we are being invited to give a blank cheque with taxpayers’ money to something that is very opaque, we do not understand, is not costed and is not detailed. On that basis, the Minister should address those specific issues.

National Insurance Contributions (Secondary Class 1 Contributions) Bill

Debate between Baroness Noakes and Lord Jackson of Peterborough

Committee stage
Wednesday 29th January 2025 Grand Committee

[Baroness Noakes (Con)]

Occasionally? It is more than occasionally.

[Lord Jackson of Peterborough (Con)]

I am getting gently heckled by my noble friend Lady Noakes. It may be more than occasionally. On a serious point, we know that some taxes are easy to raise quickly; one is fuel duty and this is another. I implore the Minister that this will have real consequences for many years. It is having consequences now in displacement activity that is not going to the most vulnerable people.

I know that the Labour Party would not inflict that sort of upset on people; most people in the Labour Party are decent and community minded, and want to do the best for the local community. I know, having served with Labour Members of Parliament in the other place, that they care about their local community and their constituents.

I would just ask the Minister to think about this again, particularly this case of people who are trying to do their best for their fellow citizens. All these amendments are extremely compelling, so I ask him to reconsider. It will not show weakness, but will show strength, magnanimity and the ability to govern wisely. I think he should consider pushing that forward because it is the right thing to do.