Employment Rights Bill

Jim Shannon Excerpts

Consideration of Lords message
Monday 8th December 2025 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

Under Lords amendment 1, the duty would be shifted to the employee to request guaranteed hours, as opposed to it being down to the employer to offer hours. That means that the employee can request hours, and then the employer can cancel them at the last minute. Can the Minister reassure me that provision will be made to protect workers, ensuring that if they are given hours, they are compensated in the right way?

[Kate Dearden]

I will speak to zero-hours contracts later in my contribution. This is about rebalancing power —giving workers access to guaranteed hours if they need and want them.

Let me return to the unfair dismissal protections that we will bring in from 1 January 2027. Our intention is to adopt a commencement approach that would extend protections immediately from that date to employees who already have six months’ service or more. For example, under this proposal, someone employed from today will gain protection against unfair dismissal on 1 January 2027. That is almost a full year earlier than under the current law. Other employees will gain protection once they reach six months’ service; for example, someone who starts work on 1 November 2026 will qualify for protection from unfair dismissal on 1 May 2027—International Workers’ Day—which is 20 months earlier than under the current law. This approach was taken in 1999, when the qualifying period was reduced from two years to one. This approach will prevent a two-tier system, in which some people would remain on a two-year qualifying period while newly hired employees were subject to a six-month qualifying period.

The commencement of the unfair dismissal provisions will be set out in commencement regulations, as is standard practice. I am happy to commit to making those regulations early next year, implementing our commitment to commencement on 1 January 2027. This change will benefit millions of working people, who will gain greater security at work, and it will offer businesses and employers the flexibility to ensure new hires can do the job, get the skills to match, contribute to business success, and build a stable and secure working life.

To further strengthen these protections, the Government amendments will also ensure that the unfair dismissal qualifying period can only be varied by a future Government through primary legislation, and will remove the compensation cap. I know that some businesses have expressed concern about the agreement to lift the compensation cap; I can tell the House that we want to remove the scope for employment tribunal cases to be more complex and convoluted than they need to be. We need a tribunal system that works for employees and employers alike—one that is not gummed up by process and unnecessary delay nor bedevilled by bogus claims. Our aim is to make the tribunal system work more effectively and efficiently for all, so that those judged to have been unfairly dismissed get the compensation they deserve, the system works to resolve cases more speedily and unfounded claims are dismissed more urgently.

As we review the tribunal system, in the spirit of partnership, we will work with businesses and trade unions to create a tribunal process that is fairer and faster. No committed employee should lack the protection they deserve, nor should any reasonable employer fear the consequences of an unsubstantiated claim. For several other employment rights, the amount of compensation that can be awarded by a tribunal is limited by cross-referring to the unfair dismissal cap, so our amendments will ensure that these consequential issues can be considered and dealt with effectively through secondary legislation.

We know that security of work is critical for working families, and we are also acutely aware of the challenges businesses face. That is why we are committed to open and constructive dialogue with all stakeholders. If these changes are to create the conditions for lasting, fair and flexible labour laws, dialogue and co-operation must be our watchwords. I hope the other place can attach similar importance to that co-operation, and that it will let this Bill—the product of a general election mandate and the good will of both business and trade unions—proceed to Royal Assent. These discussions and the workable compromise highlight the importance of participation, and I urge those listening to today’s debate to engage with the consultations set out in the implementation road map.

I will now speak to the Government amendments in lieu that relate to zero-hours contracts and the right to guaranteed hours. We have tabled amendments that will create a statutory duty to consult on the length of the initial reference period and the length and timings of subsequent reference periods before exercising the relevant powers. These amendments will ensure that vital stakeholders can have the opportunity to contribute before the lengths of the reference periods are determined by regulations that work for worker and employer alike. By delivering this change with the input of stakeholders, we will provide a fair and balanced approach.

Let me turn to the Government amendments in lieu of Lords amendment 48B, which relate to seasonal work. In order to help address fluctuating demand, the Bill allows guaranteed hours offers to take the form of limited-term contracts where reasonable. The Government have tabled amendments that place a statutory duty on the Government to consult before making any regulations to specify what counts as a temporary need. This means that before any such regulations are introduced, employers, trade unions, and other parts of civil society with an interest in seasonal work, will be fully consulted.

I will now address the issue of political funds and the related Government amendments in lieu of Lords amendments 72D to 72H. The Government remain committed to the repeal of the Trade Union Act 2016. That includes reinstating the long-standing practice that existed for 70 years before that Act, whereby new union members are automatically included as contributors to a political fund unless they choose to opt out. This will return us to arrangements that worked well for decades, removing bureaucratic red tape on trade unions that works against their core role of negotiation and dispute resolution in the interests of working people. We have heard the concerns about how opt-out notices would take effect, and we believe our amendments will refine that process.

Under the pre-2016 legislation, an opt-out notice could only take effect on 1 January of the year after it was given. Under the Government’s amendment, opt-out notices will now take effect on either 1 January of the following year or on a day specified or determined by the rules of the union, whichever comes first. We are aware that in practice, prior to 2016, unions generally gave effect to opt-out notices before the subsequent 1 January date anyway; amendment (a) in lieu affirms that flexibility in the legislation. We have also tabled amendment (b) in lieu, which places a statutory duty on the Government to issue guidance within three months of the clause coming into effect. That guidance will set out the kind of provision that unions should include in their rules about the timing of giving effect to opt-out notices.

Finally, I will address the issue of industrial action ballot thresholds and related Government amendments in lieu of Lords amendment 62. As I have said, this Government want to end disputes and conflict in the labour market; we also want more trade union members to have a say in decisions about escalating disputes where they arise. We will repeal the 50% threshold and—as we have previously stated—align this with the establishment of non-postal balloting, including e-balloting, so that decisions about industrial action keep pace with the communication channels of modern life.

Our amendment (a) in lieu cements that intention by requiring the Secretary of State to have regard to any effects of the introduction of non-postal balloting, including e-balloting, on the proportion of those entitled to vote in industrial action ballots who actually do so. In having regard to the effects of e-balloting, the Government will monitor and assess the practical impact of non-postal balloting on rates of participation in industrial action ballots, so that we will be confident that modernising the means of balloting increases member participation. In addition, we have tabled amendment (b) in lieu, which will place a statutory duty on the Secretary of State to lay a statement before Parliament that demonstrates how the Government have had regard to non-postal balloting before making regulations to repeal the 50% threshold.

I urge hon. Members to support the Government motions before the House today, including our amendments in lieu. Together, they form a package that strengthens workplace rights, reflects the value we place on fair and flexible labour markets, and demonstrates the Government’s willingness to listen to concerns and act on them. We place a premium on dialogue and compromise as key components in modern labour relations; we want to consign the narrow, partisan, party political prejudice of previous decades to the dustbin of history, and build instead a modern industrial relations framework that values partnership, dialogue, flexibility and fairness for all sides. Our amendments in lieu fully reflect that approach, and in that light, I commend them to the House.

Advanced Ceramics Industry: North Staffordshire

Jim Shannon Excerpts

Wednesday 3rd December 2025 Westminster Hall

[Dr Gardner]

Yes, sovereign capability is vital to ensure this nation’s security.

CMCs are essential as lightweight replacements for alloys in high-temperature aggressive environments, such as turbine engines and exhaust systems. They are vital to maintaining technical advantage and capability in defence, offering high temperature resistance, low weight and superior durability. Carbon matrix and silicon carbide matrix composites will be needed in fusion energy systems, hypersonic vehicles, space vehicles and defence infrastructure.

At present, the UK has no sovereign CMC manufacturing capability, and there is no sovereign supply for critical raw materials such as silicon carbide fibres and precursors. The Rolls-Royce CMC factory is in California, and it can only supply some civil aerospace requirements, leaving UK defence turbines vulnerable to export controls, US supply chains and tariffs.

Lucideon wishes to create a UK manufacturing facility to produce CMC materials and components, including oxide and non-oxide composites. Those products would be world leading. They would replace heavy metal rotating parts in high-temperature turbines on jet engines, making them lighter and able to run at higher temperatures. They would significantly reduce fuel burn on aero engines, giving UK aerospace a huge commercial advantage.

[Jim Shannon (Strangford) (DUP)]

I talked to the hon. Lady before we came into the Chamber, and it would be really good if we could advance the ceramics industry, as she has argued. It would also be good to give opportunities to young people through apprenticeships and education in science, technology, engineering and maths. Does she see that as a critical aspect as we move forward? I congratulate her and the whole Stoke team on how well they work together.

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

And Leicestershire.

[Jim Shannon]

Sorry—and Leicestershire.

[Adam Jogee (Newcastle-under-Lyme) (Lab)]

And Newcastle-under-Lyme.

Critical Minerals Strategy

Jim Shannon Excerpts

Monday 24th November 2025 Commons Chamber

[Chris McDonald]

I can assure my hon. Friend that the Government are extremely concerned about the ecological impact of deep-sea mining. The Government support a moratorium on—I choose my words carefully here—the exploitation of deep-sea mining, while allowing for the exploration of deep-sea mining. As a scientist and engineer myself, I think that the exploration is valuable, to ensure that we gather appropriate data, and I recently commissioned work from the chief scientific adviser in my Department to be fully appraised of the potential environmental impacts of deep-sea mining.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister very much for his positive statement. It is great that the Government’s critical minerals strategy aims to reduce our over-reliance on foreign suppliers and to build a more resilient domestic supply chain, which is central to our growth sectors and to clean energy. He referred to the critical and important role of Queen’s University Belfast in magnet-recycling technologies. What steps have been taken to ensure good collaboration with the devolved Governments, to unlock further incentives for extraction projects, and to support domestic improvements through our minerals strategy?

[Chris McDonald]

The hon. Gentleman is right to point out that the critical minerals strategy will benefit every nation in the UK, including Northern Ireland. I am particularly keen to learn more about the ionic liquid separation methods of Ionic Technologies, which has been a flagship project for Queen’s University Belfast. I wrote to the relevant Ministers in the devolved Governments before the launch of the strategy, and I am keen to continue working with them on it.

Specialist Manufacturing Sector: Regional Economies

Jim Shannon Excerpts

Wednesday 19th November 2025 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

Thank you for calling me early, Mrs Harris; you are very kind. I am sure hon. Members are wondering why. I thank the hon. Member for Calder Valley (Josh Fenton-Glynn) for securing today’s debate. In his short year and a half in the House, he has shown himself to be assiduous on behalf of his constituents. He works hard, with a key focus on the subjects he brings to the House, both in the main Chamber and here. Well done to him.

Our manufacturing sector is crucial to the UK-wide economy. We must not forget the unique build-up of this country. I always say that we are better together, and there is no Scots Nats person here to tell me otherwise—not that that is a bad thing, but anyway. Whether it be Scotland, Wales, Northern Ireland or England, we can do it better, with a significant contribution to the manufacturing industry.

Library research highlights that in 2023, Northern Ireland added £2.2 billion gross value added in manufacturing economic output. In 2024, around 900 direct jobs were supported by the defence industry. Defence plays a crucial role in Northern Ireland, but it does not get its full percentage of defence contracts. I gently put that point to the Minister to get a helpful answer. The defence sector should get more contracts, although there have been lots of commitments.

With great respect, Northern Ireland people—men and women—have proven themselves as leaders in their contribution to the sector. The best is yet to come, with more young people becoming interested in all aspects of manufacturing and engineering. There is a keen interest in science, technology, engineering and maths study and employment in Northern Ireland, especially from young people and from women who have leading roles in manufacture. We are doing and seeing good things happening; we see equality and opportunity.

This is a good news story. Northern Ireland is home to major companies such as Thales and Bombardier. Bombardier at one stage had two major factories in Newtownards, hiring hundreds of people from the local area, showing our skill in the design and manufacture of composites and polymers. I usually visit Thales at least once a year with my right hon. Friend the Member for Belfast East (Gavin Robinson), who told me that the majority of the workforce live in my constituency of Strangford, so it is obviously to my advantage to be there.

The good news with Thales is that, with Government help, 200 new jobs have been created there. There are also important apprenticeship opportunities. Given my age, I have known some of the young fellows there since they were born. Aged 18, 19 or 20, they now have jobs at Thales, with fantastic opportunities, a good wage and help with their student fees. I have met unions on various occasions to hear their concerns, and have brought this issue to the Floor of the House to seek assurances.

There are some things I ask of the Minister. It would not be right to take part in this debate without highlighting the risks in the manufacturing industry relating to job security. At times like these, the Government are able to step in. That is my Great British Government, and everybody’s Government, whether we voted for them or not. On this occasion, efforts fell short in committing to the manufacturing industry in the way we wanted. I will mention Spirit AeroSystems, the plane manufacturer, and the contribution made by Northern Ireland. Northern Ireland may be a small nation, but we are mighty—a word not often used—just like small David, who took on big Goliath in the Bible and beat him.

Alongside Scotland, Wales and the mainland, specialist manufacturing is crucial to economic prosperity. There must be an unwavering determination to achieve that. I ask the Minister to engage with me and my hon. Friend the Member for East Londonderry (Mr Campbell) and other Northern Ireland MPs to ensure that, when it comes to helping each other, to make this great United Kingdom of Great Britain even greater and better, we do that together. It takes that commitment. Will the Minister work alongside a Northern Ireland Assembly Minister, the Assembly and us to deliver for everyone?

--- Later in debate ---

[Chris McDonald]

I would have been disappointed had I mentioned the supercharger from the Dispatch Box and my hon. Friend did not intervene—I shall write that into my speeches from now on. His point is well made and is heard by me. A consultation on the British industrial competitiveness scheme will open shortly. I encourage the valve manufacturing industry of Calder Valley to participate in the scheme, and all Members to publicise the scheme to small businesses in their areas.

Hon. Members did not particularly mention regulation, but I want to raise it. Of course, £1 off the costs of regulation is worth £1 off any other business cost. A lack of new funding or of access to finance or working capital can be a reason that businesses fail to grow. Small companies tell me that financial institutions often do not understand their businesses or the need for more patient returns. We are undertaking a programme with the British Business Bank to make available £4 billion for our industrial strategy growth capital in industrial strategy sectors, and the Office for Investment will focus on high-value investments, leveraging the National Wealth Fund’s £27.8 billion for industrial strategy sectors.

Although we hear very strong voices regarding international alignment on products and standards, we also hear about the complexity of business regulation and its impact on smaller businesses. We have set out an ambition to cut the administrative costs of regulation for business by 25%. I am pleased to say that we have released a business questionnaire seeking views on the impact of regulation on businesses. Again, I ask for help from hon. Members in encouraging all manufacturers in their areas to consider closely which regulations are enabling or hindering growth, and where compliance is creating an undue burden.

[Jim Shannon]

I hope the Minister will forgive me if he is going to address my earlier request, which related to the Northern Ireland Assembly Minister back home. I know that he travels to Northern Ireland and has an interest in Northern Ireland, and it is important that we work together. Will he give the commitment I mentioned?

[Chris McDonald]

I did hear the hon. Gentleman say that earlier, and he is right that I have a strong interest in Northern Ireland and a great deal of respect for our advanced manufacturing there. I look forward to visiting the aerospace and shipbuilding industry there soon—I think it will be early in the new year—and I am absolutely committed to working with Northern Irish MPs and the local authorities to ensure that the manufacturing industry in Northern Ireland thrives.

Our plan for small and medium-sized businesses, published this year, includes a number of additional measures aimed at assisting those businesses, including ending late payments, modernising the tax system, establishing the new business growth service, and considering how we can best support exporting businesses to increase their exporting activity.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 18th November 2025 Commons Chamber

[Michael Shanks]

I have met industry representatives, and when I did so they told me that it was the first time they had met anyone from the Government in 13 years. Many of the issues that are now emerging have been long in the making because of the last Government’s failure to recognise their importance. However, the hon. Gentleman is right to say that refineries are an important part of our energy mix and our economy. We will do all that we can to support them, and I continue to meet their representatives and those of Fuels Industry UK regularly.

[Jim Shannon (Strangford) (DUP)]

Here is a pithy question, which I hope will be important for us in Northern Ireland. Will Northern Ireland receive a dedicated share of UK-wide peatland funding schemes such as those covered by the Nature for Climate Fund?

ExxonMobil: Mossmorran

Jim Shannon Excerpts

Tuesday 18th November 2025 Commons Chamber

[Chris McDonald]

The right hon. Member speaks of 1,000 jobs a month being lost in the North sea oil and gas industry. That is not a figure I recognise, so I would be happy if he would share the source of that figure with me. However, I have some figures of my own to trade, if he wishes to know them. We are expecting 800,000 jobs to be created in the clean energy industries. We have attracted £52 billion of private sector investment since July 2024, and £5 billion per year of gross value added to the UK economy from carbon capture and storage alone by 2050.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for his statement and wish him well in his endeavours. Anybody in this place would be churlish not to wish him well in his endeavours to try to do better—

[Richard Tice]

Are you sure?

[Jim Shannon]

Expect there might be one or two to my left-hand side, but that is by the way.

It is sad to hear of yet another large UK company closure next year, this time in Mossmorran. I have seen and experienced similar stories in Northern Ireland, and what springs to mind is always the impact that this will have on the workers. Alongside the Scottish Government, can the Minister provide an assurance that this Government will do all they can to protect the livelihoods of those workers and, indeed, all workers who face redundancy as a result of not being able to find solutions to keep such plants open? We all recognise that these workers need help, and they need it today. What can be done to assure them of a future for their families, their mortgages and the debts they owe?

[Chris McDonald]

I thank the hon. Member for his contribution, which is always sincerely and kindly made. I agree that what will be precisely on the minds of the workforce at Mossmorran right now will be how they will manage in the run-up to Christmas. They will be thinking about whether they will be able to pay an instalment on their holiday in January. The plant is set for closure on 16 February, so there is a bit of time in terms of, as I mentioned, the 40% of the workforce for whom who we will need to find alternative employment.

I mentioned in my statement that the DWP is ready to stand by to help—I appreciate that could sound quite cold, but it does stand ready. Combined with the Scottish Government, the local authority and the support from the UK Government, including the taskforce, that is the support that we will give directly to the employees and their families.

Small Modular Nuclear Reactor Power Station: Wylfa

Jim Shannon Excerpts

Monday 17th November 2025 Commons Chamber

[Michael Shanks]

I thank my hon. Friend, and repeat my thanks to all those across the House who have been involved in these projects over many years. I particularly thank colleagues in the Welsh Government and Labour MPs from Wales who have been campaigning on this issue in recent months, as well as the hon. Member for Ynys Môn (Llinos Medi), who has campaigned on it as well.

Jobs will come from this project in Ynys Môn, but more jobs will come from the wider energy transition right across Wales, from our investment in transmission infrastructure to our investment in renewables projects, as well as in the Celtic sea and all the jobs that go with it. That will be delivered by this Government’s commitment to clean power—to delivering not just the energy system of the future, but the jobs that go with it. We will have an industrial strategy that creates jobs in Wales, after 14 years of a lack of industrial policy leading to job losses across the country. This is the beginning of great things for Wales; it is leading the way in this area, and with the expertise, skill and commitment that exists in Wales, it will do a fantastic job and make this country proud.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Member for Ynys Môn (Llinos Medi) for securing this urgent question and giving us an opportunity to discuss this issue. As the Minister will know, I welcome the UK’s first small modular reactor nuclear power station, recognising the strong nuclear heritage and expertise of that area of Wales. It is imperative that we all share that capacity—that we have the same capacity in Northern Ireland, without reliance on an all-island network. Will the Government commit to working with the Legislative Assembly to create a similar project in Northern Ireland that will provide power to homes and businesses throughout the area that I represent, and indeed right across Northern Ireland?

[Michael Shanks]

I should have come prepared with a line about whether an SMR could be sited in Strangford, because I should have known that that question was coming—sorry! As always, I welcome our discussions on energy policy; as I always say, I take the relationship with the Northern Ireland Executive very seriously, but energy policy is transferred to Northern Ireland. I do not have any direct responsibility for that, but we have been working with the Northern Ireland Government on their push to clean power, and of course nuclear power that is part of our baseload here in the UK is also important for Ireland. The interconnectors across the sea help to ensure that our energy security is a priority for both Governments, but I am happy to look at Strangford as a future candidate for an SMR.

Rogue Builders

Jim Shannon Excerpts

Thursday 13th November 2025 Westminster Hall

[Mark Garnier]

I will talk about that in my speech. The fundamental problem is that, at the moment, the only course of redress is through the court system, and it is not good enough.

The FMB does a lot of work in this area, and it is worth looking at some of its statistics. Thirty-seven per cent of customers report unreliability, and many of them cite apparently unqualified operators. Nearly a quarter—that is 25%—of all customers have lost money to rogues, with losses averaging £1,760, but in many cases the amount is far higher. The national loss is horrific. The FMB estimates that, over five years, homeowners have lost an astonishing £14.3 billion to unreliable builders, putting an astonishing burden on the housing market and households. It turns out that young adults are more at risk, with 33% scammed by rogue traders found via social media.

The consumer is not the only victim of rogue or cowboy builders. Within the industry, many find themselves a victim of the same problem. Subcontractors find they are not paid, and it is the same for merchants. Plant hire companies are frequently the victims of theft and abuse of equipment. Alarmingly, health and safety is a low priority among many small and medium-sized building firms operating in the RMI market.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman for securing this debate, and he is absolutely right. In Northern Ireland, consumer protection against rogue builders involves preventive measures, official reporting channels and legal recourse through the Consumerline service, trading standards and the small claims court. The reality is that those protections are difficult to navigate, and they are often off-putting for people who are not used to filling in forms and writing things out. Does the hon. Member agree that there must be a more straightforward approach? People, who are often vulnerable and need support, should not have to jump through hoops.

[Mark Garnier]

The hon. Gentleman is absolutely right. The current system does not satisfy people in any way, shape or form. Also, there is an inequality of risk, which I will come to in my speech.

Although large firms working on major commercial and civil engineering projects have embraced health and safety legislation, a blitz of small refurbishment sites by Health and Safety Executive inspectors in 2016 found that a stunning 49% of sites fell below the standards set for compliance with health and safety requirements. More alarmingly, that cavalier attitude to health and safety reveals the potential problem of cowboy builders leaving dangerous sites. When someone has an extension built, might they be risking life and limb when they climb those stairs? Poor-quality building results in not just shoddy work, but dangerous and potentially fatal work.

Rogue builders have an effect beyond their own unhappy activities. By undercutting reputable, high-standard builders that make up the majority of the market, they force them to cut their margins. Price competition is fine, but not when a worthwhile and reputable SME builder is competing against someone with no care for safety, honesty or customer satisfaction. Given that the RMI market is dominated by occasional customers—we are not doing this very often—it is quite likely that the key element of choice is price. Unhealthy price competition drives down standards, even if reputable firms are unhappy being forced to cut standards to compete.

In an extreme example of the problem—this is an important point—I recently met Andrew Bennett, who had engaged a local firm in Liverpool to refurbish a six-bedroom property that he owned—a job that was to be worth around £100,000. He checked out the firm and was happy with references and testimonials. He engaged the firm, but it turned out that the work was dangerously below standard. When he started to seek redress, he discovered that the company in question was not what he had been led to believe. It was a rogue builder passing off as a well-known, reputable company. Moreover, this dubious company had nine county court judgments against it and therefore had no money to pay the award to Mr Bennett when he won his case.

That company was passing off as another. It was seeking to take money off an individual customer by deliberately misleading him, and it failed to deliver the work contracted by that customer under the cover of misleading him—fraud, by any other name, or by the actual name. Mr Bennett went to the police, who told him that it was a civil matter. He tried all the avenues available to him to get this individual bang to rights, but to absolutely no avail. The company continues to rip off people, in full knowledge of the local law enforcers, trading standards, the local council and planning department, and multiple victims of its activities.

Carbon Budget Delivery Plan

Jim Shannon Excerpts

Wednesday 12th November 2025 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a real pleasure to serve under your chairship, Sir John. I thank the hon. Member for Sheffield Central (Abtisam Mohamed) for setting the scene. The Government are trying to meet their carbon budgets, and that is important, but I want to make a quick point in the time I have on behalf of those who will suffer as a result. Families in my constituency as struggling more than ever, as charitable giving lessens and the ability for charities to provide help lessens as well.

Yes, let us reach the target for carbon budget delivery, but let us make sure that that is financially viable. I know several families who were comfortable for a number of years, but who are struggling now. On behalf of those struggling families in Strangford—there are struggling families in everybody’s constituencies, not just mine—we must ensure that we can achieve the goals while ensuring that the impact on our constituents is defensible.

I have always been proud to be forward-looking, but I believe that we cannot leave struggling families on the trail behind. Meeting the targets and goals affects all of us—some can afford it, but some cannot, and they are the people we should be looking out for. I am more interested in people such as my constituents and the bread and butter issues that they focus on all the time. Let us meet the targets, but let us make sure that people are looked after on the way there.

Employment Rights Bill

Jim Shannon Excerpts

Consideration of Lords message
Wednesday 5th November 2025 Commons Chamber

[Kate Dearden]

I thank the right hon. Member for working with us and for her support throughout the passage of the Bill. I understand her passion and work in this area. As she says, the guidance will offer a clear benchmark for reasonable activities and assist inspectors in important decisions. The Government are committed to the work, as she will know, with publication targeted by 31 March 2026. We believe that this collaborative effort will provide practical guidance that empowers children to engage safely and meaningfully in heritage railway volunteering.

Turning to the issue of political funds, Lords amendments 61 and 72 would remove clause 59 from the Bill. That clause reverses measures in the Trade Union Act 2016, which we have committed to repeal, that require members to opt in to political funds. This therefore reinstates longstanding arrangements where members are automatically included unless they choose to opt out. Removing clause 59 would break that commitment to restore balance and fairness in union operations. The opt-in system, introduced in 2016, added bureaucracy without improving transparency or strengthening members’ choice. To be clear, we are not removing that choice. At the point of joining, every new member will be clearly informed on the application form that they have the right to opt out of contributing to a political fund. The same form will make it plain that opt-out has no negative bearing whatsoever on any other aspect of union membership. That is why the Government cannot support Lords amendments 61 and 72.

We have heard reflections around how opt-out notices would take effect and have tabled an amendment in lieu to refine that process. Under the pre-2016 legislation, an opt-out notice was effective on 1 January following the year in which it was given. Under the Government’s amendment, opt-out notices will now have effect from either 1 January or the following year after it has been provided, or on a date specified or determined in the rules of the union, whichever of those dates comes first. This provides unions with flexibility in the legislation to act more quickly and process the member’s request to opt out, without having to wait until the subsequent 1 January to do so. In practice, unions already do this. We will also commit today to engage with unions directly, to continue to make clear our expectation that opt-out notices can be honoured as swiftly and practically as possible. Our amendment is simply about ensuring that legislation matches what has been the established practice.

[Jim Shannon (Strangford) (DUP)]

I hope that the Minister has not referred to this already, but small businesses in my constituency that do not have human resources departments tell me that they will find it hard to navigate these legislative waters. Although we need strong employment rights and I support the Bill’s objectives, we need to ensure that there is support for employers, so that they know how to implement the measures and how to defend themselves, which they will sometimes need to do, without paying costly solicitors’ bills that are detrimental to their business. Will the Minister reassure me on that matter?

[Kate Dearden]

I come from a family that has a business in the hospitality sector, which is close to my heart. In the first eight weeks that I have been in this role, I have had the pleasure to meet small and large businesses, and I have made clear our determination to work closely with them on the implementation of this legislation and to ensure that they are prepared for the changes when they come. We published our road map earlier this year and have committed to stick to that, which has been welcomed by businesses small and large.

Finally, turning to the issue of industrial action ballot thresholds, Lords Amendment 62 would remove clause 65(2) from the Bill, which would retain the existing 50% turnout threshold for industrial action ballots. The Government do not support this amendment. Clause 65 removes an unnecessary bureaucratic hurdle and aligns union democracy with other democratic processes, such as parliamentary votes and local elections, which do not typically require turnout thresholds but are still accepted as legitimate. As the period of disruption under the Conservatives’ watch between 2022 and 2024 has shown, bureaucratic hurdles only make it harder for unions to engage in the bargaining and negotiation that settles disputes. This Government’s approach will foster a new partnership of co-operation between trade unions and employers.