Oral Answers to Questions

Kate Dearden Excerpts

Thursday 12th March 2026 Commons Chamber

[Josh Newbury (Cannock Chase) (Lab)]

22. What recent progress he has made on improving parental rights at work.

[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)]

2. What steps he is taking to help increase levels of private sector investment in Buckingham and Bletchley constituency.

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[Jerome Mayhew (Broadland and Fakenham) (Con)]

21. What steps his Department is taking to support the hospitality sector.

[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.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[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)]

8. What steps he is taking to increase trade ties with Europe.

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[Daniel Francis (Bexleyheath and Crayford) (Lab)]

10. What steps he is taking to support micropubs in Bexleyheath and Crayford constituency.

[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)]

12. What assessment his Department has made of recent trends in levels of business confidence in the hospitality sector.

[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)]

15. What recent assessment he has made of the adequacy of postal delivery services.

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[Tracy Gilbert (Edinburgh North and Leith) (Lab)]

T3. I refer Members to my declaration of interest as a former employee of USDAW. The new rights of trade union access in the Employment Rights Act 2025 could be game changing, but there is a proposal to cap fines for breaking new rules at £75,000, which is loose change for union-busting employees like Amazon. Will my hon. Friend consider setting fines at a percentage of global turnover, as is the case for GDPR breaches and ticket touting websites?

[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)]

T2. Small businesses in Bridgwater were hit last year with the Chancellor’s jobs tax. This year, they face the additional burdens of the Secretary of State’s unemployment Act and higher business rates. With petrol and diesel prices rising, the last thing they want is a fuel duty increase. Will he speak to the Chancellor and ask her to cancel her fuel duty rise in September?

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[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.