Draft Supply of Machinery (Safety) (Amendment etc.) and the EU Machinery Regulation (Enforcement etc. in Northern Ireland) Regulations 2026

Kate Dearden Excerpts

Tuesday 30th June 2026 General Committees

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

I beg to move,

That the Committee has considered the draft Supply of Machinery (Safety) (Amendment etc.) and the EU Machinery Regulation (Enforcement etc. in Northern Ireland) Regulations 2026.

It is a pleasure to serve under your chairship, Ms Jardine. This statutory instrument was laid before the House on 1 June 2026. I will begin by setting out the background. The instrument concerns machinery, which includes a wide range of workplace and consumer products such as cranes, excavators, leaf blowers and lawn mowers. The current framework for machinery safety is, like many other product regulations, based on EU rules that were assimilated into UK law following our departure from the European Union.

The current EU directive and our UK regulations were first introduced in 2006 and 2008, respectively. Members will appreciate that machinery has adapted and advanced significantly in that time. As such, it is important that we review our legislation to ensure that it is fit for purpose and accounts for potential risks from new and emerging technologies, as well as changes in supply chains and how they operate.

I will now explain in more detail how the instrument meets its purpose. It has two functions: first, it ensures that updated EU machinery legislation can be fully enforced in Northern Ireland, as required under the Windsor framework; and secondly, it amends domestic legislation so that machinery that meets the updated EU requirements can continue to be placed on the market in Great Britain.

The SI will introduce mechanisms to allow the EU’s new machinery regulation to be enforced effectively in Northern Ireland. The EU has updated its machinery rules through a new regulation that will apply from 20 January 2027, when it will replace the existing directive. The SI will give full effect to the machinery regulation in Northern Ireland by establishing a robust enforcement framework. It designates enforcement bodies, including the Health and Safety Executive for Northern Ireland and district councils, and makes it an offence to fail to comply with obligations under the regulation.

The instrument also provides for appropriate penalties, including fines and custodial sentences. This ensures that effective enforcement action can be taken where products are non-compliant. I reassure Members that the Northern Ireland Department of Justice has confirmed that the measures will not have a detrimental impact on the criminal justice system. In the vast majority of cases, compliance should be achieved through engagement and support for businesses rather than recourse to criminal sanctions. However, it is essential that penalties are available in serious cases of non-compliance.

The instrument also provides for the continued role of UK-notified bodies in certifying machinery for the Northern Ireland market using the UKNI marking, a conformity marking that must be displayed alongside the CE marking when used for goods placed on the Northern Ireland market.

In Great Britain, the instrument continues CE recognition, allowing businesses to place on the GB market goods that meet certain updated EU requirements, avoiding costly duplicate conformity processes. It achieves that by amending legislation to ensure that machinery that meets the relevant requirements of the EU machinery regulation can still be placed on the GB market. The instrument also includes provisions relating to Northern Ireland qualifying goods, ensuring that products in free circulation in Northern Ireland continue to benefit from unfettered access to the GB market.

The EU’s machinery regulation aims to respond to new technological developments by introducing updated provisions that include clarified responsibilities across the supply chain, including clear importer and distributor obligations; provisions for digital documentation to reduce environmental impacts; and mandatory third-party assessments for certain high-risk products. The Government’s position is that those changes are beneficial, sensible and proportionate, and reflect how the machinery industry has developed since the previous regulations were introduced. As such, the Government will introduce a second SI in due course that will update legislation in Great Britain in line with requirements in Northern Ireland.

The approach we are taking will support economic growth by eliminating costly duplicative processes, reducing unnecessary burdens on businesses, and helping to maintain the UK’s competitiveness with other markets. It will also support commitments in our trade strategy to reset the UK’s relationship and facilitate easier trade with the EU. It will protect the UK internal market and the free flow of goods between Great Britain and Northern Ireland, while also improving trade with the EU and other partners.

My officials have carried out extensive stakeholder engagement regarding the future of machinery legislation in the UK. We ran a call for evidence last year and gathered verbal feedback through a series of roundtable events held across 10 locations and attended by more than 200 stakeholders. My officials engaged with businesses and trade associations across the UK and in key global markets. Stakeholders were supportive of modernising machinery safety requirements and continuing CE recognition, to reduce costs, support trade and maintain competitiveness.

We received several responses from businesses in Northern Ireland and held two roundtable events in Belfast. There was broad support among stakeholders for the measures being introduced, including those to modernise and strengthen safety requirements. Many Northern Ireland stakeholders also expressed support for continued CE recognition in Great Britain. They told us this would ensure a clear and consistent approach to machinery regulation across the whole of the UK internal market.

As the Committee is aware, we have already announced our approach in respect of introducing measures similar to those in place in the EU and Northern Ireland. Officials have also proactively engaged with the devolved Governments and enforcement authorities throughout the policy development and legislative process to discuss the upcoming changes and ensure they work for all parts of the UK. No significant issues have been raised with my officials, and we continue to engage regularly with stakeholders. It is clear from our engagement that this legislation is in the best interests of both industry and consumers across the UK, including in Northern Ireland.

The Government are taking proactive steps to ensure that industry is well supported in complying with the new requirements. The approach we are taking reflects the feedback we have received from stakeholders and is designed to work in the best interests of business as well as consumers. The changes have been widely viewed as a pragmatic solution to support competitiveness, particularly for small and medium-sized enterprises and sectors with more limited resources. As machinery is a global sector, many businesses that manufacture and supply machinery have already begun preparing to meet the updated requirements to continue trading with Northern Ireland and the EU. Through our engagement with industry, officials have not identified significant adverse impacts arising from the instrument.

The Government remain fully committed to supporting businesses in Northern Ireland. In the most recent Budget, we announced a £16.6 million UK internal market package to help businesses to adapt to the evolving regulatory landscape. We will also provide clear and timely guidance to give businesses the support they need to comply with the requirements with confidence and certainty. I commend the draft instrument to the Committee.

--- Later in debate ---

[Kate Dearden]

I thank right hon. and hon. Members for their consideration of the draft regulations and their contributions to the debate. They raised a significant number of issues that I will pick up on in my response.

First, on our product regulation legislation, since getting into Government we have legislated for the flexibility to ensure that product regulation, now and in future, is tailored to the needs of the UK. There will be some instances where we will take our own approach and some instances where we will want to take a similar approach to the EU. However, we have done that, and will continue to do that, on a case-by-case basis, where it is absolutely in the best interests of UK businesses and consumers and in our national interests.

The arrangements under the Windsor framework are a settled and important part of UK law, agreed by Parliament to protect the UK internal market. We have made the sovereign decision that is right for the whole of the UK to improve safety and modernise in particular machinery legislation, which we are discussing today, to reduce duplicative and costly burdens on businesses and ensure that there is no friction with the UK internal market. As I mentioned in my opening remarks, our approach is supported by the overwhelming majority of stakeholders.

This SI does not implement EU law in Great Britain; it does, however, continue CE recognition in Great Britain so that products that meet the new EU requirements can be placed on the GB market. That is not a new concept, but the continuation of current Government policy and the policy of prior Governments. The UK and the EU are strategic partners, and it is in our mutual interest to maintain trade flows and avoid trade friction, while responding to emerging technologies and maintaining a commitment to product safety and consumer protection. Mutual transparency and regular discussions are an indispensable part of that.

Informed by our engagement with industry, the Government have reviewed the changes introduced by the machinery regulation, and we believe that they are sensible and proportionate and will ensure that safer products are available to consumers and businesses alike. That is why we are continuing CE recognition and seeking to introduce similar measures in GB. As I have said before, we are prepared to align with EU regulation, but we will take a pragmatic, case-by-case approach, doing it where it clearly advances the national interests, supports long-term growth, promotes consumer interests, attracts investment and supports jobs. Where that is not the case, we will take a different approach to deliver the best outcomes for businesses and consumers in the UK.

At the centre of any long-term plans for the alignment between Great Britain and Northern Ireland, we will maintain the integrity of the UK internal market and Northern Ireland’s rightful place within it. My officials engage with the Northern Ireland Government and enforcement authorities on a regular basis to discuss any issues or concerns they might have, and that close relationship will remain ongoing. The right hon. Member for North West Hampshire mentioned Northern Ireland businesses and dual labelling, and I thank him for raising that. The answer is no: they can continue to CE mark only, and UKNI marking is optional if the conformity assessment is in the UK.

The shadow Minister, the hon. Member for West Worcestershire, and a number of Members on the Opposition Benches, mentioned the impact assessment for this SI. As she knows, a de minimis assessment has been prepared for the provisions of this instrument relating to continuing CE recognition in Great Britain. These measures are considered to have a low impact per business from their introduction, and that is additionally the case for the Northern Ireland aspects of this instrument. The measures resulting from the European Union (Withdrawal) Act 2018 are out of scope of the assessment. The Windsor framework is already given effect in legislation through the European Union (Withdrawal Agreement Act) 2020, which adds provisions and powers to the 2018 Act.

[Kit Malthouse]

I am finding it hard to understand how the Minister can claim that there will be no impact on businesses in Northern Ireland. To give a practical example, many production lines nowadays have built-in AI safety monitoring systems. At the moment, companies in manufacturing have to certify that AI against a national standard, and they can self-certify. As I understand it, the EU regulations around AI and cyber-security would mean moving to a notified body certification system. If I had a production line, I would have to go out and find a recognised body to come in and independently certify the software behind the safety system in my manufacturing line as compliant. That has to be an extra cost—how can going from self-certification to external certification by an outside body not have a significant impact? As far as I can see, these regulations are riddled with those kinds of changes, which must impose a significant cumulative burden.

[Kate Dearden]

The right hon. Gentleman rightly raises AI and cyber-security as part of our considerations. That is why it is so important that we keep up to date with technological developments and the impact on machinery. The EU’s machinery regulations, as he says, include provisions on software and AI to ensure that those new technologies do not affect the safe functioning of machinery. We are also working with the EU to ensure that the changes in Northern Ireland are compatible with wider product safety and regulatory reforms, including cross-cutting legislation on AI and cyber-security.

Overall, we expect the instrument to benefit Northern Ireland. We have extensively engaged with stakeholders in Northern Ireland, and SMEs in particular have indicated that it significantly helps in terms of resources—that is from our direct engagement with those businesses and the feedback we have received. It is a key consideration for businesses that they will be able to continue to benefit from dual access to both EU and UK markets. As we work towards introducing similar measures in Great Britain, continuing CE recognition and ensuring that the same machinery products can be placed on the market across the whole of the UK without unnecessary duplication of testing and administrative process will be absolutely vital.

The shadow Minister asked about the numbers of businesses involved. We estimate that around 230 businesses in Northern Ireland and 5,380 in Great Britain are in scope of the machinery legislation. She also referenced the £16.6 million of funding that I mentioned in my opening remarks. Funding was allocated in the Budget to deliver an enhanced “one-stop shop” advice service for small businesses beyond what is available on gov.uk, along with the new funding for Intertrade UK, and that commitment will be delivered in the course of the next financial year. The project has moved into a phase of more active engagement, with robust interest from stakeholders. Formal co-design workshops are ongoing to refine the service specification and ensure that the delivery model meets business needs.

I have briefly touched on the implementation of similar measures in Great Britain. My officials have already begun actively developing a further SI to modernise GB machinery regulation, which will ensure that the UK framework remains proportionate and aligned with the technological developments raised numerous times throughout this debate. Announcements about implementing similar measures have already been made, to provide businesses with the certainty that the shadow Minister also asked about.

The right hon. Member for North West Hampshire referenced enforcement and parliamentary scrutiny. The day-to-day enforcement of product safety legislation is largely local. For machinery in Northern Ireland, it would generally be undertaken by the Health and Safety Executive for Northern Ireland or by district councils, for workplace and consumer products respectively. However, the Secretary of State has enforcement powers under legislation, as the Office for Product Safety and Standards has an active enforcement role on behalf of the Secretary of State, particularly where issues are nationally significant, complex, novel, high risk or large scale. For example, the OPSS can intervene where a product risk affects consumers nationally or where co-ordinated enforcement action is needed across multiple agencies. I hope the right hon. Gentleman understands that enforcement will remain as it is under the current regime and that nothing will change; I hope that reassures him and answers his question.

When it comes to parliamentary scrutiny of CE recognition under the Product Regulation and Metrology Act 2025, we have consulted with stakeholders, and Northern Ireland provisions are done as part of the Windsor framework, which I touched on right at the start of my remarks. As the right hon. Gentleman knows, the parliamentary process uses the affirmative procedure.

To conclude, we are using the PRAM Act powers, as I have mentioned, for CE recognition, which requires consultation with stakeholders. UKNI marking will only be used by a UK notified body; otherwise, it will be a CE mark only. We have heard that from businesses in Northern Ireland through that stakeholder engagement, and that is what they have told us.

As explained previously, this draft instrument ensures the effective enforcement of the EU machinery regulation in Northern Ireland. It maintains access to the GB market for compliant products and supports high safety standards while minimising unnecessary burdens on business. This draft instrument also ensures our compliance with international law in relation to Northern Ireland’s continuing dual access. I am pleased to commend this draft instrument to the Committee.

[Jim Allister]

Will the Minister address my question about what impact, if any, there is on GB-Northern Ireland sales?

Employment Rights Act 2025: Implementation

Kate Dearden Excerpts

Tuesday 30th June 2026 Written Statements

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

The UK Government are today announcing further progress in the implementation of their landmark Employment Rights Act 2025, as part of the plan to make work pay. This update includes the launch of a public consultation on holiday pay compliance and enforcement, and three Government responses—detriments for workers taking industrial action, electronic balloting, and tipping. Further detail on each is provided in this statement.

As laid out in the “Implementing the Employment Rights” publication, we will not build a robust and growing economy through employment insecurity. Instead, we are building an economy based on fair competition between businesses, greater productivity in the workplace, job security for workers, and fair reward for hard work. The implementation of the Employment Rights Act is a vital step towards doing this, creating the best environment for doing business, maximising job security to raise productivity, improve skills and cut the costs of staff turnover. Meanwhile, offering opportunity and security for working people requires profitable businesses that are supported to invest and grow.

The Government have committed to delivering this change in partnership with businesses, trade unions, public sector employers, and civil society. That is why we are undertaking full and comprehensive consultation with these groups on key changes. By delivering this change together, we are backing businesses that do the right thing and giving hard-working people the job security and opportunities that they deserve.

Consultation 1: Holiday Pay Compliance and Enforcement

The Employment Rights Act enables the expansion of state enforcement to a wider range of pay rights, including holiday pay. The Government want to build a compliance and enforcement framework that is fair, proportionate and effective for both workers and employers. As a part of our framework, the right to holiday pay will, for the first time, be backed by state enforcement, with the Fair Work Agency promoting compliance, investigating non-compliance and taking enforcement action where employers fail to meet their obligations.

The Government will be consulting on the proposed approach to enforcing holiday pay from 2027, as well as consulting on a number of important design features and how the Fair Work Agency can support employers to comply with their obligations.

This consultation will be open for 12 weeks, closing on 22 September 2026.

Government Response 1: Detriments for workers taking industrial action

The Government believe that industrial relations should be conducted with integrity, fairness and mutual respect. Although it should always be treated as a last resort, if workers do choose to express their collective voice through industrial action, it is important that they are treated fairly and respectfully.

The Employment Rights Act introduced new legislation that provided protection for workers from detriments that employers might enact to penalise, prevent or deter them from taking industrial action. This legislation gave the Government the power to introduce secondary legislation to either prohibit all detriments, the Government’s lead option, or to create a prescribed list of prohibited detriments. A consultation ran between 26 February and 23 April seeking stakeholder views on these two options.

The Government response, published on 23 June, sets out that following this consultation the Government will be introducing regulations, coming into force in October 2026, that will ban all detriments and enable awards to be adjusted by up to 25%.

Government Response 2: E-balloting

The Government have been clear that trade union law must be brought into the 21st century. Under current legislation, almost all trade union statutory ballots must be conducted solely by post, which is outdated and risks limiting participation. We are therefore introducing electronic and workplace balloting for certain statutory trade union ballots in a phased approach. In this first phase, electronic balloting will be permitted for all ballots except statutory recognition and de-recognition ballots, while workplace balloting will be extended to industrial action ballots. This will make participation easier and will align with modern voting practices already used widely across political parties and listed companies, supporting the commitment we set out in our plan to make work pay.

To support the introduction of these new voting methods, we are also issuing a new statutory code of practice. The code will provide clear and detailed guidance on how electronic and workplace ballots should be conducted, giving all parties confidence that union ballots are carried out to a high standard.

A consultation on a draft of the code ran from 19 November 2025 to 28 January 2026, seeking views from employers, trade unions, scrutineers and workers to ensure that the guidance is clear, balanced and workable in practice.

The Government response to this consultation, published on 22 June, outlines the changes made to the draft code in the light of the feedback received. At the same time, the updated draft code of practice has been laid in Parliament alongside the necessary secondary legislation to enable electronic and workplace balloting. Both the code and the legislation will be subject to parliamentary scrutiny and will come into effect following approval by both Houses.

Government Response 3: Tipping

The Employment Rights Act strengthens the law, adding a requirement that employers must consult with their workers—if possible, via trade union or other elected workplace representatives—when developing or reviewing their written policy on tipping.

The Government ran a public consultation between 5 February and 1 April. We sought views from stakeholders about how best to implement the new requirements, to support worker participation in the distribution of tips, and enhance the voices of workers. We also sought views about any improvements to the existing statutory code of practice on fair and transparent distribution of tips, to ensure that it remains clear, helpful and effective for workers and employers.

The Government response sets out the feedback received during the consultation, and the changes to be made to the statutory code of practice. The new measures are expected to come into effect in October 2026.

Next steps for consultation

The Government continue to work in collaboration with a wide range of stakeholders to implement their reforms to workers’ rights at pace. Continued engagement with employer and worker representatives is critical to shaping the practical implementation of these plans, helping the Government to deliver reforms that are both effective and inclusive. The Government will continue to keep Parliament updated on the implementation of the Employment Rights Act and the plan to make work pay.

A further package of consultations and Government responses, to follow over the coming weeks, is expected to include a consultation on a new code of practice for fire and rehire, as well as Government responses regarding fire and rehire regulations, trade union access, trade union recognition, and a duty to inform.

[HCWS158]

Draft Employment Tribunal (Extension of Time Limits) (Miscellaneous Amendments and Transitional Provisions) Regulations 2026 Draft Employment Tribunals Extension of Jurisdiction (England and Wales) (Amendment) Order 2026

Kate Dearden Excerpts

Tuesday 23rd June 2026 General Committees

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

I beg to move,

That the Committee has considered the draft Employment Tribunal (Extension of Time Limits) (Miscellaneous Amendments and Transitional Provisions) Regulations 2026.

[The Chair]

With this it will be convenient to consider the draft Employment Tribunals Extension of Jurisdiction (England and Wales) (Amendment) Order 2026.

[Kate Dearden]

It is a pleasure to serve under your chairmanship, Sir Alec. These two instruments, alongside the amendments made by the Employment Rights Act 2025, extend the time limit for presenting claims to the employment tribunal from three months to six months across the majority of employment rights. The draft regulations apply to Great Britain, while the draft order applies to England and Wales. The changes will help to create a framework that is more consistent and accessible, and better aligned with the realities faced by workers and employers. I recognise that Members will be rightly concerned about the capacity of the employment tribunal and the wider dispute resolution system to adapt to this change, given the growing caseload. However, I make it clear that we fully understand the challenges and are already working on reforms focusing on making the system more effective, efficient and resilient.

The dispute resolution system taskforce was set up by the Department for Business and Trade and the Ministry of Justice last year. It comprises representatives from business, trade unions, legal organisations and third sector organisations. The taskforce is helping to inform our work to develop reform measures, which include short-term, targeted measures to reduce pressure on the system as well as forward-looking measures intended to increase the efficiency, effectiveness and resilience of the system. Those will follow a phased approach, with work on some measures currently under way. We will have further opportunities to discuss that work, but I will now turn to the two instruments on employment tribunal time limits.

The draft Employment Tribunal (Extension of Time Limits) (Miscellaneous Amendments and Transitional Provisions) Regulations 2026 are important because they ensure consistency with changes made by the Employment Rights Act and the current six-month time limit for statutory redundancy and equal pay claims. For many people, three months has proved to be a difficult window, and the short timeframe has led to rushed claims or, in some cases, people missing the opportunity to bring a claim altogether.

By moving to a six-month time limit, the regulations create a more realistic and fairer system that better reflects the realities people face, provides more time for disputes to be resolved without needing to go to an employment tribunal and supports fair access to justice. They give employees and employers more opportunity to engage with concerns early and, where possible, resolve disputes before they reach tribunal. The additional time, alongside the consistent approach to time limits across jurisdictions, will support employees to consider the merits of bringing a case to the employment tribunal, particularly in complex cases, as well as time to consider the legal costs and funding that may be required.

In practical terms, the regulations do this by updating a series of existing regulations so that the six-month time limit applies across a range of workplace rights that were not already amended by the ERA, including those relating to part-time workers, fixed-term employees, zero-hours workers, information and consultation and negotiating representatives, trade union blacklists and certain NHS-related protections. By bringing those time limits into line with a single six-month timeframe, the regulations support a clear and straightforward process.

The commencement date for the change is 1 October 2026. The new six-month limit will apply only to claims where the problem at work occurred on or after 1 October 2026. Any claims based on earlier events will continue under the current three-month time limit. That approach provides clarity and avoids disruption for cases already in progress.

The draft Employment Tribunals Extension of Jurisdiction (England and Wales) (Amendment) Order 2026 extends the time limit for bringing breach of employment contract claims by employees from three months to six months in England and Wales. The new time limit will apply only where the relevant employment contract is terminated on or after 1 October 2026. Claims relating to contracts terminating on earlier dates will continue under the current three-month time limit. The change ensures consistency by aligning breach of employment contract claims with the extended employment tribunal time limits introduced by the Employment Rights Act. The instrument applies to claims of this nature in England and Wales only and does not extend to Scotland, as the power to change the parallel Scottish legislation, the Employment Tribunals Extension of Jurisdiction (Scotland) Order 1994, lies with Scottish Ministers and not the UK Government. We are working closely with the Scottish Government so that the change will also be made in the parallel Scottish legislation. However, in relation to Scotland, the change is expected to take effect in mid-November. We will provide clear guidance to ensure that those based in Scotland are aware of this temporary discrepancy in the time limit for breach of employment contract claims.

Taken together, these instruments represent a sensible step forward by aligning with the changes to employment tribunal time limits in the Employment Rights Act. By creating a more realistic timeframe, improving consistency and supporting better-prepared claims, they help deliver a fairer and more workable system for all.

I commend the regulations and the order to the Committee.

--- Later in debate ---

[Kate Dearden]

I thank the shadow Minister for his remarks and my hon. Friend the Member for Congleton for a brilliant and well-made speech about why this legislation is so important.

Unfortunately, the shadow Minister conveniently missed out a couple of statistics in his opening remarks. I will start with the first one. Going back to historical statistics on the previous Government’s inability to fix and appropriately resource our employment tribunal, if we look at 2017 and 2018, the percentage increase year on year of the number of outstanding single cases reached a shocking 89%. From 2008 to 2018, the average time from receipt of a claim to the first hearing was stable at around 30 weeks. That increased to 49 weeks by early 2021. If we look at the stats published in 2023, employment tribunal delays had increased by 60% since 2010 due to resource shortages. I certainly do not want to go back to those targets, nor commit to them here today.

These measures are absolutely necessary because they recognise the reality that many people need more time to understand what has happened to them, seek advice and prepare their claim properly, as my hon. Friend the Member for Congleton outlined. By creating a more realistic timeframe, they will reduce the risk of a rushed or missed claim and support fair access to justice. At the same time, they will give employers greater opportunity to engage early to resolve concerns and avoid unnecessary employment tribunal claims.

The shadow Minister also asked what other work the Government have planned. I am sure he will welcome this update. He heard me refer to the dispute resolution system taskforce, which actually met this afternoon to progress that work at pace. I thank all members of the taskforce for their commitment and engagement so far to consider that longer-term reform. We are considering reform measures, from early resolution to enforcement, to ensure that the system is more efficient and resilient, and to make up for the lack of resource we saw under the previous Government.

In the shorter term, we are continuing to invest in recruitment to build employment tribunal capacity. New salaried employment judges will be sitting from this summer, and recruitment is under way for up to 55 employment judges, who will add capacity from 2027. Recruitment for up to 150 non-legal members will also conclude this year, which I am sure the shadow Minister will welcome.

The Government are also actively improving efficiency and productivity, including through virtual hearings to enable judges to hear cases remotely. Where local shortages arise, we are deploying legal officers to optimise limited judicial resource and centralised telephone support so that litigants get a consistently good service and so that tribunal staff can focus on case progression. We are also rolling out digital systems and piloting AI transcription to support employment tribunal performance.

We have talked about the impact of this legislation and why it is so important. Businesses will benefit from the increased time in which workplace procedures and conciliation can be completed. That creates an opportunity for disputes to be resolved before they even reach the employment tribunal, potentially reducing pressure on the employment tribunal system in turn.

The shadow Minister knows that we published an impact assessment setting out the impacts on both employers and employees. Although we expect that more claims could be brought to the employment tribunal, as he alluded to, he unfortunately missed out that the six-month time limit will give employers and employees longer to resolve disputes without needing to go to tribunal. We expect that the additional time to submit a claim will result in fewer claims being submitted late, thereby saving judicial time by reducing the resource spent on considering time limit extensions. It would have been good of the shadow Minister to reflect on that latter part, too.

Just as importantly, the instruments will bring greater consistency across the system, aligning time limits and making the process clearer and easier to navigate for everyone involved. These are measured reforms. They will ensure that the system works better in practice by being clearer, fairer and more effective. I therefore commend the statutory instruments to the Committee.

Question put.

Human Rights: Supply Chains

Kate Dearden Excerpts

Thursday 18th June 2026 Westminster Hall

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

It is a real pleasure to serve under your chairmanship, Mr Dowd. I join hon. Members in thanking you for chairing today’s debate at short notice.

I thank my hon. Friend the Member for Southgate and Wood Green (Bambos Charalambous) for securing a debate on this deeply important subject. He made some excellent points, particularly about how fundamental supply chain resilience is to our economic security, and the importance of the public sector procurement regime to ensuring that public bodies do not inadvertently support international labour and humanitarian abuses. He and the other Members here today continue to be excellent and thoughtful advocates on these matters, and I thank all colleagues for their important contributions.

Human rights are just that: they are fundamental, and they exist to protect us all. Infractions cannot be ignored or dismissed simply because they occurred far enough back in a supply chain for us to feel insulated and not responsible for supporting exploitative practices. Never has this issue been more important now that more than 70% of global trade runs through complex global supply chains. Although globalisation has driven productivity, innovation and technological advances that have lifted billions out of poverty and created the life that we depend on, it has also made supply chains more complex and opaque and has reduced the transparency and accountability that consumers, retailers and the Government need to protect workers and the natural world from exploitation.

Members have rightly drawn attention to the egregious human rights abuses that come with forced labour. In 2026, more than 27 million people remain in the shackles of modern slavery across all six inhabited continents, often enduring imprisonment, abuse and coercion, and being exploited for profit. As we approach the 200th anniversary of the Slavery Abolition Act 1833, which abolished slavery in much of the British empire, it is right that I reaffirm this Government’s commitment to tackling this vile practice, which continues to generate nearly £176 billion in illegal profits each year, in all its forms, including non-payment or underpayment of wages, excessive working hours and unsafe working conditions. There is also clear evidence of severe environmental harm in our global supply chains, as we lose the equivalent of 11 football pitches of tropical rainforest every minute, and threaten nearly 1 million animal and plant species with extinction.

As we have heard, the UK has a proud record of pioneering global advances to support human and workers’ rights. We put this issue on the international stage with the Modern Slavery Act 2015, which the hon. Member for Bognor Regis and Littlehampton (Alison Griffiths) spoke about. That legislation was world leading and crucial in solidifying our place as a global leader on this issue. For the first time, businesses were made to report how they tackled the modern slavery that might be present in their supply chains. However, as Members have rightly said, although the Modern Slavery Act was world leading at the time, it is now more than a decade old and in need of review if we are to tackle the many violations that still occur globally.

Although many UK businesses respect human rights and the environment throughout their supply chains, unethical international violations undercut the vast majority of UK businesses that support fair international supply chains. That will only increase as geopolitical, industrial and technological shocks continue to transform how and where goods are produced and extracted. That is why we must take a more strategic approach by working with our global allies and trading partners to secure forced labour provisions in our free trade agreements, and by using the developing countries trading scheme to suspend preferential trading arrangements on the ground of serious violation of labour rights.

As my hon. Friend the Member for Southgate and Wood Green noted, I travelled last week to the 114th International Labour Conference in Geneva, where I met trade union delegations and labour and employment Ministers from across the world, alongside some of the most significant manufacturers, extractors and business hubs. This issue is close to my heart, and I worked closely on it before I was elected to this place. Last week, we talked a lot about the work we are proudly doing in Government on the Employment Rights Act and the domestic agenda, and I thank Members for raising that today. We are clear that a collaborative, holistic and cross-border approach is the only way to drive the change that exploited workers and environments need, alongside our recognition of other international transitions from voluntary to mandatory measures, such as human rights and environmental due diligence laws.

In the trade strategy, the Government underlined how responsible business conduct is a positive part of our mission to grow the economy, and we launched a review of our approach to responsible business, focusing on the global supply chains of businesses operating in the UK. It is an evidence-based review of our policy framework and alternative measures to enhance it, including mandatory human rights and environmental due diligence measures and forced labour bans. It naturally also considers the approaches of our international trading partners and the best way to promote a co-ordinated approach that minimises costs, consistent with the Government’s commitment to reduce the administrative costs of complying with regulation by 25% over the course of this Parliament.

So far, we have engaged with more than 200 organisations through the review, including businesses, investors, civil society, trade unions and academic institutions. We have learnt from international partners and met communities affected by supply chain harms. I heard many hon. Members stress the need for urgency today, and I reassure them that we will update Parliament on the review in due course. I thank Members for raising that pressing issue, and we will of course work closely with all those at the debate today.

[Sir Iain Duncan Smith]

Could we get a commitment today that the Government will look carefully at what countries that are well in advance of us, such as the United States and some European countries, are doing, to make sure that we urgently get on to resolving this issue, rather than delaying with another review and more debates? We know what needs to be done, and surely we can get on with it pretty quickly.

[Kate Dearden]

I thank the right hon. Member for that and his contributions today. I reassure him that we are working closely with the US on the review, updating the Americans on all the work we are doing and understanding their practices too. I will turn soon to the other important points he raised throughout the debate.

My right hon. Friend the Member for Hayes and Harlington (John McDonnell) highlighted our work with the Treasury as part of this review, and I thank him for that. We are doing the review economy-wide, and as well as working with the Treasury, we have engaged with investors. We will of course keep him updated, as I know he is interested in—indeed, passionate about—this subject.

We took another key step in the trade strategy by launching the Office for Responsible Business Conduct to provide UK businesses, trade unions and charities with a simpler route to compliance, supporting the integration of responsible business practices and helping victims of corporate malpractice by providing a non-judicial grievance mechanism. Alongside the broader RBC review, we are considering how to strengthen the section 54 transparency regime, which lots of Members mentioned today—I thank them for it—including mandatory reporting requirements that extend to the public sector and penalties for non-compliance. We published updated statutory guidance on transparency in supply chains in March 2025, calling on businesses to go further and faster.

I thank the Liberal Democrat spokesperson, the hon. Member for Harrogate and Knaresborough (Tom Gordon), for his contribution today, his work in the Joint Committee on Human Rights and his engagement in and focus on this vital issue. I mentioned our work and relationship with the US. I hope that he is reassured by those comments and by our continued and regular engagement with the US Administration as part of our negotiations.

As a proudly internationalist and pro-worker Government, we have a responsibility to remain a world leader in tackling modern slavery, clearances and human rights abuses wherever they rear their ugly head. The Government stand firm on human rights, including in Xinjiang, where China continues to persecute and arbitrarily detain Uyghurs and other predominantly Muslim minorities. Lots of Members raised that, and I thank them for it. I hope they know that we raise these concerns with China at the highest levels. That was done recently by the Prime Minister himself and the former Foreign Secretary. We continue to co-ordinate efforts with our international partners to hold China to account—for example, by joining a UN statement in October 2024 and co-signing a joint statement with the US and others in November 2025.

I respect the work done by the right hon. Member for Chingford and Woodford Green (Sir Iain Duncan Smith) and thank him for his consistency in raising this issue today and outside the House. He also spoke about GB Energy, as did the shadow Minister. As a publicly owned energy company, GB Energy is of course expected to demonstrate leading practice in complying with the UK modern slavery legislation and aligning with the UN guiding principles on business and human rights. We have established an ethical supply chain advisory group to review and inform GBE’s approach to ethical supply chains in its investments and operations; its chair is Baroness O’Grady. Representatives of my Department will serve on that group, and it meets for the first time next week, which I am sure the right hon. Member will welcome.

We must continue working with our international counterparts, and key stakeholders across the international trade union movement and business community to take action against those who illegally destroy families, communities and our natural world for profit. As Members have outlined, this action cannot be singular or a patchwork of separate policy decisions. Only co-ordinated, root-and-branch decisions will enable our constituents to know that they can trust that the T-shirt they are wearing, the bag they are carrying and the food they are eating did not arrive in our country at the expense of exploited people and areas thousands of miles away. Delivering that confidence for British people is good for business and good for growth, and re-cements our position as a world leader on these matters.

I again thank all right hon. and hon. Members for their contributions. We look forward to working closely with them on the review and more widely to ensure that we continue to focus on this issue, which is a priority for our Government. I will end, Mr Dowd, by wishing you a very happy birthday for Saturday and thanking you again for chairing the debate.

Employment Right Act Implementation: Unpaid Carers and Time off for Public Duties Consultations

Kate Dearden Excerpts

Tuesday 9th June 2026 Written Statements

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

Once implemented, the Employment Rights Act 2025 will raise the minimum floor of employment rights, raise living standards across the country and level the playing field for those businesses who are engaged in good practices. There are clear, evidence-based benefits of Government action through the Act. Not acting would mean a continuation of the current issues within the labour market: poor working conditions, proliferation of insecure work, growing inequalities, and fractious industrial relations.

Over 18 million employees will benefit from new protections, but it will be those who are lowest paid in the labour market, in sectors such as social care, hospitality and retail, that will benefit most. Our analysis, using UK and international evidence alongside economic modelling, finds that the Act will help boost employment, and improve job quality and productivity, while having a positive direct impact on economic growth.

Our latest delivery timelines demonstrate this Government’s commitment to delivering these reforms at pace, while giving businesses and workers time to get ready. April 2026 saw the delivery of significant changes that workers will now benefit from, including:

Strengthened rights to statutory sick pay, including expanding eligibility to up to 1.3 million of the most vulnerable workers who previously earned below the lower earnings limit and making it available from the first day of illness rather than the fourth day, meaning workers do not need to choose between working and getting better, improving workplace productivity and reducing the spread of infections in the workplace.

The introduction of day one rights to paternity leave and unpaid parental leave, ensuring new parents are able to spend time with their families.

The launch of the Fair Work Agency, a new body that brings together the patchwork of state enforcement of workers’ rights in one place, with plans to further expand its remit.

This week the Government will publish two consultations to continue our work in delivering these changes for all. Further details are outlined below. Today we are publishing a consultation on the employment rights of unpaid carers, and on 12 June a consultation on time off for public duties.

Consultation 1: Unpaid carers

Unpaid carers play a vital role in supporting their loved ones, and this Government recognise the enormous contribution they make to their families and communities, and to wider society. We are aware that too many unpaid carers struggle to combine work with their caring responsibilities. In the plan to make work pay, we committed to reviewing the implementation of the Carer’s Leave Act 2023 and examining the benefits of paid carer’s leave, while being mindful of the impacts on businesses. We set this out in more detail in November 2025 through our terms of reference for the review of employment rights for unpaid carers.

To build on the work of the review so far, we are launching a consultation that seeks views on whether there is more that Government should do. It considers several approaches such as improvements to guidance and communications, and new statutory leave entitlements for unpaid carers. It also asks questions on support for parents of seriously ill children in recognition of the acute challenges that arise for families following a diagnosis of serious or life-threatening illness during childhood, as we committed to do during the passage of the Employment Rights Act.

We will analyse all consultation responses and wider evidence as part of the ongoing review before deciding whether any further interventions are needed.

This consultation will be open for 12 weeks, closing on 1 September 2026.

Consultation 2: Time off for public duties

The Employment Rights Act 2025 set out the Government’s commitment to reviewing the list of public duties in section 50 of the Employment Rights Act 1996 for which individuals are entitled to time off work, with consideration of special constables. The aim of the review was to ensure the list of public bodies and offices that individuals can take time off work to undertake remains fit for purpose and continues to support the effective functioning of modern public services.

The review found that the list of public duties would benefit from updates to reflect changes to public services, governance structures and devolution arrangements. The list also places insufficient emphasis on locally rooted roles linked to community governance and representation. Therefore, these targeted changes are proposed to modernise the entitlement:

Special constables should be entitled to time off under these provisions;

People carrying out eligible public duties with a clear local focus should gain the right to reasonable time off; and

People carrying out public duties for certain national public sector organisations should no longer be entitled to time off work.

Insights drawn from the consultation will help shape the future of this important entitlement and possible legislative changes, ensuring it continues to serve the public interest.

This consultation will be open for 12 weeks, closing on 4 September 2026.

Next steps for consultation

This package of consultations sets out the next steps in delivering our plans. They are critical to shaping the practical implementation of this legislation, helping the Government to deliver reforms that are both effective and inclusive. It is in everyone’s interest to get the relationship between employer and worker right. The Act is the first phase of delivering our plan to make work pay, supporting employers, workers, and unions to get Britain moving forward. The Act will support the Government’s mission to increase productivity and create the right conditions for sustainable, inclusive, and secure economic growth. The Government have further plans for both consultation and the release of Government responses over the coming months and will continue to update Parliament appropriately.

[HCWS100]

Seasonal Hospitality Businesses in Coastal Areas

Kate Dearden Excerpts

Wednesday 3rd June 2026 Westminster Hall

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

It is a pleasure to serve under your chairmanship, Mr Stuart. I congratulate the hon. Member for Isle of Wight East (Joe Robertson) on securing this important debate on Government support for seasonal hospitality and leisure businesses in coastal areas. I thank all hon. Members for talking about businesses in their communities and constituencies. I could really hear their passion as they championed their local areas and businesses.

The debate is important because the sectors are important. They provide accessible jobs, drive tourism and generate significant economic activity. They support local economies, particularly in coastal and seaside communities, where tourism, hospitality and leisure form the backbone of economic activity. They support wider social objectives, creating vibrant places where people want to visit, work, live and invest.

Creating the economic and social environment that hospitality and leisure businesses need to thrive cuts right across Government. Members have raised so many issues that cut across the responsibilities of many Departments, and I thank them for that. Co-ordinated action from the Department for Businesses and Trade and myself, the Department for Culture, Media and Sport; the Ministry of Housing, Communities and Local Government, the Home Office and His Majesty’s Treasury is required to ensure that the great British seaside has a secure and prosperous future.

That is especially important when many coastal communities are entirely dependent on hospitality and leisure businesses to provide the vast majority of employment and opportunity for local people. They prop up the vital local government services that residents rely on, too. These businesses are not simply part of the local economy; they are the local economy.

[Luke Myer (Middlesbrough South and East Cleveland) (Lab)]

Last year, I worked with some of the businesses in my coastal community to develop a local economic growth plan. Would the Minister meet me to discuss that plan and some of the policies that we would like to see?

[Kate Dearden]

I am always happy to meet my hon. Friend and his brilliant local businesses. I thank him for his intervention.

I regularly meet local businesses from across the hospitality sector, and I hear at first hand about the pressures that seasonal and coastal operators face. I recognise the importance of hospitality businesses in our coastal communities. I have been delighted to meet many hon. Friends representing coastal towns and cities to understand the challenges that hospitality and leisure businesses in their constituencies and across the UK face.

I recently spent the day visiting Blackpool with my hon. Friend the Member for Blackpool South (Chris Webb) to meet business owners, workers and residents who have come together to extend their peak season and reduce the structural issues of operating seasonally. Visiting in April came with a breeze, but that was never going to stop the magic of going up Blackpool tower, having delicious fish and chips and talking all things hospitality. I thank my hon. Friend for his hospitality on that day. It was particularly useful to meet those leading Blackpool’s tourism sector who are using hospitality as a launch pad for social mobility, high-quality employment and local regeneration.

It is clear, both in Blackpool and across the UK, that future-proofing our coastal communities is only possible by developing those strong partnerships between public, private and third sector organisations. I have taken the learnings from meetings with colleagues and from contributions to the debate, and I will continue to do so with my colleagues across Government. I assure hon. Members that I will work with them and their communities to continue to deliver for coastal towns and communities.

I thank hon. Members for raising the issue of business rates with me on numerous occasions on behalf of businesses in their constituencies. Members will know that we have introduced permanently lower business rates multipliers for eligible retail, hospitality and leisure properties. I know that the Conservative party put temporary relief in place, so it is right that we give businesses permanent relief. We did not think that was right, which is why we stepped in and made our announcements. In addition, we have provided support to pubs and live music venues.

[Jim Shannon]

I thank the Minister for her replies to all our questions. We need to encourage more people from the United Kingdom of Great Britain and Northern Ireland to take home holidays. Looking at all the problems across the world, we should encourage our own people to have their holidays at home. Does the Minister think that that is a good idea?

[Kate Dearden]

I am always happy to hear suggestions of how we can do things better and raise awareness of the support that is available. I am really happy to take the hon. Gentleman’s points on board, and I thank him for them.

We will ensure that the business rates system better reflects the realities faced by businesses in the visitor economy. As part of that, the Government are committed to reviewing the methodologies used to value pubs and hotels and will, if necessary, make changes at the next revaluation to ensure valuations accurately reflect the rental market for these properties. Unfortunately, the Conservative party did not take that approach, but we will. We have worked with businesses since we came into government, and will do so in the coming years, to get that right.

On labour costs and workforce models, I recognise the concerns about the potential impact of changes to employment rights on businesses that rely on seasonal and flexible staffing. We have talked about that topic at length, and I thank the shadow Minister for raising it today. It is important that we get the balance right to support workers while ensuring that businesses can continue to operate and create opportunities, which is why we will consult closely with businesses, trade unions and workers over the coming months to understand the impacts in full.

I recognise the strength of feeling a number of hon. Members expressed on such proposals as the overnight visitor levy. As they will know, those powers have been devolved to local metro mayors, and although many have already clarified how they plan to use them, all measures that may be introduced will be subject to consultation with local stakeholders, including hospitality and leisure business owners and advocacy groups.

Members will know about the wider support measures the Government are taking, from our small business strategy to make sure that we create the conditions for short-term resilience and long-term growth, to raising the employment allowance, replacing the apprenticeship levy with the new growth and skills levy, tackling late payments and reviewing the licensing system, alongside our upcoming high street strategy.

[Ben Lake (Ceredigion Preseli) (PC)]

I extend to the Minister a warm invitation to visit the wonderful Ceredigion Preseli coastline in the summer. We have heard much mention this afternoon of a possible reduction to the rate of VAT for hospitality and tourism businesses. Would the Government consider that? It would give many hospitality businesses not only a hope of survival but confidence that they might be able to invest in their businesses.

[Kate Dearden]

I would have a busy diary if I said yes to everyone in the room, but I will take the hon Gentleman’s kind invitation away with me. He will know about our recent announcements on boosting summer demand, delivering temporary and targeted VAT cuts for family-focused hospitality and leisure businesses, alongside our wider cost-of-living support measures. Those are really important, because when money is back in people’s pockets, they can spend and support our local high streets and brilliant hospitality businesses. As he will know, the Government keep all taxes under review as part of the policy-making process, and the Chancellor will announce any changes to the tax system at fiscal events, in the usual way.

I will finish on the high street strategy before moving on to further points that were raised by Members. We are delivering more than £150 million to turn the tide on the challenges and pressures facing our high streets, including those in the coastal communities that need it most. Getting those back to being the proud economic hubs of towns and villages is really important; once again we want to see thriving businesses and communities, and a true sense of pride in place. The Government will shortly publish our visitor economy growth strategy, which will establish an ambitious, long-term plan to increase visitor flows, boost value and deliver sustainable growth for the entire UK, including our coastal and rural communities.

Supporting growth in hospitality and leisure sectors through both tourism and skills is absolutely essential to the Government’s approach. This debate has reinforced the importance of tourism as a driver of economic activity in coastal communities. Visitor spending support jobs, sustains local businesses and underpins the vitality of many seaside towns. That is essential, and will maintain the UK’s position as a competitive and attractive destination, while ensuring that local areas have the tools that they need to support sustainable growth.

As has been mentioned, hospitality and tourism sectors also play a crucial role in providing accessible employment, particularly for young people and those entering the labour market. As colleagues may know, my first job was in hospitality—that was the route that I started on, as it was for many Members here today and across the House. It gives skills for life. That sector is valuable for young people: it is the third largest employer in the UK, with 3.6 million people working in the sector, and plays a crucial role in providing those jobs. Given that nearly 40% of the wider visitor economy workforce is aged 16 to 24, the sector will play a key role in the Government’s plan to reduce the number of young people not in education, employment or training. If I had more time, I would talk to hon. Members about the youth guarantee, national insurance relief for those under 21 and those under 25 in apprenticeships, and so much more that we are working on through Skills England and the apprenticeship levy.

Only two minutes of the debate are left and I know that the hon. Member for Isle of Wight East will want to wind-up shortly, so to conclude, we recognise where we can further support different communities all across our economy. That is why we have, for example, significantly increased the hospitality fund. That will provide lots of opportunities to help rural areas in particular, and I am keen to work closely with colleagues on that. It will be £10 million over the next three years, which is significant funding. I assure Members and industry that this Labour Government recognise the importance of hospitality and leisure businesses, and we will work closely with them and colleagues across Government to do so. As the proud Minister with that responsibility, I assure them that I will work tirelessly in the time ahead to represent sector interests, including those of businesses at the heart of our coastal communities.

General Strike Centenary Commemorations

Kate Dearden Excerpts

Wednesday 3rd June 2026 Commons Chamber

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

I congratulate my hon. Friend the Member for Birmingham Northfield (Laurence Turner) on securing this debate on commemorations for the centenary of the 1926 general strike—a moment in our nation’s history that is not always recognised as I believe it should be.

I thank Members across the House for their moving contributions about the background, events and impacts of the strike. My hon. Friend’s brilliant contribution painted an evocative picture of those events and the particular experience in Birmingham. He reminds us that what this Labour Government are trying to achieve in protecting and strengthening rights in the workplace is a case of not only unpicking recent anti-worker legislation, but building on the struggles and sacrifices of previous generations who were often fighting against brutal tactics by their employers and the Government. While he is right that many of the questions he posed are for a different debate, I hope that I can start to answer some of them today by outlining the Government’s approach to workers’ rights in the 21st century.

As we have heard, the general strike was called by the TUC on 3 May 1926 in response to 1 million coal miners being locked out of their mines by owners who wanted them to work longer hours for less money. This was against a backdrop of declining wages, the severe dangers of working underground, and difficult economic conditions in the aftermath of the first world war.

In solidarity with the demands of the miners, more than 1.7 million workers took strike action from industries including bus, rail, printing, gas, electricity, building, iron, steel, chemical industries and the docks.

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

I just want to add to that list the 19,000 members of the National Society of Pottery Workers, which now forms part of the GMB, who, even when the strike ended, still found their jobs at risk because the supply of coal was not available to power the kilns. The local community came together at the time to form solidarity and support committees to ensure that the workers’ families were fed while alternative sources of coal were being found. I think the Minister would agree that that is a testament to the strength and power of the solidarity of the labour movement when it comes to supporting not just the workers but the families of those workers as well.

[Kate Dearden]

I thank my hon. Friend for that important intervention. I will come on to exactly that point about the importance of solidarity.

The next nine days became the largest expression of worker solidarity in British history. Some of the strongest support for the strike was found in industrial heartlands, such as the area that my hon. Friend the Member for Birmingham Northfield represents, where unions had a strong presence. Those areas included south Wales, the midlands and northern constituencies like mine of Halifax, where 10,000 people attended a mass meeting in Savile Park on 9 May 1926 to support the strike. The trains stopped running, and the Halifax Courier, itself impacted by some of its workers joining the action, reported that even the clock at Halifax station stopped ticking during the strike. This was a pattern experienced across the country: public transport stopped, newspapers could not be printed, and many parts of the economy stood at a standstill.

The Government responded with emergency measures to break the strikes, deeply dividing the country. After nine days, the TUC called off the strike action, though the miners continued their struggle for several months, with many returning to work, though on worse conditions than before.

[Emma Foody]

I wonder if the Minister will indulge me in paying tribute to a particular striking miner who was born in Hirst in the constituency of my hon. Friend the Member for Blyth and Ashington (Ian Lavery). His name was Robert Wallace Pringle. He was one of the striking miners, and he died the following year in a horrendous accident as an assistant lamplighter, after catching on fire as a result of the fuel-soaked rags. He was my great-grandfather, and I wanted to take this opportunity to get his name on the record.

[Kate Dearden]

I sincerely thank my hon. Friend for bringing that story to the House and commemorating the memory of her family member. What an incredible story to share with the House.

Although the strike did not achieve its immediate aims, it became a defining moment for the British labour movement. For many workers, it was a stand against falling living standards and a system that was stacked against them. The strike brought workers from across different industries together to demand a fairer deal.

The events of 1926 changed the relationship between workers, employers and the Government, helping to shape the labour movement for the next century. It reinforced the importance of trade unions as a collective voice for workers and sparked debates about workers’ rights, industrial relations and the role of the state. Those debates, as we have heard, continue to this day.

Over the decades since 1926, union campaigning and collective action have secured many of the rights that people now rely on at work, from paid holidays to safer workplaces, protections against unfair dismissal, maternity and parental rights, and the national minimum wage. Those gains were not inevitable; they were the result of workers organising together and demanding change.

One hundred years on, it is clear that many workers in this country feel, as they did back in 1926, that the system does not work for them. After 14 years of Tory austerity and attacks on rights in the workplace, I understand why so many people feel angry and left behind. That is why this Labour Government are working to change that. Our plan to make work pay has brought employment rights legislation into the 21st century, ensuring that workers are paid fairly, have secure work and are protected from discrimination and harassment, extending the protections that many of the best British companies already offer their workers.

My hon. Friends will know that we will not build a robust and growing economy by rewarding the minority of businesses that offer insecure work and predatory environments; instead, we must build an economy based on job security for workers, fair pay for hard work and fair competition between businesses. That is the path to greater productivity in the workplace and our wider economy.

The Employment Rights Act 2025 is the first phase of delivering our plan to make work pay, supporting employers, workers and unions to get Britain moving forward. Alongside the new industrial strategy, the Act supports this Labour Government’s mission to increase productivity and create the right conditions for long-term, sustainable, inclusive and secure economic growth.

For too long, employment rights legislation has only protected some of our workforce—not all. The Act changes that, delivering stronger rights, greater fairness and more security for more than 18 million more people, providing a new baseline of protection from sexual harassment, strengthening statutory sick pay, introducing the right to guaranteed hours, tackling fire-and-rehire and reversing previous Governments’ laws that restrict workplace democracy.

As a lifelong trade unionist, I am proud that this Government champion the vital work of unions in protecting and representing workers across the country, ensuring that they are listened to, supported and heard. By tearing down barriers to trade union activity and ensuring that industrial relations are carried out in good faith, the Government are empowering working people to organise collectively, helping to settle disputes and secure a fair deal in their workplace.

As part of that, the Act repeals the majority of the Trade Union Act 2016 and the entirety of the Strikes (Minimum Service Levels) Act 2023, undoing the Tories’ damage to our workers and our economy. By simplifying the statutory trade union recognition process, strengthening trade unions’ rights of access to workplaces and introducing a duty on employers to inform all new employees of their right to join a union, we are enabling unions to recruit and organise.

We are also delivering new rights and protections for trade union representatives, alongside tackling the illegal blacklisting of trade union members through predictive technologies. This is the biggest increase in trade union and collective rights in a generation, but we know that legislative change alone is not enough; we need attitudes to change, too. That is why we are committed to introducing a new framework for industrial relations, setting out the Government’s vision for a new approach: one that is fit for the challenges of the 21st century, based around the principles of collaboration, proportionality and accountability, and which balances the interests of workers, businesses and the wider public.

My hon. Friends posed questions and raised some important points in the debate. I thank my hon. Friends the Members for Cramlington and Killingworth (Emma Foody) and for Blyth and Ashington (Ian Lavery) for raising the issue of the Cramlington derailment of the Flying Scotsman. I know that the memory of the incident still inspires strong feelings in the region, and there will be a range of opinions on how that memory should be marked. I pay tribute to the Cramlington community hub in the constituency of my hon. Friend the Member for Cramlington and Killingworth, which has done some brilliant work in commemorating the incident. My hon. Friend the Member for Blyth and Ashington mentioned pardons, and I direct him to the process to submit a petition to be considered by the Ministry of Justice.

Once again, I thank my hon. Friend the Member for Birmingham Northfield for bringing this important debate to the House and allowing parliamentary time to commemorate the events of the general strike. Many Members who were unable to make the debate have shared their stories with me, as I am sure they have with other Members in the Chamber. We must never forget these important parts of history, and we must take the time to reflect on how we can work across Government, industry and the union movement to deliver a stronger, fairer future for working people.

Question put and agreed to.

Reform of Zero-hours and Similar Contracts

Kate Dearden Excerpts

Tuesday 2nd June 2026 Written Statements

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

Our plan to make work pay will modernise our employment rights legislation, extending the employment protections already given by the best British companies to millions more workers across the country. Strengthening this underlying framework will help build an economy based on fair competition between businesses, greater productivity in the workplace, job security for workers, and fair reward for hard work.

We are taking a phased approach to engagement and consultation on these reforms. This will ensure all stakeholders have the time and space to work through the detail of each measure and to help us implement them in a way that works for both workers and employers.

Following the April launch of consultations on non-disclosure agreements and a new code of practice for trade union access, alongside the establishment of the Fair Work Agency and the introduction of a number of measures that give new rights to working people, we are today launching a consultation on reforms of zero-hours and similar contracts. Alongside a programme of direct stakeholder engagement, these consultations will support us in determining how best to put our plans into practice.

Overview of consultation

The consultation on “Ending one-sided flexibility—reforms of zero hours and similar contracts” sets out three clear Government objectives: increasing the baseline of security and stability for workers, rebalancing labour market flexibility and fostering sustained economic growth. The consultation includes three parts.

Part 1 seeks views on key details to be defined in regulations for the right to guaranteed hours for directly engaged and agency workers which will affect eligibility, record-keeping needs and other practical considerations. These details include:

The hours threshold. To be in scope of the right to guaranteed hours, workers must have worked during the reference period for their employer on a zero-hours basis, or have a number of hours guaranteed in their contract already that is below an hours threshold to be specified in regulations—in which case they must have worked in excess of those guaranteed hours.

The length of initial and subsequent reference periods, and the timings of subsequent reference periods. Employers will be required to make a guaranteed hours offer to a qualifying worker that reflects the number of hours they worked during a reference period.

The Government’s preference is for the initial reference period to be 12 weeks long. Subsequent reference periods could be of a different length.

The definition of “temporary need”. This affects the circumstances in which employers can make a guaranteed hours offer on a limited-term basis, and may be important to employers facing seasonal demand.

The way that a guaranteed hours offer is calculated to reflect hours worked.

Any exemption from the right to guaranteed hours, which could apply in specific circumstances.

Part 2 seeks views on details to be set out in regulations for directly engaged and agency workers in relation to new rights to reasonable notice of shifts and changes to shifts, and payment for shifts cancelled, moved, or curtailed at short notice. These details include the scope of the measures; the length of notice to be presumed reasonable and the factors determining reasonableness; how to define short notice for the payment right and how the payment should be calculated; any exceptional circumstances where employers and hirers should be exempt from the new duties; and potential enforcement of short notice payments by the Fair Work Agency. Through consultation and engagement we also seek to understand better the potential impact of the measures on administrative costs to employers.

Part 3 seeks views on whether to amend the Conduct of Employment Agencies and Employment Businesses Regulations 2003 to require relevant entities to share information to support compliance.

Next steps for consultation

This consultation will close at 11.59 pm on 25 August 2026. We have planned an extensive series of meetings during the consultation period with bodies representing employers and workers, including in the key sectors affected. Following the closure of this consultation we will analyse the responses and consider the views expressed and representations made, before publishing a Government response and making regulations in due course.

[HCWS74]

Oral Answers to Questions

Kate Dearden Excerpts

Thursday 21st May 2026 Commons Chamber

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

2. What recent discussions he has had with the Secretary of State for Culture, Media and Sport on the role of the Competition and Markets Authority in the resale of tickets for sporting and cultural events. [R]

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

I welcome the keen interest in this issue that my hon. Friend has shown. I and my officials have regular discussions with the Department for Culture, Media and Sport, including on the publication of the draft secondary ticketing Bill in the second Session of this Parliament. Consumer enforcement is a key strand of that work, and the CMA is the UK’s main consumer enforcer. As such, we have naturally discussed its important role in the ticketing ecosystem and consumer protection more broadly. In addition, last week the Government introduced the Sporting Events Bill. This will make the unauthorised resale of tickets for major sporting events that meet the conditions in the Bill a criminal offence.

[Dr Huq]

Ending ticketing scandals was a manifesto pledge prompted by the Oasis surge-pricing scandal, but it appears only in draft form in the King’s Speech. Peak gig-going season is upon us—maybe even for you, Mr Speaker, with your Motown habit—as is a cost of living crisis. [Interruption.] We all know about it and love you for it, Mr Speaker.

[Dr Huq]

Indeed—reflections of you. Will Ministers meet me to discuss the solution? My meticulously researched, widely backed ballot Bill from 2024 is ready-made and ready to go. It deals with this issue by among other things banning the bots that hog tickets for resale, so that we can stop this rip-off without delay.

[Kate Dearden]

I thank my hon. Friend for her work on this issue; I know that it has been close to her heart for many years. That is why we have committed to publishing a draft secondary ticketing Bill, as set out in the background to the King’s Speech. That shows our continued commitment on the issue and we are pressing ahead on work that will allow us to legislate as soon as parliamentary time allows. The benefit of the draft Bill is that it will allow scrutiny from parliamentarians and sector experts to ensure that we are getting the approach right. I thank her and hope that she can hear my commitment today.

[Chris Law (Dundee Central) (SNP)]

As artists and songwriters gather today for the Ivor Novello awards, fans across the country are still being ripped off by ticket touts, despite the Prime Minister’s promise to act “as soon as possible”. It is incredibly disappointing that the Government have proposed only a draft ticket tout ban Bill in the King’s Speech. Does the Minister accept that any further delay simply benefits those touts and secondary ticketing platforms, and will she give us a date for when proper legislation will be brought forward to protect fans?

[Kate Dearden]

The hon. Member will know that since the Government published our response to the consultation on the resale of live event tickets, we have been working tirelessly to prepare new measures—exactly to his point—to tackle those ticket touts who take advantage of real fans who want to see their favourite bands and artists. That is why the next step is to introduce a draft Bill in this Session. That will enable parliamentary scrutiny and allow us to draw on the expertise of key stakeholders to ensure that our legislation is truly effective and enforceable, because a well-functioning ticket resale market can play such an important role in enabling those who cannot attend an event to give someone else the opportunity to go in their place.

[Mrs Elsie Blundell (Heywood and Middleton North) (Lab)]

3. What recent discussions he has had with Royal Mail on the adequacy of its service levels in Greater Manchester.

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

5. What steps he is taking to support pubs in Broadland and Fakenham constituency.

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

Pubs such as The Crown and the Running Horse in the hon. Member’s constituency are a real asset, bringing people together and supporting community life. They are now benefiting from a 15% reduction in their business rates bill, with bills frozen in real terms for a further two years. Around three quarters of pubs will see their bills stay the same or fall, saving the average pub around £1,650 this year. Going even further, the Government are launching a review of how pubs are valued for business rates. The hospitality support fund has been increased to £10 million, to support businesses, including pubs, to invest, grow and remain resilient.

[Jerome Mayhew]

Pubs in my constituency will respond to that answer with disbelief. There were 74 pubs in my constituency at the last count—that may be an inaccurate figure now; it could have dropped—employing roughly 2,000 people, and on top of that there are cafés such as the Heydon Village Tea Room. They tell me that they are being crucified by the Government’s policy of the jobs tax, the removal of business rates relief and the business rates revaluation, and to top it off there is now talk of an overnight levy for pubs with rooms. Why do the Government not want pubs and hospitality to thrive in Broadland and Fakenham?

[Kate Dearden]

We absolutely want pubs and our hospitality sector to thrive. They are the backbone of our communities and often provide people’s first job. That is why they are so vital to our high streets, to the hon. Member’s constituency and to our local communities. As he will know, pubs in particular have been under huge pressure in recent years. Their numbers have fallen by nearly 7,000 since 2010—a roughly 15% reduction and among the highest across hospitality overall. That is why, since April, every pub and live music venue will have 15% off their new business rates bill, on top of the support announced at the Budget. We know that we continuously need to support our pubs and the wider industry. That is why I work really closely with the Hospitality Sector Council and with publicans and pubs all across the country, to understand how we can better support them, and I will continue to do so.

[Laurence Turner (Birmingham Northfield) (Lab)]

6. What progress his Department has made on implementing the Employment Rights Act 2025.

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

My hon. Friend was an advocate for such legislation long before it was introduced in the House last year. I know how passionate he is about our wider Make Work Pay agenda, as I am too. The Employment Rights Act 2025 is bringing employment rights legislation into the 21st century. We have already repealed burdensome trade union legislation, strengthened statutory sick pay, introduced day one rights to paternity leave and launched the Fair Work Agency. We are implementing the Act over a two-year period and consulting widely with business organisations, trade unions and civil society, to ensure we get the details right and provide the support people need.

[Laurence Turner]

I draw attention to my membership of the GMB and Unite trade unions, and I welcome and acknowledge the Minister’s firm commitment to this area. The Department recently published its response to the trade union right of access consultation. Capping fines at £500,000 equates to a potential liability of 0.02% of operating profits for Amazon’s warehousing operations, but up to 20% of the surplus of a medium- sized trade union. We must get this right. How does disproportionate liability achieve the Government’s aim of creating a workable right in the minority of cases involving very well-resourced and hostile employers?

[Kate Dearden]

The legal framework for the right of access in the Employment Rights Act 2025 provides an enforcement mechanism that applies to all parties involved in an access agreement. The Government are clear that the enforcement mechanism must be fair, proportionate and adaptable, and we have set out the factors that the Central Arbitration Committee must consider when setting the value of penalties, acknowledging that some breaches will have a greater impact than others. Those factors will include the gravity of the breach, the number of workers affected by it, and the size and resources of the liable party. The Government believe that the level of penalty fines that the CAC may impose must reflect the seriousness of the breach.

[James Wild (North West Norfolk) (Con)]

Unemployment is rising, with youth unemployment now at 16%, and the jobs tax and the Employment Rights Act are destroying opportunities. Should Ministers not listen to the chief executive of M&S, who said that instead of “trying to run business,” the Government “should…understand business better”? Will they reduce the burden of regulation and tax, rather than continuing to increase it?

[Kate Dearden]

The hon. Member will know the stats and the results that we have seen in the economy this year, particularly on growth. I am glad that he references youth unemployment, which is a long-term problem in the UK. The number of young people not in education, employment or training went up by a quarter of a million in the last three years of the previous Government. It is a long-term problem, and that is why we are taking it very seriously. He will know about our announcements on the youth guarantee to provide hiring incentives to foundational apprenticeships, especially in retail and hospitality. We all know the importance of that. Overall employment levels are healthy, but we are not complacent. We know that there is more work we need to do with employers to support them. That is why, for example, the £2.5 billion that we are making available through grants to businesses to help to create over 500,000 opportunities for young people to earn or learn is so important.

[Mr Speaker]

I call the shadow Minister.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

The Employment Rights Act is one of the reasons given by one in eight business leaders for considering leaving Britain. Indeed, 30% of the Sunday Times rich list have already fled this high-tax socialist Government. The family business tax is another. Will the Minister please lobby the Chancellor for another U-turn, this time to adopt our policy of scrapping the family business tax?

[Kate Dearden]

This Government are absolutely clear that economic growth is a top priority. We are also absolutely clear that we cannot build the foundation for a strong economy with people in insecure work. That is why this legislation is so important, and we were proud to bring it forward. We are also proud to work with businesses across the country on it, and with our trade union and other partners across the country, working together so that we can build an economy that works for working people, reverse the damage that the hon. Lady’s party did in government and make sure that the economy works in the interests of everybody.

[Tessa Munt (Wells and Mendip Hills) (LD)]

7. What steps his Department is taking to support small and microbusinesses in rural areas.

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[Sir Julian Smith (Skipton and Ripon) (Con)]

8. When he plans to publish his Department’s review of and consultation on the opt-out collective actions regime.

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

The Government call for evidence on the opt-out collective actions regime closed in October last year, with almost 100 responses received. I welcome the input stakeholders have provided. We are committed to economic growth and robust competition enforcement, including private enforcement, which is good for businesses, consumers and the economy. A consultation will be published as soon as possible. My officials would be happy to work with the right hon. Gentleman to discuss this work further.

[Sir Julian Smith]

As the Minister says, it is really important that the collective regime continues—we have a great reputation globally for our opt-out regime. The litigation finance industry is vital to supporting claims from consumers. The Government said last year that they would proceed with a Bill to restore a legal issue following the PACCAR judgment, so does she have an update on when that Bill will come forward? It was not in the King’s Speech.

[Kate Dearden]

As the right hon. Gentleman knows, the PACCAR review involves complex issues, and it is important that we take the time needed to get it right. Great care is being taken to ensure that proposals for the opt-out collective actions balance the need to preserve a route to redress for consumers with ensuring a proportionate regime for business. As I said in my previous answer, officials would be happy to discuss this issue further with the right hon. Gentleman.

[Ben Maguire (North Cornwall) (LD)]

9. What steps his Department is taking to help small and medium-sized businesses trade with European nations.

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[Bradley Thomas (Bromsgrove) (Con)]

11. What steps he is taking to support pubs in Bromsgrove constituency.

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

Pubs in Bromsgrove are vital to the local economy, supporting jobs and bringing communities together. I welcome success stories such as the Gate at Bournheath being named Bromsgrove and the villages’ pub of the year 2026, highlighting the strength of the sector. The Government are committed to backing pubs with permanently lower business rates for eligible retail, hospitality and leisure properties, and an additional 15% relief for pubs. We have also significantly increased the hospitality support fund to £10 million to help businesses invest, grow and remain resilient. That fund will help more than 1,000 pubs to diversify their business models, improve efficiency and productivity in the sector, and support people who are furthest from the labour market to move into jobs in hospitality.

[Bradley Thomas]

I thank the Minister for her response, but I am afraid that the picture she paints is not one that pubs across my constituency will recognise. A typical pub in my constituency is paying around £2,500 in additional costs a month compared with two years ago, because of a rise in energy costs, employment costs and business rates. If the Minister is serious about supporting the hospitality sector, will the Government look at a permanent cut to business rates for pubs and exempt pubs with accommodation from the overnight levy?

[Kate Dearden]

I understand that rising energy prices and the wider supply chain effects can place particular strain on sectors such as pubs and the wider hospitality sector, which often rely on that discretionary spending, and operate on tight margins. I have met lots of such businesses up and down the country over recent weeks, and I know that the current situation with energy prices, especially given what is happening in Iran, is causing a lot of concern. Across Government, we are considering carefully this area as part of our ongoing assessment of economic conditions and support mechanisms. We absolutely want to support our pubs and the hospitality sector, as they are vital to our local communities and high streets. It is vital that we provide the economic stability that we have shown this year, ensuring that the economy can keep growing, wages can rise, and people can have money to spend to support our pubs and our hospitality sector.

[Sir John Whittingdale (Maldon) (Con)]

12. What steps his Department is taking to support the hospitality industry.

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

The Government recognise the vital role that hospitality plays in keeping high streets vibrant, driving footfall, supporting local jobs and sustaining town centre services. We know that many businesses, including the Swan Hotel, Bar and Grill in Maldon, are still facing real pressures, which is why we have delivered permanently lower business rates for over 750,000 retail, hospitality and leisure properties, alongside a £4.3 billion support package, including transitional relief, to help firms to remain on the high street, invest and grow. Later this year, we will bring forward a new high streets strategy, developed with businesses, to support regeneration and help town centres to thrive.

[Sir John Whittingdale]

Despite what the Minister says, hospitality businesses in my constituency, and the constituencies of my hon. Friends, are reeling from the impact of higher energy costs, and increased national insurance contributions and business rates. These businesses are making it clear that if there are any further increases, they will simply not survive. Why are the Government pressing ahead with another tax in the form of the overnight visitor levy, and will she talk to businesses before proceeding with that?

[Kate Dearden]

The right hon. Gentleman will know that the decision on the overnight visitor levy is down to mayoral authorities. They will work really closely with businesses and stakeholders in making that decision, but he raises an important point. I recognise the significant pressures facing pubs, hospitality businesses and breweries, which are facing sustained cost increases. We are closely monitoring the potential impact of disruption to trade and the wider economy, because our priority is to keep prices down for households and businesses. Going forward, we will build on our work to cut energy bills and crack down on unfair profiteering. The new framework that we have announced will help regulators spot trouble early and protect consumers, and we will work with businesses on that. We understand and recognise the pressures, and we will work really closely with businesses to support them.

[Mr Jonathan Brash (Hartlepool) (Lab)]

This week, I hosted the British Beer and Pub Association in Parliament. It has more than 20,000 members across the country, including Camerons Brewery in Hartlepool. Among the many issues that it raised was this summer’s football world cup. In other parts of the UK, late licences are being permitted for all games, but in England and Wales, they are only for England and Scotland games. Will my hon. Friend make representations to her ministerial colleagues about allowing late licences for all games, so that we back our pubs and celebrate this festival of football?

[Kate Dearden]

I thank my hon. Friend for raising such an important point. I am looking forward to getting out to the pub and supporting England in the world cup. His point about licensing is really important, and we will work closely with colleagues across Government on that.

[Mr Speaker]

I call Harriet Cross—not here.

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[Mr Speaker]

Order. We are on topicals, and I have to get other Members in. I am sure the Minister will have got it.

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

We recognise the vital contribution of hospitality businesses in the UK, including pubs in Carlisle, to supporting local employment and sustaining high streets and communities. They play a really important role in the cultural and social fabric of communities. I am always delighted to meet my hon. Friend.

[Mr Speaker]

I call the shadow Secretary of State.

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[Wera Hobhouse (Bath) (LD)]

T9. Bath has a thriving hospitality sector and many young people who need, rely on and, dare I say, enjoy part-time jobs to support their studies. Of course we Liberal Democrats support measures to tackle exploitative contracts—who wouldn’t?—but will the Government ensure that the reforms retain the genuine flexibility that students and other members of the workforce need for their work-life balance?

[Kate Dearden]

Boosting opportunity and tackling youth unemployment in every area remains a priority, and helping young people into work is crucial for that. We know that some people value that flexibility, which is why I will be considering that as part of the regulations.

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

Cornwall has so much to offer the UK—critical minerals, floating offshore wind in the Celtic sea, defence, geothermal energy—but infrastructure, particularly ports and rail, will be critical to enable growth. Cornwall is a perfect place to designate as an industrial strategy zone. Will the Minister agree to meet me and Cornish colleagues to discuss this?

[Lincoln Jopp (Spelthorne) (Con)]

The pubs in Spelthorne are under the cosh. The Minister, in answer to my hon. Friend the Member for Broadland and Fakenham (Jerome Mayhew), said that a review of pubs and how they are valued for business rates purposes is ongoing. She will know that the review will not be relevant until 2029. Pubs are closing today. Young people are losing their jobs today. Will those on the Government Front Bench please do more to lobby the Treasury for our pubs?

[Kate Dearden]

Pubs in the hon. Member’s constituency and nationwide are so important to day-to-day community life, and we are mindful of the challenges that they have faced in recent years. The number of pubs has fallen by nearly 7,000 since 2010. We know how significant that is, and I will work closely with colleagues to support pubs.

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

I am delighted that the Government have listened to my calls, and those of my neighbours in Stoke-on-Trent, to finally act to support the ceramics industry—calls so loud that my hon. Friend the Member for Stoke-on-Trent Central (Gareth Snell) has lost his voice. While we await the detail, will the Secretary of State come to North Staffordshire to meet the ceramics businesses that he and this Government are helping today?

[Wendy Chamberlain (North East Fife) (LD)]

Hospitality businesses in North East Fife support the Lib Dem call for a VAT cut for hospitality, but the Government do not seem to be moving on it. Will the Minister consult with businesses on a lower national insurance contribution band for part-time workers? Part-time opportunities are so important to hospitality and for getting younger people into work.

[Kate Dearden]

It was a pleasure to meet the hon. Member and the hospitality sector in her constituency recently. There are a wide range of factors when introducing new tax reliefs, and they need to happen in the usual way. The alleviation that we have already introduced on NIC is making a real difference to young people getting into employment. We will review it in the usual way in due course.

[Rachael Maskell (York Central) (Lab/Co-op)]

In October, Nestlé announced 16,000 job losses, including 450 in the UK. In the light of the significant impact that this will have in York, will the Secretary of State ensure that meaningful consultation happens with the trade unions, and will he meet them to save those jobs?

Employment Rights Act 2025: Non-disclosure Agreements Consultation

Kate Dearden Excerpts

Wednesday 15th April 2026 Written Statements

[The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)]

We are delivering our plan for change by ensuring employment rights are fit for a modern economy, empowering working people and contributing to economic growth. Our plan to make work pay will extend the employment protections already given by the best British companies to millions more workers across the country.

The Government are making tangible progress in implementing this generational change in employment rights, while ensuring impact on businesses is minimised. Already this April we have: expanded statutory sick pay to up to 1.3 million of the lowest paid employees in society and ensured that it is paid from the first day of sickness absence; supported working families by implementing a day one right to paternity leave and unpaid parental leave; and established the new Fair Work Agency.

Today, we are making further progress in our commitment to protect workers from abuse in the workplace by launching a consultation on non-disclosure agreements. Alongside a programme of direct stakeholder engagement, this consultation will support us in determining how best to put our plans into practice.

Non-disclosure agreements consultation

The Employment Rights Act 2025 introduced a new measure that will address the misuse of NDAs, by employers who want to silence workers about harassment and discrimination in the workplace. While NDAs can have legitimate purposes such as to protect sensitive commercial business interests, they should not be used to cover up workplace misconduct.

The NDA measure will void any provision in an agreement, such as a contract of employment or settlement agreement, between a worker and their employer in so far as it prevents a worker from speaking out about relevant harassment or discrimination. The Government acknowledge that workers may sometimes want confidentiality in cases of harassment or discrimination. We will set conditions in regulations under which NDAs can still be valid (an “excepted agreement”) and will prescribe individuals that a worker with an excepted agreement can still speak to (for example, the police, a doctor, or close family members) subject to consultation. This consultation is split into three parts:

Part 1 seeks views on the Government’s proposed conditions under which an NDA can still be valid in cases of relevant discrimination and harassment, known as an “excepted agreement”. For example, whether a worker should receive “independent advice” on the terms and effect of an excepted agreement, or an explicit time-limited right to withdraw from an excepted agreement without penalty (a cooling-off period).

Part 2 seeks views on who those who have signed an “excepted agreement” should still be able to speak to, known as a “permitted disclosure”. The intention is that where a worker has signed an excepted agreement, they are still able to disclose information relating to relevant harassment and discrimination to certain individuals or bodies to seek advice or support.

Part 3 seeks views on whether this new NDA measure should, in the future, apply to other individuals that may be vulnerable to the misuse of NDAs and who do not meet the standard definition of “worker” in the Employment Rights Act 1996, including certain groups of self- employed.

The Government want to ensure that they protect workers against the misuse of NDAs where employers are using them to cover up relevant harassment and discrimination and to enable workers to have a greater say in whether they want confidentiality and, if they do, a better understanding of what they are agreeing to.

The consultation will run for 12 weeks and close on 8 July 2026. Following consultation, the Government will consider the responses carefully before developing a final policy position. Any changes will be delivered through secondary legislation, with regulations expected to enter into force in 2027.

Next steps

The insights gained through this consultation will be critical to helping the Government to deliver reforms that are both effective and inclusive. It is in everyone’s interest to get the relationship between employer and worker right. This consultation will help us make work pay for both.

[HCWS1513]