MPs call for new regulatory approach to secure thriving future for defined benefit pension schemes

Changes to proposed regulation and improvements in governance standards are urgently needed to ensure private sector defined benefit (DB) pension schemes remain an active and thriving part of the pensions landscape and work in the best interest of scheme members, MPs say today.

The Work and Pensions Committee report concludes that despite a steady decline in number in recent years, DB pension schemes are still of critical importance to both savers and the UK economy.

It warns however that two decades of regulatory and policy caution from DWP and The Pensions Regulator (TPR) have led to a low-risk approach to investment that threatens to inadvertently finish off the few remaining DB schemes still open to new members.

With an improvement in funding levels over the past decade presenting new challenges and opportunities for schemes, the report calls for a fresh approach both to funding regulation and the treatment of surpluses in pension and compensation schemes.

Among recommendations on the latter, the report calls for DWP and TPR to look at ways of ensuring the reasonable expectations of scheme members for benefit enhancement are met where there has been a history of discretionary increases.

On the new funding regime proposed by the Government to come into force in September, the Committee’s inquiry heard concerns that open schemes would be forced to de-risk unnecessarily, potentially leading to premature closure.

The Committee calls for the Government to address such concerns in the final version of the Funding Code and for TPR’s objective to protect the Pension Protection Fund to be replaced with a new duty to protect future, as well as past, service benefits.

PPF reserves now stand at £12 billion and the report calls for legislation to allow the levy to be reduced to zero and for compensation levels to be improved.

To encourage better governance, the Committee welcomes the introduction of a trustee register to improve TPR oversight. The report notes TPR’s view that consolidation, including through pension Superfunds, is one of the main ways to improve governance, and calls for the required legislation as soon as possible.

Rt Hon Sir Stephen Timms MP, Chair of the Work and Pensions Committee, said: “Defined benefit pension schemes are hugely important to savers planning for a comfortable retirement and for the UK economy.

“The improvement in scheme funding levels presents opportunities for both to benefit, but a new approach to regulation and governance is needed to protect the best interest of scheme members and allow still open schemes to thrive.

“The flexibility afforded by the much-improved financial position of the PPF, which we applaud, gives the Government an opportunity to ensure open schemes are not hindered by overly cautious restrictions imposed by regulations.

“While many trustee boards operate to high standards, new standards for trustees can foster confidence that this is the case across DB schemes.”

The report follows up on some of the points raised during the Committee’s previous inquiry into DB pensions with Liability Driven Investments, which examined the events of autumn 2022. The Committee heard that a repeat of the events was now unlikely given the steps taken to improve resilience.

A full list of the Committee’s conclusions and recommendations is available on Pp 54–58 of the report.

Benefit levels in the UK: MPs call for annual uprating guarantee

Committee calls for cost of living benchmark

The UK Government must outline the extent to which benefits should be supporting people with daily living costs and bring forward a plan so that benefit levels meet the new benchmark, a House of Commons committee said yesterday.

The Work and Pensions Committee’s report on benefit levels in the UK also calls on the Government to introduce a new ‘uprating guarantee,’ to uprate working-age benefits and the Local Housing Allowance rate each year, to end the uncertainty faced  by people claiming benefits.

The Committee also recommends that the Household Support Fund, which enables local authorities to help those in need, be made a permanent part of the social security system.

The recommendations follow a year-long inquiry launched after the Committee’s recommendation in its 2022 cost of living report to review the adequacy of benefits levels. The 2022 report highlighted evidence that a root cause of the financial challenges faced by households “lay in the fundamental inadequacy of social security support”, but the Government insisted that there was no objective way of deciding what benefits should be.

In response to that challenge, Thursday’s report says that the Government should develop a framework of principles and set a benchmark and objectives linked to living costs to measure the effectiveness of benefit levels.

If DWP finds that it is not meeting these objectives, it should set out how it intends to reach them, for example by increasing benefit levels when the financial situation allows.

The report also says that the Government should make an ‘uprating guarantee’ to increase benefits annually, based on, for example, prices. It would be required to set out its reasoning to Parliament if it decided to deviate from this guarantee.

On the Household Support Fund, the Committee welcomes the extension announced in Spring Budget 2024. The report says that it should become a permanent feature of the social security system to improve the ability of local authorities to plan their provision of discretionary support to households.

Rt Hon Sir Stephen Timms MP, Chair of the Work and Pensions Committee, said: “It is right that our benefit system incentivises work, but it should also provide an effective safety net for jobseekers, people on low incomes, carers and those with disabilities.  

“We have heard plenty of evidence that benefits are currently at a level that leaves many unable to afford daily essentials or meet the unavoidable extra costs associated with having a health impairment or disability.

“The Government has previously said that it is not possible to come up with an objective way of deciding what benefits should be.  Our recommendations are a response to that challenge, and the ball is now back in the Government’s court.

“On top of acknowledging and acting on a new benchmark and objectives linked to living costs, Ministers should commit to consistent uprating of benefits each year.  It is time to end the annual ‘will they or won’t they’ speculation and all the worry that brings to those who rely on the social security system for financial support.

“The Household Support Fund has provided a vital layer of additional support for households during the cost of living crisis.

“The Government should build on the extension announced in the Budget, and make it a permanent part of the social security system to allow councils to continue to reach those in their local areas who most need help.”

A full list of the Committee’s conclusions and recommendations is available on P74 of the report. The Report is also available in British Sign Language, audio and EasyRead formats.

Sunak to announce reform package to support small businesses and boost apprenticeships

  • Major package of reforms to support small businesses in PM’s first economic speech since the Spring Budget 
  • £60 million new investment to enable up to 20,000 more apprenticeships, including for young people and small businesses 
  • Unnecessary regulatory burdens to be slashed through Brexit freedoms saving around £150 million per year for thousands of small businesses
  • New taskforce to be established to boost private investment in women-led businesses and make the UK the best place in the world to be a female founder

In his first economic speech since the Spring Budget, the Prime Minister is expected to set out a major package of reforms to support businesses to deliver more apprenticeship places, cut red tape for SMEs and leverage more private investment in female founders at the Business Connect conference in Warwickshire today.

The UK Government will fully fund apprenticeships in small businesses from 1st April by paying the full cost of training for anyone up to the age of 21 – reducing costs and burdens for businesses and delivering more opportunities for young people to kick start their careers.

This will remove the need for small employers to meet some of the cost of training and saves time and costs for providers like further education colleges who currently need to source funding separately from the government and businesses.  

The move is underpinned by an additional £60 million of new government funding for next year, guaranteeing that where there is demand for apprenticeships from businesses, the government will ensure there is enough funding to deliver them.  

From the start of April, the government will also increase the amount of funding that employers who are paying the apprenticeship levy can pass onto other businesses. Apprenticeships can currently be funded by a levy paying employer transferring up to 25% of their unused levy to a different employer. 

Under the new measures, large employers who pay the apprenticeship levy will be able to transfer up to 50% of their funds to support other businesses, including smaller firms, to take on apprentices. This will help SMEs hire more apprentices by reducing costs and enabling more employers to get the skilled workers they need while unlocking more opportunities for young people in a huge range of sectors, industries, and professions. 

Hundreds of large levy-paying employers have already taken advantage of the opportunity to transfer their unused levy funds to other businesses. As of [December 2023], 530 employers including ASDA, HomeServe and BT Group have pledged to transfer over £35.39 million to support apprenticeships in businesses of all sizes since September 2021.

Taken together, these measures are expected to enable up to 20,000 more apprenticeships, primarily for young people, and is part of our plan to build a stronger economy and deliver a brighter future where hard work is rewarded and young people get the skills they need to succeed in life.

The Westminster government says this builds on their record of ‘transforming apprenticeships’ over the last decade. Since 2010, they have helped 5.7 million people start an apprenticeship, working with employers to develop almost 700 new high-quality standards and increasing the funding for apprenticeships to over £2.7 billion from next year.

Prime Minister Rishi Sunak said: “Growing up in my mum’s pharmacy, I know first-hand how important small businesses are. Not just for the economy, but as a driver for innovation and aspiration, and as the key to building a society where hard work is always recognised and rewarded.

“Whether it’s breaking down barriers and red tape for small businesses, helping businesses hire more young people into apprenticeships and skilled jobs or empowering women to start up their own businesses – this government is sticking to the plan and leaving no stone unturned to make the UK the best place to do business. 

“Taken together, these measures will unlock a tidal wave of opportunity and make a real difference to businesses and entrepreneurs across the country.”

Education Secretary, Gillian Keegan said: “This Government has built a world-leading apprenticeship system from the ground-up – with apprenticeships now available in around 70 per cent of all occupations.

“Apprenticeships are a fantastic way for businesses to develop the skills they need, and these new measures will help more businesses and young people benefit from them.

“Our plan to deliver a high-growth, high-skilled economy is working, with more opportunities available to young people than ever before.”

This is the third Business Connect conference to take place since it was launched by the Prime Minister last year and is expected to convene over 150 SMEs, as well as government ministers to discuss how we can further support businesses to grow and thrive in the UK.

The Prime Minister is also expected to announce further deregulatory measures to simplify both non-financial and financial reporting for SMEs which is expected to save thousands of businesses across the UK around £150 million per year. 

This includes increasing the number of companies which qualify as a smaller or medium sized business through a 50% uplift to the thresholds that determine a company’s size. This is expected to benefit up to 132,000 businesses who will be spared from burdensome form-filling and non-financial reporting requirements.  

The existing onerous and outdated thresholds were previously set by the EU, but our Brexit freedoms mean we can now raise the thresholds to ensure they’re more proportionate and better reflect the needs of British businesses. This has also allowed us to go further than the EU, who recently raised its thresholds by 25%. 

The government is also removing several duplicative and bureaucratic EU reporting requirements, including for what companies must set out in their annual reports, whilst also making it easier for companies to share digitalised annual reports rather than paper copies – ensuring businesses practices are fit for the modern age. 

Taken together, these changes are expected to deliver around £150 million of savings for SMEs per year and save small businesses at least 1 million hours per year in total. 

The Government will also consult on further changes later this year including exempting medium-sized companies from producing strategic reports, which could save them a further £148 million a year and raising the employee size threshold from 250 to 500 employees, which will mean around 1,000 more large companies could become SMEs.

Secretary of State for Business and Trade Kemi Badenoch said: “Almost every job in the UK is owed to what is, or what previously was, an SME. They are the engines of economic growth for this country. 

“Whether it’s through cutting red tape, unlocking investment or lowering business costs, today’s announcements show that this government is committed to doing all it can to turbo-charge SMEs so that they can go further and faster than ever before.”

Speaking directly to businesses and delegates at the event, the Prime Minister will underline the government’s plan to create the economic conditions to encourage entrepreneurship and drive growth.

As part of this, the Prime Minister is expected to announce a new industry led Invest in Women Taskforce to unlock private investment in female business leaders and make the UK the best place in the world to be a female founder.

For too long, innovative, women-led start-ups have been held back due to a lack of finance and the proportion of equity capital investment going to all-female founder teams has been stuck at around 2% in the UK for the past decade. 

The core aim of the Taskforce is to raise a bespoke funding pot for female-founded businesses through private capital and address the wider challenges that female entrepreneurs specifically face to help unlock their potential to establish and grow their enterprises. 

The new taskforce will be industry led and co-chaired by entrepreneur Debbie Wosskow and Barclay’s Hannah Bernard, with Small Business Minister, Kevin Hollinrake, representing the government. The membership of the taskforce will be set out in due course. 

Hannah Bernard OBE, Co-Chair of the Invest in Women taskforce and Head of Business Banking, Barclays UK said: “This is an area I am incredibly passionate about, so it is a privilege to be offered this position.  

“I believe that the key to the UK’s growth will be enabling every single entrepreneur in this country to thrive; female entrepreneurs face significantly higher barriers to get their businesses the support and investment they need, from seed funding for start-ups, through to the challenges of gaining scale-up investment. 

“I’m really excited to be working with Debbie who is an ideal partner given her entrepreneurial credentials and I believe together, we can make a real difference.

Debbie Wosskow OBE, Co-Chair of the Invest in Women taskforce and multi exit entrepreneur said: “Women leading businesses shouldn’t have to face funding challenges to build and grow their business, because of their gender. 

“As an experienced entrepreneur, who founded her first business 25 years ago, I know first-hand the importance of breaking down barriers and making meaningful change for female led businesses. 

“By putting funding front and centre of this Taskforce, we aim to make the UK the best place in the world to be a female founder.”

In 2024, the year of the SME, the UK government continues to back small businesses as the lifeblood of the economy:

The single biggest way we are backing businesses is by the economic conditions for them to thrive, which is why the government has worked hard to deliver on our priorities to halve inflation, grow the economy and cut debt. 

‘We have made good progress on our plan. Inflation has fallen from 11.1% to 4.0%, the economy has performed better than forecast, wages are rising, mortgage rates are starting to come down, the economy has outperformed European neighbours and debt is on track to fall as a share of the economy.

‘Because of the progress we have made, the economy is turning a corner and we have been able to afford tax cuts as part of our plan to reward work and grow the economy. But we know there is more to do which is why we’re sticking to the plan to keep building an even stronger economy to support businesses to establish and grow their roots in the UK.’

Martin McTague, National Chair at the Federation of Small Businesses, said: “We welcome these very important announcements on apprenticeships, as well as other action including helping more women start up in business. The Prime Minister is right to take decisive steps to support small employers do what they do best, providing jobs and opportunities in their local communities.  

“We have campaigned for more levy-paying businesses to be able to transfer their funds to small businesses in their supply chain, and for crucial support on costs, so we’re pleased to see the Prime Minister make this intervention today. 

“Time and resources are in short supply for small businesses and so increasing the amount of funding for training costs will help to improve the number of small firms entering the apprenticeship system.

“Apprenticeships are an effective way of allowing small firms to recruit and up-skill talented people and these measures are a positive way to bolster the number of businesses taking on apprentices.”

Anthony Impey, Chief Executive of Be The Business and Chair of Apprenticeship Ambassador Network, said: “Small businesses are run by some of the country’s most impressive and resilient people, but they are time poor and need a simple, straight-forward skills offer to access the talent they need to grow their businesses. 

“These changes will make a real difference in opening up apprenticeships for young people to kick start their careers at a time when small businesses are pushing forward to boost their productivity.”

“A code red for humanity”?

How should the UK Government tackle the security threats posed by climate change?

Today the Environmental Audit Committee (EAC) has launched a new inquiry, ‘Climate change and security’. The inquiry will explore the UK Government’s approach to anticipating, preventing and responding to the threats climate change poses to national security.

The UN’s Intergovernmental Panel on Climate Change warned in 2021 that the global threat level posed by climate change was “a code red for humanity”. Climate change is a major source of global instability, causing and heightening tensions, prolonging conflicts, and polarising nations.

Extreme weather caused by climate change can generate insecurity in food, water and housing, potentially leading to mass displacement within and across borders. It can also threaten physical infrastructure, from naval bases to transport hubs. 

EAC is keen to explore the scale of the challenge that climate change poses to UK security. It is likely to consider how climate change will affect the UK’s national security, including access to natural resources and how the UK should respond to extreme weather events, as well as how the risks to the UK compare to those facing other countries.

The Committee will also consider possible solutions. Members will consider whether the Government’s current plans do enough to mitigate the dangers of insecurity caused by climate change.

They will also consider how the UK Government can cultivate cooperation on climate security issues, how funding can be targeted towards adaptation, and the role of technology in addressing potential security issues caused by climate change.

Environmental Audit Committee Chair, Rt Hon Philip Dunne MP, said: “February was the ninth consecutive month that global temperature records were broken; record breaking temperatures are now a regular part of our lives. At the same time, the world is also growing ever more unstable. Regional conflicts are having knock-on effects across the rest of the world.

“Many might not realise that these two trends are deeply linked. Climate change can prolong instability, and in turn, instability can stifle efforts to address climate change.

“In its next inquiry, the Environmental Audit Committee is examining the true extent of the challenge climate change poses to our national security, and how the UK should best respond. I encourage anyone with views or expertise to give evidence.”

The Committee invites written submissions addressing any or all of the issues raised in the following terms of reference, by 17:00 on Monday 29th April 2024:

Understanding the challenge

What challenges to UK national and human security are posed by climate change in the next five, ten, and twenty years? In particular:

  1. What is the relationship between climate change and population growth, and what are the effects of this relationship on displacement and population flows, both within the UK and across borders?
  2. How might climate change and its effects affect the UK’s access to natural resources such as water, food, and energy?
  3. How does climate change affect UK infrastructure and land use, including military assets, in ways that create and exacerbate insecurities?
  4. How well prepared is the UK to respond to extreme weather events, such as wildfires and flooding?
  5. How do the risks to the UK compare to those facing other countries?

Potential solutions

What is the UK Government’s current approach to anticipating, preventing and responding to the threats in part 1? How could that approach be strengthened? In particular:

  1. Which solutions would have the largest impact across the widest range of areas for the UK?
  2. What updates to Government policy and strategy documents, such as the National Adaptation Programme, the Integrated Review of Security, Defence, Development and Foreign Policy, and the Defence Command Paper, would improve the UK’s ability to address the security implications of climate change?
  3. How can the UK Government fully embed mitigation of security risks in its plans to achieve its targets for climate and the environment?
  4. What technological innovations could strengthen the UK Government’s approach to addressing the security implications of climate change?
  5. How best can funding be targeted towards climate adaptation and emergency response solutions?
  6. What more can the UK Government do to encourage global co-operation on climate security issues? 

Levelling Up shambles: ‘No compelling examples of delivery so far’

  • Just over 10% of promised funds actually spent and making a difference on the ground
  • Public Accounts Committee warns of lack of transparency and waste of public resources in funding approach

The Government is unable to provide any compelling examples of what Levelling Up funding has delivered so far. In a report published today, the Public Accounts Committee (PAC) warns that councils have been able to spend just a fraction of the Government’s promised Levelling Up funding, with only just over 10% of the funds provided to reduce inequality under the Levelling Up agenda actually spent and making a difference on the ground.

The PAC’s report finds that, of £10.47bn in total funding from central government, which must be spent between 2020-21 and 2025-26, local authorities have been able to spend only £1.24bn from the Government’s three funds as of Sept 2023.

Furthermore, only £3.7bn had been given to local authorities out of the total allocation by the Department for Levelling Up, Housing and Communities (DLUHC) by December 2023.

In evidence to the PAC, DLUHC cited project-specific issues and the impact of the pandemic and inflation for a lower-than-anticipated level of spending to date. The PAC is calling for six-monthly updates from DLUHC, both on the amount of money released to and spent by councils, and on the progress of projects themselves.

The report finds that more impactful bids to funding lost out due to optimism bias in favour of so-called ‘shovel-ready’ projects. Yet, the report raises concerns that not enough was done by DLUHC to understand the readiness of schemes and the challenges facing local authorities before funds were awarded.

This also means that DLUHC has had to extend the deadline for successful bidders for earlier funds to spend their money.

Round 1 of Levelling Up Funding was awarded to ‘shovel-ready’ projects that were supposed to be completed and delivering for local people by March 2024 – but 60 out of 71 of these projects have had to extend to 2024-25, with further delays in other schemes likely.

The PAC’s inquiry also found a worrying lack of transparency in DLUHC’s approach to awarding funds, with rules for accessing funding changing while bids were still being assessed, which was also not communicated in advance to councils.

55 local authorities therefore bid under changed rules with no chance of being successful in Round 2, with an average bid for grants like Levelling Up costing around £30k.

This approach wasted scarce public resources, and the report calls on DLUHC to set out the principles it will apply and the decision-making process for awarding future Levelling Up funds.

Dame Meg Hillier MP, Chair of the Committee, said: “The levels of delay that our report finds in one of Government’s flagship policy platforms is absolutely astonishing.

“The vast majority of Levelling Up projects that were successful in early rounds of funding are now being delivered late, with further delays likely baked in. DLUHC appears to have been blinded by optimism in funding projects that were clearly anything but ‘shovel-ready’, at the expense of projects that could have made a real difference.

“We are further concerned, and surprised given the generational ambition of this agenda, that there appears to be no plan to evaluate success in the long-term.

“Our Committee is here to scrutinise value for money in the delivery of Government policy. But in the case of Levelling Up, our report finds that the Government is struggling to even get the money out of the door to begin with.

“Government has not helped the situation by changing the rules for funding mid-process, wasting time and money and hindering transparency.

“We will now be seeking to keep a close eye on DLUHC’s progress in unclogging the funding system. Citizens deserve to begin to see the results of delivery on the ground.”

Remove Post Office from Horizon scandal compensation schemes, urges Westminster committee

The cross-party Business and Trade Committee has today published its recommendations for delivering faster and fuller payments to Horizon scandal victims following an “abject failure” of delivering redress to date.

The report recommends ending the Post Office’s involvement in any redress programmes, labelling it as “not fit for purpose to administer any of the schemes required to make amends”. It cites both victims’ lack of confidence in the firm that “ruined the lives of innocent sub-postmasters” and its chaotic leadership.

The Committee calls on the Government to create a “properly resourced” independent intermediary that would offer legal and forensic accounting services to victims to ensure victims are equipped with all the facts and figures they need to secure fair redress and compensation.

Committee Chair Liam Byrne said: “Justice delayed is justice denied. And bluntly justice has been denied to our innocent sub postmasters for far too long. It’s high time for the circus of recent weeks to end and for cheques to start landing on the doormats of innocent victims. 

“We now know the Post Office knew of problems twenty years ago. Yet at best, only £1 in £5 of the budget for compensation has been issued. That is a national disgrace”.

The spectacle of the battle between the Post Office chief executive and its former chairman light up a simple truth; that the top of the Post Office is in utter disarray and not fit for purpose to run the payouts to former sub-postmasters.

It’s involvement in running Post Office redress schemes has to end and ministers must create a new, independent body set up that will genuinely help victims through their every stage of their compensation claims.”

Five years on from the landmark court case victory by former sub-postmasters led by Alan Bates over the Post Office, only 20% of funds set aside for redress have been spent. Many cases have been stalled by the Post Office’s sluggish disclosure mechanisms.

To stop “unacceptable delays”, the report says strict deadlines by which each stage of the redress process will be delivered for each case should be legally-binding. Fines for delays should be paid to claimants, it adds.

Mr Byrne added, “To guarantee this scandal drags on no longer, we have to enshrine into law an idea proposed by Mr Bates, of legally binding timetables for payouts. Any new Bill that the Government presents to parliament, must now pass the ‘Mr Bates Test’ of legally binding timeframes for settling justice.

“Finally, we have to make sure that fast compensation is fair compensation. Otherwise, we risk innocent sub-postmasters to face a new prison of poverty. We cannot and must not let that happen.”

Other measures recommended by the report include removing a cap on legal expenses for sub-postmasters and a standardised set of tariffs to help victims to better estimate what they are entitled to.

UTTER SHAMBLES!

CHAOS IN THE COMMONS OVER GAZA VOTE

IN a dark day for democracy a Westminster debate on calls for a ceasefire in Gaza descended into chaos after the Commons Speaker Sir Lindsay Hoyle was accused of allowing it to be “hijacked” by Labour.

Sir Lindsay Hoyle sparked fury from both SNP and Conservative MPs when he broke with convention to allow a vote on a Labour motion for an “immediate humanitarian ceasefire”.

SNP MPs walked out of the chamber en bloc in protest at the Speaker’s action, joined by a sizeable number of Conservative MPs.

The Speaker later apologised for his unprecedented decision, saying he had acted “with the right intentions”, but his position is increasingly seen as untenable by many.

The SNP said they had been “treated with complete and utter contempt” and have lodged a motion of no confidence in the Speaker.

They added: “Today should’ve been about a ceasefire in Gaza and protecting the lives of innocent civilians. Instead, Westminster turned it into a circus.

“Today’s shameful events show Westminster is utterly broken. This should have been the chance for the UK Parliament to do the right thing and vote for an immediate ceasefire in Gaza and Israel – instead it turned into a Westminster circus.

“It is a disgrace that Sir Keir Starmer and the Speaker colluded to block Parliament voting on the SNP motion for an immediate ceasefire and against the collective punishment of the Palestinian people.

“More than 29,000 Palestinian children, women and men have been killed – and huge swathes of Gaza have been obliterated while Westminster equivocates.

“People in Gaza and Israel, and voters in Scotland, have been badly let down – they deserve so much better than this.

“The SNP will continue to press the UK government and parliament to back an immediate ceasefire. The time for equivocation is over.”

Following the chaos in the Commons chamber Labour’s amendment eventually went through without a formal vote, after the government said it would not take part in protest. This meant there was no formal vote on the SNP’s motion, which called for an immediate ceasefire.

The Former leader of the Conservative Party Sir Iain Duncan Smith has said he believes Sir Lindsay Hoyle was put under ‘intolerable pressure’ from Labour to include their amendment.

Sir Iain said he believed Labour wanted their amendment ‘to try and stop some kind of rebellion’ from within their own party and has called for the vote to be rerun.

Speaking on GB News last night, Sir Iain Duncan-Smith said: “There’s never normally a second amendment to an opposition day motion. Opposition days are about giving the opposition a chance to put their motion forward. Otherwise, all they’re ever doing is reacting to government.

“That standing order gives them a shot and having a vote on their motion before it’s amended.

“Tonight, that was all put into chaos because I think, due to the intolerable pressure the Speaker was under was to add the Labour amendment in.

“We know why Labour wanted their amendment in, it wasn’t just to express their view it was to try and stop some kind of rebellion on their part.

“Under the normal saga, it would have been the SNP first and we would have voted on the SNP [motion], not theirs.

“The government withdrew and said, we’re not going to put our amendment to the motion because it’s chaotic and messy. That’s the moment when they should have reversed the process back to normal and had the SNP one first. But the Speaker was determined that the Labour one would be done first.

“That’s where the chaos arose, because in all the rows that went on, they weren’t able to do it because in the noise, the Deputy Speaker quickly passed the Labour amendment.

“The SNP have expressed a lack of confidence [in the Speaker]; I don’t know where they’ll take it. I’m very fond of the speaker, he’s been very good in many ways, and he’s defended our rights.

“I think the truth is he was put under intolerable pressure by Labour’s determination to bend the rules so they can have their own amendment.

“Many on the Labour front bench need to reflect on the position they’ve left him in.

“I think we should rerun all of this personally, because I think the public should and deserves better from Parliament and the Speaker should never have been put under that pressure.”

After all the noise, all the drama, the government does not even have to adopt Labour’s position as the vote is not binding! So a hollow victory for Labour, then – but a deeply damaging day for Westminster democracy.

UK Government plan urgently needed to address “the silent killer” of heatwaves

2022 saw UK temperatures soar to above 40°C for the first time, while 2023 was the world’s hottest year on record. Westminster’s Environmental Audit Committee has raised concerns over the UK’s lack of preparedness in its report on ‘Heat resilience and sustainable cooling’.

The “silent killer” of heatwaves could claim up to 10,000 lives annually in the UK without concerted action, with the most vulnerable at greatest risk. Physical and mental health can be severely impacted: the Committee heard that suicide risk is twice as high in the UK when the temperature was 32°C rather than 22°C.

Work-related injuries also increase, and interrupted sleep patterns due to high temperatures can cost the UK economy £60bn a year, or 1.5% to 2% of GDP.

The social and economic case for accelerating heat adaptation measures in the UK is clear-cut, and EAC recommends measures around prioritising passive cooling – that do not involve expending energy – and clear Government messaging on the risks of heat events, underpinned by a national strategy on heat resilience.

Nature based solutions offer important passive cooling measures and additional co-benefits. Parks, trees, water bodies and green infrastructure – such as green roofs – can have significant cooling effects and also help biodiversity and air quality.

The Government must adopt a range of these measures, particularly in areas where the ‘urban heat island’ effect typically raises temperatures: for example, London can be up to 8°C warmer than surrounding rural areas.

Over 4.6 million English homes experience summertime overheating, and with 80% of homes that will exist in 2050 having already been built, retrofitting for net zero and thermal comfort will be needed on a vast scale.

Existing initiatives on insulation and energy efficiency should be developed into a national retrofit programme which should be delivered by local authorities, supported by long term funding, focusing on insulation and ventilation, as well as passive measures, above active cooling mechanisms.

Fans may also have a role, and the Government should consider amending Building Regulations to encourage the use of ceiling fans. The Government must urgently bring forward proposals to encourage access to low-cost finance for householders to retrofit passive cooling measures.

Some of the passive measures EAC heard about included installing external shutters, which could reduce incidences of heat mortality by around 40%, and coating the roofs of buildings with reflective white paint.

Passive cooling measures would reduce the need for energy intensive air conditioning units, which in 2022 and 2023 led to a surge in demand for electricity causing coal fired power stations to fire up once more. A repeat of this surge risks a vicious cycle of increased greenhouse gas emissions that in turn make the world even hotter. Action to increase the energy efficiency of air conditioners is therefore also required.

Any national retrofit programme must be well-funded but also address concerns of a “net zero tradespeople crisis” amid concerns that by 2030, there will be a shortfall of 250,000 people in suitable roles.

Information on coping with extreme heat does not always appear to be reaching those in need. Repeating calls the predecessor Committee made in its 2018 Heatwaves report, EAC urges the Government to launch a public information campaign on the developing threat of heatwaves and their significant impact on human health and activities.

The Met Office should trial naming heatwaves to boost public recognition of the threat to health and wellbeing in the same way as named storms. Humidity levels should also be incorporated into weather forecasts and heat-health alerts.

At COP28, the UK signed the Global Cooling Pledge, which saw nations commit to reduce cooling related emissions by 68% from 2023 by 2050. EAC hopes its report assists the Government’s production of a national cooling action plan as the pledge calls for, and in response to its report, the Government should set out its timetable for this plan.

Environmental Audit Committee Chair, Rt Hon Philip Dunne MP, said: “The world is heating up, and in the coming year we may exceed an increase of over 1.5°C above pre-industrial levels: breaking a key ambition of the Paris Agreement. The record temperatures we are seeing in UK summers, triggered by climate change, pose significant risks to health and wellbeing, and swift action must now be taken to adapt to the UK’s changing climate.

“Projections suggest that without action, there could be 10,000 UK heat-related deaths annually. High temperatures are costing the UK economy £60 billion a year: so measures to address the risks from overheating are simply a no-brainer.

“There are a number of relatively simple ways to mitigate overheating risk, such as installing shutters, increasing the size of green spaces and using reflective paint on roofs. Yet none of these measures are being rolled out at scale. There is now a real opportunity to focus on these measures in tandem with improving the energy efficiency of the country’s homes in a new national retrofit programme.

“Tackling overheating at scale will not be a quick or easy undertaking. Clear collaboration between Government departments and local authorities is necessary, supported by a clear messaging campaign and a pipeline of funding and skilled retrofitters to undertake the work needed.

“Existing Government policy fails to grasp the urgency of the task at hand. A Minister with oversight on heat resilience must be appointed to oversee this important work.”

Dr Radhika Khosla, Associate Professor at the Smith School of Enterprise and Environment, University of Oxford, who acted as Specialist Adviser for the EAC’s inquiry, said: “We were delighted to partner with the EAC for this timely and important inquiry.

“Sustainable cooling has rightly been pushed up the global agenda in recent years as temperatures rise around the world. But now that we recognise the problems from extreme heat, it is imperative we commit to the solutions.

“Our hope is that this report helps the UK take action to meet its Global Cooling Pledge commitments and, most importantly, helps to save lives and protect people’s wellbeing while reducing emissions from cooling.”

Urgent action required to tackle ‘endemic’ misogyny faced by women in the music industry, committee warns

Women pursuing careers in music face “endemic” misogyny and discrimination in a sector dominated by self-employment and gendered power imbalances, Westminster’s Women and Equalities Committee (WEC) has warned.

WEC’s ‘Misogyny in Music’ report laid bare a “boys’ club” where sexual harassment and abuse is common, and the non-reporting of such incidents is high. Victims who do speak out struggle to be believed or may find their career ends as a consequence.

Despite increases in representation, women encounter limitations in opportunity, a lack of support and persistent unequal pay; these issues are intensified for women facing intersectional barriers, particularly racial discrimination, the report found.

Female artists are routinely undervalued and undermined, endure a focus on their physical appearance in a way that men are not subjected to, and have to work far harder to get the recognition their ability merits.

Making a series of strong and wide-ranging recommendations, the cross-party committee of MPs called on ministers to take legislative steps to amend the Equality Act to ensure freelance workers have the same protections from discrimination as employees and bring into force section 14 to improve protections for people facing intersectional inequality.

It also recommended the Government should legislate to impose a duty on employers to protect workers from sexual harassment by third parties, a proposal the Government initially supported and then rejected last year.

Both the music industry and Government, WEC said, should increase investment in diverse talent and make more funding available to the schemes that support it. Pathways to careers for women working in the sector must improve it added, particularly in male-dominated areas such as Artists and Repertoire (A&R), sound engineering and production.

Record labels should commit to regular publication of statistics on the diversity of their creative rosters, with all organisations of more than 100 employees required to publish data on the diversity of their workforce and gender and ethnicity pay gaps.

On non-disclosure agreements (NDAs), the report cited distressing testimonies of victims “threatened into silence”, with WEC urging ministers to prohibit the use of non-disclosure and other forms of confidentiality agreements in cases involving sexual abuse, sexual harassment or sexual misconduct, bullying or harassment, and discrimination relating to a protected characteristic.

The Government, WEC recommended, should consider a retrospective moratorium on NDAs for those who have signed them relating to the issues outlined.

The report also called for strengthened requirements for industry areas where harassment and abuse are known to take place. It recommended that studios, music venues and the security staff that attend them should be subject to licensing requirements focused on tackling sexual harassment and that managers of artists should also be licensed.

WEC supported the Office for Students’ proposed new condition of registration and potential sanction for educational settings aimed at improving protections for students and urged the OfS to “implement its proposals swiftly and to enforce them robustly”.

The establishment of a single, recognisable body, the Creative Industries Independent Standards Authority (CIISA) WEC’s report concluded will help to shine a light on unacceptable behaviour in the music industry and may reduce the risk of further harm.

But the committee cautioned it is “not a panacea for all of the problems in the industry” and “time will tell whether it has the powers required to drive the changes needed”.

Chair of the Women and Equalities Committee, Rt Hon Caroline Nokes MP said: “Women’s creative and career potential should not have limits placed upon it by ‘endemic’ misogyny which has persisted for far too long within the music industry.

“Our report rightly focuses on improving protections and reporting mechanisms, and on necessary structural and legislative reforms.

“However, a shift in the behaviour of men—and it is almost always men – at the heart of the music industry is the transformative change needed for talented women to quite literally have their voices heard and be both recognised and rewarded on equal terms.”

Remote Scottish communities worse off due to ‘rural premium’ despite cost of living support, MPs find

The Scottish Affairs Committee warns blanket UK-wide schemes intended to support households with the rising cost of living were not sufficiently ‘rural-proofed’ and did not meet the needs of remote communities in Scotland who face a ‘rural premium’.

The ‘rural premium’ refers to the higher prices that communities in remote rural areas pay, relative to urban areas, to access the same goods and services. The report highlighted three key areas – energy, food security and transport – and finds that rising costs in each sector disproportionately affects rural communities in Scotland. 

Examples cited by the Committee include exposure to fuel price inflation due to being more reliant on transport, a reliance on expensive alternative fuels for off-grid households and higher charges for food deliveries to remote locations. 

In a new report published yesterday, MPs on the Westminster-based Scottish Affairs Committee acknowledge the unprecedented package of support provided by the UK Government which has helped to mitigate the impact of price spikes.  

The Committee concludes that some schemes, however, had prioritised administrative ease to accelerate funds getting to people rather than specifically targeting financial support for those who need it most. MPs on the Committee found that financial support tailored towards remote communities experiencing the ‘rural premium’ would have more effectively alleviated the acute and unique pressures those households face. 

Evidence submitted to the Committee as part of the inquiry showed that prior to the sharp increase in fuel prices, the highest rates of fuel poverty in Scotland could be found in the most rural regions – Na h-Eileanan Siar (40%), Highland (33%), Argyll and Bute (32%), Moray (32%), Shetland Islands (31%) and Orkney Islands (31%). The Scottish Government has estimated that 57% of households in rural areas would be in fuel poverty by April 2023. 

The Committee heard that food insecurity had led to a ‘cost of surviving crisis’ for some in particularly remote areas, while delayed plans to improve ferry and road infrastructure has further exacerbated difficulties for rural communities. 

MPs are calling for the Scottish and UK Governments to work together in order to better understand the scale and complexities of the challenges facing rural communities in Scotland. Agreeing consistent definitions of food poverty and more effective collaboration to overcome transport infrastructure challenges would be welcome steps forward in tackling this issue, the Committee says.

Chair of the Scottish Affairs Committee, Pete Wishart MP, said: “During the cost-of-living crisis, people living in remote parts of Scotland have found themselves in a perfect storm of poorly-insulated, high energy usage homes with an extended journey to local amenities and food shopping bills off the charts.  

“Schemes implemented by both the UK and Scottish Governments have been welcome in large parts of Scotland, but the reality is these households have been lumbered with a ‘rural premium’ that hasn’t been adequately addressed by state support. 

“We must learn the lessons from the economic challenges households have faced over the last few years. I hope both the UK and Scottish Governments will use this time to properly understand the support these communities will need to prevent them falling further into poverty should we face similar problems in the future.”