Lords Require Review Before Axing Compensation Cap; SAF Advances

High-Level Summary

The House of Lords held oral questions on Universal Credit’s two‑child limit, Drax’s environmental credentials, the 2026 Nuclear Non‑Proliferation Treaty Review Conference, and children’s social media. The House approved five statutory instruments, and took Lords exchanges on three Commons Urgent Questions covering Ajax armoured vehicles, proposed jury trial changes, and Operation Kenova. Peers agreed Commons changes to the Planning and Infrastructure Bill. On the Employment Rights Bill, the Lords accepted a six‑month qualifying period for unfair dismissal and, by division (244–220), required a review and consultation before abolishing the compensation cap. In Committee on the Sustainable Aviation Fuel Bill, Ministers secured several government amendments, multiple probing amendments were withdrawn, and further consultation and engagement were promised.

Detailed Summary

Universal Credit: Two‑child Limit – Oral Question

Lord Farmer asked about the impact on work incentives of lifting the two‑child limit. Baroness Sherlock said removing the limit was “the fastest and most cost‑effective way” to lift children out of poverty while the benefit cap remained to “encourag[e] parents to take responsibility and work towards financial independence” [ref: b229.2/1]. She added there was no evidence the limit affected family size and that “47% of households affected by the two‑child limit were not claiming universal credit when any of their children were born… [and] some 60% of households affected by this are in work” [ref: b229.4/1]. Baroness Lister cited research finding no positive employment effect, and Sherlock highlighted investment in childcare and pay, saying poverty has long‑term effects and “No other G7 country has a policy like this” [ref: b230.0/1, b230.0/2]. On child maintenance, Sherlock said the Child Maintenance Service had collected “93% of all the maintenance owed” since 2012 and “will go after them” if parents do not pay [ref: b230.4/1].

Drax – Environmental Credentials – Oral Question

Baroness Jones of Moulsecoomb asked about Drax’s sourcing from old‑growth forests. Lord Whitehead said Ofgem’s 2024 investigation “did not find evidence that unsustainable biomass had been used by Drax,” though it identified data governance shortcomings and required a global supply chain audit [ref: b233.0/1]. He said the new 2027–31 contract requires “100% sustainability, which obviously excludes old‑growth forests” [ref: b233.2/1], and that domestic biomass supply is insufficient so importing “appears to make some sense, though not necessarily for the long‑term future” [ref: b233.4/1]. On compliance, he stated, “If Drax is non‑compliant, the subsidy goes” [ref: b234.2/1], adding the contract moves Drax to dispatchable generation and could enable future CCS [ref: b234.4/1].

Nuclear Non‑Proliferation Treaty Review Conference 2026 – Oral Question

Baroness Miller asked about UK priorities for the 2026 NPT Review Conference. Lord Coaker said the UK will work across all three pillars—“non‑proliferation, disarmament and peaceful use of nuclear energy”—including upholding the IAEA, supporting nuclear‑weapon‑free zones and countering attempts to weaken the regime [ref: b235.5/2]. He noted progress since the 1980s and reaffirmed CTBT adherence: “This country has not tested a nuclear weapon since the early 1990s… We ask and call on other countries to do exactly the same” [ref: b236.3/1, b238.0/2]. On the DPRK, he said the UK disputes its withdrawal from the NPT and urges regional pressure [ref: b238.2/1].

Children: Social Media – Oral Question

Baroness Berger asked whether the Government would follow Australia by banning social media for under‑16s. Baroness Lloyd of Effra said the Government are monitoring international approaches and that “nothing is off the table, but any action must be based on robust evidence” [ref: b238.5/1]. She cited the Online Safety Act and said current evidence does not show “a causal relationship between screen time, social media use and children’s development,” while committing to improve the evidence base [ref: b239.1/1]. She outlined parental support pilots and Ofcom’s media literacy strategy, and confirmed many AI services are already regulated: “If there is a risk of harm… that would already fall under the regime” [ref: b240.3/1, b241.3/1].

Statutory Instruments – Motions to Approve

The House approved without division: Procurement Act 2023 (Specified International Agreements and Saving Provision) (Amendment) Regulations 2025 (considered 8 December; Motion agreed) [ref: b241.5/4]; Infrastructure (Wales) Act 2024 (Consequential Amendments) Order 2025 (considered 8 December; Motion agreed) [ref: b242.1/4]; Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations 2025 (considered 8 December; Motion agreed) [ref: b242.3/4]; Education (Scotland) Act 2025 (Consequential Provisions and Modifications) Order 2025 (considered 8 December; Motion agreed) [ref: b242.5/4]; Judicial Appointments Commission (Amendment) Regulations 2025 (considered 8 December; Motion agreed) [ref: b242.7/4].

Ajax Armoured Vehicle – Commons Urgent Question (Answer repeated)

The Commons statement (8 December) reported that about 30 personnel operating Ajax vehicles reported noise and vibration symptoms during Exercise Titan Storm; the exercise was stopped and Ajax use for training and exercising paused pending investigations [ref: b242.9/2, b242.9/3]. In the Lords, Baroness Goldie questioned how IOC was accepted. Lord Coaker said Ministers await investigations and “will consider all available options on how we move forward” [ref: b243.0/3, b244.0/2]. He said repairs to Army trucks are under way and “we expect that to be completed in the new year,” and highlighted budgets over time and partnerships with European allies [ref: b244.2/2, b244.2/3]. He referred to an independent strand and potential external consultants to ensure robust advice [ref: b245.1/1].

Restriction of Jury Trials – Commons Urgent Question (Answer repeated)

The Commons statement said there is an emergency in criminal courts and that about “60% of victims who report rape drop out of the criminal system” [ref: b247.1/4]. In the Lords, Baroness Levitt said the figure is “entirely correct,” breaking attrition down as 58% pre‑charge and 10% post‑charge [ref: b248.1/1]. On jury trials, she said, “This Government are completely committed to jury trial… All we are doing is moving some cases down” to free Crown Court capacity, noting an average 391‑day wait for rape and serious sexual offence cases [ref: b250.2/2, b248.3/2].

Northern Ireland Troubles: Operation Kenova – Commons Urgent Question (Answer repeated)

The Commons statement commended the Kenova team and noted ongoing litigation and national security considerations. In the Lords, Baroness Anderson reaffirmed the “neither confirm nor deny” policy: “There will be no change” [ref: b252.0/3]. She praised security forces and noted the IRA’s responsibility for over 1,700 murders [ref: b252.0/2, b253.0/2]. On calls for a public inquiry into MI5, she said: “The Government have no intention to commission a public inquiry,” calling Kenova thorough and Article 2‑compliant [ref: b254.2/1]. She confirmed modern CHIS practices are strictly regulated under RIPA 2000 and the CHIS Act 2021 [ref: b254.4/1].

Planning and Infrastructure Bill – Commons Amendment (Motion A)

Baroness Taylor moved agreement with a Commons amendment (33C) to subject the first regulations for the national scheme of delegation to the affirmative procedure, saying the Bill will “create certainty and speed up the process for consenting nationally significant infra‑ structure” and enable “a step change in the delivery of… new homes and critical infrastructure” [ref: b255.3/2]. Lord Lansley welcomed acceptance of his original proposal. The Motion was agreed without division [ref: b256.2/5]. The Minister emphasised empowering planning officers and using skills effectively to speed decisions [ref: b256.2/2], and said implementation would proceed “quickly over the coming months” [ref: b256.2/4].

Employment Rights Bill – Commons Amendments and Lords Motions

Baroness Lloyd of Effra announced a tripartite agreement with unions and employer groups on unfair dismissal: reducing the qualifying period from 24 months to six months, with any future change only by primary legislation, and removing the statutory compensation cap [ref: b257.3/6]. She said the cap’s removal was “discussed and agreed in the room” [ref: b257.3/8]. Lord Fox welcomed the six‑month compromise and withdrew Motion A1 [ref: b279.3/2]. On Motion B, Lord Sharpe’s Motion B1 required a review and consultation before abolishing the compensation cap [ref: b282.2/3]. The House agreed Motion B1 by division (Ayes 244, Noes 220) [ref: b282.3/2], and then agreed Motion B as amended [ref: b282.5/2]. The Minister confirmed an enactment impact assessment will be published before commencement of the unfair dismissal package [ref: b257.3/10]. Motion C (seasonal work) was agreed, placing a duty to consult representatives of seasonal workers and employers [ref: b286.1/3, b286.1/4]. On Motion D (union political funds), government amendments reinstated opt‑out as default with guidance to expedite opt‑outs [ref: b257.3/21, b257.3/22]; Lord Burns’s alternative was negatived [ref: b287.3/2]. Motion E (strike ballot turnout) required the Secretary of State to have regard to the effect of e‑balloting and to lay a statement before repeal; an attempt to insist on the Lords’ earlier amendment was defeated (Ayes 219, Noes 223) [ref: b257.3/26, b288.3/2, b288.5/1].

Sustainable Aviation Fuel Bill – Committee (HL)

The House went into Committee; Scottish and Welsh legislative consent was sought, and Northern Ireland consent granted [ref: b291.1/1]. Debate focussed on the revenue certainty mechanism (RCM), contract scope and length, levy design, domestic production, sustainability and reporting. Ministers said allocation processes and contract lengths will be developed with industry; comparable schemes use “10 to 15 years” and a proposed five‑year break clause would “undermine the certainty provided by the contract” [ref: b298.0/5, b298.0/6]. The Minister said support is intended for UK plants, while projects using imported precursors may still benefit; he agreed to consider putting a UK‑production definition in the Bill and to meet Peers before Report [ref: b302.1/2]. On the levy, detailed design is under consultation (closes 8 January 2026) with affirmative regulations to follow; a pre‑Report briefing was promised [ref: b308.0/5, b308.0/8]. Government amendments added a duty to consult devolved administrations before certain regulations [ref: b310.1/2, b324.1/2]. Ministers confirmed RCM sustainability criteria will align with the SAF mandate and that nuclear‑derived SAF is eligible under both; HEFA projects are excluded from the first allocation round [ref: b328.0/2, b329.0/1, b328.0/6]. Several probing amendments were withdrawn; Government Amendments 13, 14 and 20 were agreed, and the Bill was reported with amendments [ref: b329.3/11].