Lords Rein In Fines, Shield Pensions, Demand Iran Review

High-Level Summary

The House of Lords held oral questions on low‑carbon heat networks, plastic pollution, burial provision, and the IMF’s outlook for UK growth and inflation. The House agreed a procedural change so that hereditary Peers granted life peerages may sit without a full introduction ceremony. On the Crime and Policing Bill, the House agreed amendments to strengthen safeguards against “fining for profit” and to require a one‑month review of whether Iran‑related entities should be proscribed. Peers later considered the Pension Schemes Bill, voting to insist on removing a reserve mandation power on asset allocation while accepting government concessions on competition and on 50‑year projections for public service pension cash flows. A short debate examined rural impacts of the Clean Power 2030 Action Plan, and a ministerial Statement outlined the British Industrial Competitiveness Scheme to reduce industrial electricity costs.

Detailed Summary

Low‑carbon Heat Networks – Oral Question

Baroness Griffin of Princethorpe (for Baroness Curran) asked about plans to support low‑carbon heat networks. Lord Whitehead said the Warm Homes Plan includes a target for networks to “meet 7% of heat demand by 2035” and £1 billion of investment this Parliament via the Green Heat Network Fund and the Heat Network Efficiency Scheme. He added that government ambitions envisage heat networks supplying “something like 20% of total heat by 2050”. Peers asked about acceleration, consumer protections and skills. On regulation, Lord Whitehead noted new rules took effect on 27 January to secure “a fair deal for consumers” and to support compliant operators. He said skills provision is being aligned with the low‑carbon transition, and that zoning is intended to include both residential and non‑domestic buildings.

Plastic Pollution Reduction – Oral Question

Baroness Hayman of Ullock set out actions including banning single‑use vapes from June 2025 and plastic wet wipes from spring 2027, extended producer responsibility (EPR), simpler recycling reforms, and a 2027 deposit return scheme. She confirmed that, from year 2 of EPR, fees will be modulated so “more readily recyclable packaging will cost less and harder‑to‑recycle packaging will cost more”. Peers raised microplastics, plastics in roads, exports, PFAS in uniforms, and washing‑machine filters. The Minister said the circular economy growth plan would be published “fairly soon” and that government needs “to tackle the issue of microbeads and microplastics”. She admitted not knowing what proportion of plastic waste is used in road building but saw “a huge opportunity”; said exports are subject to “strict rules” and that PRN reforms are being consulted on; stressed working with local authorities to address inconsistent waste separation; and confirmed departments, including the NHS, are working together on microplastics and health.

Burial Provision in England and Wales – Oral Question

Responding to Lord Mohammed of Tinsley, Baroness Levitt said there is “no statutory duty on local authorities to make provision for burial” and that provision is managed locally, though pressures are recognised. She said the Government would engage stakeholders as part of the response to the Law Commission’s recent report. Peers raised cremation delays for Hindu and Sikh families, the Children’s Funeral Fund, law reform timelines, uncollected ashes, private burial ground regulation, and the Church of England’s role. The Minister confirmed the Children’s Funeral Fund “is not means‑tested” and explained how it is accessed. She noted the Law Commission expects to publish draft legislation in mid‑2028, with related workstreams concluding by end‑2027. She said uncollected ashes would be considered carefully, described existing burial law as a “patchwork” needing consolidation, and agreed to meet the Church about churchyards and burial provision.

World Economic Outlook: UK Growth and Inflation – Oral Question

Asked about the IMF’s latest estimates, Lord Livermore said the UK was more exposed to energy shocks but that the IMF judged the Government’s plan “the appropriate response” and forecast the UK as “the fastest‑growing European G7 economy this year and next”. He cited the spring forecast: inflation at 3% and “set to fall to target”, borrowing set to fall more than any other G7 over this Parliament, GDP per capita forecast to rise 5.6%, and increased fiscal headroom. On resilience, he highlighted steps to expand clean, home‑grown energy and said consultation on the British Industrial Competitiveness Scheme (BICS) had been published. He confirmed interventions would be targeted within fiscal rules to keep inflation and interest rates as low as possible.

Introductions – Motion to Agree

Baroness Smith of Basildon proposed that a Peer who previously sat as an excepted hereditary Peer and then receives a life peerage may sit without a full introduction ceremony, mirroring 1999 practice and with the King’s approval. She explained that such Peers must take the oath and sign the roll but “the full ceremony of introduction… will not take place”. The Motion was agreed.

Crime and Policing Bill – Consideration of Commons Amendments (Motions A–D)

Introducing the Motions, Lord Hanson of Flint said guidance on fixed penalty notices (FPNs) would make clear: “Where external contractors are used, private firms should not be able to receive greater revenue or profits just from increasing the volume of penalties”. On fly‑tipping, he noted councils already have powers to seize vehicles and that statutory guidance would cover evidence collection and seizure. On youth diversion orders, he confirmed statutory guidance on multi‑agency engagement and that police “must have due regard” to it. On proscription, he opposed statutory deadlines and instead proposed a statement explaining proscription policy within six months. Lord Clement‑Jones moved Motion A1 to strengthen safeguards against “fining for profit”, saying the government alternative was “simply too weak, offering only that the Secretary of State must issue guidance”. Baroness Doocey welcomed concessions on youth diversion orders and said she “will not divide the House on Motion C1”. On Motion D1, Lord Davies of Gower sought a one‑month review of whether organisations related to the Iranian armed forces should be proscribed, arguing the IRGC is a “dangerous and lethal organisation… If they can, why can we not?”. Lord Hanson reiterated there would be no running commentary on proscription and that any proscription would be brought forward under the statutory procedure and debated by both Houses. Outcomes: Motion A1 was agreed (Ayes 282, Noes 184); Motion B was agreed; Motion C was agreed and Motion C1 was not moved; Motion D1 was agreed (Ayes 281, Noes 190). Next steps: the House’s changes now return to the Commons; no further timetable is stated in the transcript.

Clean Power 2030 Action Plan: Rural Communities – Short Debate

Baroness McIntosh of Pickering argued the plan risks “devastating” rural impacts, citing fire risks from battery storage, pressures on prime farmland, pylons and offshore effects, and urged alternatives such as North Sea oil, small modular reactors and rooftop solar. She said the Government had admitted “it will potentially take 10% of farmland out of food production”. Others questioned grid expansion and suggested hydrogen transmission, with one Member citing “1.7 million hectares of productive land” being removed from agriculture. Earl Russell argued the land take of renewables is modest—“only 0.3% of the UK’s land is used for large‑scale solar”—and warned that the “real threat… is from the cost of inaction” on climate change. Replying, Lord Whitehead said many suggested alternatives are already in train and that the land‑use framework projects renewables taking “approximately 155,000 hectares… about 2%, not 10%” of England’s utilised agricultural area. He outlined planned community benefits, including an electricity bill discount of £2,500 for households near significant new transmission, and undertook to write further on hydrogen.

British Industrial Competitiveness Scheme (BICS) – Ministerial Statement (Q&A)

Peers questioned the Government about BICS to lower industrial electricity costs. Baroness Lloyd of Effra said there would be “a one‑off payment for businesses eligible for BICS, covering the 2026‑27 period, and reflecting the support that businesses would have received had the scheme been in place this year… delivered next year”. She confirmed exemptions from the renewables obligation and feed‑in tariff levies take effect from April next year, and from the capacity market levy from October. On scope, she said the scheme focuses on strategic manufacturing, later noting consultation had expanded coverage “from what we thought was going to be about 7,000 businesses to 10,000 businesses”. She said BICS would bring electricity costs into line with EU14 levels, “cutting costs by £35 to £40 per megawatt‑hour”. On North Sea production, she announced transitional energy certificates for some tie‑backs but no new exploration, arguing the UK is a price taker and the “only way to take back control… is with clean, homegrown power”. She undertook to revert on retail energy market competition and SME access to the ombudsman.

Pension Schemes Bill – Consideration of Commons Amendments (Ping‑pong)

Baroness Sherlock set out government constraints added to a proposed reserve power to mandate asset allocation: caps of 10% overall and 5% UK‑specific; asset‑class neutrality; a sunset brought forward to 2032; a single use of the headline percentage; and full repeal of the regime by end‑2035. She cited industry support, with Aviva welcoming that the mandation power is constrained to the Mansion House Accord. Baroness Bowles moved to insist on removing the reserve power, arguing “the primacy of trustee fiduciary duty must be made clear” and objecting to a ‘material detriment’ bar “higher than the fiduciary duty threshold”. Other Peers warned that “Not causing ‘material financial detriment’ is very different from acting in members’ best interests”, while some accepted that conditions can be attached to tax‑advantaged schemes in principle. Outcome: the House agreed Motion A1 to insist on removing the reserve power (Ayes 234, Noes 152). On scale and competition, the Government accepted that regulations must “have regard to the importance of— (a) innovation… (b) competition… (c) improving outcomes… (d) … appropriate scale; (e) … effective governance”. On consolidation and innovation, the Secretary of State must publish a report within 12 months. On public service pensions, the Government Actuary must publish 50‑year cash‑flow projections within 12 months, to be laid before Parliament. Motions B, C and D were agreed without division.