Lords Advance Late Payment Bill, Uphold Ecodesign Rules

High-Level Summary

The House of Lords held oral questions on the British Council’s finances, regulation of e‑bikes and e‑scooters, and VAT recovery for further education colleges, followed by scrutiny of government compliance with a prior Humble Address on the proposed appointment of Lord Mandelson. Peers then gave the Commercial Payments Bill [HL] a Second Reading, debating its 60‑day maximum payment term, tougher late‑payment remedies, strengthened Small Business Commissioner powers, and a ban on construction retentions. The House defeated a motion to regret new ecodesign rules for tumble dryers and approved regulations updating clean air zone central service fees. Proceedings also included three Commons urgent questions (Cuba, children’s online safety, and water companies), first readings of two Private Members’ Bills, and formal business.

Detailed Summary

Oaths and Affirmations

Lord De Mauley took the oath and Lord Hampton made the solemn affirmation, and both signed an undertaking to abide by the Code of Conduct: “Lord De Mauley took the oath and Lord Hampton made the solemn affirmation, and both signed an undertaking to abide by the Code of Conduct.”

British Council: funding, loan and operations (Oral Question)

Lord Lemos announced increased support: “we are allocating it £173 million grant in aid per year until 2028-29” and a “one-off cash injection of £10 million” with retention of “asset sales of £60 million”. Baroness Thornton highlighted the £200 million Covid‑era loan and its costs as “£15 million in interest every year”. Lord Lemos said the Council had made losses of “around £50 million per year” and must deliver its turnaround plan, with the loan set on Subsidy Control‑compliant terms. He said Erasmus administration would continue and be unaffected by loan discussions, would write on IELTS in Russia, and noted the Treasury “expects the loan to be paid in cash” while the art collection is a matter for the Council. He cited a review of the Soft Power Council calling for “better co-ordination and more focus”, said the estate would be kept under review, and highlighted scholarships and support for Ukrainian schools. He added, “we hope that the FCDO will agree to restructuring the loan in the coming weeks”. Outcome/next steps: No decision; Ministers indicated ongoing discussions on potential loan restructuring and emphasised delivery of the financial turnaround plan.

E‑scooters and e‑bikes: safety, enforcement and regulation (Oral Question)

The Government reiterated that compliant e‑bikes are legal, shared bike schemes have tightened rules, and e‑scooters are confined to rental trials pending consultation: “E-scooters are being tested through shared rental trials… We will consult on proposals for e-scooters in the next few months”. Ministers flagged new powers to set insurance requirements for shared cycles and a consultation route to implement them. Lord Hendy noted surprise at nearby cycle‑lane works and stressed compliance by all road users: “cyclists stopping at red lights”. He set out legal e‑bike limits—“maximum power of 250 watts and a maximum assisted speed of 15.5 mph”—and that non‑compliant bikes are motor vehicles subject to approval, registration, tax and insurance. He cited increased enforcement and large seizures, encouraging publicity, and said new local licensing powers would help “clean up streets” and protect disabled pedestrians from clutter. Next steps: Government consultations on e‑scooter proposals and on insurance for shared cycles; ministerial correspondence on Northern Ireland enforcement powers.

Further education colleges: VAT recovery (Oral Question)

Lord Livermore confirmed that FE colleges cannot recover input VAT under refund schemes and that “The Government are continuing to look into the VAT position of these colleges”. He said any change would be a tax policy decision “at fiscal events” and listed additional funding for estates, capacity, and priority areas. He acknowledged aims of greater parity with other sectors, said free‑meal funding discrepancies are “actively” under review, and could not give a timetable: “I am not in a position to put a timescale on that just now”. Outcome: No policy change; review ongoing, with references to broader FE funding support.

Humble Address on proposed Washington appointment (Oral Question)

Baroness Anderson said the Government had published “all available material, with the exception of a small number of documents that were withheld at the request of the Metropolitan Police” and consider the duties discharged. She stated the process was official‑led and noted that some messages were “no longer available” to the sender at the time of the return. She explained withheld categories—“national security, vetting material, conflict of interest process material and internal correspondence with Peter Mandelson”—pending Met advice. On disappearing messages, she quoted the Ministerial Code: “‘Disappearing message’ functions … You must ensure that any such use does not impact on your recordkeeping or transparency responsibilities”. She recorded that the Prime Minister had said the appointment “was a mistake” and apologised, including to victims. Outcome: Government maintained that the Humble Address had been complied with; further disclosures may follow Met Police timing.

First Readings: Leaseholder Remediation (Building Safety) Bill [HL]; Complications from Abortions (Annual Report) Bill [HL]

Two Private Members’ Bills were introduced and ordered to be printed. The leaseholder remediation bill would “make provision for the remediation of building safety defects in residential leasehold properties” and impose duties and rights to secure remediation. The complications bill would require “the Secretary of State to publish an annual report on complications from abortions in England”.

Malvern Hills Bill [HL] – revival Motion

After “Not content” was called, Lord Ponsonby withdrew the revival Motion, stating: “I will therefore seek leave to withdraw the Motion so that it may be retabled at a time when a debate can be held”; the Motion was withdrawn. Outcome: Motion withdrawn to allow a future debate.

Cuba: humanitarian situation (Commons Urgent Question)

The Government restated concern over shortages and human rights, while opposing the US embargo: the Answer recorded that the UK has “consistently opposed the embargo—for instance, at the United Nations—for nearly 30 years”. Lord Collins said the UK engages with both the US and Cuba and presses human rights issues, including urging the release of political prisoners. On the UK–Cuba PDCA, he said ratification was delayed and that “now is not the right time to enter into a new agreement”. He affirmed commitment to international law and said UK support is channelled through the World Food Programme and UNICEF to reduce diversion risk. Outcome: No immediate change; continued engagement and support via UN agencies.

Digital safety: children (Commons Urgent Question)

Ministers set expectations for device‑level protections to prevent children taking, sharing or viewing nude images, and urged companies to act within three months, warning they “will not hesitate to legislate” if expectations are unmet. Baroness Lloyd said the protections apply to old and new devices and that legislation is being prepared in parallel with the Home Office. She said adult privacy is protected as adults can verify age and switch the function off, and noted Ofcom’s active enforcement with “100 investigations” and significant fines. Next steps: Government to review consultation responses and prepare legislation if industry action is insufficient.

Water companies and pollution (Commons Urgent Question)

Ministers summarised actions since taking office, including updating companies’ articles of association, creating consumer panels and passing the Water (Special Measures) Act 2025 with ring‑fencing, bonus bans, criminal liability and automatic penalties, alongside a forthcoming clean water Bill. Baroness Hayman discussed small water storage with landowners, Ofwat’s evaluation of Thames Water proposals with readiness for special administration, and said nationalisation is not being pursued, noting sector value and debt. She backed sustainable drainage measures and new reservoirs, citing reforms so that major schemes can progress more quickly after “almost 40 years” without new ones. Outcome: Continued regulatory and legislative reform; Ofwat decisions pending on Thames Water; clean water Bill to be debated.

Commercial Payments Bill [HL] – Second Reading

Introducing the Bill, Lord Leong said Part 1 “introduces a maximum payment term of 60 days” (with limited exemptions), strengthens remedies and statutory interest, empowers the Small Business Commissioner to adjudicate disputes and investigate persistent poor practices, and would “ban retention clauses in construction contracts” with a “two-year transition period”. Lord Hunt cautioned that mandatory terms can become “accepted payment dates rather than genuine deadlines” and asked when the 60‑day period ends—on payment or receipt. Lord Thomas urged reconsidering the intended exemption for import/export contracts. Baroness Alexander supported ending retentions but warned that they “starve supply-chain small businesses of cash” and sought measures on enforceability and avoidance. Lord Lansley suggested that “45 days ought to be the logical maximum” in the long run and relayed National Housing Federation concerns about losing leverage on defects. Other peers raised SBC resourcing, definitions, whistleblower protections and digital tools. In winding up, Lord Leong said 60 days “strikes a fair balance” across sectors and that, subject to consultation, imports and exports are intended for exemption. He confirmed public authorities would retain a 30‑day maximum. Outcome: Bill read a second time and committed to Grand Committee; order of consideration agreed.

Ecodesign for tumble dryers: Motion to Regret

Baroness Hoey argued the regulations amount to banning new conventional tumble dryers from 2027 and reflect alignment with EU rules under the Windsor Framework, raising upfront costs and limiting use in unheated spaces. The Government said ecodesign improves efficiency and that the negative procedure is provided for in the existing framework. Lord Whitehead cited estimated savings of “approximately £200” over 12 years and “over £900” over 20 years through efficiency and repairability. Outcome: The Motion to Regret was defeated on division: “Ayes 13, Noes 66”.

Clean Air Zones Central Services (Fees) Regulations – approval and regret amendment

The regulations extend the charging period for central services to 2031 and raise the per‑transaction fee from £2 to £4 as a step towards greater cost recovery. The Minister said local authorities should not pass costs to motorists and that any shortfalls would be covered: “we expect them not to pass on any increase in costs to motorists” and “this will be covered by the Government under new burdens rules”. He pointed to health benefits, with nitrogen dioxide reductions of “between 18% and 46%” since 2019. Lord Moylan warned that fees might be passed on indirectly and opposed extending the charging period, but withdrew his regret amendment; the approval Motion was agreed.