Lords Tighten Steel Nationalisation, Reject Funding Cap

High-Level Summary

The House of Lords conducted oral questions, agreed routine business motions, and devoted substantial time to Report stage of the Steel Industry (Nationalisation) Bill. Royal Assent was notified for the National Security (State Threats) Act and the Clergy Conduct Measure. Ministers answered questions on unpaid carers, safe study routes for refugee students, the dual role of the Lord Advocate, and proposed changes affecting volunteer Coastguard Rescue Officers. A Commons Urgent Question on deportation issues following the Rochdale grooming case was repeated, and the Government responded to the Police Leadership Commission report. Peers agreed several amendments to strengthen cost controls and scrutiny on the Steel Bill and rejected a proposed cap on financial assistance.

Detailed Summary

Royal Assent

Royal Assent was notified to the House for two instruments: “Royal Assent was notified for the following Act: National Security (State Threats) Act” and “Royal Assent was notified for the following Measure: Clergy Conduct Measure”.

Unpaid Carers – Oral Question

Responding for the Government, Lord Leong said Ministers recognise the pressures highlighted by Carers UK and confirmed “we have launched a public consultation reviewing employment rights for unpaid carers”. He stressed cross‑government work and that employment cannot be considered in isolation from health and social care, adding: “We must take our time to ensure that we get this right”. Members raised the impact of employer national insurance changes on care providers, low take‑up of the Carer’s Leave Act, and support for young carers. Lord Leong also outlined a call for evidence to modernise carer’s allowance, including tapering, noting: “We have also increased the weekly earnings limit to £204”. Outcome: no decisions announced; consultation and evidence gathering ongoing.

Safe Refugee Routes for Students – Oral Question

Lord Hanson of Flint confirmed three new safe and legal routes are being developed and that “the refugee study route will be open this autumn, with arrivals in autumn 2027”. Peers cited difficulties caused by the temporary visa “brake” for Afghanistan, Cameroon, Myanmar and Sudan; the Minister said the Government has “temporarily suspended the issuing of visas” due to “an increase of over 470% from 2021 levels” and that “That brake is temporary”. He said details would be set out “very shortly” and engagement with universities would continue, adding “I am happy to receive representations” on broader country coverage. Outcome: further information to follow; applications expected in autumn; arrivals from 2027.

Lord Advocate – Oral Question

Baroness Curran acknowledged a “live debate” on the Lord Advocate’s dual role and restated the position to separate advisory and prosecutorial functions: “Scottish Labour… committed to splitting the role… and that remains our position. The UK Government would of course consider any proposal brought forward by the Scottish Parliament”. She undertook to raise concerns with the Scotland Secretary: “I commit to having that discussion with the Scottish Secretary”. Outcome: no legislative commitment; emphasis on joint working and further discussions.

Maritime and Coastguard Agency – Oral Question (Coastguard Rescue Officers)

On proposed changes affecting volunteer Coastguard Rescue Officers, Lord Hendy of Richmond Hill said the Maritime Minister is listening and that “further scheduled engagement by the Maritime and Coastguard Agency this week has been paused”. He confirmed: “This change has not taken place yet; it is due to take place in September” and the Minister “will reflect deeply” on next steps. Peers queried the accuracy of a staff survey, diversity impacts, comparisons with retained firefighters, safety risks and value for money. The Minister said he would consider the “accuracy and veracity of the information” and reassured that “The Government have no intention of putting any of those people in danger”. Outcome: decision pending; Ministers to consider issues before September.

Business of the House – Standing Orders and Bill Commitment

The House agreed two motions to dispense with Standing Order 44 to allow the Supply and Appropriation (Main Estimates) Bill and the Taxation (Energy and Vehicles) Bill to complete their remaining stages on Tuesday 14 July; both were agreed (“Motion agreed.”). The House also agreed to commit the Commercial Payments Bill to a Committee of the Whole House and to mirror an earlier instruction: this was also agreed (“Motion agreed.”).

Rochdale Grooming Gang: Offender Deportation – Commons Urgent Question (Answer repeated)

The Government explained that a convicted offender could not currently be deported because he is “exempt from deportation due to Section 7” of the Immigration Act 1971. Lord Hanson of Flint said “we are urgently looking at these matters… nothing is ruled out”, and that discussions are ongoing with Pakistan: “We are in discussion with the Pakistan Government”. On others from the case, he said “one was deported to Afghanistan” and several have been deprived of citizenship with deportation orders in place. Outcome: no immediate legal change; options under review; commitment to update Parliament.

Police Leadership Commission Report – Statement

The Government welcomed the independent review and said: “We are going to consider those recommendations… We will report back in the autumn”. Ministers highlighted related reforms and that they are “actively looking at the recommendation to create a formal senior constable rank” and a professional digital passport. In response to a separate query, the Minister said of another review that “we are hoping to publish the review as soon as possible”. Outcome: recommendations under consideration; formal Government response due in autumn; broader policing reforms proceeding.

Steel Industry (Nationalisation) Bill – Report Stage

Peers agreed multiple changes strengthening cost control and scrutiny. The Government confirmed “the Government will support the amendment” requiring the Secretary of State to consider costs before exercising key transfer powers, and the House limited any extension of the core transfer powers to increments “not exceeding two years”. Parliamentary procedure for continuity obligations and certain enforcement regulations was upgraded to affirmative/made‑affirmative. Government amendments made appointment of an independent valuer mandatory for compensation, and Ministers supported amendments so environmental and health and safety liabilities are taken into account; the Minister said “we agree that the environmental and health and safety liabilities are likely to be an important part” of compensation determinations.

Transparency commitments included: a debate in both Houses within 12 months (“a debate will take place in both Houses”); quarterly Written Ministerial Statements for at least the first year; Select Committee engagement, including that a new chair “would be able to attend a Select Committee”; and an ad hoc parliamentary round table after six months. An amendment to cap financial assistance at £2.5 billion was defeated (“Ayes 95, Noes 202.”). The Government argued a fixed cap would be constraining and “A cap is also a blunt instrument”. Proposals to exempt publicly owned steel from CBAM/ETS and to restrict industrial action were withdrawn/not agreed, with Ministers emphasising a level playing field and workers’ rights: “The provision of any funding would comply with domestic and international subsidy control obligations”; “This amendment is neither necessary nor appropriate”.