Lords Toughen Social Housing, Challenge Ministers on Security and Steel

High-Level Summary

The House of Lords considered defence cooperation with the EU, the EU’s technological sovereignty package, NHS care for people with learning disabilities, music teacher recruitment, maritime security in the Strait of Hormuz, several statutory instruments, urgent questions on the electricity grid and British Steel, the Civil Aviation Bill’s Third Reading, and a substantial Report Stage on the Social Housing Bill. Ministers said no agreement was reached on the EU SAFE initiative but reaffirmed NATO‑centred cooperation and active bilateral defence projects. The Government outlined work on AI and cloud resilience, responded to concerns about NHS accountability for learning disability care, and reiterated commitments on maritime security in the Gulf. Peers approved multiple statutory instruments, passed the Civil Aviation Bill to the Commons, rejected a proposal to restrict social housing to British citizens, and required a statutory review of shared ownership within 12 months.

Detailed Summary

EU Security Action for Europe (SAFE) – Question

Lord Teverson asked about UK participation in the EU SAFE programme. Lord Coaker said the Government entered talks “in good faith,” but “no SAFE agreement was reached,” adding they remain committed to EU co‑operation under “NATO first” and welcomed UK participation in the EU’s €90 billion Ukraine loan. He stressed the value of European industrial and defence cooperation within NATO for interoperability and deterrence. Peers highlighted industry collaboration via events like the Farnborough air show, the balance between domestic orders and exports, and the need to strengthen continental supply chains, which the Minister endorsed in principle. Lord Coaker confirmed bilateral work with Norway, the Netherlands, Türkiye, Germany and France, noted ongoing GCAP discussions, and said “defence and security will be the number one priority of the 2027 spending review”. He said the postponed EU‑UK meeting offers an opportunity to advance defence elements under the May 2025 security partnership. Outcome: No policy change; continued NATO‑centred cooperation, active bilateral projects, and decisions to follow through the 2027 spending review.

EU Technological Sovereignty Package – Question

Baroness Lloyd of Effra said the Government has undertaken an initial assessment of the EU package (including CADA and chips) and that it “presents both opportunities and risks to UK industry”. She outlined plans to use public buying power strategically, including a national cloud infrastructure programme to coordinate public sector procurement. Peers raised China’s AI progress; the Minister emphasised UK investment in digital infrastructure, chip capabilities and upskilling. On procurement lock‑in risks, she cited the Cloud Challenge Book 2026 to strengthen resilience and competition. She confirmed up to £2 billion public compute investment to 2030 “so that researchers, start‑ups, SMEs and public services can have free access to the computing power they need”, said the AI Safety Institute is “developing common standards and approaches to assessment” with counterparts, and noted sovereign AI fund investments must comply with UK law, including copyright. The implications of EU CADA for UK providers are being discussed with EU counterparts. Outcome: Ongoing detailed assessment of the EU package and development of coordinated national cloud procurement.

People with Learning Disabilities: Acute Illness – Question

Baroness Merron welcomed the NCEPOD report and said NHS England had circulated learning across the system, with accountability via integrated care boards; actions include the reasonable adjustment digital flag. She acknowledged the life‑expectancy gap is “19 years” and “totally unacceptable,” and pointed to a national‑level dataset to provide a “single point of truth”. On mental capacity assessments and recording learning disabilities, she cited new guidance and the digital flag to improve adjustments and assessment practice. On accountability, she noted potential financial sanctions and oversight through NHS governance processes, including annual ICB performance assessments. She maintained local provision with specified accountability and committed to continual review and improvement. Outcome: Continued implementation of guidance and accountability processes; progress to be kept under review.

Music Teachers: Recruitment – Question

Baroness Smith of Malvern said “369 music teacher trainees started training last year—a 55% increase compared to academic year 2023‑24,” reported progress toward the pledge for 6,500 additional teachers (over 70% achieved), and a new pay award. She said bursaries are set by need and were not continued this year due to improved recruitment, and that EBacc measures have been reformed/removed with further curriculum review planned. On support infrastructure, she confirmed £76 million annually for 43 music hubs and up to £13 million for a national centre for arts and music education; she highlighted that “more than 90% of the hours of music taught in our schools is provided by specialist music teachers” and committed to expand enrichment opportunities in the school day. Outcome: Continued monitoring of recruitment and bursaries, sustained hubs funding, and establishment of the national centre.

Strait of Hormuz: Merchant Shipping – Private Notice Question

Lord Coaker reiterated commitment to the safe flow of shipping through the Strait of Hormuz and respect for freedom of navigation, saying the UK stands ready to deploy a multinational mission “should conditions allow,” with UKMTO providing security information. He noted that RFA Lyme Bay and HMS Dragon are in the region to support a “permissive environment” and addressed RFA crew welfare through dialogue with unions and crews. He outlined a shift in mine‑countermeasures to a mothership/uncrewed‑systems model via RFA Lyme Bay with HMS Dragon protection. He confirmed ongoing discussions with the United States to restore an operational ceasefire and confidence in the strait, restated that UK support to the US is defensive, and, on bases, that the UK approved US use “for the specific defensive and limited purposes of destroying Iran’s missiles at source”. Outcome: Continued diplomatic engagement, readiness to support a multinational mission, and ongoing threat assessments (including Bab el‑Mandeb).

Lifelong Learning (Fee Limits) Regulations 2026 & Energy Prices Act 2022 (Extension of Time Limit) (No. 2) Regulations 2026 – Motions to Approve

The House approved both instruments without division: “Motions agreed” and “Motion agreed”. Outcome: Instruments approved; no further Lords action indicated.

National Energy System Operator (NESO): Blackout Risk – Commons Urgent Question (answer repeated to the Lords)

Ministers said allegations about information handling and interference at NESO are under investigation by an external legal firm reporting to the board’s head of risk and Ofgem; NESO has stated operational decisions are taken solely by authorised control room personnel. They confirmed that during the heatwave “the Great British grid remains stable… No customers were impacted by tight electricity margins,” and that market notices are standard tools. Peers asked about whistleblowers, costs and resilience. The Minister said it would be wrong to pre‑empt the inquiry, noted plans to expand and modernise the grid, and stressed whistleblower protection: “It is essential that we have an environment in which whistleblowing is protected”. He added: “there were no blackouts, there was no loss of power for customers or industry”. Outcome: Await the investigation’s report; Ofgem is initiating a formal review of the June heatwave events.

British Steel – Commons Urgent Question (answer repeated to the Lords)

Ministers explained British Steel was transferred into public ownership under the Steel Industry (Nationalisation) Act 2026, apologising that regulations were not laid before coming into force due to sensitivities and to ensure operational continuity. They said this “secures British Steel’s immediate future” and supports jobs and steel‑making communities. Questions covered ETS/CBAM costs, governance, tariffs, compensation and liabilities. The Minister said policy remains to abide by international CBAM obligations; compensation will be set by an independent valuer, with the Government’s current view that the business’s “commercial value of the business today is nil,” but they will abide by the valuer’s decision. British Steel is a government‑owned company with the Secretary of State as sole shareholder pending appointment of a new board “when the new Secretary of State is appointed”. He rejected that tariffs/quota changes were a “profound mistake,” arguing they address overcapacity and protect domestic supply chains. Outcome: Appointment of a chair and board to follow; regulations to appoint an independent valuer will be laid in the autumn.

Civil Aviation (Consumer Protection and Regulatory Reform) Bill [HL] – Third Reading

The Government said Northern Ireland legislative consent is required for Clauses 1, 5 and 11 and tabled a minor technical amendment to Schedule 1, which was agreed. The Minister highlighted the Bill’s focus on strengthening consumer rights, reforming aviation regulation and enhancing safety, acknowledging improvements secured for disabled passengers. Contributors welcomed engagement and the commitment to consult on disabled passengers’ experiences. Lord Moylan noted that a Lords amendment requiring a review of airport drop‑off charges remained in the Bill and urged the Government not to remove it in the Commons. The Minister corrected the record to confirm that slot/schedule powers could be used to support regional connectivity if necessary. Outcome: Bill passed the Lords and was sent to the Commons.

Social Housing Bill [HL] – Report (selected outcomes)

Right to Buy reforms: An amendment to preserve a three‑year qualifying period for existing secure tenants (Amendment 1) was defeated (Ayes 162, Noes 220). The Government argued increasing eligibility periods and adjusting discounts will preserve stock while enabling long‑standing tenants to buy. Disposals: In response to concerns about short notice before sales, Ministers will return with a government amendment to extend the current four‑week minimum. Shared ownership: The House agreed to require a government review of shared ownership and staircasing within 12 months (Ayes 232, Noes 146). The Minister said the Government has a programme to improve shared ownership and would “update the House within that timeframe,” aiming for implementation by the end of the Parliament. Domestic abuse protections: The Government tabled 46 amendments to broaden protections so grounds for possession and safeguards apply where the victim is “personally connected,” aligning with the Domestic Abuse Act 2021. On tenancy loss due to gang‑related threats (Amendment 28), Ministers will explore solutions ahead of Commons stages. On access for safety inspections (Amendment 29), the Government is considering statutory routes and working with sector bodies. On debt from coercive/economic abuse (Amendment 76), the Government committed to guidance and, “should the review of statutory guidance show that to be necessary,” to pursue regulations. Other matters: A proposal to review lifetime secure tenancies every five years was withdrawn; Ministers reiterated support for lifetime tenancies and a stock‑management review reporting this year. An amendment to restrict social housing to British citizens was defeated (Ayes 38, Noes 133); Ministers noted eligibility is already tightly controlled and subject to international obligations. Proposals on adapted homes will be underlined in updated allocations guidance. Veterans’ access will feature in the allocations guidance review; current data show 2,649 Armed Forces households given additional preference in 2024‑25. Outcome: Government to table an amendment extending disposal notice periods; statutory shared‑ownership review required within 12 months; extensive domestic abuse protections added; further reviews on stock management and allocations to follow later in the year.

Supply of Machinery (Safety) (Amendment etc.) and the EU Machinery Regulation (Enforcement etc. in Northern Ireland) Regulations 2026 – Motion to Approve (with regret amendment)

Lord Leong said the SI creates an enforcement framework in Northern Ireland for the EU Machinery Regulation from 20 January 2027 and continues GB recognition of CE‑marked machinery to reduce duplication. He cited extensive industry engagement and said the measures support competitiveness while maintaining safety. Baroness Hoey moved a regret amendment, arguing the rules impose EU law on Northern Ireland without UK law‑making and risk disrupting GB‑NI supply chains: “we are being asked to pass legislation enforcing a law that we did not make and have never debated”. The Minister said the instrument provides certainty before 20 January 2027, that many businesses already certify to EU standards, and that similar GB reforms are being developed; “we do not expect the measures to impose additional costs or burdens on businesses in Northern Ireland”. Outcome: The regret amendment was withdrawn and the Motion agreed. Guidance will be updated and GB reforms prepared.