Lords Advance Representation of the People Bill Amid Fraud and Reform Debates

High-Level Summary

The House of Lords considered two introductions, questions on international and public-sector fraud, public inquiries, youth employment in Scotland and hospitality taxation, and a Commons answer on air-traffic-control disruption. The Government described measures and proposed reviews concerning fraud, public inquiries, employment support and the aviation incident, while several questions resulted in undertakings to write or provide briefings. The main legislative business was Second Reading of the Representation of the People Bill, covering the voting age, registration, voter identification, political finance, electoral administration and candidate safety. The Bill was read a second time, committed to a Committee of the Whole House and given an order of consideration; an amendment seeking information about Commons scrutiny was withdrawn. The House then agreed to the Commons message establishing a joint committee on the draft Conversion Practices Bill and adjourned at 9.37 pm.

Detailed Summary

Introductions of Lord Leveson of Liverpool and Lord McTague

Brian Henry Leveson was introduced as Baron Leveson of Liverpool, supported by Lord Phillips of Worth Matravers and Lord Burnett of Maldon; he “took the oath”. Martin Gerard McTague, OBE, was introduced as Baron McTague, supported by Baroness Armstrong of Hill Top and Lord Wilson of Sedgefield; he made the solemn affirmation. Both signed undertakings to abide by the Code of Conduct. The transcript records no debate or decision beyond these formal introductions.

International financial fraud and the UK presidency of the Financial Action Task Force

Lord Wallace of Saltaire asked what progress the Government expected during the UK’s two-year presidency of the Financial Action Task Force (FATF). Baroness Anderson of Stoke-on-Trent said tackling fraud was the presidency’s key priority and that FATF was developing measures on prevention, detection and disruption, with co-operation between governments, law-enforcement bodies, banks, technology companies and online platforms: “FATF is developing practical steps to help countries prevent, detect and disrupt fraud”.

Peers questioned information sharing, the FATF grey-listing of the British Virgin Islands, anti-corruption, anti-money-laundering supervision of professional firms, FATF’s assessment of Cambodia, compliance costs and the recovery of money in individual cases. The Minister said the overseas territories and Crown dependencies had committed to publicly accessible beneficial-ownership registers and FATF standards, while the UK respected their constitutional autonomy. She said support would be available where Crown dependencies required it and undertook to write about bilateral discussions. She also cited 400 new specialist investigators, an additional £110 million a year through the economic crime levy and an estimated £14 billion annual cost of fraud. She declined to comment on an individual ongoing legal case.

Transfer of the Public Sector Fraud Authority to the Department for Work and Pensions

Baroness Coffey questioned the repositioning of the Public Sector Fraud Authority (PSFA) from the Cabinet Office to the Department for Work and Pensions (DWP), in light of the Public Authorities (Fraud, Error and Recovery) Act 2025. Baroness Twycross said the arrangement would combine the PSFA’s cross-government role with the DWP’s expertise in welfare fraud, while the Treasury would remain a co-sponsor. She said the statutory functions would be transferred by order and that the Act’s functions would remain usable: “The functions under the Public Authorities (Fraud, Error and Recovery) Act will still be able to be used”.

Peers raised cross-government co-ordination, the legal status of actions during the transfer, recovery of pandemic-related fraud, whistleblower protection and whether agencies should retain more of the money they recover. The Minister said the PSFA delivered more than £480 million in audited counter-fraud benefits in 2024-25, a return of £34 for every £1 invested, and £1.2 billion in savings since its establishment in 2022. She undertook to provide briefings or written answers on the transfer, pandemic recoveries and statutory powers, and said DBIST was reviewing how whistleblowing could be supported.

Criteria for public inquiries

Baroness Hoey asked what criteria Ministers use when deciding whether to establish a public inquiry, including in relation to the Chinook helicopter crash on the Mull of Kintyre. Baroness Twycross said Ministers consider the inquiry’s objectives, whether alternatives are appropriate, likely duration, realistic costs and whether the public interest outweighs those costs. She expressed sympathy to the bereaved families and said discussions with them and within the Ministry of Defence were continuing: “seeking justice should not and must not have an expiry date”.

The discussion covered reasons for rejecting inquiry recommendations, appointments to inquiries, compensation schemes, alternatives to statutory inquiries, the duty of candour and inquiries involving veterans. The Minister said the Public Office (Accountability) Bill would extend the duty of candour, and that the Cabinet Office inquiry team advised on different routes. She reported the launch of a public tracker for inquiry recommendations, an amendment to the Ministerial Code and work on new guidance. She agreed to meet Baroness Brinton about a proposed single compensation body and to discuss the veterans issue with relevant Ministers. No decision on a new Chinook inquiry was announced.

Employment opportunities for young people in Scotland

Lord Cameron of Lochiel asked about the impact of the Employment Rights Act 2025 on employment opportunities for young people in Scotland, citing rising unemployment. Lord Sarwar said the Government’s assessment indicated that the Act could benefit 18 million workers across the UK and that about 55% of Scottish workers were projected to gain. He said employment outcomes also depended on devolved responsibilities for education, skills and apprenticeships, and expressed confidence that the Act would not have a detrimental effect on young workers: “we need fundamental reform in Scotland in those other areas”.

Peers called for closer co-operation between the UK and Scottish Governments, better infrastructure and housing in the Highlands and Islands and the Scottish Borders, and discussion of youth unemployment by the Interministerial Group for Business and Industry. Lord Sarwar referred to a jobs guarantee, an additional £2.5 billion over three years for the youth guarantee and reform of the growth and skills levy. He said he would work with the Scottish Government and ensure that youth unemployment was high on the agenda of the next meeting. He also referred to measures being delivered in phases through 2026 and 2027, including day-one rights and the Fair Work Agency.

Hospitality industry: value added tax and local visitor taxes

Lord Hunt of Wirral asked about rising costs in hospitality and a proposal, supported by more than 800 industry leaders, to reduce value added tax (VAT) on hospitality from 20% to 10%. Lord Pitt-Watson recognised the sector’s contribution to jobs and growth but said HM Revenue and Customs estimated that reducing VAT on accommodation and food and beverage services to 10% would cost about £11 billion a year: “reducing VAT on accommodation and food and beverage services to 10% would cost around £11 billion a year”. He referred to business-rates support and other targeted measures, and declined to discuss possible Budget changes.

Peers argued that smaller businesses faced pressure from employment costs, business rates, energy costs and regulation, and pressed for a VAT reduction. Others questioned proposed local visitor taxes, including their effects on families and their potential contribution to arts and culture. The Minister said any visitor tax would be a local decision subject to consultation, offered to write about the Government’s cost-benefit assessment and said no specific estimate had been made for the effect on families. No VAT change was announced, and he said he would not provide a preview of the Budget.

Air traffic control disruption

The House considered a Commons answer concerning disruption to National Air Traffic Services (NATS) on 8 September, which caused widespread delays, cancellations and diversions. The answer attributed the incident to a technical problem affecting flight-processing data at the Swanwick centre and said NATS did not believe it was cyber-related. The Government apologised and said night-flight restrictions had been relaxed to assist recovery: “disruption of this kind is absolutely unacceptable”.

Peers questioned NATS’s management, compensation for affected passengers and airlines, system resilience, possible external interference, ownership and assistance for passengers held at airports. Lord Hendy of Richmond Hill said NATS was due to report on the cause and remedial action by 16 September, while the Civil Aviation Authority would conduct an independent review and provide an update within six months. He said there was no current evidence of external influence, but that resilience against hostile actors and third parties would be considered. He also said the Government’s current view remained that NATS should not be made responsible for compensation, citing the potential distribution of costs.

Representation of the People Bill: Second Reading

Baroness Taylor of Stevenage moved Second Reading of the Representation of the People Bill. She described provisions to extend the franchise to eligible 16 and 17 year-olds, facilitate more automated registration, broaden voter identification, strengthen controls on political donations, prohibit crypto-asset donations, cap donations by overseas electors at £100,000, expand Electoral Commission information powers, regulate digital campaign material and protect candidates and electoral staff from hostility. She also referred to further work on spending limits, foreign influence and accessibility at polling stations: “This Bill renews our democracy for a new generation”.

The debate included support for and opposition to votes at 16, automated registration and bank cards as identification, as well as discussion of the Electoral Commission’s independence, candidate safety, civic education, electoral-system reform and consolidation of election law. Political finance was a major theme. Several Peers called for caps on domestic donations and election spending, stronger controls on think tanks and corporate donations, and tighter rules on foreign money; others questioned the proportionality and possible retrospective effect of the proposals and the operation of the company-profit test. The Government defended the measures as intended to prevent evasion and confirmed a cross-government task and finish team on political funding, illegitimate influence and wider threats to political equality. The Minister said crypto-asset donations accepted on or after 25 March 2026 would have to be returned or forfeited within 30 days of the provisions coming into force: “Recipients will have a period of 30 days”.

Peers also raised education alongside votes at 16, online abuse and deepfakes, support for disabled candidates, the franchise of foreign and Commonwealth citizens, the voting rights of Peers, compulsory voting and proportional representation. The Government said it was working with the Electoral Commission, devolved Governments, schools, colleges and civil society on voter and civic education. It said illegal AI-generated content was already regulated through the Online Safety Act and other offences, and declined to legislate for a national commission on electoral reform in this Bill, saying that a path for a debate would be set out in due course. The Bill was read a second time: “Bill read a second time”.

Commitment and order of consideration of the Representation of the People Bill

Baroness Taylor of Stevenage moved that the Bill be committed to a Committee of the Whole House, with a specified order for consideration of its clauses and schedules. Lord Rooker proposed delaying Committee stage until the Minister provided a statement identifying provisions added in the Commons that had not had time for consideration. He argued that 15 new clauses and six schedules had been approved without debate after the programme Motion and said: “We need to know what we are revising”.

Baroness Taylor set out the Commons scrutiny, including nine Public Bill Committee sittings over five days and five hours for Report. Lord Rooker maintained that the late additions had not been considered in Committee and withdrew his amendment. The amendment was withdrawn and the substantive commitment and order-of-consideration Motion was agreed: “Amendment to the Motion withdrawn” and “Motion agreed”.

Draft Conversion Practices Bill: joint committee

The House received a message from the Commons agreeing with the Lords’ proposal for a Joint Committee of Lords and Commons to consider the draft Conversion Practices Bill. Six Commons Members will join the committee appointed by the Lords. The committee may call for persons, papers and records, sit during adjournments, appoint specialist advisers, report from time to time and adjourn within the United Kingdom. It must report by 22 January 2027 and has a quorum of two: “That the Committee should report by 22 January 2027”. The transcript records no debate on the message. The House adjourned at 9.37 pm.