Lords Debate Pension Reform, Local Democracy and Food Security

High-Level Summary

The House of Lords dealt with two introductions, Oral Questions, a Commons Urgent Question answer, a Commons Statement and three substantive debates. Discussions covered support for the arts, welfare expenditure, foreign national offenders, Russian interference, Iran, the state pension, local democracy, family businesses and food security. The House agreed the motions on local-government democracy and food security; the transcript records no division numbers. The sitting ended at 6.28 pm, with further work identified on the triple lock, local-government accountability, business support and food-system resilience.

Detailed Summary

Introductions of Baroness Mills of Greenwich and Lord Sanders of Hallingdal

Barbara Mills, KC, was introduced as Baroness Mills of Greenwich, took the oath, was supported by Baroness Smith of Basildon and Lord Hermer, and signed the undertaking to abide by the Code of Conduct. General Sir Patrick Nicholas Yardley Monrad Sanders, KCB, CBE, DSO, was introduced as Lord Sanders of Hallingdal, took the oath, was supported by Baroness Jenkin of Kennington and Lord Richards of Herstmonceux, and signed the undertaking. The transcript records no debate or decision beyond these formal proceedings: “was introduced and took the oath”.

Arts and cultural sector: employers’ National Insurance

Lord Vaizey of Didcot asked about the effect of the increase in employers’ National Insurance on arts and cultural organisations. He cited an organisation whose £50,000 donation had been absorbed by the increase and referred to reported losses in grass-roots music venues, saying: “This Government seem to give with one hand but take very seriously with the other”. Baroness Mackenzie of Sherwood said the increase was 1.2 percentage points but that the employment allowance had risen from £5,000 to £10,500, leaving 900,000 employers with no employers’ National Insurance liability; she also cited the £1.5 billion Arts Everywhere package, expected to reach 1,000 cultural organisations.

Further questions covered a possible £1 billion reduction in the Department for Culture, Media and Sport budget, artist-income schemes, touring tax relief, philanthropy, specialist music and dance schools, recording-studio tax relief and the LIVE Trust levy. The Minister said she would follow the Scottish pilot on income for artists, could not comment on possible Budget measures, and was willing to explore recording-studio tax relief outside the House. No specific new decision was recorded; the transcript does not state any further commitment on the other proposals.

Welfare expenditure

Lord Balfe asked about the Office for Budget Responsibility forecast that welfare expenditure would reach £407 billion by 2030–31. Baroness Sherlock said the Budget on 28 October would provide the latest forecast and described the Government’s focus on welfare reform, employment support, Universal Credit and the Timms and Milburn reviews. In response to calls for lower expenditure, she said the shared objective was that those able to work should work, while those unable to work should receive support: “Simply cutting just moves costs around”.

Lord Bird raised poverty prevention; Baroness Lister argued that social security should be strengthened; and Lord Palmer raised assessment backlogs. Baroness Watkins proposed a paid year of public-service voluntary work for young people, while Baroness Altmann asked about older workers facing age discrimination. The Minister referred to the child poverty strategy, the £2.5 billion youth guarantee, employment incentives, a partnership involving hospitality employers committed to hiring 100,000 young people, and the Connect to Work programme. The Timms and Milburn reviews were to inform further changes, with a response expected in the near future; no formal decision was taken in the exchange.

Prisons: foreign national offenders

Baroness Monckton of Dallington Forest asked what steps were being taken to reduce the number of foreign national offenders held in prisons in England and Wales. Lord Lemos said returns had increased by 41% compared with the previous two years, more than 3,000 foreign offenders had been removed directly from prison under the early removal scheme during the period stated, new powers were expected the following year, and a cross-government taskforce had been established. Questions addressed Article 8 and other human-rights claims, resources, prisoner-transfer agreements, possible sanctions against countries that would not accept prisoners, the safety and fairness of deportation, and the availability of data.

Lord Lemos said the Home Office held the requested information but that it was “not in a reportable format”. He said he would ask the Home Office again about making the information available, although he doubted that the position would change. He also said the Government remained committed to the European Convention on Human Rights and that the Immigration and Asylum Bill would provide for a public-interest test where return was unsafe. The transcript records no published figures, division or further formal decision.

Russian interference in the Brexit referendum

Lord Robathan asked what evidence the Government had concerning alleged Russian interference in the 2016 referendum. Baroness Twycross said Russia posed an enduring threat and that attempts had been made to spread misinformation and disinformation, but that the attempts had not materially affected the result; she also referred to the Electoral Commission’s assessment that the poll was well run. Lord Robathan and Lord Callanan emphasised the distinction between attempted interference and an altered outcome. Lord Callanan quoted the Director-General of MI5: “There is a really important difference between interference attempted and outcome swayed”.

Baroness Twycross said the referendum result stood and that the Government would not relitigate it at that point. Lord Wallace called for greater public disclosure of Russian activity; Lord Purvis sought fuller information from the Intelligence and Security Committee’s Russia report; and Lord Redwood asked about attempted interference in the 2024 election. The Minister offered to meet Lord Purvis, but did not provide figures for 2024. She also said that no decision had been made on the wider constitutional options raised by Lord Jackson, while the Government’s commitment to accept the referendum result remained.

Iran: threats to British interests

The House considered the Commons answer to an Urgent Question on threats from Iran to British interests and questioned Lord Wood of Anfield about sanctions, the Islamic Revolutionary Guard Corps, the RAF Fairford incident, transnational repression, charity infiltration and the release on bail of suspects. The Commons answer referred to sanctions against nearly 240 Iranian individuals and entities, while Lord Wood said that sanctions under the current Government totalled 240 individuals and entities and 550 in total. He defended the Foreign Secretary’s meeting with Iran’s Foreign Minister as a means of delivering strong messages, including that the UK would “not tolerate intimidation, threats or hostile activity on UK soil”.

Lord Purvis asked for clearer legal protection against transnational repression; Lord Pickles and Lord Cryer raised Iranian funding and the use of charities; and Lord Bellingham asked why suspects connected with the RAF Fairford investigation had been released on bail. Lord Wood said he was willing to meet Lord Purvis, that sanctions had targeted activity against dissidents, and that the Government would work with the Charity Commission and use national-security and financial-monitoring powers. He said bail decisions were made independently by the police, that stringent conditions applied, and that people should not speculate while the investigation continued. No formal decision was recorded.

Future of the state pension triple lock

The Commons Statement proposed retaining the triple lock until April 2030 and then adjusting its earnings element. From April 2030, the state pension would rise by the highest of inflation, 2.5% or the amount needed to maintain its record level relative to average earnings. The Government said the change would remove the ratchet effect and produce estimated savings of £15 billion a year by the end of the next decade and around £50 billion a year by 2050, contributing to a future national care service. Baroness Stedman-Scott questioned the effect on pensioners, the timing and the financing of free personal care, while Lord Palmer supported discussion of reform but cited Institute for Fiscal Studies concerns that the savings would not fund universal social care in the next Parliament.

Baroness Sherlock acknowledged that the state pension would rise more slowly over time than it would under the current system, but said there would be no cut and that the full new state pension was projected to be about £2,000 higher by the end of the Parliament. She said the Casey review would make recommendations on how and when a national care service should be developed, with detailed costs and legislation to follow, while the Pensions Commission would report next year, including on lower-income pensioners. Further contributions addressed Scotland, gender impacts, pension credit, taxation and the contributory principle. No division or final legislative decision was recorded.

Local government: democratic accountability, participation and electoral reform

Lord Shipley moved a motion to take note of democratic accountability, citizen participation and electoral reform in local government. In his valedictory contribution before his retirement on 31 October, he argued for clearer responsibilities and resources for mayors and strategic authorities, further devolution to councils and neighbourhoods, stronger scrutiny, and consideration of proportional representation while preserving links between councillors and their communities. He warned that mayors and strategic authorities could become “strong on strategy but short on delivery”.

Speakers debated local-government reorganisation, the role of parish and town councils, remote and hybrid meetings, local standards, participation, scrutiny and the merits of first past the post and proportional representation. The Government said accountability should accompany devolution through local scrutiny committees, local accounting officers, a stronger local audit role and a streamlined outcomes framework. Baroness Taylor said the Government would publish participation guidance, administer a £2.5 million democratic-engagement fund, develop remote and hybrid attendance policies, update community-governance guidance and publish a neighbourhood governance framework. On reorganisation, she said the Government remained committed but had paused to reflect, with further announcements to follow; questions on warding could not yet be answered. The motion was agreed; no division is recorded in the transcript.

Support for family businesses

Lord Cameron of Dillington argued that family businesses were economically and socially significant and needed better access to training, finance and local investment, as well as relief from rising employment and other costs. Other speakers focused on business property relief, employer National Insurance, the minimum wage, business rates, regulation and succession. Lord McTague said that, for most small businesses, the more significant issues were business rates, access to finance and labour regulation, while proposing Germany’s seven-year succession relief as an option for consideration.

Lord Leong set out measures including the Commercial Payments Bill, stronger powers for the Small Business Commissioner, British Business Bank finance, growth hubs, management training, apprenticeship support, procurement targets and a high-street package. He said the allowance for assets eligible for 100% agricultural and business property relief was £2.5 million, that unused allowance could be transferred between spouses or civil partners, that qualifying assets above the allowance received 50% relief, and that the relevant tax could be paid over 10 years in interest-free instalments. He undertook to convey concerns to Treasury colleagues, but no new policy decision or commitment to reverse the changes was recorded. The Minister also said: “Work delivered should mean payment received”.

Food security

Baroness Teather moved a motion to take note of growing threats to UK food security. Speakers identified climate change, drought and flooding, geopolitical conflict, energy and fertiliser costs, cyber attacks, import dependence, weaknesses in cold-chain and distribution infrastructure, animal and plant disease, and household affordability. Proposed responses included stronger domestic production, diversified imports, water storage, regional food systems, strategic reserves, improved testing, cross-government leadership, support for organic and regenerative farming, and a good food Bill. The Earl of Russell described the central risk as “the combination of them coming at us together”.

Baroness Hayman said the Government were developing a clearer food-resilience framework, using a food preparedness group to bring together food-chain organisations, local partners and voluntary organisations, and incorporating food supply into wider emergency planning. She said the Government were reviewing the Sustainable Farming Incentive, exploring alternatives to first-come-first-served applications in 2027, and had announced £15 million for on-farm reservoirs. She said the Government wanted at least half of publicly purchased food to be locally produced or certified to high environmental standards, but had made no decision on dedicated food legislation. The Government’s approach was not reliant on stockpiling, although resilience options remained under review, and a response to the National Audit Office report was due within two months. The motion was agreed; no division is recorded in the transcript. The House adjourned at 6.28 pm.