My Lords, I thank the noble Lords, Lord Sharpe of Epsom, Lord Jackson of Peterborough and Lord Burns, and the noble Baroness, Lady Coffey, for tabling their amendments.
I start by speaking to Amendment 217. I thank the noble Lord, Lord Burns, for the constructive engagement that we have had on the topic of political funds in recent weeks and for his thoughtful contributions to this debate. I echo the points a number of noble Lords have made on that. I am grateful for his considerable work in chairing the Trade Union Political Funds and Political Party Funding Committee in 2016, and to the noble Baroness, Lady Finn, for her work on that committee.
However, the Government’s view is that the political fund changes brought in by the Trade Union Act 2016 had the impact of limiting unions’ ability to raise funds to enable them to campaign on political issues that were important to them. Therefore, as we have been debating, the Bill repeals the requirement for trade unions to opt out their members from contributions to political funds, unless they have expressly requested to opt in. This will mean that new trade union members will be automatically opted in to contributions to a political fund unless they expressly opt out.
The noble Baroness, Lady Finn, talked about Churchill’s quote on avoiding tit for tat in parliamentary democracies. However, what we are proposing broadly restores the position before the passage of the Trade Union Act 2016, which had been the position for the previous 70 years. So our proposal is a very long- standing set of propositions. I should also say to noble Lords that the change we are proposing will apply only to new members of a trade union, with the current opt- out status of existing members remaining unchanged.
Several noble Lords have described workers as being “compelled” to make political donations to the Labour Party. This is simply not the case. It remains a decision for each individual trade union member that they are free to make as to whether they wish to contribute to any political fund of a trade union.
The Government have been mindful of the conclusions of the Trade Union Political Funds and Political Party Funding Committee, and indeed we have learned lessons from that report. I can reassure the noble Lord, Lord Burns, and indeed the noble Lord, Lord Leigh, and others, that we have been careful to draft the Bill to ensure that new members will continue to be notified of their right to opt out on the membership form that they will have to fill in when they join the union. In line with the recommendation in the report of the noble Lord’s committee, the membership form will also have to make it clear that opting out will not affect other aspects of their membership.
This is a substantial change to the legal requirements that existed pre 2016. These changes to the system that existed before 2016 should help to address concerns that trade union members were not always aware of their right to opt out of the political fund. Unions will also be required to send an opt-out reminder notice to members on a 10-year basis.
We have been clear on our intention to substantially repeal the Trade Union Act 2016, as set out in our Make Work Pay plan. Retaining the automatic opt-out, as proposed by this amendment, would frustrate the goal and maintain unnecessary and burdensome requirements on the way that trade unions manage their political funds.
I should have responded earlier to one of the other questions from the noble Lord, Lord Burns, about the Government’s impact assessment. The Government’s impact assessment on the repeal of the Trade Union Act set out:
“The return to an ‘opt-out’ option for political fund contributions for new union members with political funds may increase the proportions of new members contributing to the political fund in these unions”.
So we have made an assessment of that.
I also say to the noble Lord, Lord Jackson, and the noble Baroness, Lady Cash, and others, that what we are proposing is clearly not the same as consumers spending billions of pounds each week on unwanted subscriptions due to unclear terms and conditions and complicated cancellation routes. What we are proposing here is that a union, which is a collective of workers, and its political fund should be considered in that light. If a union has a political fund, its members have control over how their political fund is spent, through the democratic structures of the union. Unions put considerable effort into raising engagement in their democratic processes, which any member is free to participate in, meaning that they are able to decide on how their political fund is used.
I am grateful for my noble friend Lord Prentis for reminding us of that and indeed giving us some very good examples of how his political fund has been used in campaigning. He and others also made the point that less than half of the unions that have political funds affiliate to the Labour Party. Indeed, only a minority of Labour Party funds at the last election came from unions’ political funds.
I turn to Amendments 221, 222, 223, 223A and 223B, tabled by the noble Lord, Lord Sharpe. Section 84A specifies that a union must send information notices reminding its members of the right to opt out of contributing to the union’s political fund, should one exist. Amendments 221, 222 and 223 would introduce the requirement on trade unions to send those notices to members every two years, as opposed to every 10 years, as specified in the Bill. We acknowledge that the removal of the 10-year political fund review ballots could reduce awareness among trade union members of their right to opt out of the political fund contributions. This is why we amended the Bill to require that unions send opt-out reminders on a 10-year basis.
The Government believe that 10 years strikes the appropriate balance between maintaining awareness among members of their right to opt out of contributing to a political fund while minimising the administrative and cost burdens on unions of providing such a notification. It also reflects the current arrangements for the 10-yearly review of ballots and recognises that the Bill will ensure that new members will already have been made aware of their right to opt out when they apply for union membership.
Amendment 223A would require unions to issue opt-out information notices that comply with specific requirements. The Bill will require unions to issue opt-out notices that comply with the rules of the union. Unions must provide the certification officer with a copy of their opt-out notice. Members of a trade union will be able to complain to the certification officer if they do not believe that an opt-out notice complies with Section 84A of the Trade Union Labour Relations (Consolidation) Act 1992. In those circumstances, the certification officer can issue an order to remedy this failure if the complaint is upheld. So this amendment is unnecessary as there are already requirements for opt-out notices that unions must comply with.
Amendment 223B would grant the certification officer the capacity to conduct audits of opt-out notices to monitor compliance with Section 84A of the Trade Union and Labour Relations (Consolidation) Act 1992, as amended by the Bill. The legislative framework as amended by the Bill will allow the certification officer to investigate complaints from members about failure to comply with Section 84A, but the power to conduct audits is unnecessary and disproportionate to the rest of the powers of the certification officer, who will continue to hold their powers after the repeal of the Trade Union Act.
Amendment 218, tabled by the noble Lord, Lord Sharpe, would require trade union members to confirm their ongoing willingness to contribute to a political fund on an annual basis, and they would need to be given an annual notice about their right to opt out of the political fund. As I have mentioned, we believe that requiring unions to issue opt-out reminders to members every 10 years is proportionate and aligns with the current frequency of 10-year review ballots. The Government also believe that, if members have joined a union and are notified of their right to opt out, their decision not to opt out clearly reflects their consent to make political fund contributions. Asking members to reconfirm their willingness to contribute to the union’s political fund on an annual basis would impose an onerous and unnecessary burden on unions and their members. Indeed, members are not currently required to restate on a regular basis their preference to either opt in or opt out of political fund contributions.
Amendment 218B, in the name of the noble Lord, Lord Sharpe, would alter Section 84 to require unions to provide members with a defined means of opting out of political fund contributions, including a digital option and allowing the certification officer to issue guidance or prescribe minimum technical standards on the opt-out notice. We are already clear in the Bill that members of a trade union are able to be served an opt-out notice via post, email, completion of an electronic form or such other electronic means as may be prescribed. Therefore, we are already making it easy and straight- forward for members to express their decision to opt out should they so desire. The certification officer already issues a set of model rules for political funds, and the rules of every union’s political fund must be approved by the certification officer.
Amendment 218C would create a statutory right for members not to suffer any detriment when deciding to opt out of political fund contributions, and it would allow members to complain to the certification officer where they feel that that right has been breached. Such an amendment is unnecessary, given that Section 82 of the Trade Union and Labour Relations (Consolidation) Act 1992 already compels unions to inform members in their union rules that they shall not be placed at a disadvantage or disability compared with other union members, nor will they be excluded from benefits, if they decide not to contribute to the political fund. Members can also complain to the certification officer if that rule is breached.
Amendment 218D would require unions to issue an opt-out reminder notice on the day that a member joins the union. Through Clause 59, which amends Section 82 of the Trade Union and Labour Relations (Consolidation) Act, we will require unions to inform members of their right to opt out of political fund contributions on any forms, including electronic forms, that members must complete in order to join a union. This requirement will make the need to provide new members with an opt-out notice on joining a union superfluous.