Instruments of interest
Draft Air Quality (Domestic Solid Fuels Standards) (England) Regulations 2020
48.This instrument proposes the phasing out of the sale of bituminous coal (traditional house coal), restrictions on the sale of wet wood sold in units up to 2m³ for domestic burning and limits on the emission of sulphur and smoke from manufactured solid fuels. The restrictions are to apply in England and are backed by criminal sanctions, to be enforced by local authorities. According to the Department for Environment, Food and Rural Affairs (Defra), the measures are needed as domestic wood burning is a major contributor to emissions of fine particulate matter (PM2.5), contributing more to this form of pollution than industrial combustion and road transport combined. Defra emphasises that PM2.5 emissions have been identified by the World Health Organisation as the most damaging air pollutant, and that the instrument does not propose to ban stoves or open fireplaces, but instead encourages a shift to less polluting fuels, such as dry wood, smokeless coal and low sulphur manufactured solid fuels.
49.The Committee sought additional information from Defra about the proposed transition periods for the changes and the proposed certification scheme for wood and manufactured solid fuels, which we are publishing at Appendix 2 of this Report. We have asked the Department to revise the Explanatory Memorandum to include this additional information.
50.During an eight-week consultation in 2018, respondents raised concerns about the impact the measures could have on low income households in rural areas that rely on traditional house coal as a cheap form of heating. The Department responded that “people in fuel poverty should be protected from the effects of more polluting fuels as much as everyone else”, and that an analysis conducted on behalf of Defra showed that “manufactured solid fuels are actually cheaper to burn than coal when energy efficiency is taken into account.” To support these households, however, the Department proposes a transition period until 1 May 2023, during which coal merchants will still be able to sell loose traditional house coal direct to their customers and work with them to “identify alternative fuels which might meet their heating needs at comparable cost”. Defra will develop a communications campaign targeted at domestic burners and prepare plans for training for local authorities to help them provide advice to their residents.
Draft Restriction of Public Sector Exit Payments Regulations 2020
51.This instrument proposes to restrict public sector bodies from making exit payments above £95,000. The power to introduce this cap was added to the Small Business Enterprise and Employment Act 2015 by section 41(1) of the Enterprise Act 2016. The UK public bodies covered by the cap are listed in the schedule to the draft Regulations. According to HM Treasury (HMT), exemptions are proposed for the Armed Forces, Government Communications Headquarters, the Security Service and the Secret Intelligence Service due to their special employment conditions. The Royal Bank of Scotland Group plc, Northern Rock Asset Management Limited and Bradford and Bingley are also to be exempt, as these firms are to be returned to the private sector. Exemptions from the cap are also proposed for certain payments, such as for death in service or in relation to incapacity as a result of accident, injury or illness.
52.HMT explains that some public service pension schemes will have to be amended as the cap will apply to employer-funded arrangements for early access to pension which allow for early retirement when an employee is made redundant. Concerns were raised during consultation, including by the Trades Union Congress, that this could affect longer serving and lower earning employees, especially in local government, who will have accrued a larger pension over a greater number of years and will require a large employer payment to access their pension early. Such concerns were also raised when the proposed cap was debated during the passage of the Enterprise Bill.24 HMT told the Committee that a payment in these circumstances is still “ultimately funded by the taxpayer and so we believe it is appropriate for it to be included in scope of the cap”. HMT expects that pension schemes where this may be an issue will be amended to allow members the option of using their own funds to make up any shortfall or taking a partially reduced pension. HMT added that “in exceptional cases, the waiver system [ … ] can provide flexibility to protect individuals that would experience genuine financial hardship as a result of their exit payment being capped”. The proposed waiver system would also protect payments made in relation to, for example, whistleblowing or discrimination.
24 HL Deb, Enterprise Bill, 4 November 2015, cols 318–380 (Grand Committee).