Peers voted 327 to 234, to give a majority of 93 to a Labour motion forcing the Government to set up a select committee to evaluate the bill. The Labour Party suggests that under the proposed bill, it could see its annual income fall by £6 million, as the new legislation would require Labour-affiliated union members to ‘opt in’ to paying a levy to the party instead of having it automatically deducted. 


The Labour peer, Baroness Smith of Basildon said that it would be prudent to examine the issues involved in a select committee, rather than seeing "who can shout the loudest on the floor of the house.” Although the Government claims that the Bill would not have a significant impact on Labour’s finances, Baroness Smith believes that the government is in “denial of the consequences.”