Business Minister Michael Fallon said today that the government will still go ahead with its controversial "shares for rights" scheme after the Lords threw it out on Wednesday night.
The plan, announced last year by George Osborne, would allow workers to give up some of their employment rights for as little as £2,000 of shares.
A rebellion by senior Tory peers, including former chancellor Lord Lawson, helped defeat the proposals.
Former Tory Cabinet minister Lord Forsyth of Drumlean said the measure was "ill-thought-through, confused and muddled."
But Mr Fallon told MPs today: "This house agreed before Christmas to make available this additional right."
TUC general secretary Frances O'Grady said: "This humiliating defeat reflects the near universal thumbs-down it has received from business and unions."
If you appreciated this article then please consider donating to the Morning Star's Fighting Fund to ensure we can keep developing your paper.
Donate to the Fighting Fund here
Official inflation figures understate the real extent of rising costs, but even the government's own CPI scheme lays bare the ongoing misery for working people and those dependent on benefits.
The Con-Dems have had it their way too long. We have to turn this country around
How high-quality primary schooling could help solve global poverty