On 29 June 2007, Jones became Minister of State for Trade and Investment in both the newly created Department for Business, Enterprise and Regulatory Reform and the Foreign Office. He was appointed as a Government Minister in a move to create a government "of all the talents". As he was not a parliamentarian at the time, Jones was made a life peer, and became a member of the House of Lords. It was suggested that he was taking the Labour whip in the House of Lords, but he chose not to join the Labour Party. He was gazetted as a peer on 10 July 2007 as Baron Jones of Birmingham, "of Alvechurch and of Bromsgrove in the County of Worcestershire", and took his seat in the House of Lords that same day.