National Minimum Wage

Debate between Jim Shannon and Dan Jarvis

Tuesday 16th December 2014 Westminster Hall

[Dan Jarvis]

My hon. Friend makes an important point, and the figures bear out what he has said. I would be interested to hear what the Minister has to say on that point, but I agree that the tiny number of rogue employers who have been prosecuted for paying people less than the national minimum wage is a disgrace. That reflects poorly on the Government’s record.

I believe that the proposal I have just outlined regarding the Low Pay Commission is straightforward and reasonable, and that it is the right thing to do. I would be grateful if the Minister would respond directly to that point.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on securing this important debate. The problem is not simply the minimum wage; many workers have had their hours reduced just to stay in employment. Some workers have not had a wage increase in three years. Some people do not even have the minimum wage let alone a living wage. Does he feel as well that the Government need to address the issue of the living wage so that people can survive?

[Dan Jarvis]

That is a helpful and constructive contribution. If the hon. Gentleman will bear with me, I will talk about the living wage later in my speech. It would be useful to hear what plans the Minister has. The hon. Gentleman makes an important point that we currently have record numbers of people in this country who are underemployed. Record numbers of people want to work full time but cannot get full-time work, so they are stuck in part-time employment and struggling to meet their costs. That is a good point, and I look forward to the Minister responding to it.

[Dan Jarvis]

Completely by coincidence, my hon. Friend has made a timely contribution that neatly introduces the point that I was about to make. If we want to win the fight against poverty wages, the remit of the Low Pay Commission must be expanded. It should not be simply a national minimum wage commission that sets the level of wages; I believe that it should lead our national effort to tackle the problem of low pay. We need to give new powers to the Low Pay Commission to investigate the causes and consequences of low pay in different areas of our economy.

We know that some sectors have particular, systemic problems of low wages. More than half of cleaners, 48% of hospitality workers and more than 40% of hairdressers are paid less than £7 an hour. At the same time, other sectors—the banking sector, for instance—could pay a higher minimum wage. I would be grateful if the Minister could tell us today whether the Government would consider giving new powers to the Low Pay Commission to bring together task forces to tackle such issues. Those task forces could include all the key stakeholders and recommend a strategy to the Secretary of State on the best way forward.

[Jim Shannon]

To that list of bodies that the hon. Gentleman referred to, would he add the catering industry? Many workers in the catering industry receive a wage that they cannot live on, which is below the minimum.

[Dan Jarvis]

I absolutely would. There are number of different sectors of the economy to which that could be applied.

Young People (Barnsley Central)

Debate between Jim Shannon and Dan Jarvis

Monday 10th June 2013 Commons Chamber

[Dan Jarvis]

I am grateful and completely agree with my hon. Friend. The decision young people make about their future career destinations is an incredibly important one. It can make such a difference if they are able to receive helpful and useful careers advice in tandem with other advice that they receive from schools.

The vast bulk of additional apprenticeship places created by the Government have come in the post-25 age range, with an increase of some 367%, but the latest figures show that 69,600 16 to 18-year-olds started an apprenticeship in 2012-13 compared to 79,100 in the previous year—a drop of over 12%. Those in the 16-to-25 category risk being left behind. Our country and the town I am proud to represent are clearly in need of fresh initiatives aimed at addressing youth unemployment, and it is my constituency that is helping to lead the way in the fight against youth unemployment.

[Jim Shannon (Strangford) (DUP)]

Does the hon. Gentleman agree that initiatives could be used to encourage more young women to enter into apprenticeships, which is one of the markets waiting to be developed?

[Dan Jarvis]

I absolutely agree, but time is running short, so I must mention briefly an initiative in my constituency.

The Minister may recall that I have written to him about the “Barnsley apprenticeship pledge”—a pilot scheme pioneered by Barnsley college, which is working in partnership with nine of Barnsley’s major public and private sector employers to ensure that 2.5% of their work force are apprentices. Schemes such as the pledge not only provide skills for young people, but provide businesses with the opportunity to expand and tailor a work force that meets their needs.

Finally, I would like to touch briefly on the issue of youth unemployment. Despite the recent figures showing that overall unemployment is going down, the job market for young people is still extremely difficult. Youth unemployment continues to climb with a growing number of NEETs—those not in education, employment or training. According to the latest figures for my constituency, the number of people claiming jobseeker’s allowance is, at 7.4%, still higher than in May 2010. With 900 JSA claimants aged 18 to 24—a figure up from this point in 2011—youth unemployment continues to remain a serious problem in Barnsley.

The Government’s answer to youth unemployment was to introduce the Youth Contract, aimed at providing training and skills. However, the Youth Contract has been ineffective, and has failed significantly to gain employers willing to support the scheme. Fewer than 6,000 young people have been helped into permanent jobs—just 3.4% of young people on the Work programme. Those left behind are often people who are desperate for work, want to earn a living, get on the housing ladder, start families and contribute to our town—but there are simply not the jobs available.

This is a tough time to be growing up. There are genuine concerns about the need to ensure that young people secure the right education, training, apprenticeships and academic opportunities. My concern is that we are running the risk that the talents of thousands of our young people will go to waste. That is why we must talk up the importance of raising aspirations among young people. Research findings have shown that low aspirations are related to poor academic attainment and professional achievement—and that is an all too common trend in times of austerity. We must therefore take every single opportunity to encourage, inspire, persuade and, when necessary, cajole the young people in our constituencies to get on and realise their ambitions, hopes and dreams.

I urge the Minister and the Government to do all that they can to support the young people in my constituency and throughout our country, so that they can be given the best possible start in life. After all, they are the future of the country.