National Minimum Wage Legislation

Lord Watts Excerpts

Thursday 21st March 2024 Lords Chamber

[Lord Offord of Garvel (Con)]

Since the introduction of the national minimum wage in 1999, the Government have ordered employers to repay over £173 million to 1.4 million workers. It is far more effective that the employers are made to pay the workers than be dragged through courts, which delays payments to workers and does not provide any respite. I am interested in the fact that this is the 25th anniversary of the national minimum wage. When this Government came to power in 2010, the number of employees on low hourly pay was 21% of the workforce; today, that is 8.9%. I also point out that, when this Government took over from Labour in 2010, benefits were the largest source of income for the poorest working-age households, but under the Conservatives it is now their wages.

[Lord Watts (Lab)]

Is it not the case that far too many employers still find it to their own advantage to pay below the living wage and below the basic wage? Is it not time that we made this a criminal act, so that we can hold the directors of those companies accountable for their actions?

[Lord Offord of Garvel (Con)]

As we have said before, our labour market in the UK is one of the most sophisticated and best-working in the world. Out of a population of 66 million people, 33 million are working, and only 5% of that workforce is on the minimum wage. In the meantime, 30% of the population do not pay any tax and the 1% highest earners pay 30% income tax. I think noble Lords would agree that our workforce is in good shape. Instead of criminalising employers, we need to spread the education required to make sure that everyone has higher wages.

UK Tradeshow Programme Closure

Lord Watts Excerpts

Monday 18th March 2024 Lords Chamber

[Lord Johnson of Lainston (Con)]

I thank my noble friend for that point. Absolutely, promoting our activities is one of the key issues we face and we rely on chambers of commerce, and indeed the general body politic, to do that. There is always more work to do and I am grateful to her for amplifying our message.

[Lord Watts (Lab)]

My Lords does the Minister agree that we need to do much more to support small and medium-sized businesses, bearing in mind that there is no chance that we will do a deal with America, with China or with India in the foreseeable future, as we were promised under Brexit?

[Lord Johnson of Lainston (Con)]

I totally agree. Indeed, my own Secretary of State has made this the year of small business, very ably led by my colleague Kevin Hollinrake. As we speak—although it may have just finished—the Prime Minister has been hosting a very successful SME event in Coventry, which I hope will continue to amplify our message that we are doing everything we can to see this vital sector grow and flourish in this great nation of ours.

UK-EU Trade: Small and Medium-sized Enterprises

Lord Watts Excerpts

Wednesday 31st January 2024 Lords Chamber

[Lord Offord of Garvel (Con)]

I thank my noble friend. Seed potatoes are a specialised area so I will need to write to her on that.

[Lord Watts (Lab)]

My Lords, the Minister says that trade with Europe is as important today as it was three years ago, and it is. However, the Government’s refusal to negotiate positively with the European Union is causing major problems for many industries. Is that not what we are hearing from every source other than the Government?

[Lord Offord of Garvel (Con)]

The reality, as we said yesterday, is that our economy is 80% services and 20% goods, but our exports are 50/50, because our goods are good. We make things that people, especially in Europe, want to buy. European countries are coming to us and saying that they want to get rid of these barriers because they want our goods imported. We are working on a country-by-country basis and it is improving all the time.

Post Office Ltd

Lord Watts Excerpts

Tuesday 30th January 2024 Lords Chamber

[Lord Offord of Garvel (Con)]

I thank the noble Lord for his question. I know that he is well versed in these matters. As we have discussed in the House before, there will be many ramifications from this case when the facts come out, one of which, as the noble Lord highlighted, is this presumption that the computer is always right, which clearly was not the case. I would have to refer to MoJ colleagues to find out exactly what happened in that case. The judgment was given in the Appeal Court in 2019 and the inquiry was set up in 2020. In 2021, when the convictions were overturned, the inquiry became a statutory inquiry. Under a statutory inquiry, we will get to the bottom of those questions.

[Lord Watts (Lab)]

My Lords, the chairman oversaw this scandal. Can the Minister assure us that he will not be given a compensation package that demonstrates that, if you fail, you get paid?

[Lord Offord of Garvel (Con)]

The chairman who is just leaving was not the chairman pre-2015 and he is not receiving any compensation.

Conduct of Employment Agencies and Employment Businesses (Amendment) Regulations 2022

Lord Watts Excerpts

Tuesday 19th December 2023 Lords Chamber

[Lord Offord of Garvel (Con)]

To be very clear, the appeal was put forward on two bases: the first was on the lack of consultation and the second was on the merits of Article 11. The court did not find on the second, only on the first. Therefore, the consultation is being done between now and mid-January, with a view to collecting views from all registered parties so that a decision can be made in the future or not.

[Lord Watts (Lab)]

My Lords, given that nobody wants this—the employers and the trade unions do not want it—what is motivating the Government to bring forward legislation that nobody wants?

[Lord Offord of Garvel (Con)]

As I said before, a decision has not been made on this—a consultation is going on. Regulation 7 is in some ways interference with the operation of private companies and other employers, and sometimes prevents work-seekers being offered employment in legitimate circumstances. We are trying to get the balance right here between maintaining the right to strike and providing companies with the ability to service their clients and fulfil their revenue.

Construction Sector: Cash Retentions

Lord Watts Excerpts

Monday 11th December 2023 Lords Chamber

[Lord Offord of Garvel (Con)]

I thank the noble Lord for that question. As I indicated, the direction of travel has improved considerably, with the construction sector working positively to reduce the amount of late payments. Working with the contractors’ umbrella body, Actuate UK, and the new Get it Right initiative, I think we will see some improvements. We are trying to get defects and collection and completion certificates using processes developed by the Get it Right initiative, which are going to be data-based, to try to get a metric system which is more objective and less subjective and which can measure performance and indicate at an early stage whether it has been to the right standard. That will go a long way towards allowing earlier payment on retentions.

[Lord Watts (Lab)]

My Lords, could not the Government introduce legislation that separates any money that is being held and pay the interest to the contractors, rather than the person who is benefiting now?

[Lord Offord of Garvel (Con)]

As the noble Lord from the Cross Benches said, there are many suggestions as to how we go about doing this, and this is another one. On statutory bans on cash retentions, my department is fixated on trying to remove regulation from business, not increase it. We are looking to the industry to come forward with viable plans on how to make this work. Progress is being made and more can be done, but there is still not complete consensus on how to move this forward.

Workers’ Rights

Lord Watts Excerpts

Thursday 23rd November 2023 Lords Chamber

[Lord Johnson of Lainston (Con)]

The Government have done a huge amount to ensure that principles such as zero-hours contracts can remain flexible, allowing millions of people to do the work they wish to do and allowing students to participate in the workforce, while ensuring that they have the right levels of protection for holidays and other crucial concepts in workers’ rights. It is important that we have a strong economy, which will enable people to have these jobs. I remind all noble Lords that we have increased the number of employed people by over 3 million since we came to power in 2010.

[Lord Watts (Lab)]

My Lords, when we left the European Union, Ministers stood at the Dispatch Box and promised that workers’ rights would be protected. Will the Minister produce a list from his department of the rights that have been lost since we left the European Union and a list of the Government’s actions to address that issue?

[Lord Johnson of Lainston (Con)]

This debate has run for many months. Over the last year in this House—I am honoured to have played my role in this—we have introduced a number of key workers’ rights Acts, including the Neonatal Care (Leave and Pay) Act, the Protection from Redundancy (Pregnancy and Family Leave) Act, the Carer’s Leave Act and, very importantly—I am a generous tipper myself—the Employment (Allocation of Tips) Act 2023, which ensures that people who are given their tips are, rightly, receiving them.

Employers: Fire and Rehire Tactics

Lord Watts Excerpts

Thursday 14th September 2023 Lords Chamber

[Lord Offord of Garvel (Con)]

I thank the noble Lord for his follow-up question. The UK labour market is strong by historical and international standards. In fact, in all employment law we are trying to get the balance right between workers’ protection and employers’ flexibility. The employment rate is at 75% right now, and wages have gone up by just short of 8% in the last year, so we think we have the balance right. The Government are taking action to ensure that this practice is a last resort. We are not banning it outright. In the code, we have measures whereby employees’ compensation in certain circumstances, as the noble Lord alluded to, can be increased by 25% if the employer has unreasonably failed to comply with the code, which is quite a big disincentive for the employer. But we believe that there are certain circumstances in which flexibility is required, so we are seeking to get the balance right.

[Lord Watts (Lab)]

My Lords, when we left the European Union, the Government said that they would introduce legislation to protect workers and that it would be better than in the European Union. Can he name countries in Europe where this could happen?

[Lord Offord of Garvel (Con)]

As I said, when we look at the standards of employment law against our competitors in Europe, we have a strong labour market, a strong rate of employment and a long-established suite of protections for all our workers, employees and self-employed people.