Fairness at Work and Power in Communities

Debate between Marsha De Cordova and Paul Scully

Thursday 12th May 2022 Commons Chamber

[Paul Scully]

I happily agree with everything the hon. Gentleman has said. The Under-Secretary of State for Education, my hon. Friend the Member for Colchester (Will Quince), is reviewing childcare to tackle exactly that point. It is so important, as he says, to keep women, and basically everyone, in the workforce who want to stay in the workforce and progress their careers. So much about the flexible labour market is to ensure that companies, which invest a lot of time, money and resource in their workplace, keep those people and keep investing in those people. Businesses are based on their people if nothing else, so it is important that women can stay. That was my point about childcare. The Minister for children is reviewing the issue with a sense of urgency and passion to do something about making childcare affordable, but also to ensure that good employers, and more employers, provide women with flexibility in the workplace to keep them in the workplace, so there are fewer career breaks.

The unemployment rate is at its lowest since 1975. If you are in work, you have the best chance of tackling the cost of living as a household. The employment rate is at its highest since comparable records began in 1971 and workforce participation is close to record high rates. Youth unemployment—that is, 16 to 24-year-olds—has bounced back to pre-pandemic levels and is now at one of its lowest rates on record. We continue to build on that excellent record. This April, we made sure that 2.5 million people received a pay rise by raising the national minimum wage and living wage. That was the largest ever cash increase to the national living wage and put more than £1,000 a year into a full-time worker’s pay packet, helping to ease the cost of living pressures.

[Marsha De Cordova (Battersea) (Lab)]

Does the Minister agree that it is time to think about incorporating mandatory ethnicity pay gap reporting to ensure that we reduce the disparities among black and ethnic minority workers?

[Paul Scully]

I am sure that the hon. Lady has read the report on the challenges in relation to this. We have seen how gender pay gaps have changed. There are complexities about ethnic pay gap reporting, but it is clearly an important issue. We will continue to work through that and encourage businesses to make sure that they pay a fair wage, and that starts with the lowest paid in the workforce.

The 2022 national living wage is now 42% higher than the minimum wage was in 2015. It is 60% higher than the minimum wage was in 2010. The Government have a commitment for the national living wage to equal two thirds of median earnings by 2024, providing economic conditions allow that. Additionally, we are putting power into the hands of individuals and businesses to find and create work that suits their personal circumstances. On Monday, we confirmed our intention to widen the ban on exclusivity clauses, ensuring that the lowest-paid workers have the freedom to boost their income through extra work if they wish.

We also continue to level the playing field, holding unscrupulous businesses to account and creating an environment in which businesses can compete fairly. The Government are tackling appalling business practices, such as—as I said—the disgraceful behaviour of P&O Ferries in firing their employees without consultation.