Oral Answers to Questions

Andrew Bridgen Excerpts

Thursday 26th June 2014 Commons Chamber

[Vince Cable]

On the latter point, we shall discuss in the forthcoming legislation how enforcement action might be taken in respect of exclusivity contracts. The answer to the first part of the question is yes, indeed: if the minimum wage legislation has been breached, action is taken, initially by retrieving the sums involved and by naming and shaming, and under the forthcoming legislation it will be by very significant penalties.

[Andrew Bridgen (North West Leicestershire) (Con)]

Does the Secretary of State agree that the Government’s approach to zero-hours contracts has to tread the difficult line between supporting the vast majority of employees who want to continue with those contracts, and limiting the use of such contracts where they are neither necessary nor appropriate?

[Vince Cable]

My colleague is right that this is a difficult line to tread, which is why we must base our policy on evidence and not on dogma. The evidence very clearly shows that a large number of people do appreciate and see value in the current arrangements but that there is also abuse, which needs to be dealt with.

--- Later in debate ---

[Vince Cable]

I think that the hon. Gentleman is referring specifically to energy costs, which has been the main issue in the inflation of raw material inputs. My colleague the Minister of State, my right hon. Friend the Member for Sevenoaks gave a very full answer in explaining the compensation mechanisms that we are introducing to offset them.

[Andrew Bridgen (North West Leicestershire) (Con)]

Will the Minister update the House on the progress made in tackling non-compliance by employers who fail to pay apprentices the rate they should?

[The Parliamentary Under-Secretary of State for Business, Innovation and Skills (Jenny Willott)]

We wrote to the Low Pay Commission on its remit for next year. One of the things we have asked it to look at is the apprenticeship rate for the national minimum wage. We are aware that there are a lot of concerns, particularly about non-compliance in paying the national minimum wage for apprentices. The system is quite complex and often employers find it difficult to navigate. We have asked the Low Pay Commission to work out how the system could be simplified to ensure better compliance by employers.