National Minimum Wage

Anne Main Excerpts

Wednesday 15th October 2014 Commons Chamber

[Mr Umunna]

I am appalled by that. My hon. Friend is right to mention enforcement. I will come to that, but I pay tribute to his work—I have been to his constituency—on ensuring that those who work hard get a decent day’s pay, in addition to his work on training and apprenticeships, which he has talked about a lot.

[Mrs Anne Main (St Albans) (Con)]

In the interests of fair pay for a fair day’s work, does the hon. Gentleman share my concern that so many right hon. and hon. Members, including many Opposition Members, pay absolutely nothing to some of the young people who work in this place? He should campaign to ensure that all hon. Members pay a fair wage for a fair day’s work.

[Mr Umunna]

I do not know to whom the hon. Lady refers, but in my experience, my Labour colleagues have always sought to ensure that those who work for them are paid a decent wage. I am sure that she, like others, might occasionally, as I do in my constituency office, have sixth-formers who are work experience students. Their situation is different from those whom hon. Members employ, but if hon. Members employ somebody to work for them, they should be paid a decent wage.

I spoke of the evolution of the national minimum wage and what Labour wants to do. With that in mind, we asked the former deputy chair of KPMG, Alan Buckle, to consult business, trade unions and others on how we can strengthen the minimum wage and restore its value. In so doing, Mr Buckle consulted many companies extensively. There is a growing body of opinion that the value of the minimum wage should rise. Sir Ian Cheshire, chief executive of Kingfisher, Jeremy Bennett, chief executive officer for Europe for Nomura, and Steve Marshall, the executive chairman of Balfour Beatty, are among those who are calling, as the economy recovers, for the minimum wage to increase faster than it has in the recent past. They say that that will benefit businesses and improve the public finances—the fall in the real value of the minimum wage since 2010 now costs the Exchequer £270 million a year in additional benefit and tax credit payments, a point that my hon. Friend the Member for Leeds West (Rachel Reeves), the shadow Work and Pensions Secretary, will build on later.

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[Mr Umunna]

My hon. Friend raises a good point, and I will come to it very shortly.

[Mrs Main]

I can accept that there are some abuses of zero-hours contracts but, as someone who formerly worked as a supply teacher I would caution against getting rid of all zero-hours contracts. Our health and education services rely on people picking up casual contracts—if that is how the hon. Gentleman wants to put it—so that we fill in the gaps when there are shortfalls. It is not always a demon policy to have zero-hours contracts.

[Mr Umunna]

I hear what the hon. Lady says about some zero-hours contracts—if memory serves me correctly, I may have been on one myself when I was a student—but the point is that we are seeing far too many exploitative zero-hours contracts. That is the problem, and we are not going to sit on our hands when we are faced with that situation.

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[Matthew Hancock]

No, because every year the Government present evidence to the Low Pay Commission of what level of pay the economy can support. In fact, I can go further. Today, we are publishing the economic evidence that is going in to the Low Pay Commission. It shows what level of pay the Government believe can be supported. It shows that the recovering economy is creating jobs, with unemployment falling faster than any country in the G7. Indeed, the Low Pay Commission has said that it can raise the national minimum wage in real terms this year only because of that recovering economy. Government analysis underpinning today’s evidence projects that on the Office for Budget Responsibility’s economic earnings forecast, the minimum wage is set to reach £8.06 by 2020—only because of the recovering economy.

[Mrs Main]

Did the Minister note—I am sure he did—that the shadow Secretary of State said that there would be some “flexibility” in the plans, but without saying what that flexibility entails? It seems to me that this is a fudge; there is not really any particular figure that he is looking towards.

[Matthew Hancock]

I was going to come on to that. The hon. Member for Streatham made an important admission today. I think it is the first time that Labour has admitted that if the £8 target was going to damage the economy, there would be “flexibility”, as my hon. Friend said. Within a month the hon. Gentleman has completely undone the promise that was made with such loud cymbals at the party conference. It was a promise made for a party conference by a desperate party leader who is struggling to get his message across. Today, it has been completely undermined by the man who wants to replace him as party leader after Labour loses the next election.

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[Mrs Anne Main (St Albans) (Con)]

I am truly grateful, Mr Deputy Speaker, that you took the point of order from my hon. Friend the Member for Harlow (Robert Halfon), because the fact that he has been maligned by the shadow Secretary of State for Education so publicly on the media means that he will probably now be touring the media studios having to explain that he did not make the comments attributed to him. I seriously hope that the Member who made those allegations comes here as quickly as possible to explain in the public domain, not just by sending a text, that my hon. Friend did not make those comments, from which I am sure that many of us would dissociate ourselves.

I am glad that I heard all the previous speeches, but particularly that I heard about the flexibility that the hon. Member for Streatham (Mr Umunna) is building into his plans. One of the things I have learned about being bendy in life is that it allows one to do U-turns. We now know that Labour does not have a firm promise, as was said at the party conference, to deliver a “greater than £8 an hour” minimum wage, and there is flexibility about that. That means, of course, that in reality, with a poor and failing economy like the one we inherited from it, Labour will deliver less than the £8.06 an hour that is projected by us. This debate has revealed the fact that the shadow Secretary of State is distancing himself from that commitment. Today Labour has illustrated the fact that it is prepared to be flexible about having £8 an hour while we desire to have a greater amount of £8.06 an hour.

I am sorry that my hon. Friend the Member for Elmet and Rothwell (Alec Shelbrooke) is not still here; he has probably had to pop out for something very important. As I said in an intervention, I completely agree with what he said about his ten-minute rule Bill on the payment of interns. We are talking about the minimum wage in this very privileged place. Many of us are glad to be here, but many of us have had to take second jobs, or whatever, to make sure that we could afford to be here, while some people here are very wealthy and can afford to be here. It is appalling that once we have got here we seem to forget that a lot of young people would like to work for us, but then they read on the “Working for an MP” website that interns are paid only expenses. That means that they are not being paid the minimum wage. I can see the hon. Member for Leeds West (Rachel Reeves) looking at me at this point.

I believe that we should set an example in this place. The hon. Member for Streatham, who has now left, said that I was talking about work experience of a few weeks for sixth-formers, but no, I am not. All of us may have people with us doing work experience. I encourage that from those of any political persuasion in my constituency, and I do have young people coming in for a few days or a week. However, that is not what I am talking about. I am talking about the fact that MPs, with the expense accounts accorded to us to make sure that we can pay our staff proper rates in accordance with the Independent Parliamentary Standards Authority guidance, will still consider having people doing long hours in important jobs for expenses only, which often fall far below the level of the minimum wage.

The hon. Member for Leeds West might want to intervene on me, but I believe that she has had a series of interns who have not been paid the minimum wage. There is a website in operation that says whether an MP will pay for an internship. I do not believe that anyone should work for free or for very little, and that applies in this place and outside this place. If we cannot uphold the principle here, it is very hard to make the argument to employers outside.

I look forward to a revisiting, I hope, of what interns can expect should they come to work for Members in this House. Otherwise we will perpetuate the fact that this is a place of privilege and so people need to be able to have the bank of mum and dad to pay their bills in order to come here and work for a pittance for an MP. That is wrong, and it should go now. We should guarantee at least the minimum wage to anyone who comes to work in this place. The hon. Member for Birmingham, Erdington (Jack Dromey) said that he had joined a strike of members of staff here so that they could have the living wage. Good on him, but let us remember the interns who come through this place, often on short-term six-month contracts, who cannot strike and cannot have the same rights accorded to them. We as Members should think about those people, many of whom are young and aspirational.

[Andy Sawford]

Last year I had a person, Vincent Torr, working with me on the Speaker’s scheme, which was properly funded. That was a fantastic scheme for which we should pay tribute to Mr Speaker and my right hon. Friend the Member for Salford and Eccles (Hazel Blears), who supported it. Does the hon. Lady agree that that shows us the way?

[Mrs Main]

I am in favour of any schemes that ensure that if young people want to come and work in this place, they can afford to do so. They should not have to subsidise themselves in order to be able to get here and find out what it is like to work in politics.

[Andy McDonald]

Will the hon. Lady give way?

[Mrs Main]

Briefly, because I have a few more comments to make.

[Andy McDonald]

Is the hon. Lady not aware of the Conservative party auctioning internships to serve with J. P. Morgan? How does that sort of attitude, whereby people are purchasing places with companies like that, fit in?

[Mrs Main]

I think I have made myself very clear. I have never had an intern work for me whom I have not paid, and I will not do so. Sometimes I am constrained as to the numbers of staff I can have, and I budget accordingly. Unless the hon. Gentleman condemns any Labour Member who does not do the same, I am not interested in auctioning internships. I believe I have made it very clear that young people should be paid if they work for Members of the House of Commons.

I should like to turn to zero-hours contracts. Other Members have said that zero-hours contracts should be abolished because they are awful and appalling, and are sometimes not proper jobs. There are examples of all those things, but, as I said in an intervention, let us be aware that zero-hours contracts do not always provide a dreadful solution. They sometimes provide a very necessary solution for bank nurses, supply teachers, and other people filling gaps where suddenly there arises a vacancy. I speak as someone who has been in that situation myself. When my husband died and I was a single parent, I was glad to work as a supply teacher so that I could work around the needs of my young children—for example, sometimes they were ill and could not go to school. Opposition Members condemn all zero-hours contracts, but if we were to get rid of them, our health and education services, to name but two, would probably grind to a halt within a few days or weeks. It is very necessary to have contracts that give flexibility in the delivery of these services.

The most crucial thing that will come out of this Opposition day debate is the fact that Labour has declared that it does not have a promise or a guarantee of a greater than £8 an hour minimum wage but a flexible target of £8 an hour that can be abandoned at any moment. I hope that the electorate out there will take note of that when its leaflets come through their doors.

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[Dr Whiteford]

My hon. Friend makes a valuable point.

I want to touch on another issue that has been mentioned by others, namely the disproportionate number of disabled workers and minority ethnic workers in minimum wage jobs. We have already heard about Lord Freud’s disgraceful comments and I hope the Government will step back from what was an outrageous thing to say about people who are already disadvantaged in the labour market.

[Mrs Main]

I am sure the hon. Lady will also condemn the slur against my hon. Friend the Member for Harlow (Robert Halfon) by an Opposition spokesman, who said it was he who made those remarks.

[Dr Whiteford]

Absolutely.