Enterprise Bill [Lords]

Chris Philp Excerpts

Wednesday 9th March 2016 Commons Chamber

[Jonathan Reynolds]

I admire the attempt to get more people involved in local government by giving councillors more power—all hon. Members would celebrate that—but my point to the hon. Gentleman is this is not real power. It is an attempt to introduce a national liberalisation through the back-door veneer of devolution.

Another disappointment in the process was the Government’s consultation, which hon. Members have mentioned. It has been described to me on numerous occasions as a whitewash. The consultation concludes that the majority of responses were in favour of the proposal to devolve the power, yet in answer to a written parliamentary question to me on Monday, the Minister could not tell me how many of the 7,000-plus responses were against the proposal. How can the Government conclude that the majority of respondents were in favour of the proposal when they cannot even give the House the numbers? I was very disappointed with that answer. It should not be beyond the capabilities of the Department for Business, Innovation and Skills to work out how many respondents are for or against a Government proposal. I hope the Minister will be able to rectify that from the Dispatch Box and provide some much needed transparency.

My fundamental opposition to the clause comes from a passionate desire to keep Sunday special. When Sunday trading rules were relaxed during the Olympics, we were promised that it would be a temporary measure only, and yet here we are not even four years later with this proposal in front of us. The proposal ignores the wishes of retail staff. A staggering 91% of retail workers in larger stores do not want an extension of trading hours on a Sunday. To them, Sunday is a special day, much as it is in my household. I have four young children and two dogs, so I cannot claim that my Sundays are particularly restful or peaceful, but they are special—a time for the whole family to spend together. That should be the same for retail workers, more than half of whom already feel pressured to work Sundays.

[Chris Philp (Croydon South) (Con)]

I share the hon. Gentleman’s desire to keep Sunday special, but is that not a matter of personal choice for him and for me individually, and not something for Parliament to impose by legislation?

[Jonathan Reynolds]

If the hon. Gentleman approaches this with good intentions, I advise him to talk to some of the retail workers in his constituency to see how they feel about the autonomy they have to decide whether they get to work longer Sundays or not. It is worth pointing out that none of us debating this in the House has to work Sundays if we do not want to.

The current regulations are a good compromise. Shops can trade on Sundays and staff can work if they want. At the same time, Sunday remains a special day, different from any other day of the week. Retail workers can spend some time with their families.

I do not believe the business case for changing Sunday trading regulations stacks up. Retailers already do very well on Sunday, with lots of footfall during a relatively short time window, which makes for more effective trading. The measure will also have a negative effect on smaller shops and retailers that are not subject to the regulations. Their businesses will suffer. In the most recent example of relaxation of Sunday trading—during the Olympics—retail sales actually declined.

As well as declaring my interest as an USDAW-sponsored MP, I am likewise very comfortable declaring my interest as a practising Christian. Understandably, that forms part of my opposition to any changes to Sunday trading, which I know I share with Members on both sides of the House. Of course, we live in a diverse country—I am extremely glad that we do so—but we should recognise that Christianity is the largest religion in this country. For Christians such as myself, Sunday is a special day. Sunday is when my family and I attend church, and the opportunity to do so should not be denied to people who have to work Sundays, whether in the morning or the evening.

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[Bill Esterson]

There are similar examples up and down the country. My hon. Friend is absolutely right.

Let me turn to some of the evidence we have been given in the lead-up to this debate. During the Olympics, convenience stores experienced a fall in Sunday trade of up to 7%. There was also a displacement of trade to different times of the week, but, instead of an increase in overall trade, there was a slight fall. The Government assumption that people will have more money to spend just because the shops are open longer does not bear scrutiny once we start to look at the evidence.

Meanwhile, the extra Sunday hours would increase costs in those large stores that stay open longer, and while there will be some displacement from convenience stores to larger retailers, as happened during the Olympics, there will be little or no overall increase in trade to pay for the increased cost in most shops.

[Chris Philp]

Will the hon. Gentleman give way?

[Bill Esterson]

I am going to make some more progress before I take any more interventions.

The larger retailers that open longer will have to find a way to reduce costs, which means removing the premium for shop workers. Given that the major retailers operate UK-wide, a change in pay and conditions in England and Wales will mean changes in Scotland and Northern Ireland as well. Premium pay on Sundays is viable across the UK because large retailers in most of the UK are restricted to six hours’ opening. The time and a half paid to many shop workers will be under threat to make up for staying open longer across the UK, which, of course, is why this is a UK-wide matter and why it is entirely appropriate that Members from across the UK have a vote on this very important proposal.

Removing time and a half would cost shop staff who work an average shift in Scotland £1,400 a year, which in anybody’s money is a very significant hit, particularly for those on low pay in the retail sector. The proposed changes in England in Wales would have a profound effect on workers in Scotland, and I am glad that the SNP recognises that Scottish workers will be hit. I was a bit surprised when the hon. Member for Livingston (Hannah Bardell) told us in Committee that, while her concerns focused on Scottish workers, the SNP welcomed the additional employee protections in the Bill, which she ascribed to

“the strong and principled action of the SNP”.––[Official Report, Enterprise Public Bill Committee, 25 February 2016; c. 322.]

We will come to how those protections will not do what the Government claim they will, but I am glad that the letter from my right hon. Friend the Leader of the Opposition and the leader of Scottish Labour, Kezia Dugdale, has had the desired effect. I welcome the SNP’s confirmation that its Members will vote against the Government, and I look forward to them joining us in the Lobby.

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[Bill Esterson]

I am not going to take any more interventions at the moment. We have not got very long, because the Minister took so much time, and a lot of Members want to speak.

The Minister claimed that the Bill would help workers, but 91% of shop staff oppose longer Sunday opening hours and only 6% want more hours on Sundays. Listening to the Minister in Committee, we might have been forgiven for thinking that the figures were the other way around. The Minister says that he is improving workers’ ability to opt out of Sunday working. Let us just go through some of what happens now. Staff who apply for jobs with some retailers are asked whether they will work Sundays. Failure to say yes can mean no interview. Staff who are still in their notice period who try to opt out of Sunday working can and do lose their jobs. Staff who try to opt out of Sunday working can and do lose hours. Staff who want to opt out come under pressure from managers and colleagues not to do so. The reality is that staff already have to work on Sundays in too many large retailers when they do not want to, when they would rather spend more time with their children or—as most people want to do on Sundays—enjoy leisure time or rest. What happened to the family test?

[Chris Philp]

Will the hon. Gentleman give way?

[Bill Esterson]

No, I am not going to give way.

The Prime Minister said that the family test should apply to all legislation. I understand that it is in the impact assessment. I have not had time to read it in detail, because we had only two hours’ notice of its publication, but I understand that it says that when it comes to the family test, the overall impact is unclear. It is clear enough to families of shop workers up and down the country that the measure will have a profound effect on them and on what happens on Sundays.

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[Chris Philp]

Will the hon. Lady confirm that if these proposals are passed, they will increase protections for workers in Scotland? Will she also confirm that the arrangements in Scotland and England would be identical, meaning that she will be voting against arrangements that already apply in Scotland?

[Hannah Bardell]

As I have just said, employment protections will increase, but no Minister has said anything about pay protection, which I shall speak about later.

Low-paid workers might lose out even further if they lose their premium pay. USDAW has expressed significant concern that when universal credit is rolled out in May 2016, any loss of Sunday premium pay by families working in retail would trigger the end of their transitional protection at tax credit rates and they would be transferred to the far lower rate of universal credit. That is an extremely important point.

It is an interesting phenomenon that a greater proportion of lone parents work in retail on Sundays than on any other day of the week, yet if one of those lone parents was to lose their premium pay and to be transferred to the lower rate of universal credit, they would have over £2,000 less in their pocket. I and my SNP colleagues are not prepared to gamble with the pay packets of some of Scotland and the UK’s lowest-paid workers.

Moreover, it is an obvious point, but the erosion of premium pay as a result of Sunday trading hours is a real threat not just to Scottish workers, but to shop workers across the UK. We said ahead of the 2015 general election that the SNP would be a progressive force in Westminster and that we would work with others to pursue progressive policies and protect the most vulnerable—and not just in Scotland, but across the UK. In voting against these ill-conceived measures, that is exactly what we are doing. We in the SNP do not just write our manifesto commitments down; we actually deliver on them.

Although the crux of our argument is about the erosion of premium pay, there is a wider debate going on. We should focus our minds on the wider issue of fair pay. In my maiden speech, I spoke about the importance of decent pay for decent work, and about my own family heritage, being from mining and shop worker roots. My grandfather was a miner and believed firmly that no worker should have to seek overtime to make ends meet. Therefore, while we must protect the premium pay of the lowest paid, we should also be continuing the fight for fair pay for the lowest paid in our society. That means a real living wage, not the fake one dreamt up by this UK Government.

We have challenged the UK Government to give assurances and to provide safeguards for the provision of premium pay in Scotland, and they have failed to do so. There is not a single clause in the Bill, or any sentence that any UK Government Minister has uttered in our proceedings on it, that is significant enough a reassurance that Scottish shop workers, and indeed shop workers across the UK, will not lose out because of a lack of protection for their traditional rates of pay. We will oppose anything that puts in doubt the premium payments that lower-paid shop workers in Scotland have for Sunday working.