Oral Answers to Questions

Claire Perry Excerpts

Tuesday 17th July 2018 Commons Chamber

[The Minister for Energy and Clean Growth (Claire Perry)]

The hon. Gentleman will know, because there are more than 6,000 installations in Manchester alone, that the feed-in tariff scheme has been hugely successful in attracting investment in small-scale renewable electricity, delivering more than 800,000 installations across the country. Partly as a result of that scheme, costs of the technology have dropped dramatically, but also because of the success of the scheme, it became, as he will know, very unaffordable. I am very aware of the need to set out what the next stage of small-scale renewable investment looks like, and I look forward to doing so shortly.

[Jeff Smith]

Businesses are very aware of the need too. There are thousands of stakeholders in the renewables industry who need to understand the regulatory framework that they will be operating under when the feed-in tariff ends. The Government promised an update on the approach to small-scale renewables by the end of last year, but we have heard nothing. Will the Minister please tell us today when the feed-in tariff consultation will be published?

[Claire Perry]

I share entirely the hon. Gentleman’s desire for us to get on with it. In fact, I have met many representatives of the sectors. We just have to get the scheme right. We must not create something that causes a bonanza for people who are gaming the system or that puts up bills for consumers. We are very aware of the need to provide certainty for investors, and I look forward to doing so soon.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

17. Solar power has been shut out of clean power options for three years, and onshore wind vilified. Will the Minister heed the National Infrastructure Commission’s recommendations to forgo new nuclear investment in favour of bringing back clean power options for cheap and established renewables?

[Claire Perry]

I can only refer to the comments of my right hon. Friend the Secretary of State. We want to provide a balanced, secure energy supply that keeps bills down for consumers. That is why we will be investing in nuclear. We have invested in many forms of renewable energy. In fact, we are now leading many parts of the world in that investment, and we will continue to do so.

[Dr Alan Whitehead (Southampton, Test) (Lab)]

Solar PV installations this year will be running at just 2% of their peak rate in 2011. This is certainly due to the downgrading and forthcoming closure of the FIT scheme in March 2019. As the Minister has mentioned, a consultation on FITs has now been promised for a year. It was supposed to have been published by this recess; now it is not. Why is the Minister fiddling about the future of FITs while the solar house burns down?

[Claire Perry]

Such alliteration, despite such late nights. The hon. Gentleman will know that we have been really successful in pulling forward a huge amount of solar. In fact, solar has contributed enormously to the energy mix over the past few days, as the hon. Gentleman will know. Much of it is not recorded because it sits behind the meter. However, I acknowledge his point. We intend to bring forward a scheme that works, that does not put up bills for consumers and that acknowledges that much of our renewable future will be subsidy-free.

[Jo Stevens (Cardiff Central) (Lab)]

15. What progress he has made on planned consultations on (a) employment status, (b) agency workers and (c) enforcement of employment rights as a result of the recommendations of the Taylor review of modern working practices.

[The Minister for Energy and Clean Growth (Claire Perry)]

In the Government’s response to the review, we committed to take forward recommendations to improve clarity on employment status, boost protections for agency workers and increase state enforcement of basic rights for vulnerable workers. Consultations finished last month, and we have had more than 420 responses. I give huge thanks to all stakeholders who contributed; we will be responding very shortly.

[Alex Norris]

Insecure work weakens our economy. Last week the Office for National Statistics reported falls in manufacturing and construction output. The past few weeks have been dominated by Ministers worrying about their jobs. When will the Government have a functioning industrial strategy that worries about my constituents’ jobs?

[Claire Perry]

I am sure the hon. Gentleman and his constituents will welcome today’s news that we have record employment in the British economy. We totally agree with him that the future of work is good work, which is why we commissioned the Taylor review and want to deal with the challenges of the gig economy. I hope that we will get cross-party support for those vital protections for his constituents and for mine.

[Jo Stevens]

Rather than simplify employment law, the Taylor review has recommended introducing yet another category of workers, so we will have three tiers with different employment protections. The EU directive on transparent and predictable working that is currently being considered provides an EU-wide definition of workers, clarity and transparency, and the right to a written statement of terms and conditions on day one of employment. Will the Minister confirm that the Government will support the directive, so that it is adopted before 29 March next year?

[Claire Perry]

Again, I thank all respondents to the consultation, including many high-quality responses from the unions. We will respond to the consultation in due course.

[Rachel Reeves (Leeds West) (Lab)]

One in six workers in our economy is now self-employed. Some are bogusly self-employed—not entitled to the basic protections that we should all expect when we go out to work every day. Matthew Taylor’s review into good work was published more than a year ago. When are the Government going to respond and bring forward legislation to end this abuse?

[Claire Perry]

The hon. Lady, as always, makes a powerful point. We are taking action by prosecuting companies that are not paying the national minimum wage and we are ensuring that those basic rights are enforced. We want to get this right because this legislation will have to last not just for six months or a year, but for many years as our economy develops.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

I am sure that the whole House will join me in wishing my hon. Friend the Member for North West Durham (Laura Pidcock) all the best during her maternity leave. As we know, the Taylor review failed to offer much protection for those in the gig economy who are pregnant. The Government’s earlier Deane review on self-employment made recommendations on equalising maternity allowance, but that was two and a half years ago. Do the Government intend to implement those recommendations?

[Claire Perry]

I welcome the hon. Gentleman to his position. I was around his constituency on Saturday helping to launch the RSS Sir David Attenborough—what a fine place he represents. He is absolutely right to focus on these basic maternity protections. This Government are continuing to improve paternity and maternity rights. We want to get that right and that will be part of our response.

[Chris Green (Bolton West) (Con)]

4. What steps he is taking to support the commercialisation of universities’ research.

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[Ben Bradley (Mansfield) (Con)]

22. What steps he is taking to ensure that low-paid workers are remunerated appropriately.

[The Minister for Energy and Clean Growth (Claire Perry)]

There used to be those who said it is not possible to have protection for minimum-wage workers and lots of jobs. How wrong they are! Today, thanks to a Conservative Government since 2010, we have record employment, and a full-time worker on the minimum wage is now £3,800 better off thanks to the wage legislation we passed and changes to the income tax personal allowance. Since 2015, we have doubled the budget for enforcing the national minimum wage, and last year we identified a record 15.6 million workers who were not being paid properly for low-paid work.

[Mike Wood]

Will my right hon. Friend encourage HMRC to investigate proactively employers who are systematically breaching national minimum wage legislation, instead of expecting each worker individually to complain and produce detailed evidence?

[Claire Perry]

That is absolutely right. Any employer who is not paying the national minimum wage and is breaching the law deserves to be found out and taken to task. That is why HMRC is conducting proactive risk-based analyses, particularly in sectors or areas where there is a high-risk of workers not being paid. In 2016-17, HMRC proactively investigated over 1,400 cases, in which 68,000 workers were being illegally underpaid. That is absolutely outrageous, and penalties have been issued. The work will continue: employers must pay the national minimum and living wage.

[Paul Masterton]

I thank the Minister for her answer. She highlights that a number of employers are not paying the minimum wage, so what support do the Government intend to give small employers to help ensure that they can pay their employees a fair wage?

[Claire Perry]

That is an excellent point, and it is quite right that small employers who may struggle with some of this are encouraged to do so. We have taken up to £3,000 off their national insurance contributions bill through the employment allowance. We have cut corporation tax from 28% in 2010 to 19% today, and we reduced business rates to the tune of £2.3 billion in the 2017 Budget. All that is going into small employers’ cash flows, so they can pay their workers what they deserve.

[Ben Bradley]

The latest figures show that weekly wages in Mansfield are notably—several hundred pounds a week—lower than the national average. Projects such as the Heathrow logistics hub could provide huge opportunities for my constituents, but what support are the Government offering to help low-wage areas such as Mansfield and Warsop attract such high-skill and well-paid jobs?

[Claire Perry]

I commend my hon. Friend for fighting tirelessly for his constituents. I basically reassure him that, through the industrial strategy—it, of course, sets out our long-term plan to boost productivity and earning power across the country—we are supporting the development of local industrial strategies to drive up productivity, because productivity increases are what drive pay increases.

[Stephanie Peacock (Barnsley East) (Lab)]

Given the Court of Appeal’s decision last Friday, will the Government now urgently bring forward legislation to end the uncertainty and to enshrine the right of all workers on all shifts to the national minimum wage, including for careworkers’ sleep-ins?

[Claire Perry]

The hon. Lady makes a powerful point. I know from my own constituents the difficulty that the original decision has provided both for employers and for workers. I am afraid that I cannot answer her question from the Dispatch Box, but I will take it away and write to her.

[Mr Dennis Skinner (Bolsover) (Lab)]

Not only is it true that the number of people on zero-hours contracts is rising at a very high rate, but the Government do not seem to think that it is anything to do with them. There are close on 1 million people on zero-hours contracts—there are 2,000 or 3,000 on one pit site in Shirebrook near Mansfield in my area—and the Government sit idly by. It is only when they talk about the golden future for workers and get stuck in with getting rid of zero-hours contracts that we will believe a word they say.

[Claire Perry]

I am afraid the hon. Gentleman, despite the rhetoric, is just wrong. I have visited some of the pit areas, and one of the saddest things I ever saw was a former pit engineer who, because of the appalling transport links left as a terrible legacy to the pit areas, was unable to get out of the area and find work. [Interruption.] If he would just listen for one second, he would know that many people on zero-hours contracts actually choose that level of flexibility. [Interruption.] Well, they do, and the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) should talk to her constituents and find out. However, he is absolutely right that the thing we need to do—[Interruption.] Blimey, you must be hell to live with. [Interruption.] He must be hell to live with; not you, Mr Speaker, clearly. The hon. Gentleman must be hell to live with. He will know that this Government are determined to drive up wages and standards for working people, because we, not the north London intelligentsia, are the party of working people.

[Alison Thewliss (Glasgow Central) (SNP)]

The lowest-paid workers are young workers, who are not entitled even to the Government’s pretendy living wage. A 17-year-old is entitled to £3.63 an hour less than a 25-year-old starting on the same day in the same job. When will this Government end the scandal of state-sponsored age discrimination?

[Claire Perry]

My understanding is that there have always been differentials for different age groups. We will continue to review this because we are the party that nationally—right across the UK—wants to make sure that productivity and wages increase, rather than using the rhetoric we hear from other Members.

[Michelle Donelan (Chippenham) (Con)]

7. What steps his Department has taken to tackle the challenges set out in the industrial strategy.

[Julian Sturdy (York Outer) (Con)]

13. What steps his Department has taken to tackle the challenges set out in the industrial strategy.

[The Minister for Energy and Clean Growth (Claire Perry)]

Blimey, Mr Speaker, I am getting through them today.

As my right hon. Friend the Secretary of State laid out at the northern powerhouse business summit, the industrial strategy is encouraging innovation across the UK, developing those high-quality jobs and wages we all campaign for. Sector deals are about building long-term partnerships and businesses, and the grand challenges in areas such as clean growth will equip the UK to seize opportunities and be a world leader in the industries of the future.

[Michelle Donelan]

One of the biggest challenges we face is the STEM skills gap, something that I repeatedly mention in this place, given that Wiltshire is a hub of engineering design and technology. What work is my right hon. Friend doing with the Department for Education to ensure that we are developing the skills needed by businesses?

[Claire Perry]

I thank my hon. Friend and neighbour for the work that she has successfully done in her constituency promoting the importance of STEM skills. We are working with the Department for Education to grow STEM skills in the UK through initiatives such as T-levels, by investing more than £400 million, and I am particularly keen that that work focuses on harnessing the huge potential of women, a group who are very under-represented in the sector. That is why initiatives such as POWERful Women are so important.

[Julian Sturdy]

The Government’s commitment to creating a globally competitive technical education system must be applauded, and I hope that they will draw on best practice from establishments and institutions in my constituency, such as York College and Askham Bryan College. Can the Minister update me on discussions she is having directly with businesses about the creation of new institutes of technology, and will she consider rolling them out as quickly as possible?

[Claire Perry]

My hon. Friend is right: these have to be a collaboration between the Government, business and local decision makers. We will announce in the autumn which institutions will make up the country-wide network, supported by £170 million of funding for the institutes of technology. As we set out in May, the first pupils will sit the first of the new T-levels in September 2020.

[Vernon Coaker (Gedling) (Lab)]

One of the real challenges for the Government’s industrial strategy is how to ensure that investment is rolled out across all the regions and nations of the UK. How, practically, will the industrial strategy ensure that that happens—in particular, in regions that have failed to get the investment they deserve such as the east midlands?

[Claire Perry]

That is an excellent question, and the proof of all this will be taking our grand aspirations for the UK and making them work locally. I am pleased to tell the hon. Gentleman that we have fantastic local areas, often working cross-party—I am thinking particularly of Teesside and the west midlands—[Interruption.] The east midlands; thank you. We have really engaged local leaders and decision makers in pulling that investment through and developing their own local industrial strategies.

[Emma Little Pengelly (Belfast South) (DUP)]

Northern Ireland has an excellent construction industry. Unfortunately, it has been difficult over the past number of years because of the lack of the Northern Ireland Assembly and decision making. Can the Minister outline what discussions have taken place between her Department and Northern Ireland to ensure that Northern Ireland benefits from the new construction sector deal?

[Claire Perry]

We talk regularly with representatives from Northern Ireland, which is—as the hon. Lady will know—a vital part of the UK. The sector deal that we have done with the construction sector—more than half a billion pounds set out between the Government and industry to drive up the productivity of that sector—of course applies to Northern Ireland. We look forward to seeing productivity increase across the UK.

[Steve Double (St Austell and Newquay) (Con)]

The space sector will play an important role in achieving the aims of the industrial strategy. Will my right hon. Friend the Minister join me in welcoming the agreement signed by Virgin Orbit with Spaceport Cornwall at Farnborough air show yesterday, and will she ensure that the Government continue to work with Spaceport Cornwall to make sure that we have horizontal satellite launch in this country as soon as possible?

[Claire Perry]

Unlike the Minister for Universities, Science, Research and Innovation, I was unable to enjoy the announcement at Farnborough yesterday, but I agree with my hon. Friend that it is a fantastic announcement. He and Cornwall County Council should celebrate it, and I look forward to visiting Cornwall on Friday, where this topic and many other industries will be addressed.

[Chris Elmore (Ogmore) (Lab)]

One of the challenges but also opportunities for the Government’s industrial strategy is working with the devolved Administrations. Can the Minister set out what discussions she has had with the Welsh Government to ensure that the long-term industrial strategy supports industries such as Ford in Bridgend, which employs many hundreds of workers in my constituency?

[Claire Perry]

Again, that is an excellent point, demonstrating that we are so much stronger when we work together. We all, including my right hon. Friend the Secretary of State, speak to representatives of the devolved Administration on issues such as the auto sector deal and the nuclear sector deal, which was very much a joint effort.

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

8. What steps the Government is taking to ensure that Scotland benefits from the modern industrial strategy.

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[Eleanor Smith (Wolverhampton South West) (Lab)]

18. What steps he is taking to ensure that employment law protects and supports self-employed workers.

[The Minister for Energy and Clean Growth (Claire Perry)]

The hon. Lady will know through her long and distinguished service in various union careers that the challenge of ensuring that all workers, whether employees, workers or self-employed, receive the rights and protections they are entitled to without having to fight for them is at the heart of the Taylor review. I hope that she and her colleagues will welcome the recommendations made.

[Eleanor Smith]

Like my hon. Friend the Member for Leeds West (Rachel Reeves), I want to draw the Minister’s attention to the plight of many self-employed workers in today’s modern workforce. More and more people are classed as self-employed, but they have no protection rights. They have no redundancy rights, no pension protections, no sick pay, no holiday pay and no parental leave pay. Why do the Government believe that self-employed people do not deserve the same entitlements as employees?

[Claire Perry]

I think the hon. Lady probably knows that the Government do not believe that. However, she has identified the real challenge that is out there in the workplace. It is not always clear what status an employee has, and that is something that we must clarify. One of the fundamental points in the Taylor review related to employment status and access to statutory employment rights. I am not ruling out being able to do more for self-employed workers, but at the heart of the review is the need to understand the definitions involved, and to ensure that people in those categories are given the rights and protections that they deserve and for which the hon. Lady and I have campaigned.

[Ellie Reeves (Lewisham West and Penge) (Lab)]

Companies such as Uber and Pimlico Plumbers wrongly categorise their workforces as self-employed in order to deny them basic rights such as holiday pay and even the national minimum wage. I have heard what the Minister has had to say today, but when will the Government finally clamp down on false self-employment and exploitative practices?

[Claire Perry]

The hon. Lady will know that we have already made progress. Up to 300,000 workers who are entitled to payslips will now receive them, all workers are given a statement of their terms and conditions from day one, and 1.2 million agency workers are given a breakdown showing who pays them. We know that we must do more, but we want to respond carefully to the hundreds of responses to the Taylor review consultation that we have received, so that we can make the necessary changes and ensure that those practices are stamped out.

[Angela Smith (Penistone and Stocksbridge) (Lab)]

19. What assessment his Department has made of the effect of the Government’s proposed facilitated customs arrangement on UK businesses.

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[James Cartlidge (South Suffolk) (Con)]

T6. In this glorious summer weather, it is easy to forget that this winter our constituents who still use heating oil saw very sharp price rises. Does the Minister therefore agree that not only should our constituents take advantage of this weather to fill up their tanks for what is likely to be a lower price, but we should encourage initiatives like community buying which can also help villages and other communities to buy their heating oil at a lower price?

[The Minister for Energy and Clean Growth (Claire Perry)]

Like me, my hon. Friend has a rural constituency, and many of us live off-grid and are at the mercy of these rises. We know that the market for heating oil does function: it has been reviewed and is considered to be competitive. But my hon. Friend will know that I have also set out an aim that we want to get all new properties built in areas off-grid off fossil-fuel forms of heating by 2025, as that is not only costly but very carbon-producing.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

T5. Participants in multi-level marketing schemes, 75% of whom are women, sign up to the opportunity to earn income flexibly from home, often attracted by outlandish lifestyle claims made on social media. In reality many participants earn no income and many end up in debt. Will the Secretary of State introduce a requirement on MLMs to publish an independently audited annual statement of net average earnings that takes into account the cost of participating as well as income earned, and will he regulate the lifestyle claims made on social media to stop the exploitation of vulnerable people?

[Claire Perry]

The hon. Lady makes an excellent point, and I would be happy to meet her to discuss this. I am thinking back to the days when we used to go out and try to sell goods from various catalogues and I used to collect the money. That was exploitative then, and I suspect that it is exploitative now. Perhaps she and I should meet; I would be happy to discuss the matter.

[Luke Hall (Thornbury and Yate) (Con)]

T8. The national living wage has given millions of workers up and down our country a pay rise, but there are still some rogue employers who deliberately seek to underpay staff in order to maximise their own profits. What steps is the Minister taking to ensure that full and fair enforcement of the living wage is taking place?

[Claire Perry]

I refer my hon. Friend to my earlier answer. If a contract is in place, that wage must be paid, and if he has any evidence of systematic underpayment or any level of avoidance, HMRC and the Government want to hear about it.

[Mr Steve Reed (Croydon North) (Lab/Co-op)]

T7. A survey of London businesses by London Councils and the London chamber of commerce has found that a third of apprenticeship levy payers do not expect to use any of their funds over the next 12 months. Does the Minister agree with the all-party parliamentary group on London that unspent funds should be devolved and used to support job skills in London rather than being returned to the Treasury?

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[Toby Perkins (Chesterfield) (Lab)]

Many small care agencies face bankruptcy in the light of the Treasury advice on the way in which sleep-ins are paid, which has now been changed by the courts. The Minister for Energy and Clean Growth, the right hon. Member for Devizes (Claire Perry), did not seem to know too much about this, but may I urge her to avail herself of the facts urgently, because many small agencies will go bust if we do not get this right?

[Claire Perry]

I want to reassure the hon. Gentleman; he is absolutely right. I have had strong representations and visits about this issue in my own constituency. My reluctance to comment on it at the Dispatch Box is because it is legally incredibly complicated, as he knows, and we have just had the freshest possible news about the judgment. We need to take that away, and we will comment on it shortly. I would be very happy to work closely with him on this issue.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

Two weeks ago, I and colleagues from across the House, along with hundreds of others, attended a poignant service of remembrance at the Piper Alpha memorial in Aberdeen to mark 30 years since the worst tragedy in offshore oil and gas production. That tragedy claimed 167 lives, and many of those people were from Aberdeenshire. What are the Government doing, along with the industry, to ensure that UK oil and gas remains the world leader in health and safety practices offshore, so that we can avoid another tragedy such as this?

[Claire Perry]

Thirty years seems like a long time ago, but this is still the freshest possible knowledge for many people in my hon. Friend’s constituency: 167 men, many from a tight area in the north-east of Scotland, perished in the worst offshore disaster we have ever had in the history of our industry. Nothing will ever bring them back, but it was the findings of the Cullen inquiry that drove the changes that have made the UK a world leader in health and safety, and I want to pay tribute to our colleagues in the Health and Safety Executive, because they continue to focus on safety first when it comes to exploiting the resources in the North sea.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

To avoid double-charging on battery installations, the Government have pledged to amend the Electricity Act 1989 when parliamentary time permits. Instead of a two-day holiday next week, is that change something that the Government could start to look at?

[Claire Perry]

That will be part of the entire review of how we bring forward the necessary investment in battery technology to support renewable energy intermittency.

[Martin Whitfield (East Lothian) (Lab)]

Will the Minister confirm support for the Civil Nuclear Police Federation in its meeting this summer with his Cabinet colleagues over the proposals to reduce retirement and pension ages for armed officers from 67 to 68 down to 60 to match those of the police?