Terms and Conditions of Employment

Deirdre Costigan Excerpts

Tuesday 25th March 2025 Commons Chamber

[Richard Foord (Honiton and Sidmouth) (LD)]

The increase in the national minimum wage in the next fortnight is very welcome. Nobody in work in this wealthy country of ours should be struggling to make ends meet. While that uplift is a step in the right direction, it does not address the challenges that we face in social care, both nationally and in Devon, the area that I know best. Devon has 28,000 filled social care positions, but 2,000 positions remain unfilled, and I am very concerned about that shortage in the workforce. It partly explains why people are going without care, and why our hospitals are struggling to discharge patients.

[Deirdre Costigan (Ealing Southall) (Lab)]

I take the hon. Member’s point about the social care sector. Does he therefore welcome Labour’s Employment Rights Bill, which includes a negotiating framework for our social care staff, to ensure that they are properly paid and can progress in their jobs?

[Richard Foord]

I think a negotiating framework might be helpful, but a lot will depend on the negotiations. It would be far better if the Government looked at the minimum wage, sector by sector, and identified social care as a special case.

The turnover rate for social care staff in Devon is 27%. That is not only higher than the national average, but roughly double the figure for other sectors. That is why I want a separate, higher minimum wage for social care. A striking 16% of social care workers cited low pay as the primary reason why they left the job. Many of them are simply not paid enough for the skilled, difficult and vital work they do, and many are earning more by moving into jobs such as stacking supermarket shelves—important though that is—than by doing the vital work of social care. In a rural county such as Devon, people have to travel long distances between the people for whom they care, which sometimes means that their real income is less than the national minimum wage.

We in Devon are looking at a shortage of social care beds. Devon county council projects that by 2027, Devon will face a shortfall of 270 care home beds for older people with complex needs. Looking further ahead, the situation gets worse. By 2033, in Honiton, the unmet need will be 72 care beds; in Cullompton, the need will be 79 care beds. In Seaton and Ottery St Mary, an additional 40 care beds will be required by then.

The shortage of facilities in mid and east Devon makes it plain that even more care workers will be required to meet the growing demand for social care. That is why the Liberal Democrats are calling for the introduction of a carers’ minimum wage, £2 per hour more than the minimum wage. Of course, that funding cannot come from thin air. According to Skills for Care, increasing pay by between £1 and £2 per hour above the national minimum wage for care workers could save up to £947 million from reduced hospital admissions, but there would need to be some funding up front to make that happen. I suggest that the remaining funding comes from an additional tax on the gambling industry, which, according to Public Health England, costs the UK economy about £1.4 billion annually due to the financial, physical and mental impacts of problem gambling and the resulting crime and loss of productivity.

According to the Gambling Commission, 300,000 adults and 40,000 children in the UK suffer from problem gambling. It is not an industry that we should be incentivising through low taxation. Doubling the remote gaming duty is recommended by the Social Market Foundation. That would not only address the harms of problem gambling, but be a fairer way of funding that £2 per hour increase above the national minimum wage for social care workers.

It is time that the Government acted to ensure that those who profit from gambling contribute more to the public good. Increasing pay for the lowest-paid social care workers is a simple, effective step to attract and retain staff, and ensure that people in our communities receive the care that they require. I support the national minimum wage increases, but we must go further and pay our social care staff more, recognising their vital role in looking after the elderly and vulnerable.

--- Later in debate ---

[Deirdre Costigan (Ealing Southall) (Lab)]

May I begin by declaring an interest as a member and former employee of Unison? I know that its young members will welcome the unprecedented rise in the minimum wage for 18 to 20-year-olds. As we have already heard, it will add £2,500 a year to their gross salaries.

This is a record change, and it will make a huge difference for young constituents of mine. Moreover, the Labour Government have made it clear that this is only the start of a journey. We are working towards increasing the youth rate so that we eventually have a single adult rate. Equal pay for equal work has long been a belief of the Labour party, and it is right that that also extends to younger people, but I am delighted that this Labour Government will also deliver for disabled and black, Asian and minority ethnic workers, and that we have embarked on a consultation on the introduction of mandatory pay gap reporting in respect of those workers.

The change in the youth rate, in particular, goes hand in hand with our youth guarantee and our plan to create pathways to good-quality employment for those under 22 with health conditions, whom the last Government left on the scrapheap with no help at all. Labour will ensure not only that those young people are helped to find jobs, but that those jobs are decently paid. We will make work a better choice than benefits for young people.

As I said earlier, the decision that we are making today is the beginning of a journey. The shadow Minister, the hon. Member for West Worcestershire (Dame Harriett Baldwin), said that the Conservatives would not vote against the motion, although I must say that in her speech she gave a very good impression of someone who was against it. In my view, if the Conservatives do not agree with it they should vote against it, and should tell us how much they think young people are worth. They should tell us whether we should pay them £10 an hour. They should tell us whether £12.21 is the minimum wage that they would pay. They should let us know by how much they would cut people’s wages. In contrast, the Labour Government are proud to be putting money back into 3 million working people’s pockets—money that they will spend with local businesses and in local high streets. After 14 years of failure from the Conservatives, Labour is making work pay.