Jobs and Work

Fiona O'Donnell Excerpts

Wednesday 11th June 2014 Commons Chamber

[Vince Cable]

I have been quoting the figures from the International Labour Organisation, which provides the international accepted definition, and they include the people whom the hon. Lady has described. Of course, many people are self-employed, and many of those are potential entrepreneurs. I am sure that she would not want to diminish their contribution.

Opposition Members often say “The job figures are fine as far as they go, but are those jobs full time?” As a result of the strengthening of the labour market within the last year, three quarters of all new jobs have been full-time. Moreover, some interesting information has emerged during the last few weeks. People who are doing part-time work, which is often criticised, have been questioned to establish how many of them wish to do full-time work. The current figure is about 20%, and it is useful to compare that with the figures for the European Union as a whole, for France and for southern Europe, which are 30%, 40% and 60% respectively. The underlying trends in the labour market—not just the top-line figures—are significantly healthier in this country than they are in almost every other part of the European Union.

[Fiona O’Donnell (East Lothian) (Lab)]

The Secretary of State has not yet mentioned young unemployed people. I know that he is always keen to look for ways in which the Liberal Democrats are making a difference in government. Will he tell us about his leader’s youth contract, which, it was claimed, would help 160,000 young people into work by incentivising employers? How many young people have benefited so far?

[Vince Cable]

The fact that youth unemployment has fallen by 100,000 in the last year is significantly owing to the youth contract, as is the advance in apprenticeships—and the shadow Secretary of State’s comments on apprenticeships were an absolute travesty. We know that there has been a big increase in terms of both quantity and quality, and, of course, the support given to employers so that they can take on young people has been an important and extremely positive element of the youth contract.

--- Later in debate ---

[Vince Cable]

Certainly, if there is abuse of the minimum wage, we will want to know about it and we will investigate it. Liberalisation and the opening of the market was mandated by the European Commission some years ago, and it was implemented by the last Government, and we are now seeing the consequences in terms of pay and conditions.

[Fiona O'Donnell]

Will the Secretary of State remind me—and the Secretary of State for Work and Pensions, while he is sitting at his side—whether he still believes that any of my constituents on jobseeker’s allowance who turn down a zero-hours contract job offer should then be subject to sanctions?

[Vince Cable]

The same sanctions apply to all forms of employment.

--- Later in debate ---

[Fiona O’Donnell (East Lothian) (Lab)]

I am grateful for the opportunity to speak in the debate. I was particularly pleased to hear my hon. Friend the Member for Streatham (Mr Umunna) set out his stall in his opening speech, describing what is happening to the British economy and referring to the constant refrain from Government Members about a “long-term economic plan”. The definition of “long-term” seems to have changed: we used to be told that it would take five years to get rid of the deficit, but we are not sure whether that is still the case. We have not had plan A from this Government; what we have had at best, or at worst, is plan A minus. If they had gone the whole hog and given us plan B, rather than choking off recovery in 2010 by making cuts in the public sector that were too deep and making them too quickly, some of the pain that my constituents have endured over the last four years might have been avoided.

Since we returned from the recess, I have heard the Prime Minister declare on two occasions that work is the best route out of poverty, but that is not an absolute truth. The hon. Member for Norwich North (Chloe Smith) spoke of the role of the state and her preference for the small state, and claimed that the state did not have as much impact on people’s lives as other sectors. I can tell her that in my constituency, East Lothian council, which has a coalition with the Conservatives, has introduced a living wage for all workers. I confess that only a small number of workers are benefiting from that, but surely it is an example of the role of the state. Although it is absolutely right for us in the Chamber to welcome better economic news and the fact that the number of people in jobs is increasing, we must also ensure that no one is left behind in that recovery, which is not what is happening on this Government’s watch.

Back in 1997, we too inherited difficult and testing economic circumstances, but what that Labour Government did during their three terms was look out for those who needed the protection of the state and needed the state to intervene by, for instance, introducing tax credits or the minimum wage. That progress has simply not continued under the present Government.

I am glad that the Secretary of State for Work and Pensions is present, because in the short time allowed to me I want to say a little about some of those people who are in danger of being left behind. People with disabilities and, in particular, those with moderate learning disabilities fear that they will miss out on the new personal independence payment. At present they receive the lowest rate of the care component of disability living allowance, but those who receive it as an in-work benefit cannot sustain employment without it. It is what pays for the taxi if they do not feel able to take the bus to work. There is a real danger that those people will now find it harder to maintain employment, or to find new employment. I am not saying that we should not celebrate the good news that there is in the economy, but I am saying that we must not leave people behind in the recovery.

The same applies to exploitative zero-hours contracts. The other day I was approached in the supermarket by someone who works in the tourism and leisure sector. I think that it is indicative of something when people do not want to name themselves, or even their employers, because they are so scared of losing their jobs. This employee has been on a zero-hours contract job for two years, working the same shift patterns. He is tied into accommodation, and even his meals are provided by his employer. It almost seems like some sort of modern form of slavery when people in this country are not free because they rely on their employers not just for their incomes, but for the roof over their heads and the food that they put in their mouths.

The Government need to do more to protect those workers. If you—or someone like you, Madam Deputy Speaker—had been doing a zero-hours contract job for two years with the same shift patterns, surely you would have expected, long before you reached that stage, to be given a proper contract of employment giving you protection under the law, and all the other benefits of employment. We have waited so many decades to secure those benefits for workers in this country; surely they should be available to them now.

The married couple’s tax allowance is the one bit of help for workers that the Government have come up with recently. However, it is another of their divisive policies, implying that certain members of society are more deserving of their help than others. The Government should recognise that a large number of people—regardless of their marital status—are missing out on the early recovery, and I urge them to do more to ensure that no one is left behind.