Draft National Minimum Wage (Amendment) Regulations 2020 Draft National Minimum Wage (Amendment) (No. 2) Regulations 2020

Gareth Thomas Excerpts

Tuesday 17th March 2020 General Committees

[Paul Scully]

By contacting 2,000 employers, we are reminding them of their legal responsibilities. I understand the hon. Gentleman’s concern about vulnerability and whistleblowing in those situations, but that is why it is important that we give HMRC the resource that it needs to have proactive oversight, and to go to those companies that are most likely to offer and advertise unpaid internships, so that we can nip it in the bud. To build our understanding, so that HMRC can follow the matter up properly, we have incorporated a question into the Department for Education’s employer skills survey, asking 90,000 UK employers whether they have used unpaid interns. Results are expected in late spring 2020, and we will follow up on that.

On the protection of the low-paid self-employed, we will introduce the Employment Bill, which covers a couple of the questions that were raised. That is a result of the good work plan published by Matthew Taylor and his colleagues. We hope to tackle a number of the issues raised in that report and will publish the Bill as soon as we can to ensure that it gets scrutiny from, and involvement of, all parties in its development. I look forward to introducing the Bill and having debates on it so that we continue to lead on workers’ rights.

[Gareth Thomas (Harrow West) (Lab/Co-op)]

I apologise for missing the Minister’s opening remarks. He will understand the particular concern among the low-paid and self-employed about their situation during the coronavirus crisis, as my hon. Friend the Member for Ellesmere Port and Neston mentioned. Can the Minister give us a hint about Government announcements in that area, as part of the process of reassuring constituents who are in that employment bracket?

[Paul Scully]

Unfortunately, I am not the Chancellor, but I look forward to the statement this evening. At this time, it is important that we continue to speak out daily for businesses and, as the hon. Gentleman rightly points out, for the self-employed, for workers and for people who are worried not just about their jobs and the viability of the business, but about shifts in those areas. Make no mistake, we have all seen in our inboxes the amount of concern out there, so it is so important that we continue to address the concerns of self-employed workers, employees and businesses. The Chancellor introduced a timely and targeted package last week in his Budget, but things are clearly moving at pace, and we will see what he says during his statement at 7 o’clock.

On the future of the national living wage, although we are increasing it and getting through the technicalities now, it is really important to reiterate the point about younger workers. We are planning to extend the reach of the national living wage to workers aged 23 and over from April 2021, and to workers aged 21 and over by 2024. Unfortunately, I suspect that the children of the hon. Member for Ellesmere Port and Neston will have already reached that higher level by that time.

A UK-wide minimum wage, recommended by the independent expert Low Pay Commission, ensures that the pay of the lowest paid in society is protected, and means that businesses compete on a level playing field. In 2016, the Government committed to raising the national living wage to 60% of median earnings, and we have stayed true to that commitment. We have the highest employment rate since comparable records began. The strength of our labour market shows that a higher minimum wage can go hand in hand with strong employment growth.