Terms and Conditions of Employment

Jayne Kirkham Excerpts

Tuesday 25th March 2025 Commons Chamber

[Yuan Yang]

Yes, that is the case. We have heard such concerns raised throughout history, yet when we look at econometric evidence that looks in hindsight at the actual impact on the economy, we see that there is no discernible impact.

I will whizz through a few different studies. In the United States there is David Card and Alan Krueger’s study, based on the 1992 increase in New Jersey’s minimum wage, the 1988 rise in California’s minimum wage and the federal minimum wage increase the following year. In the European Union there is Tomas Kucera’s 2017 study from 18 countries. In the UK there is Christian van Stolk’s 2017 study. We can go on and on about the evidence, but we can see from the trends that, although these concerns have been raised over time, the outcome is increases in the minimum wage, which is what we are seeking to ensure.

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

Does my hon. Friend agree that these uplifts are a huge boost for equality, because they benefit women, younger and older workers, workers with disabilities and those from minority ethnic backgrounds more than others?

[Yuan Yang]

I absolutely agree. As the Women’s Budget Group has shown, the measures on the minimum wage in the Employment Rights Bill will disproportionately benefit female workers, who are likely to be paid less than men.

These studies on the minimum wage use econometric methods to confirm what many of us can see in our communities at first hand: that too many people have too long been due a pay rise, and when we make the lowest paid better off, that spending goes back into our high streets and local economies. I would like to see even more studies done, producing better data. That must start with improvements to the labour force survey, which the hon. Member for West Worcestershire and I have discussed on the Treasury Committee, as many organisations have flagged that data as an area of concern.

Today I want to focus on one particular group of low-paid workers who are very significant for me and my constituency of Earley and Woodley: young people. There are around 13,000 undergraduates at the University of Reading, which sits in my constituency, who will be better off because of this new law that raises the minimum wage for 18 to 20-year-olds to £10 an hour. It will mean a record wage boost for that age group, who will see their gross annual earnings rise by £2,500, and for apprentices, too, who are the skilled workers of tomorrow.

I support the Government’s youth guarantee, to ensure that all young people are in education, employment or training. The King’s Trust has found that one in 10 young people outside of education, employment or training have turned down a job because they could not afford the costs associated with it—for example, travel, clothing or childcare. For many young people, a barrier to employment is that it does not pay well enough for them.

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[Chris Law (Dundee Central) (SNP)]

Increases to the national living wage and national minimum wage will always be supported by Scottish National party Members. Indeed, we have been pushing for the UK Government to adopt the real living wage for those of all ages since 2011. Disappointingly, we have to continue to do so, as the Labour party has failed to take the opportunity to do that, now that it is in government.

While we support the changes that are being introduced today, the SNP’s position is clear: we want the real living wage for all workers, not just a politically convenient definition of the living wage that falls short of meeting the actual costs of living, and not just for those who are 21 and over. The Resolution Foundation has the real living wage set at £12.60, whereas this regulation increases the national living wage for workers aged 21 or over from £11.44 to £12.21 per hour. It is evidently still short of where it needs to be.

Furthermore, for those aged between 18 and 21, the national living wage is 18% lower, at £10 per hour. Given that the Minister today said that there would be a consultation looking at the cost of living, can he tell me if rent is 18% lower for those under 21? Do 18-year-olds get a special rate on their electricity bills, or on petrol for their car? Do supermarkets give them an 18% discount?

[Jayne Kirkham]

On that point, will the hon. Member give way?

[Chris Law]

I will not, as I would like to make this point very clear, because it is important. The answer to my questions is obviously no. While I welcome the Minister’s comment that the national living wage may be looked at next year, and may be increased so that there is parity for everybody, we are not there yet. I would like the Government to go further, and I look forward to hearing more about how they will consult on doing so next year.

It is worth noting that in Scotland, the SNP Government have taken proactive steps to ensure that the real living wage is implemented wherever we have control, particularly in our public sector. The Scottish Government have paid all staff within their pay scheme, including NHS staff, the real living wage since 2011—that is 14 years ago. Scotland has the highest proportion of employees paid the living wage of any nation in the UK, with 25% of accredited real living wage employers in the UK based there. The Scottish Government are also providing funding to enable adult social care workers to be paid the living wage, benefiting up to 40,000 care workers, and they are working to ensure that all staff in private nurseries delivering our childcare pledge are paid the real living wage, too.

The Labour Government should demonstrate similar willingness to tackle the scourge of low pay. In their manifesto, they pledged to make changes in line with the real living wage, and to take into account the cost of living, but they have failed, at least today, to do so. They were voted in with a mantra of change, and it is in their power to legislate for the introduction of the real living wage for all, but so far, they have chosen not to. They must go further and adopt the living wage for people irrespective of their age, as the SNP has called on successive Governments to do for the past 14 years.

Employment Rights Bill

Jayne Kirkham Excerpts

Report stage
Wednesday 12th March 2025 Commons Chamber

[Mr Louie French (Old Bexley and Sidcup) (Con)]

As any sensible people would know, changes to business regulations need to strike a careful balance to not deter both business investment and job creation, but I am afraid that this Bill gets the balance wrong. Labour’s weakening of a variety of trade union laws, particularly on the threshold for industrial action, is a recipe for disaster for both the public and businesses, particularly SMEs.

As a London MP, I have heard this fairytale from those on the Labour Benches before, because London has too often been paralysed by strikes under Mayor Sadiq Khan. Infamously, the London Mayor promised our city “zero days of strikes” in 2016, but he has comprehensively broken that promise. In Sadiq Khan’s first two terms, there were more than 135 strikes, which is almost four times more than the number of strikes under his predecessor —a record that Mayor Khan labelled a “disgrace”. If 35 strikes are a disgrace, the 135 under Mayor Khan represent a catastrophic failure. My fear is that this Bill and the Labour Government’s amendments will make strikes even more common in London.

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

Does the hon. Member recall how many strikes there were under the last Conservative Government?

[Mr French]

As we have seen already—this is what I was talking about—the fairytale says that if we improve industrial relations and give trade unions all the money they want, suddenly there will not be any strikes. But what has happened in practice since the Labour Government came in? Trade unions have been given all the money, and they are still threatening to go on strike.

This Bill really does read like a militant trade union wish list. Strike mandates have doubled from six to 12 months, allowing trade unions to impose rolling strikes for a whole year without balloting their members. Turnout requirements have been abolished so that a minority can call strikes, and the Government have removed the requirement for 50% of members to vote and 40% to support industrial action. The Bill reduces the notice for strikes by four days and gives employers less information, making strikes even more damaging to businesses and disruptive to people’s lives. It also allows unreasonable paid facility time for trade unions, making the taxpayer and companies pay out even more for trade union representatives at the same time that the Labour Government are raising everyone’s taxes and cutting public services.

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[Mrs Russell]

I thank the hon. Lady for her point, but I think it is a very difficult distinction to make: that they are pro-trade union but anti things that make it easier for trade unions to effectively represent workers.

To return to my point, access to trade unions means access to good-quality advice, quicker resolution of disputes and a reduction in unrepresented litigants in person, which, in my experience, can make life genuinely difficult for well-meaning employers. Every single thing in this Bill will be good for workers, but it will also be good for employers, and I will be very pleased to vote for it later today.

[Jayne Kirkham]

I refer to my entry in the Register of Members’ Financial Interests and declare my Unison membership, although I am also an ex-solicitor. I am going to address the Government amendments relating to enforcement, rather than trade union rights.

We have a large demand for social care in Cornwall, as is the case in the constituency of my hon. Friend the Member for Congleton (Mrs Russell). Our population tends to an older demographic and, with many people leaving friends and family to retire to Cornwall, the availability of care is very important. Our social care system is close to breaking point due to the combination of years of underfunding and a fragmented privatised system. Skilled care workers are chronically underpaid for what they do, often at minimum wage, and we struggle to get and retain care workers.

The Bill contains many provisions that will help: strengthened sick pay; parental leave; protection from unfair dismissal from day one; improved family-friendly rights and flexible working; measures to tackle zero-hours contracts, including for agency workers and workers at umbrella companies, as well as for direct employees; and strengthened redundancy rights. The Bill also specifically gives social care workers respect and recognition through a fair pay agreement, and reinstates the School Support Staff Negotiating Body. It will be a game changer for those low-paid workers—mostly women—who work in care and schools.

[Daisy Cooper]

The hon. Lady will be aware that there is a debate on the National Insurance Contributions (Secondary Class 1 Contributions) Bill next week, where we will debate whether health and social care providers should be excluded from national insurance contributions. Would she care to comment on whether Labour Members will support that amendment made in the House of Lords?

[Jayne Kirkham]

Local government funding will, of course, be increasing to take that into account, and funding for adult social care is rising and will rise further in the next three-year settlement under this Government.

To return to my speech, in Cornwall we have seen the rise of care workers coming from other countries to work on sponsorship visa schemes. These workers are often in a financially precarious situation, which increases their dependency. Some have been charged by their employers for induction, travel or training; in some cases, workers receive a salary below the minimum wage to make up the cost of their flights to the UK.

[Matt Rodda (Reading Central) (Lab)]

I refer colleagues to my entry on the Register of Members’ Financial Interests. My hon. Friend is making an excellent speech about the situation in her county. Does she agree that this is a national problem that affects all our constituencies? It is certainly the case in Berkshire, and in Reading in particular, that we need better pay for care workers and more understanding about the pressures they face in their very valuable work.

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[Jayne Kirkham]

I agree with my hon. Friend. This matter affects the entire country. Unison, for example, has a campaign about migrant care workers, so, yes, this is a national issue.

In Cornwall, those care workers are often given the early morning and late evening shifts with no flexibility. Some sit on benches, stranded in Cornish villages that buses do not pass through, waiting from their morning shift to their first evening shift.

Many health and social care workers on sponsorship visas are afraid to raise concerns about their employment and living conditions for fear of losing their employer’s sponsorship. Employers in turn can be aware of that, and some even use it as an explicit threat. That brings me to the enforcement provisions in the Bill. Enforcement of statutory pay and employment rights is poor in the social care sector. Pay enforcement relies on individual workers reporting breaches. His Majesty’s Revenue and Customs investigates fewer than 1% of care providers each year. International workers and those from minority ethnic backgrounds are particularly vulnerable. For individual rights to become a reality, a collective voice in the workplace and effective enforcement are key.

The Law Society reports that the backlog in employment tribunal cases stands at 44,000, which is 18% higher than it was in 2023. This backlog needs clearing and investment needs to be made in employment tribunals.

The new Fair Work Agency will have a crucial role to play in reducing the burden on the employment tribunal system by providing a focal point for advice on enforcement under Government amendment 208, in enabling the disclosure of information under Government amendment 212 and in taking on some of those enforcement powers under Government new clauses 57 and 58 on behalf of those workers. Those powers could really help low-paid or migrant workers who do not have access to funds or to union representation to enforce their rights, or who fear dismissal if they take steps in that direction.

Government amendment 249 will allow the Fair Work Agency to investigate and combat fraud and exploitative employers, thereby tackling the kind of modern slavery of international workers in the care industry that we have seen recently.

Government new clause 60 will also give the Fair Work Agency the power to recover the cost of enforcement, which would help with the funding of the system. However, real investment will need to be made into enforcement for the new powers to have teeth, with a timeline, resourcing and fast-track procedure for the new Fair Work Agency. I welcome confirmation of the Government’s commitment in this area.

[Madam Deputy Speaker (Caroline Nokes)]

May I give Members a brief reminder that we are today talking to the new clauses and amendments on trade unions, industrial action, enforcement of labour market legislation, and miscellaneous and general provisions?

Budget Resolutions

Jayne Kirkham Excerpts

Wednesday 6th November 2024 Commons Chamber

[Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)]

Finally, after 14 years of patching up, we have a Budget that puts down the first bricks as we start to rebuild our country. With this Budget we will be able to start to put the NHS back on its feet with a £25 billion boost, provide a shot in the arm for our schools with extra funding including £1 billion for SEND, and invest in our transport and energy infrastructure.

On a local level, the Budget contains positives for my constituency and for Cornwall more widely. Local transport in rural areas will receive £650 million, and the Chancellor named Cornwall in particular as an area that will benefit directly in terms of connectivity. The freeze in fuel duty, and fixing those potholes, will help people who still have to rely on their cars in rural areas such as ours. We are also getting some solutions for our housing crisis with a stamp duty rise of up to 5% for second home buyers, which should lead to more houses on the market for local people. The Budget provides extra money for councils to build affordable and social housing, as well as limiting the discounts on selling off council houses and changing the rules so that councils can build more social housing with the proceeds.

I am pleased that Cornwall Council has been supported with extra funding, although I do want to raise the case of the other councils—such as town and parish councils—that have taken on so many of the services of which the unitary authorities have divested themselves, and as a consequence are often large employers with big budgets. I am also pleased that the important shared prosperity funding for Cornwall has been extended for another year at a national figure of £900 million, so that all the investment in schemes to get people into work and into Cornish businesses can continue. However, I should like to hear confirmation that the funding formula continues to recognise the huge loss that Cornwall suffered when we lost the EU structural funding.

The Government are also boosting public investment, and next year will publish a new industrial strategy setting out high-growth areas where the UK has real competitive advantage. Some of the areas ripe for investment will be renewables, technology, food, and the creative industries, in which Cornwall has real strengths. In my constituency we look forward particularly to investment in floating offshore wind in the Celtic sea and in ports such as Falmouth, as well as investment in our vital creative arts.

Our Chancellor has chosen the bold path to save and rebuild the NHS, schools and other public services and invest in the country’s infrastructure, while also ensuring that people do not face higher taxes in their pay packets. This is a big Budget of renewal, which will set us on the road to recovery.