National Living Wage

Debate between Joan Ryan and Stephen Doughty

Monday 18th April 2016 Commons Chamber

[Joan Ryan (Enfield North) (Lab)]

I beg to move,

That this House agrees with the Chancellor of the Exchequer that Britain deserves a pay rise and commends his introduction of the national living wage; notes, however, that some employers are cutting overall remuneration packages to offset the cost of its introduction, leaving thousands of low-paid employees significantly worse off; and calls, therefore, on the Government to guarantee that no worker will be worse off as a result of the introduction of the national living wage.

My hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh) has been campaigning tirelessly on the implementation of the national living wage, and has been fighting for all workers to truly benefit from the new proposals. Unfortunately, as Mr Speaker said, she is in hospital and cannot be with us today. I am sure that Members from across the House will join me in wishing her a speedy recovery. [Hon. Members: “Hear, hear.”] I have spoken to her today, and she is on the road to recovery. I understand that she will be listening and possibly watching our proceedings.

I had intended to speak in support of my great friend and colleague’s work, but I am proud to be a signatory to the motion, and I am honoured to have been asked to present her speech and lead this important debate on her behalf. She is delighted that the debate can go ahead without her. She thanks the Backbench Business Committee for granting time for the debate, and the Speaker’s Office and the Table Office for allowing me to lead the debate on her behalf.

When my hon. Friend made her application to the Backbench Business Committee, she had no idea just how huge the issue would be. It all started a few months ago, when a friend of hers approached her with his payslip from B&Q. He said, “Siobhain, B&Q has given me new terms and conditions, which it says I have to sign or I’ll lose my job. It is cutting back my Sunday and bank holiday pay, as well as my summer and winter bonuses. I think I might have my pay reduced.” How right he was. Indeed, my hon. Friend was shocked when she calculated that he would lose up to £50 a week, or about £2,600 a year. The saddest thing was that this was happening after his basic pay had been increased by the introduction of the national living wage. To be clear, this was a pay cut after the Chancellor guaranteed that Britain was getting a pay rise.

After raising the matter at Prime Minister’s questions—frankly, the Prime Minister did not have much of an answer for her—my hon. Friend started receiving dozens of emails from B&Q employees from around the country. From Exeter to Aberdeen, she was contacted by staff at all levels and from all walks of life who would also lose out.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

I pass on my best wishes to my hon. Friend the Member for Mitcham and Morden (Siobhain McDonagh), who has done tireless work on this issue. Does my right hon. Friend share my concern about the fact that, as I have heard myself, because of the differential whereby under-25s are not eligible for the living wage, others are losing out on overtime and other hours, which are given to younger workers who can be paid less? Not only are younger workers losing out because they are paid less, but other people are not getting the overtime or extra hours that they might have thought they would.

[Joan Ryan]

My hon. Friend makes a valid point. This is a double whammy for some workers; not only are they losing out because their employers are altering their terms and conditions, but they are losing these valuable other hours. Many of these workers absolutely depend on being able to work extra hours and overtime.

B&Q, like so many companies nationwide, has made all employees sign new terms and conditions under a variation of contract. Those new terms scrapped double time for Sundays and bank holidays, as well as seasonal bonuses and other allowances that staff relied on to top up their income. These pay cuts were much greater than the gains of the national living wage, which is why so many employees are losing out.