Four-Day Working Week

Lord Austin of Dudley Excerpts

Monday 5th September 2022 Lords Chamber

[Lord Callanan (Con)]

Of course we will take any lessons that are learned through the different pilot studies that are taking place. I think I disagree with the noble Lord that the pandemic proved that flexible working is the norm: it worked in some areas and some industries, but of course the Government did pay huge numbers of people to stay at home during the furlough scheme, which is not something we could ever carry on doing. Of course, it can work in some industries: a number of private sector companies have adopted it and, great, if it works for their particular circumstances and their particular employees, good for them—but it does not work for every industry.

[Lord Austin of Dudley (Non-Afl)]

My Lords, is it not fantasy economics to pretend that most employers can afford to pay people the same amount of money for working fewer hours? The truth is that there is no simple answer, no quick fix, to dealing with the weakness of our economy: it requires hard work, serious policies to improve productivity and investment in education and skills. We have to invest in technology, innovation and green industries, so that we can create good new jobs, particularly in places such as the West Midlands that have lost their traditional industries and struggle to find new ones. There is no easy answer to this, whether it is reducing hours and pretending to pay people the same money or, for example, the universal basic income.

[Lord Callanan (Con)]

I think I was agreeing with the noble Lord right up to his last sentence. Yes, of course there are no simple answers, and it can work for one industry and not for others; I really doubt that a universal basic income is the answer to this, though.