Businesses: Employee-shareholder Scheme

Lord Mitchell Excerpts

Thursday 9th January 2014 Lords Chamber

Asked by

[Lord Mitchell]

To ask Her Majesty’s Government what assessment they have made of the level of interest from businesses in the United Kingdom in the employee-shareholder scheme, in the light of figures given to the Financial Times in response to a freedom of information request.

[The Parliamentary Under-Secretary of State, Department for Business, Innovation and Skills (Viscount Younger of Leckie) (Con)]

My Lords, the employee-shareholder employment status came into force as recently as 1 September 2013. Companies are not required to register or apply to government to use it, and no qualitative assessment of levels of interest has yet been made. However, since 1 September, the online detailed guidance was viewed nearly 15,000 times, with people spending, on average, more than seven minutes on the pages. This clearly shows an initial level of interest in the scheme.

--- Later in debate ---

[Lord Mitchell (Lab)]

My Lords, last year these Benches argued passionately against the shares for workers’ rights scheme. Last week, the Deputy Prime Minister said that it should be scrapped. According to the freedom of information request, the number of enquires that the BIS has received in respect of the scheme is the magnificent total of 19. Let us be honest; it is a flop. Is it not time for the Government to cut their losses?

[Viscount Younger of Leckie]

My Lords, it was not unexpected that this issue would return to your Lordships’ Chamber, and the noble Lord, Lord Mitchell, has obliged—although perhaps slightly earlier than I might have hoped. The status has only been introduced recently, so the phrase “early days” springs to mind.

In terms of the point that the noble Lord made about the freedom of information response given to the Financial Times, it was on the number of inquiries that the Government had received on the status. I know that the noble Lord submitted a Written Parliamentary Question to me relating to the number of people who had become employee-shareholders. There were two distinct questions that required different answers.