Employment Rights Bill

Mark Sewards Excerpts

Consideration of Lords message
Monday 15th December 2025 Commons Chamber

[David Simmonds (Ruislip, Northwood and Pinner) (Con)]

We are addressing the specific issue of the removal of a limit on the cap. Of course, while this will have a big impact on businesses, it will also have a huge impact on our public sector. Large organisations that employ significant numbers of high-paid professionals, such as the NHS, will see their insurance costs driven up significantly by this measure, so it is all the more surprising that no consultation or impact assessment is before the House when we are asked to make the decision this evening.

We must reflect on the real-world impact of this measure, alongside the package of measures in a Bill that worthily deserves to be scrapped in its entirety. One of the proudest achievements of the last Conservative Government was that when we left office, youth unemployment was half what we inherited from the previous Labour Government. A huge share of those 4 million new jobs went to younger people. Today, the number of young people not in education, employment or training has hit over 1 million. The Resolution Foundation said, on this issue specifically, that

“young people are bearing the brunt of Britain’s jobs downturn”.

Most of us will have heard from businesses in our constituencies that all the measures in the Bill are significantly raising the barriers to entry for new workers into the market at a time when there is a double whammy. Our demographics as a country make it much harder to recruit them compared with older, more experienced workers, simply because there are fewer young people in our population. Imposing new measures like this that make it more expensive and harder for young people to get their first foot on the ladder is a dereliction of our duty to our economy. We must not forget that for our young people, many of whom we hope will end up as those high-paid professionals, getting and keeping a job is the thing that is most important in their lives—to their health, their mental wellbeing, their wealth and their long-term life prospects. In addition, it is our economy that pays not just for those people’s wellbeing, but for the public services on which so many other people depend.

In conclusion, while the whole Bill deserves to be scrapped—it is shocking to see the craven capitulation of the Liberal Democrats, rather than fighting the corner of British workers—let us at least vote to support this small change that has come from the other place. Let us show that somebody in this Chamber is on the side of jobseekers, wealth creators and those who will create future opportunities for our economy, our country and our people.

[Mark Sewards (Leeds South West and Morley) (Lab)]

I will be brief. I proudly refer members to my entry in the Register of Members’ Financial Interests. I am a proud member of several trade unions, and have indeed received money from trade unions to remove the Conservatives from power.

Speaking of removing the Conservatives from power, on 4 September I proudly voted, along with the vast majority of people in this House, to remove hereditary peers from the other place. I did so because I do not believe that individuals should be able to shape our laws purely because of the families they were born into. Whatever the arguments put forward on the Bill’s amendments, we are here today because hereditary peers stopped the progress of the Bill through the other place. The simple fact is that if we were to remove the hereditary peers who voted—

[Madam Deputy Speaker (Caroline Nokes)]

Order. We are not debating hereditary peers; we are debating the amendments to the Employment Rights Bill.

[Mark Sewards]

Thank you, Madam Deputy Speaker. The votes in the other place serve only to strengthen my resolve that we must get the Bill through Parliament and strengthen the rights of workers.

[David Reed (Exmouth and Exeter East) (Con)]

When I look to the other House, across the political divide I see captains of industry—people who have led businesses small and large. Does the hon. Member see any merit in their arguments?

[Mark Sewards]

We will always pay attention to the arguments made in the other place, but I place more credence on the arguments made by life peers—people who have been appointed because of their expertise and not because of the family they were born into. However, I appreciate that that point has been well made, Madam Deputy Speaker, and I will move on.

Along with the fact that the Government have already compromised in good faith on the Bill with trade unions and businesses, and that those businesses and their representative organisations have welcomed what we have put in the Bill and called on us to pass it today, we were elected on a promise to get this Bill passed into law. Fire and rehire must be banned. Exploitative zero-hours contracts must be ruled out. Day one rights for parental and bereavement leave must be rolled out, and sick pay must be improved. Whichever way the House votes on these amendments today, I implore the hereditary peers in the other place to do the right thing, get out of the way, let this Bill pass and make work pay.

[Bradley Thomas (Bromsgrove) (Con)]

The impacts of the Bill in its current form are already being felt: 71% of businesses have raised serious concerns, with over 90% of small business owners expressing deep worries, resulting in 67% of companies preparing to halt recruitment. We already know that the Government do not understand business. That has been demonstrated clearly through the string of damaging policies trailing behind them, from the national insurance changes that are crippling the hospitality sector to the family farm tax that is undermining our national food security. Aspects of this Bill are no exception, the prime example being the complete removal of the employment tribunal cap on unfair dismissal compensatory awards.

As of June 2025, 515,000 open claims were in the system, and the numbers continue to rise. The employment tribunal system is inundated. It is overwhelmed and debilitated by cases, leaving thousands facing intolerable delays. Rather than addressing the issue through action that would significantly help working people—

Parental Leave Review

Mark Sewards Excerpts

Tuesday 1st July 2025 Commons Chamber

[Justin Madders]

The right hon. Member will know that the winter fuel allowance has been restored for many people in this country, and the Chancellor has given a clear commitment that any existing PIP claimants will not be affected by the measures in the Bill. As part of the review by Sir Charlie Mayfield, we are looking in the round at how we ensure that people are able to be supported to stay in work, and I hope that the Conservatives would support that.

[Mark Sewards (Leeds South West and Morley) (Lab)]

I warmly welcome the Minister’s statement. As a dad, I know from two very recent experiences how valuable paternity leave is for fathers. Good companies also know that, as Tesco and other good employers have already increased their employee paternity leave offers because they know that a good workforce is a happy workforce. May I encourage the Minister to actively pursue those companies to ensure that their data and insights are fed into the review, with a view to permanently increased paternity leave?

[Justin Madders]

I congratulate my hon. Friend on his recent parenthood and pay tribute to my hon. Friend the Member for York Outer (Mr Charters), who I understand is on paternity leave as we speak. My hon. Friend makes an important point about good businesses understanding the importance of treating their staff well. I draw the House’s attention to a quote from the chief people officer for Aviva, which operates a progressive parental leave policy. He said:

“The chance to spend more time with a new arrival during the important first few months has proved to be hugely beneficial for thousands of our Aviva parents. From supporting their partners, to the positive impact it has on mental wellbeing and engagement with family life, equal parental leave has been literally life-changing for our people.”

We want to encourage businesses to look at those sorts of things. I am sure some other firms will be doing equally well, and we are happy to hear any evidence on those matters.

Horizon Redress and Post Office Update

Mark Sewards Excerpts

Tuesday 8th April 2025 Commons Chamber

[Gareth Thomas]

I ask the hon. Lady to forgive me for not having the details of that particular case in front of me. As she has asked me to look again at that case, I will happily do so and write back to her.

[Mark Sewards (Leeds South West and Morley) (Lab)]

I thank the Minister for his statement, and for giving me his time over these past few months to discuss the Morley directly managed branch with him. Over 3,300 people signed my petition to keep Morley post office open, so it is definitely welcome that the post office will be retained. That is caveated by the fact that it will be a franchise, and there are questions about its location. I was also delighted to help secure a banking hub for our community, but the services provided by a banking hub do not overlap with those provided by a post office. What guarantees can the Minister give my constituents that the new Morley post office will offer all the services that they enjoy from the current one?

[Gareth Thomas]

I recognise that my hon. Friend has been campaigning hard to save Morley post office; he has certainly made clear representations to me about it. The starting point for discussions about the future of postal services, in Morley as elsewhere, is that post offices will be replaced by a main post office offering Government services as well as traditional post office services. If he has particular concerns about the way the transition is happening, he is welcome to get back in contact with me.

Terms and Conditions of Employment

Mark Sewards Excerpts

Tuesday 25th March 2025 Commons Chamber

[Mark Sewards (Leeds South West and Morley) (Lab)]

I am very grateful to the Minister for giving way. The Low Pay Commission previously said that about 300,000 people are not being paid the minimum wage despite being on it—they are being underpaid. Will he update the House on the Government’s progress to ensure that all people on the minimum wage are paid the minimum wage?

[Justin Madders]

My hon. Friend makes a very important point that those rights are only as good as the ability of the Government to enforce them. As we know, His Majesty’s Revenue and Customs has a very effective system to deliver on the minimum wage and we will shortly be releasing our latest round of naming and shaming of those employers who have not done the right thing. We hope that the fair work agency, when it is established, will be even more effective at delivering fairness across the country and ensuring that everyone gets the minimum wage they deserve. We know there are particular sectors where there are acute challenges.

I turn to the points made by the Scottish National party spokesperson, the hon. Member for Dundee Central (Chris Law), about the bills and costs of an 18-year-old being the same as those for an adult. That is something I absolutely understand. It is why we changed the Low Pay Commission’s remit to ensure that we eventually get parity for that age group on the full adult rate. It is also why we have changed the remit of the Low Pay Commission to move towards a real living wage for all adults. We understand that that is such an important thing for us to deliver on. He may feel that we are not quite there yet, and we must ensure we take evidence as we go along from businesses on how it impacts on particular sectors and particular parts of society, but 18 to 20-year-olds are getting a £2,500 pay rise this year as a result of the regulations. That is something I am sure he will welcome.

My hon. Friend the Member for Newton Aycliffe and Spennymoor (Alan Strickland) raised very well the regional impacts of the wage increase in his part of the world. It is the case that the regulations will mean 140,000 workers in the north-east, or 14.5% of the total workforce in that region, will benefit from the increase. We should all be absolutely delighted about that.

My hon. Friend the Member for Kettering (Rosie Wrighting) also raised in-work poverty. That is why the remit is being changed. We want to ensure that in-work poverty is consigned to the history books.

My hon. Friend the Member for Hendon (David Pinto-Duschinsky) set out in stark terms the figures associated with the regulations. I may mention them again at some point before I finish. They are the bold numbers that will go directly into people’s pockets and that we can show as tangible proof of a Labour Government delivering for working people.

My hon. Friend also raised the matter of the empty Opposition Benches. I do not want to equate that with meaning that the Conservatives do not support these increases, as I think the shadow Minister, the hon. Member for West Worcestershire (Dame Harriett Baldwin), said that they did. I do put her on notice, though, that her party leader has been less than full in her support for the minimum wage, so I hope that the shadow Minister’s support for today’s measures has not damaged her career prospects. It may well be that there is another leader in a few months anyway, and that things will be looking up. We do hope that the Conservatives continue to support the minimum wage as we move forward and that they do not change tack now that they have entered opposition.

However, the shadow Minister did raise a number of important questions, which I will now try to address. She raised the impact on public sector workers. Of course, pay for most frontline workers is set through pay review body processes, which do take account of national living wage increases as part of their processes. We do not believe that many public sector workers will be directly affected by this change, but it is something the Departments will take into account when they set their budgets.

The shadow Minister also asked about the cumulative impact of the changes. The impact assessment does show that this year’s upratings will represent a 0.14% increase in the UK-wide wage bill, which I think is incredibly good value for what we are delivering into people’s pockets. Of course, the total impact of the Employment Rights Bill is, at most, 0.4% of the total wage bill.

The hon. Lady raised questions about burdens on SMEs. The Low Pay Commission does take into account the impact on business as part of its operations. It looks at the competitiveness of individual businesses, the labour market and the wider economy, drawing on extensive labour market pay analysis and stakeholder evidence when recommending rates, and we would expect the commission to do exactly the same next year. Small businesses have, of course, had support from this Government. We have increased the employment allowance from £5,000 to £10,500, meaning that 865,000 employers will pay no national insurance contributions at all, and more than half of employers will gain or see no change from this measure. We have also extended business rates relief for the retail, hospitality and leisure sectors.

The hon. Lady raised concerns about the impact of the measures on young people. The youth guarantee will ensure that every young person has access to education or training to help them to find a job, and we are transforming the apprenticeship levy to ensure that young people get the opportunities they deserve.

The shadow Minister raised concerns about the overall labour market. I would just make the point that payroll employment is actually higher now than it was this time last year, and the latest labour force survey last week showed record numbers of people in work. Perhaps the negative headlines that we have been seeing are not actually the reality of the situation. I like to deal with facts, Madam Deputy Speaker, and the facts are that these regulations will put more money into the pockets of workers around the country—around 200,000 workers in Scotland, 160,000 workers in Northern Ireland and 150,000 workers in Wales. This will make a real difference to people: £1,400 for a full-time worker and £2,500 for someone on the 18-to-20 rate.

This is truly a worthwhile exercise, and we thank the Low Pay Commission for its work, as well as HMRC, which enforces on behalf of the Department, and ACAS, which offers impartial advice and expertise to ensure that workplace disputes can be resolved and workers’ rights can be upheld. This is a meaningful change being delivered by this Government that delivers a powerful message: this Government, and indeed this Parliament, are committed to making work pay. These real-terms increases to the minimum wage will end insecurity at work. I commend these regulations to the House.

Question put and agreed to.

Resolved,

That the draft National Minimum Wage (Amendment) Regulations 2025, which were laid before the House on 4 February, be approved.

Local Post Offices

Mark Sewards Excerpts

Thursday 30th January 2025 Commons Chamber

[Mark Sewards (Leeds South West and Morley) (Lab)]

I am grateful to the hon. Member for Taunton and Wellington (Gideon Amos) for securing this debate. I think my hon. Friend the Member for Bournemouth West (Jessica Toale) has already summarised a lot of the excellent contributions from the Government side.

It is clear from today’s debate that we all know that post office branches are essential to our local communities and the local economy. It saddens me that this Government inherited a Post Office in such a precarious position. Having discussed the matter with senior Post Office staff and the Minister, I know that the organisation is facing serious financial challenges, and I am grateful for the engagement of the Government and the Minister on the issue. That forms the backdrop to the announcement that the Post Office is considering the future of the remaining 115 directly managed branches, which has been referenced countless times today, with a franchising model being considered for them.

I remain especially concerned about the future of the Morley post office on Queen Street. Morley sits in the heart of my constituency. It is a town of around 50,000 people and one of the key locations that people come to for financial services and shops. The directly managed branch is vital for my constituents and for those who rely on the services that it provides, and I have been looking for certainty that it will remain on the high street where it belongs. I know the strength of feeling from my constituents, as more than 2,500 people have signed my petition to keep the branch open. It is clear that after the closure of many bank branches across Morley, the post office is a lifeline for those who need it. The numbers back that up—it is not just my testimony. While other directly managed branches have seen a 34% drop in footfall since 2019 because of the pandemic, the Morley post office is only 3% down. We use our post office.

A word on bank branches and banking hubs: I have been actively pursuing a banking hub for Morley town centre, especially with the recent news that NatWest is due to pull out of the town this year. NatWest even pointed to the post office on its way out and said, “Don’t worry—you have that service there,” despite the threat of closure. I have been in touch with Link, one of the organisations that determines which areas gets banking hubs, and it tells me that Morley does not yet meet the criteria for a banking hub because we still have one branch left. While I have many questions about the criteria, we will have to save them for another debate and another time.

While Morley does not meet Link’s criteria, and while I continue to have those discussions with Link, we cannot have a situation where my post office closes. Thankfully, the continued operation of Morley’s post office will not prevent us from securing a banking hub in future, so there is no reason why we should not do everything in our power to keep the post office open, and that is exactly what I am doing. As I stated, the branch is very much in demand. It is used by local businesses that trade on our high street. Business owners such as Castlepoint, which owns and operates Morley market, have contacted me directly about their concerns about the branch closing.

Post Office research shows that three in 10 SMEs use a post office once a week, whether to post parcels to customers or deposit their cash takings. Losing this branch, which is surrounded by so many businesses in Morley, would make us all worse off. I know that the direction of travel for the Post Office is to move towards the franchising model that we have heard so much about today, and I remain hopeful that a suitable postmaster will be found to take over the branch, but I am also clear that the branch should remain on the high street. Having it in an accessible place in Morley town centre is very important for both residents and businesses, and I will continue to make that case as strongly as I can. It is why I have requested that those interested in taking over the franchise in Morley contact me. I am keen to support their bids, assuming that they are in the best interests of Morley and the town centre.

Finally, I ask the Minister whether there is any threat to the number of services that a directly managed branch can offer if it transitions to a franchised branch. I reassure all my communities in Leeds South West and Morley that I will work tirelessly to ensure that this branch remains open. It is crucial that the services that the post office provides in Morley town centre remain there for many years to come.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

Harland & Wolff

Mark Sewards Excerpts

Thursday 19th December 2024 Commons Chamber

[Jonathan Reynolds]

No, it was not—it is a good try, but no. First, the employment rights framework in most parts of continental Europe is very different from our own. Secondly, as I have repeatedly said, the changes in the Employment Rights Bill do raise terms and conditions for some of the lowest-paid workers in the country, but many companies in the UK—particularly larger ones—already operate to a significantly higher level. Shipbuilding is historically a fairly unionised sector, so I do not think there are any concerns or worries in that field—to be frank, the trade unions in that sector often fought harder for the industry than former Conservative Governments. I understand the try-on point that the hon. Gentleman is making, but no, the Employment Rights Bill has not been a problem. In terms of wider UK Government policy, this has been a great endorsement of our EU reset and our willingness not to revisit the arguments of Brexit, but to work more closely with friends and allies in Europe, to ensure that we are getting the maximum opportunities for the UK and always working in our national interest.

[Mr Mark Sewards (Leeds South West and Morley) (Lab)]

I congratulate the Government on this announcement, which is incredibly welcome news for all those workers who get to keep their jobs as a result. It is a shame that the Conservative Front-Bench spokesman chose to attack the Government over the 2.5% target while responding to the statement, and asked for a timeline for when we are going to deliver 2.5%. Fourteen years is a timeline, and the Conservatives did not meet that target even once. If we are to avoid situations like this in the future, we need to have a modern industrial strategy. What progress have we made towards that strategy? How does it feed into our wider growth mission, and how will it support the UK economy to grow over the next Parliament?

[Jonathan Reynolds]

I am grateful to my hon. Friend for his comments on the deal and for his observations about the questions from the Opposition Front-Bench spokesman about the 2.5% target. On the modern industrial strategy that we are creating, we have had an incredible response to our Green Paper—some 22,000 individual answers to the questions it asked—showing that there is a huge appetite from industry across the board, both in the UK and abroad, to engage with what the Government are seeking to do. Again, I stress that that should always be on a cross-party basis; there is nothing in that Green Paper that anyone of any political stripe should be able to oppose. It is based on our national interest and the goal of being more competitive and business-friendly, succeeding to a greater degree on the world stage.

This week, we had our first meeting of the Industrial Strategy Advisory Council, with some tremendous representatives with expertise across the board—UK industry, academics and business figures. It is an incredibly exciting time. This is just one component of our growth mission, but clearly an important one, alongside areas of work for me such as the small business plan that we are putting together. I genuinely believe that everyone should be excited about the future.

Future of the Post Office

Mark Sewards Excerpts

Wednesday 13th November 2024 Commons Chamber

[Gareth Thomas]

I welcome the hon. Gentleman’s comments, as ever, and I recognise the concerns of his constituents. As I said, we remain absolutely committed to ensuring that every community has good access to post office services going forward, and no decision has been made about directly managed branch closures. If we are to achieve the objective of putting the Post Office on a genuinely sustainable footing and increasing sub-postmaster pay, we must consider all Post Office costs and how we can genuinely deliver, to all communities, a better future for the Post Office. We are doing that, but I am conscious of the strong point that he has made about his constituents.

[Mr Mark Sewards (Leeds South West and Morley) (Lab)]

Residents in Morley are extremely alarmed that Morley post office on Queen Street is one of those that could be closed. Queen Street is the beating heart of Morley, and many people come into the town centre to use the services at the post office before going on to other shops. Bank branches have left our town, too, and on their way out, they pointed at the post office and said, “Don’t worry, you’ve got services there.” Well, now we are worried. Will the Minister restate what he has already said several times about no decisions having been made on closures, and will he meet me to talk about what we can to do keep Morley post office functioning?

[Gareth Thomas]

I will happily meet my hon. Friend. As I have said, no decision to close individual directly managed branches in full has been taken. It is right that the Post Office considers the cost of providing directly managed branches going forward if we are to achieve the objective of putting it on a sustainable footing. However, we are absolutely clear that every community in the UK needs to be able to retain good access to post office services, and we are looking at what else we can do with the Post Office senior management team to improve post office services, not least in banking.