Draft National Minimum Wage (Amendment) Regulations 2026 Debate
Full Debate: Read Full DebateMichelle Scrogham
Main Page: Michelle Scrogham (Labour - Barrow and Furness)Department Debates - View all Michelle Scrogham's debates with the Department for Business and Trade
(1 day, 8 hours ago)
General CommitteesI am genuinely delighted to see the hon. Member for Halifax in her place as the Minister; I congratulate her on her achievement. She has been sent here to speak to a straightforward piece of delegated legislation that raises the minimum wage levels but, as my hon. Friend the Member for Arundel and South Downs outlined, the situation is becoming more complex.
It is worth saying a few words about what we see in the real world. My constituency is Wetherby and Easingwold, and it does what it says on the tin: I represent the two market towns of Wetherby and Easingwold, as well as other towns such as Tadcaster and Boroughbridge, surrounded by lots of villages. There are lots of small businesses in those towns, and although it would be wrong to say that they are not hiring young people, they have stopped hiring as many young people as they used to.
It is all well and good to compliment the changes and say that wages are rising for the poorest paid, but that does not take into account the other tax changes that have taken place, such as the changes to rates and employers’ national insurance contributions. All these things, when added together, have resulted in businesses cutting back on the number of young people who work for them.
I remember my very first job at WHSmith, when I was still at school. I went for a Saturday job, but I ended up getting a job doing the newspapers and magazines before the shop opened every day of the week. I would get up at half-past 5, and leave WHSmith at half-past 8 to go to school. It was a real experience for me as a 17 to 18-year-old to have to have that discipline and to go to work in the real world. As I have often said, I have never had as much disposable income as I had then—the clubs and pubs of Gravesend were very welcome to it.
The experiences that a young person can gain from short-term or Saturday employment, or part-time employment during school holidays, are vital. I fear that looking just at the rises in the minimum wage, and talking about how much people can earn a year, does not take into account the other pressures on business. For all the importance of raising people’s wages, it does not achieve anything if the jobs are not there.
Michelle Scrogham (Barrow and Furness) (Lab)
Having run a business on the high street for the last 21 years, I can safely say that we have not had Saturday jobs around for at least the last 10 of them. That is not to do with the national minimum wage; it is due to a lack of support from Government over the last 14 years. Hundreds of ideas came forward, and numerous consultations were never acted on, so does the right hon. Gentleman agree that it is a bit of a leap to say that it is the minimum wage that is creating the issue?
I am grateful to the hon. Lady, because she illustrates the point I am making. It is not about the minimum wage; it is about the other taxes that have gone alongside the minimum wage and put huge pressure on businesses. Lots of people say that raising the minimum wage is great, because it puts more money in people’s pockets, but it is the other pressures at the same time that are the issue. I could name five businesses in just one town in my constituency that did hire young people to work on a Saturday but have reduced the number of people they hire because of the other costs.
I will move on, because I am sure we were not expecting to be here in the Committee Room for too long. My hon. Friend the Member for Arundel and South Downs mentioned the right hon. Member for Ashton-under-Lyne. I raised this issue on Second Reading of the Employment Rights Act. I do not know how many Members on the Government Benches stood for election before 2024, but Labour party manifestos before 2024—it was not in the 2024 one—said the party would ban unpaid internships. I have fought to ban unpaid internships in every single term I have been in this place, and I have never got anywhere. Every Prime Minister came to the Dispatch Box and said, “I don’t see why we are not doing it,” and then it did not happen.
I brought forward an amendment to the Minimum Wage Act 1998 so that it would include unpaid internships. One would have thought that a Government who keep talking about paying young people, getting them on the ladder and doing things for them would have included a simple minimum wage—whether the apprenticeship wage or the minimum wage for the youngest, a minimum wage—in that Act for people who are exploited. Anybody who works for a company for four weeks is adding value to the company, no matter what anybody says. Being asked to go and work, perhaps in London, for a year—having to sort out accommodation and bear all the costs—and not getting paid is exploitation.
I am afraid that, again, I push back on the Government. They parrot that what they are doing for people is great, because they are raising the minimum wage, but that does not take into account the other tax rises that have put pressure on business, and it does not do anything to move things forward for young people who are missing out on opportunity because they do not have the ways and means to work for free. The Government should take a close look at themselves. They have talked about their Employment Rights Act and have come here today to boast about rises in the minimum wage, but they have not ensured that a whole section of young people actually get paid for a day’s work. My party has always believed that work should pay.