Employment Rights Bill (Twenty First sitting)

Nia Griffith Excerpts

Committee stage
Thursday 16th January 2025 Public Bill Committees

[Greg Smith]

I commend the hon. Member for Torbay for tabling new clause 35. It is not the Opposition’s intention to support it at this stage, but I want to be clear that the principle behind it is fundamentally good: ensuring carers are not left on a financial sticky wicket, which is a very real problem in the country. I acknowledge that the hon. Member for Torbay said that it was a probing amendment, but we believe that it is not currently fully thought through. We can all agree—I would be surprised if we did not—on saluting the incredible work that carers do up and down the land. They are all heroes in their own right and they do incredible work to look after those they care for. Their work merits a genuine use of the word “amazing”. It is a word that has been applied to far too many things in this world that are not amazing, but I think we can all agree that the work carers do genuinely is amazing.

Our rationale for saying that this new clause is not thought through enough is that it does not produce realistic solutions to solving the financial gap for carers, which we acknowledge exists. I would be interested to know the rates of payment the Liberal Democrats think would be appropriate for carer’s leave, how the rates they envisage have been benchmarked, and if they have understood the likelihood of take-up of carer’s leave and therefore the ability of employers to absorb this cost. The hon. Gentleman was very clear about that 10.6 million figure he gave. Any solution that seeks to close the financial gap must accept some of the realities and take on board the costings that will have to come from somewhere to ensure that that financial burden can be met, notwithstanding the acceptance that carers need more support for—I repeat—their amazing work. That is why we believe this new clause just does not work at this time, and I would be surprised if our position were that different from the Government’s.

[The Minister for Equalities (Dame Nia Griffith)]

I refer the Committee to my entry in the Register of Members’ Financial Interests, in particular my membership of the National Education Union and USDAW.

New clause 35 would commit the Government to introducing an entitlement for employees with caring responsibilities, to be paid at their usual wage level, while taking carer’s leave. It would give carers an entitlement of up to a week of paid leave and require employers to cover the cost.

I want to underline that the Government are absolutely committed to supporting employed unpaid carers. In the October 2024 Budget, we increased the earnings disregard for carers from £151 to £196, meaning that they can earn up to £196 without losing any of their carer’s allowance. In effect, that means that they can work 16 hours a week at the national living wage.

We have two concerns about the new clause. First, it would introduce significant new costs for employers without giving consideration to the potential impact on businesses, in particular small ones. Secondly, under the proposed approach, individuals taking carer’s leave would be treated more favourably than employees taking other forms of leave to care for family members, such as maternity or paternity leave, where a flat statutory rate is available. There is no clear rationale for taking a different approach, and it could raise questions about differential treatment of different groups. For those reasons, the Government do not support the new clause.

However, supporting carers who want to work alongside managing their caring responsibilities is an important element of our plans to modernise the world of work, which will ensure that there are good jobs for carers and a skilled workforce for employers. The Carer’s Leave Act 2023 gave employed carers a new right to time off work to care for a dependant with long-term care needs. We will review that measure and consider whether any further support is required. That will include looking at potential options for paid leave. The review will draw on evidence from carers and employers and learn from their experiences, so that we can understand what is working in the current system and identify where improvements may be needed. Through that work, we will also engage closely with smaller employers and sector bodies to ensure that we fully understand the potential impacts and benefits that further policy development could bring for them. It is right that we allow the review to run its course to enable an evidence-based decision on whether there is more we can do to support working carers while balancing impacts on businesses.

I heard what the hon. Member for Torbay said about the new clause being a probing amendment, and I hope that what I have said gives him reassurance about our commitment to that review. I therefore invite him to withdraw the new clause.

--- Later in debate ---

[Dame Nia Griffith]

I thank the hon. Member for Torbay for tabling new clause 46. I start by expressing my appreciation for all adoptive parents, who offer loving and stable homes to children who are unable to live with their birth parents. This Government are committed to ensuring that all working parents receive the best possible support to balance their work and family lives.

New clause 46 calls for eligibility for statutory adoption pay to be extended to individuals who are self-employed or contractors. It would require the Secretary of State to introduce regulations within six months of the passage of the Bill to enable self-employed individuals and contractors who adopt to receive statutory adoption pay. The proposed regulations would also define the terms “self-employed” and “contractors” to ensure that we have a shared understanding of who would qualify for statutory adoption pay under this extended eligibility.

At present, parental leave and pay entitlements are generally not available to the self-employed. That is because the parental leave system is focused on supporting employed parents, who need specific rights and protections to take time off work. Self-employed people are generally considered to have more flexibility and autonomy, and not to need those same protections. There is, of course, the exception of maternity allowance, which is available to self-employed mothers to ensure that they can take time off work following childbirth to recover and establish breastfeeding, if they wish to do so. That is an important health and safety provision.

None the less, the Government are committed to supporting parents to balance their work and family responsibilities and keen to hear how the system can be improved. While adoptive parents who are self-employed or contractors do not qualify for statutory adoption pay, statutory adoption guidance advises local authorities to consider making a payment similar to maternity allowance for those parents.

In November 2024, the Government published “Keeping Children Safe, Helping Families Thrive,” which sets out our vision for children’s social care. As part of that vision, the Government have allocated £49 million to the adoption and special guardianship support fund for this financial year. The fund enables local authorities and regional adoption agencies to offer a wide range of tailored support, including psychotherapy, family therapy and creative therapies to children who are adopted and their families. These services are available to all adoptive families following a locally conducted assessment of the family’s needs. Depending on individual circumstances, additional financial support—for example, universal credit and child benefit—may also be available to contractors or self-employed people who adopt.

We have committed to a review of the parental leave system to ensure that it best supports all working families. The review will be conducted separately to the Employment Rights Bill, and work is already under way on planning its delivery. On that basis, I invite the hon. Member for Torbay to withdraw his proposed new clause.

[Steve Darling]

I beg to ask leave to withdraw the motion.

Clause, by leave, withdrawn.

New Clause 51

Access to employment rights: workers on temporary visas

“(1) The Secretary of State must, within six months of this Act being passed, commission an independent report on the extent to which workers on temporary visas are able to assert their rights under employment law.

(2) In commissioning the report, the Secretary of State must arrange for the report to meet the requirements set out in subsections (2) to (4).

(3) The report must examine the extent to which workers on temporary visas feel unable to assert their employment rights because they are dependent on their employers to sponsor their visas.

(4) The report must make recommendations to the Secretary of State about how the Secretary of State can support workers on temporary visas in the assertion of their employment rights.

(5) The report must be completed within three months of being commissioned.

(6) The Secretary of State must, as soon as is practicable after receipt of the report, publish the report and lay it before both Houses of Parliament.

(7) The Secretary of State must, within three months of receipt of the report—

(a) respond to the recommendations in the report, and

(b) publish the response and lay it before both Houses of Parliament.”—(Chris Law.)

Brought up, and read the First time.