(1 year, 1 month ago)
General CommitteesI notice that that has been said, but not one country in Europe was actually named. It will be interesting to see whether the Minister mentions countries in Europe, because I find it curious that this approach is said to be standard in Europe, but not one country was named. I am looking forward to the answer, and I am sure it is being handed to the Minister right now on the little green Post-it note he has in front of him—yes, I am observant.
I am sure that, like me, the hon. Gentleman is amused by the Government’s reliance on other European countries as a benchmark for good practice. Does he recognise that although many other European countries have the legal capacity to use biological tests, many of them have found that such tests have not worked and have not added value, and they are therefore discontinuing them?
I do indeed. I would simply reflect that this is the Department responsible for innovation. It is supposed to lead on creative thinking and thinking outside the box.
I worry, as do colleagues, that proper consideration has not been given to better options. The Department set itself an ambitious cost-saving strategy in “BIS 2020”, but what is its thinking on how it is going to get there? Normally, faced with decisions such as these, big organisations would think about the resources they needed to achieve their objectives, look at the matter in the round, model how those resources should be most cost-effectively located around the country, then make the decisions. Decisions about office closures would naturally come at the end of that process, not at the beginning, as has been the case here. The Department is putting the cart before the horse.
The hon. Gentleman is making an excellent speech. Should not part of the process he has just outlined involve proper consultation with the relevant trade unions?
The hon. Gentleman makes an important point. We saw a process of consultation, which concluded on 2 May. The trade unions, working with the affected staff, have put in some substantial submissions and alternative proposals, and I shall be seeking reassurances from the Minister that they will be properly considered and their merits given the weight they deserve.
As a number of Members have commented, the “BIS 2020” review might result in some relocation of staff and in the concentration of policy staff in some areas. However, the idea that all policy functions need to be concentrated in London is simply absurd. It is even more ironic, given the wider Government policy that my hon. Friend the Member for Stockton North (Alex Cunningham) has just mentioned.
This year’s Budget committed the Government to moving out of “expensive Whitehall accommodation”. The Cabinet Office recently launched a raft of measures in a bid to diversify the civil service, after one of the Bridge report’s key findings was that students from lower socio-economic backgrounds were “less likely to move” to London. One such measure that the Cabinet Office is recommending is to take graduate recruitment
“outside of London by establishing regional assessment centres”.
The most recent “Government’s Estate Strategy” expresses a commitment to
“turn around the prevailing tendency to locate head office staff in central London”.
That is Government policy.
(8 years, 9 months ago)
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I do indeed and I pay tribute to those councils that are now changing their rules, so that when they commission they require workers’ travel time to be paid. Hopefully, more councils will follow their example.
I am disappointed that the Government seem to be taking this issue even less seriously than when we last debated it. Last summer, HMRC launched a new national minimum wage campaign that allows employers who have not been paying it to escape punishment. That is shocking. But it is simple: offending employers can declare details of arrears owed to their employees. They then “self-correct” and, with a cursory follow-up by HMRC, that is it—no more HMRC sniffing around and examining their practices. I do not know of many crimes where the offender escapes punishment entirely if they come forward. As I say, it makes a mockery of the increases in penalties for non-payment of the national minimum wage that were introduced under the coalition Government.
According to the Low Pay Commission, between 2011 and 2015, £1.75 million was recovered in arrears for 8,698 workers, which amounts to an average of £201 per worker. The shameful thing, however, is that that is just a drop in the ocean. The Resolution Foundation, which the Minister will know is chaired by one of his former colleagues, a former Conservative Minister, estimates that 160,000 care workers are collectively cheated of £130 million each year. The Resolution Foundation estimates that the average amount of arrears owed to care workers is more than £815, which is four times the rate at which HMRC is recovering the money.
The real scandal is that it does not have to be like this. The Government have the power to act, but they appear to lack the will to do so. Therefore, let me set out some proposals and I look forward to hearing the Minister’s comments on them.
For a start, the Government are far too reliant on self-reporting. The use of zero-hours contracts is rife in this sector; for example, both Sharon and Melanie, to whom I referred earlier, are on such a contract. So who is going to rock the boat when there is so little job security? Following up on every call made to the helpline is all well and good, but what are the Government doing to help those vulnerable care workers who do not dare to make such a call?
I thank the hon. Gentleman for giving way and I congratulate him on raising this important issue. Regarding self-reporting, does he agree that the biggest single reason that employees are reluctant to do that is fear of dismissal and, if they are not dismissed, fear that there will be a cut in their hours?
I thank the hon. Gentleman for that intervention and I think he is right. It is the fear experienced by workers in this sector that is driving unreporting. The Government need to do something about that.
Establishing a formal public protocol to handle third-party whistleblowing would be a step forward. Currently, for example, when a union makes a complaint on someone’s behalf, it receives no feedback as to what is happening with that, and that is no way to facilitate reporting.
We also need proactive investigation into a sector in which we know abuse is rife. Following pressure from Labour that was led by my right hon. Friend the Member for Oxford East, the coalition Government began an investigation into six of the largest care providers, but that was over a year ago. What have they found out? Have affected workers been compensated? What is happening? I hope that the Minister will give some answers, because effective investigations will help to change the culture. Where HMRC investigations uncover non-compliance, why does it not then look at the whole workforce? The chances of co-workers being on the same terms and conditions and suffering from the same abuse is high, but HMRC does not follow through.
I have made a number of suggestions about how the Government might act—I will not speak for too long, because a number of colleagues want to contribute to this debate—but I want to focus on a single demand, which I emphasise would not involve the Government in significant cost, but would be transformative. It is a course of action that has been recommended by the Low Pay Commission and Unison, and it is simply to require employers of hourly paid staff to state clearly the hours they have been paid for on their payslips. We have heard how companies such as the one employing Melanie and Sharon have sophisticated technology to track exactly what their employees are doing. They already monitor the time spent at appointments and travelling for work. The proposal would be easy for companies to do and would introduce a level of transparency that would change those companies’ culture. It would also give workers the information through which they could challenge companies and utilise the helpline. Section 12 of the National Minimum Wage Act 1998 already makes provision for such regulation. Will the Minister work with me and his team to bring about that simple change?
All of us here know that there is a bigger fundamental problem with the chronic underfunding of the sector. Private providers are threatening to leave the market and not-for-profit providers are telling me that they cannot sustain the level of care that they want and rightly seek to provide. Vulnerable people, the elderly, those with learning difficulties and family members fearing for the life of their relative as they wait for an ambulance are all suffering as a result. That is before the national minimum wage increases to what the Government have laughingly called the national living wage. We all agree that is overdue. It is inadequate, but it is nevertheless a small step in the right direction.
We all know that the recently announced council tax social care precept is nowhere near enough to plug the funding gap, so we should be deeply concerned by the wider crisis in social care, and not only in its own right, but because of the impact it will have on the national health service. Notwithstanding that and the desperate need to address the funding shortfall, the labour market enforcement measures that I have mentioned are necessary and will be a step forward, and I hope the Minister will engage with me in taking those up.