Skills and Labour Shortages

Debate between Toby Perkins and Patricia Gibson

Thursday 12th January 2023 Westminster Hall

[Patricia Gibson]

I plan to touch on that. However, migration is not enough; it does not fill the range of gaps, including skill gaps, and needs in our economy. I will say something about that in just a moment.

Between Brexit and the start of the pandemic, the number of national insurance numbers issued to people from the EU fell by 24%. That impacted our NHS, and the number of specialist doctors in the UK from the EU or the European free trade area; it was more than 4,000 lower than if pre-Brexit trends had continued. Just to be clear, the shortfall is not being made up by non-EU workers. The situation is particularly acute in rural areas, prompting the Migration Advisory Committee to warn of the risks of rural depopulation, which is pretty serious.

The Minister will wish to argue that this serious situation could be addressed by investing in skills and education, to which I would say this: first, that would require real investment that is not forthcoming at the levels that we would all wish to see; and secondly, that strategy would not help the situation right now. It would perhaps help us to plug some gaps in the longer term, but our economy—our public and private sectors—need help right now. The situation is particularly worrying for Scotland, given that ours is the only country in the UK in which the population is projected to fall in the next decade.

What can the Government do about this situation? Well, they could make it easier for businesses to recruit from abroad as and when they need to, for all skill levels. Employers are concerned about how onerous, time-consuming and bureaucratic it is to recruit staff from abroad, and it should not be. Employers make every effort to recruit locally, but when that does not result in their gaining the staff and skills that they need, it should be much easier and smoother to tap into the labour markets of our European neighbours. That would make perfect sense for our employers, our economic prosperity, and those who are recruited. The Government’s own MPs are coming to realise how urgent the situation is. That was evident when the hon. Member for Lichfield (Michael Fabricant) echoed the Scottish Government’s calls for the Home Office to provide long-term stability for migrant workers with a 24-month visa.

It pains me to say it, but the UK Government are prisoners of their own rhetoric; they have somewhat boxed themselves in over visas and immigration, despite the demands of our economy. The Chancellor told us in his autumn statement last November that the Prime Minister would ask the Secretary of State for Work and Pensions to

“do a thorough review of issues holding back workforce participation, to conclude early in the new year.”—[Official Report, 17 November 2022; Vol. 722, c. 848.]

Some people’s hopes were raised that those words might signal change, driven by common sense, but as we have heard nothing since about a review, I fear that those hopes were misplaced. Perhaps when the Minister responds to the debate, he can update us on that review.

The temporary exception to the skilled worker criteria under the Government’s points-based immigration system for care workers, and the introduction of a bespoke visa for seasonal agricultural workers, are absolutely fine moves, as far as they go. However, they are clearly inadequate to address the scale of the workforce challenges faced by the sectors to which they are directed. They also take no account of the range of needs in other sectors. Similarly, the kickstart scheme, well-intentioned though it is, is simply inadequate to address these challenges.

[Mr Toby Perkins (Chesterfield) (Lab)]

I congratulate the hon. Member on her speech. She is absolutely right about the impact that Brexit has had. That impact has perhaps been escalated and exacerbated by covid; a lot of migrant workers went home as soon as the pandemic began. Obviously, it is more difficult than before for others to come in, which has escalated the situation. I want to clarify what she is asking for by way of response. Am I right in saying that it is a 24-month visa, and an escalation of the schemes that she mentioned, within the confines of not returning to freedom of movement? Or is she saying that we should have a return to complete freedom of movement, and that anyone from the EU who wants to come and work here should be able to?

[Patricia Gibson]

I have absolutely no problem with freedom of movement—we have suffered enormously as a result of no longer having it—but I appreciate that the Government will not move in that direction, so I am asking them to allow our public and private sectors to recruit from Europe as and when they need to in order to fill their skills gaps and jobs gaps. That is very difficult. The skilled workers criteria are too narrow and do not fill the gaps, even for the sectors that they are intended to help. They are not enough and do not take into account the strains and shortages in areas of the economy that they are not directed at. I believe that the Minister and the Government understand all the difficulties that I and others have mentioned, but feel trapped by their rhetoric. I hope they will get over that and take a common-sense approach, for the sake of our economic prosperity.

The Government commissioned the Migration Advisory Committee to review the shortage occupation list, but I understand that the review has been paused pending clarification of the Government’s priorities surrounding the skilled workers route. When the Minister gets to his feet, perhaps he will give us more detail of how the review is going, when it will be unpaused, and when we might see some benefit from it.

In the absence of any attempt to address the very serious situation in the way that I and many people across this House would like, and that would have the necessary impact on the challenges, I urge the Minister at the very least to play his part in persuading his Government to allow a Scottish visa to be established, so that those who wish to live in Scotland and contribute to its workforce may do so. By way of precedent, similar successful schemes have been established in Canada, Australia, New Zealand and Switzerland on a regional basis. Scotland should not suffer from a one-size-fits-all UK approach; its demographic, geographical and labour needs are entirely different.

It makes sense to allow asylum seekers who come to the UK to enter our workforce. They are stuck in hotels or Home Office accommodation at huge cost to the taxpayer, but many of them have valuable skills that we need, and they are desperate to enter our workforce, while we suffer skills and labour shortages. That defies all common sense.

Smart Meters Bill

Debate between Toby Perkins and Patricia Gibson

2nd reading: House of Commons & Money resolution: House of Commons & Programme motion: House of Commons & Ways and Means resolution: House of Commons
Tuesday 24th October 2017 Commons Chamber

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

We in the Scottish National party support the roll-out of smart meters, but it is essential that maximising consumer and environmental protections lies at the heart of any strategy to do so.

It is empowering for consumers to have near real-time information on their energy consumption to help them to control and manage their energy use, and in turn save money and reduce emissions. If roll-out is effective and well managed, there are obvious benefits to consumers. Nearly eight in 10 people with a smart meter would recommend one to others, and the same number with a smart meter say they have taken steps to reduce their energy consumption. Those with an in-home display model in particular feel they have a much better idea of what they are spending on energy and check it regularly. If having new technology in their homes helps consumers feel that they can exercise better control over energy consumption and be better informed about their energy use, with greater control over their bills, then of course that must be welcomed.

In previous speeches, we have heard about switching suppliers. I would like to say, right at the outset, that switching suppliers has a limited effect. Research shows that people who switch tend to be those who are better off. They switch and they save money. However, there is not a sufficient impact on the lowest income households, which are in most danger of fuel poverty. They find it much more difficult to switch suppliers.

We often hear that smart meters are free to consumers. They are not. They are paid for through energy bills. Every household will, ultimately, pay for the new meter roll-out via their bills. It is important that consumers understand that having a smart meter is a choice. Trading Standards has expressed concern that data from citizens advice bureaux suggest that consumers are not being told that they can refuse a smart meter, if they so choose.

[Toby Perkins]

There is a really important point here about consumers from the lowest income households. Given that companies have different tariffs, why do the Government or the companies themselves not say, “We’ll stop you having the responsibility of deciding the best tariff for you. We have all the data. At the end of every quarter, we’ll look at your bill, tell you what would have been the best tariff and put you on it, so you always save the money without having to do all the work yourself”? Companies should have the information to be able to do that.

[Patricia Gibson]

What the hon. Gentleman says sounds eminently sensible. The problem is that the better off and most well-informed people are switching and saving. That is being subsidised by the people who are unable to switch and save because they do not feel up to the task. The poorest households are actually subsidising the most affluent households, which have the ability and the expertise to switch and save. That is a real issue that has to be addressed. Similarly, as mentioned before, those on prepayment meters—the poorest households in our communities—must have access to smart meters if they want them.

It is important, as part of this process, that the Government’s regulatory framework clearly establishes the rights and obligations of all aspects of smart metering design, development, installation and operation, as well as monitoring and reporting. Customers must be reassured, and continue to be reassured, that their data and security are robustly protected in the course of the smart meter roll-out. There is concerning evidence, however, that smart meters are being installed before the programme’s requirements as an internet-connected energy system have been fully determined. The UK Government must do everything in their power to protect consumers during the roll-out. There were disturbing reports last March in the Financial Times of GCHQ intervening in smart meter security, claiming to have discovered glaring loopholes in meter design, and causing some alarm. Such concerns must be fully addressed.

The plan to install smart meters in every home by 2020 must not leave consumers out of pocket. It must be asked whether the cost of the roll-out will be borne by all energy consumers. The successful operation of smart meters can also be a postcode lottery. In areas with a poor mobile signal, there is a real chance that smart meters will not work. If we are applauding the merits of smart meters, this has to be borne in mind, because digital inclusion matters.

Almost 100,000 fewer households were in fuel poverty in 2015 than in the previous year in Scotland, but there is still much more to be done. The Scottish Government have commissioned a review, due to be completed next year, of the definition of fuel poverty in order to inform a new fuel poverty strategy that will be followed up by a warm homes Bill. There has to be a focus on those in most need of help to heat their homes.