Employment Rights Bill

Andrew Griffith Excerpts

Consideration of Lords message
Monday 15th December 2025 Commons Chamber

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Secretary of State.

[Andrew Griffith (Arundel and South Downs) (Con)]

The concerns that we Conservatives have with the Bill have long been known, and I accept that we have debated them at length. I will not repeat them all today, because we are not here to debate the whole Bill, just the message sent to us from the other place.

There was a time when the Labour party would have cared about protecting jobs and those who wanted one. There was a time when Labour believed, as we do, in the dignity of work and what that meant for families and communities—a Christian socialism, if you like, rather than the state worship that seems to have replaced it. I cannot honestly think of a previous Government who would ever have passed this Bill—certainly not since the 1970s. The result, whether Labour likes it or not, is that day by day, week by week, month by month, people are losing their jobs.

This Christmas there will be 192,000 fewer people in private sector payrolled employment than last Christmas, and who knows what it will be like next Christmas. We have the worst ever graduate jobs market. Adzuna estimates that jobs for degree holders have fallen by 33%. Labour used to care about youth unemployment, but for those aged between 16 and 24 unemployment has now reached 15%, according to the Office for National Statistics. As has been the case every month so far under this Government, tomorrow morning we are likely to hear that the rate of unemployment is higher.

This Bill could have been on the statute book today, but for one simple reason: a gross betrayal of trust. The small group of business groups that Ministers invited in for tea and sandwiches took this Government at their word.

[Antonia Bance]

I wonder if the hon. Gentleman would like to tell the House which of these business groups he disagrees with and that he thinks we should not listen to today, because these are the groups telling us and peers in the other place that we should be voting for the Bill. Does he disagree with the British Chambers of Commerce or the Chartered Institute of Personnel and Development? Does he disagree with the Confederation of British Industry, with the Federation of Small Businesses, with the Recruitment and Employment Confederation or with Small Business Britain?

[Andrew Griffith]

The hon. Lady would have been wise to contain her excitement, because I agree with all of those groups in their letter today, which the Minister selectively quoted; she did not quote them saying that they are not in favour of removing the cap. I have spoken to each and every organisation that was in the room, and they are crystal clear, with one group saying:

“That was not a concession discussed with us or agreed by us in the negotiations”.

I invite the Minister to intervene on me if she thinks that a word of what I say is wrong. She is misquoting, and it is misrepresenting those business groups that do not support the cap.

Why would any sane Government scrap the cap entirely? Indeed, this Government themselves did not for 13 and a half of the 14 months that we have been debating this Bill. It was not in the manifesto or the Bill or the impact assessment. It was not considered by the Regulatory Policy Committee, and it was never discussed in this House until Ministers threw it in at the last moment in a breach of trust of the business groups with which they negotiated.

[Angela Rayner]

I know where this came from—the new deal for working people—and so do businesses and the trade unions. As the Minister pointed out, there have been discussions, and they came to that conclusion. What is it about protecting people from unfair dismissal that the shadow Minister has a problem with?

[Andrew Griffith]

What is it about protecting people from unemployment—preventing young people from getting jobs—and from economic growth? The Government of which the right hon. Lady was once a member said that was their No. 1 priority and their obsession, but they have singularly failed to deliver it.

Conservative Members want to get Britain working again. We want jobs for those young people—we think it is a stain on our character that 15% of young people are unemployed—and all we get from Labour is union-paid representatives trying to put more people out of jobs and deny young people more opportunities.

[Angela Rayner]

rose—

[Andrew Griffith]

Yes, come back on that.

[Angela Rayner]

I thank the shadow Minister for giving way again; he is being generous with his time. Why does he not have a problem with people being often in insecure, low-paid work without any contract that gives them regular hours? Does he realise how difficult that makes it for young people—any person—to have any security in their life? That was what he presided over in his 14 years of failure, and that is why Labour was elected on this manifesto promise.

[Andrew Griffith]

Our Government created 4 million new jobs. This Government have lost jobs every single month they have been in office.

The points that the right hon. Lady makes are not those we are debating. There is one issue in front of us, which is Labour’s desire to defend and remove a cap of £118,000. That has nothing to do with ordinary workers. What does it say about today’s modern Labour party that its focus, and the whole reason why we are back here and the compromise was not accepted, is its desire to remove a cap of £118,000, which will only ever benefit the better off?

[Sir Ashley Fox (Bridgwater) (Con)]

Does the shadow Minister recall that in 1999 when the Blair Government increased the cap, they held a consultation beforehand, and that in 2015 when the coalition Government introduced a cap, they held a consultation beforehand? Why are this Government behaving differently?

[Andrew Griffith]

My hon. Friend makes an important point, which I hope somebody on the Labour Benches will address. We have seen no analysis and we have no idea of the cost of this measure. Not a single business—not a single person who employs people—has come out and endorsed the removal of the cap. It is beyond me, I am afraid.

Yet what is happening in our employment tribunals? On Friday, as I am sure the Minister knows, it was revealed that the delay and backlogs at the employment tribunal have reached their highest ever level. At the end of the most recent quarter, there were 515,000 open claims. Before anyone intervenes, let me say that I accept that much of that was inherited—[Interruption.] But before Labour Members laugh: the Government are making it worse. Merely since the Bill was introduced to this place, the claims backlog has increased by 65,000. They are doing nothing to address the backlog, which is going up every single month—I do not think they have even discussed it with their calamity of a Justice Secretary —and we know that they have carried out no impact assessment. It is extraordinary. The scrapping of the compensation cap for the highest paid will simply stoke the fire.

I make it a rule not to learn lessons in how to run an economy from France, but even France introduced a cap on tribunal payments to tackle unemployment and encourage labour market dynamism. Perhaps we should take advice from closer to home: today the Health Secretary seems to be no fan at all of giving more powers to unaccountable unions.

[Laurence Turner (Birmingham Northfield) (Lab)]

Will the shadow Minister give way?

[Andrew Griffith]

Happily, if the hon. Member will talk about how he will fix our NHS.

[Laurence Turner]

The debate is on the Employment Rights Bill, although I struggle to follow the line of logic in the hon. Member’s speech. He said that the effect of the change would be to benefit the wealthiest employees, but chief executive officers and other senior executives rarely seek recourse to employment tribunals, for a number of reasons. Can he name a single CEO or equivalent who has pursued a case for an employment tribunal?

[Andrew Griffith]

Well no, I cannot, because there is a cap—the very cap that the hon. Member’s party is seeking to remove. I try not to be uncharitable about the complete absence of business experience in the Cabinet, but that level of question, together with that impact, is just embarrassing.

The Minister in her remarks—there was not much of an argument; it was really just a critique—blamed peers in the other place for the Government’s own failures. Notwithstanding how peers are doing the constitutional job we ask them to do, Lyndon B. Johnson said that the first rule of politics is to learn how to count. The Government lost the vote on its unemployment Bill last week by 24 votes, but 65 of their own peers did not want anything to do with the Bill—they did not turn up and did not vote. During the passage of the Bill, one Labour peer has even resigned his peerage and joined the exodus of wealth creators to the United Arab Emirates because of what he sees. The Resolution Foundation and the Tony Blair Institute have both criticised the Bill.

By removing that £118,000 compensation cap, the Government are not protecting the vulnerable. If that is what they wish to do, there are other ways to do that, but ordinary workers will never benefit from that. It is a genuinely mad world; I do not understand why we are having this debate.

This time last week, the Liberal Democrats agreed with me on this. The hon. Member for Tunbridge Wells (Mike Martin) has been campaigning for the boss of South East Water to be fired, but without a cap his payout could be millions. Is that really what they want? What changed, other than the appearance of five new Liberal Democrat peers?

[Graham Stuart (Beverley and Holderness) (Con)]

Will my hon. Friend give way?

[Andrew Griffith]

I will do so briefly. After that, I want to conclude.

[Graham Stuart]

I am extremely grateful. My hon. Friend is setting out a powerful case. We are puzzled, because a system designed for ordinary workers that has a sensible cap is now being opened up to the very CEOs who, as has been highlighted, would not have previously used it. We have a Labour party in hock to the unions yet strangely proposing a measure that was not included their manifesto which can only help the rich. What happened to the Labour party?

[Andrew Griffith]

I thank my right hon. Friend for that intervention. I will leave that hanging there and hope that Labour Members will address it.

In conclusion, I ask the Government at this eleventh hour to pull back from the brink and introduce a financial cap so that we can get this business done this week. They have no consent from business, and they sought no support for it in their manifesto. I have talked about youth unemployment and the level of redundancies. We Conservatives will get Britain working again. We will end the attacks on employers and repeal the job-killing measures in the Bill. For the sake of businesses, for the sake of the backlog and for the sake of Britain, the Government should accept the Lords amendment and drop their motion.