Job Insecurity

Debate between Stephen Timms and Andrew Percy

Wednesday 5th February 2014 Commons Chamber

[Stephen Timms (East Ham) (Lab)]

We have had an excellent debate. When the current Government were elected, we were promised that new policies would lead to

“steady growth and falling unemployment”.

Unfortunately, however, they did not. For three years, there was hardly any growth and unemployment stayed high. Despite all the benefit cuts, over this Parliament the Government will spend £15 billion more on social security and tax credits than they said they would just after the election. As a result, more young people have been out of work for over a year than at any time for 20 years. We urgently need to bring those young people, at the start of what should be their working lives, back into the labour market. In addition, more over-25s have been out of work for over two years than at any time since 1997.

After a long delay, jobs are finally being created, but the priority now is to bring back into the labour market those who have been locked out of it for much too long. That is the damaging legacy of three years without growth, and it needs tackling urgently, otherwise we will face a whole generation of lost economic potential.

[Andrew Percy]

On the subject of legacy and long-term youth unemployment, does the right hon. Gentleman regret the previous Government’s legacy? Under them, the gap between the best-performing and worst-performing schools widened, so we now have a group of young people relatively far less well educated than many of their peers.

[Stephen Timms]

What I am worried about is the apparent collapse of careers advice in schools, with more and more employers saying to us that young people are not getting the advice they need to plan for future employment. I am extremely worried about that.

Despite this legacy, our proposed job guarantee will deliver, unlike the Work programme, which was rightly described by the Chancellor in last summer’s spending review statement as “underperforming”, and the Youth Contract, whose wage incentives have proved a hopeless damp squib. The Secretary of State was right at the outset of the debate to commend the record on employment support in Wales, where the Jobs Growth Wales programme, reflecting our job guarantee, has done a great deal better.

This debate has focused on those in work. For the first time, the majority of people living in poverty are in households where somebody is in work, as was highlighted by my hon. Friend the Member for Ogmore (Huw Irranca-Davies). A staggering number of people in work are resorting to food banks, in Wales and elsewhere, so I welcome the Prime Minister’s agreement to meet representatives from the Trussell Trust, which co-ordinates food banks, next week, overruling the childish refusal to do so by DWP Ministers over the last several months.

Month after month, it is the same. Last month, inflation was more than 2% and pay rises were below 1%. That is what people are experiencing. For the first time—we had an exchange about this earlier—over 1.4 million people are working part-time because they cannot find a full-time job. My hon. Friend the Member for Wansbeck (Ian Lavery) reminded us that the House of Commons Library calculated that the average household was more than £1,600 worse off than at the time of the last election.

The hon. Member for Ipswich (Ben Gummer), whom I am glad is back in the Chamber, made a thoughtful speech essentially arguing that there was nothing new about these problems. He should look at the quarterly Asda “Mumdex” briefing, which I think has been sent to all of us:

“Last year, we saw Mums cutting back on luxuries like holidays, gadgets and meals out. Now families are struggling to afford basics like heating and petrol.”

The intensity of the problem is new. YouGov found last year that the number of people feeling insecure at work had almost doubled since the election—6.5 million then, 12 million now—and the hon. Member for Selby and Ainsty (Nigel Adams) was right to highlight the case of job insecurity at a power plant in his constituency. That kind of problem is widespread.

Our motion refers to health and safety changes. I had an exchange with the Secretary of State about this earlier, but I want to make a bit more of the point. This year marks the 40th anniversary of Labour’s Health and Safety at Work, etc. Act 1974. The disability benefits Minister, the Minister of State, Department for Work and Pensions, the hon. Member for Hemel Hempstead (Mike Penning), rightly told me in a written answer last month:

“Workplace health and safety has made an important contribution to vastly reducing the numbers of people killed, injured or made unwell by their work in the last 40 years.”—[Official Report, 30 January 2014; Vol. 574, c. 669W.]

That is as a consequence of our legislation.

The Secretary of State reminded us that Ministers commissioned Professor Ragnar Löfstedt of King’s College London to review health and safety legislation. Some people think it should be dramatically cut back, but not the Secretary of State, and not Professor Löfstedt either. He wrote:

“I have concluded that, in general, there is no case for radically altering current health and safety legislation…There is a view across the board that the existing regulatory requirements are broadly right”.

Ministers said in response that they supported the recommendations of the review, but what they are doing is different. They are trying to shift the balance, even though they have been unable to find evidence to support them. I take the Secretary of State’s point—he is not responsible for this—but in an interview last month Professor Löfstedt described what is happening as ideology in place of evidence-based policy, and safety at work is at risk as a result. I want to highlight in particular the Government’s removal of civil liability for employers breaching health and safety law in the Enterprise and Regulatory Reform Act 2013, which Professor Löfstedt picked out in his report one year afterwards. Given all this, there is now growing concern that health and safety is being put at risk.

My hon. Friend the Member for Linlithgow and East Falkirk (Michael Connarty) highlighted employment rights and the case of INEOS in his constituency. The qualification period for protection against unfair dismissal has been doubled, from one year to two, and fees introduced for employment tribunals. The Government went so far as to consult on the proposal for no-fault dismissal made by Mr Adrian Beecroft in his infamous report. If that had been implemented, it would have allowed employers to fire people at will.

As my hon. Friend the Member for Streatham (Mr Umunna) pointed out at the start of the debate, the minimum wage has fallen by 5% in real terms since the election. The Chancellor has hinted that he plans to do something about that for next year—better late than never; let us hope he delivers—but he should look at enforcement as well. An estimated 300,000 people are paid less than the minimum wage, but there have been just two prosecutions in four years. The Secretary of State said that enforcement had been sorted out, but where is the evidence? Since 2010, Ministers have announced three times that they will name and shame firms that flout the national minimum wage, but so far nobody has been named or shamed. We need much more effective enforcement, including by giving powers to local authorities.

My hon. Friend the Member for Edinburgh East (Sheila Gilmore) highlighted the explosion in zero-hours contracts. The Resolution Foundation has found that average pay on them is 40% less than on regular contracts. My hon. Friend the Member for Paisley and Renfrewshire North (Jim Sheridan) gave us a graphic example from his constituency of the reality of being on such a contract. We need a serious effort from Government to promote the living wage. My hon. Friend the Member for Dumfries and Galloway (Mr Brown) argued for “make work pay” contracts, whereby firms signing up to the living wage under our proposal in the first year of the next Parliament would get a tax rebate in that year of up to £1,000 for every low-paid worker who gets a pay rise, the Exchequer cost being entirely covered by increased tax and national insurance revenue.

Step by step, we are setting out how we will deal with the problems this Government’s policies will leave behind— growing insecurity and a big squeeze on family incomes in the middle and elsewhere. What we are proposing is practical, effective action to tackle job insecurity, make workplaces safer, improve pay, particularly for the low paid, and make the cost of living more manageable. We want to build a one nation economy, and the sooner the better.

Welfare Reform Bill

Debate between Stephen Timms and Andrew Percy

Tuesday 21st February 2012 Commons Chamber

[Stephen Timms]

The hon. Gentleman should reflect on the fact that, as I have described, the costs will be greater in a number of ways with the Government’s provisions in place than they would be if the Lords amendments were retained.

Before I leave the topic of discretionary housing payments, it is worth my noting how the extra £30 million has been found. Initially, the average penalty for under-occupying by one bedroom was going to be £11 a week, and now the Government have increased it to £12 a week. They have increased the penalty for everybody affected in order to scrape together the extra cash to increase discretionary payments.

The last time this policy was debated, we offered an effective alternative whereby a tenant would have their benefit cut as a penalty if they refused a suitable move. Unfortunately, Government Members threw it out. The Lords amendments would limit that safeguard to the four groups that I have mentioned—the sick, the disabled, war widows and foster carers.

Ministers have said that their policy will be a work incentive, but the support group comprises people who are not in a position to work. A work incentive will do them no good at all. Let us call a spade a spade: this is a spiteful cut in people’s income. Foster carers provide a service that saves the Exchequer billions. The Fostering Network has warned that people will be forced by the penalty to give up fostering, which will increase costs to the Exchequer. War widows and widowers have seen their loved ones die for their country. Their grieving barely over, they will be fined under the Government’s policy because they have one bedroom too many. I ask whether that is really what Government Members came into the House to do to their constituents. The Government’s policy, without the Lords amendments, will penalise everybody regardless of whether they could move.

Fourteen Government Members joined us in voting for the relevant Lords amendment last time. I thank them for that, and their constituents will do so as well, even if their Whips will not. As we were not successful, social landlords will have to take on extra staff to chase the resulting arrears that will start to accrue in every social landlord’s stock across the country. The current Lords amendments are much more modest than the previous ones, but they would at least protect those who stand to lose the most from what the Government want to do. I hope that hon. Members will support the Lords amendments and oppose the Minister’s motion.

[Andrew Percy (Brigg and Goole) (Con)]

When I spoke during our last consideration of the Lords amendments to the Bill, I expressed concerns about this policy, particularly about the changes to child maintenance payments. I am pleased that there has been some movement on that front, but I find myself once again in support of their lordships. I am sorry about that, because the ministerial team is one of my favourites. I will not tell you which is my least favourite, Mr Speaker, but people can guess.