UK Parliament / Open data

Small Business, Enterprise and Employment Bill

My hon. Friend makes an important point. This is a basic issue of fairness as well as value for money for the taxpayer. That is why this important measure is part of the Bill. The measure will allow the Government, for instance, to require a high earner who received an exit payment to make arrangements to repay the compensation before they are allowed to take up new employment in the same sub- sector of the public sector. In addition, the amendments clarify that obligations can be placed on the public sector body responsible for the exit payment and the subsequent authority that re-engages the individual as an employee, contractor, or office holder. The amendments are in line with the Government response to the consultation on these measures, which was published on 28 October. I am sure all hon. Members will agree that these amendments are an important clarification, and I look forward to support for them.

Turning to the more substantive issues, I thank hon. Members for tabling the amendments in this group and for the constructive and positive debate we have had. The hon. Member for Hayes and Harlington (John McDonnell) was unable to stay, but I thought his contribution was particularly good when he said that if we could not accept the amendments we could respond to their spirit. I very much hope to be able to do so. I shall set out why I do not think the amendments should be accepted as drafted, but I recognise the genuine concern expressed by hon. Members and we share the commitment to tackle the issues. The debate is really about the best way of doing that. It may not be through legislation, but I will explain how the Government intend to tackle the genuine issues raised.

2.15 pm

Amendment 8 is designed to impose reporting requirements on the Government’s approach to national minimum wage compliance and enforcement, as well as the impact on wages more generally. There is already significant transparency through existing reporting arrangements, which I think are sufficient, so amendment 8 is unnecessary. Every autumn, the Government submit evidence to the independent Low Pay Commission, including an assessment of the impact of the national minimum wage on the labour market. That is followed by publication of our assessment of the latest hourly earnings figures and how these are impacted by the statutory wage floor. That evidence, together with views from employers and workers, is considered by the Low Pay Commission before it makes its recommendations to Government. Parliament then debates these findings and the Government’s response in advance of the new rates being introduced each October.

Amendment 8 is unnecessary because it duplicates the existing reporting requirements. It is not just the final evidence from the Government to the Low Pay Commission that is published, as the interim evidence is published, too. On two occasions every year, there is a written ministerial statement publishing this significant evidence, and it contains the information that is desired in amendment 8.

Type
Proceeding contribution
Reference
588 cc302-3 
Session
2014-15
Chamber / Committee
House of Commons chamber
Subjects
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