Angela Rayner has promised to give low-paid workers including carers a wage boost of up to £600 a year or more under Labour’s new package of employment law.
The Government has been forced to admit that the new law could cost businesses billions and have only a “small” impact on economic growth.
But the Deputy Prime Minister insisted it would help firms grow, praising “enlightened companies” which support the legislation and promising to boost pay by reducing the instability faced by many workers.
The Employment Rights Bill which was due to be voted on by the House of Commons late last night repeals curbs on trade unions, introduces limits to zero-hours contracts and gives workers a full set of protections from the start of their employment rather than having to wait for two years.
Writing for i, Ms Rayner said: “Having started my working life as a carer on casual terms, not knowing if there’d be a pay cheque next month, that fear stuck with me – of not being able to provide for my young family; losing everything.
“My fight to support others out of insecurity into stability and restore respect is deeply personal. I know how it feels, and I’ve been there. Now I am at the Cabinet table, I am determined to deliver for the millions of people in the position I was once in.”
She added: “Around 2.4 million people in the UK are in irregular work – on zero hours or low hours contracts for example, or who do agency work. Some of them are carers, like I used to be.
“I remember us having to fork out for expensive childcare and taxis at the last minute to make a last-minute shift – or losing out on desperately-needed pay altogether when the work was snatched away.
“For these workers, our strengthened basic protections – including guaranteed hours and reasonable notice, and being paid when shifts are changed or cancelled at short notice – will be life-changing. The Living Wage Foundation suggest this could be a boost of up to £600 a year.”
The calculations by the Living Wage Foundation are based on a poll of shift workers who said they had faced higher costs such as out-of-hours childcare, as well as losing out when their shifts were cancelled at short notice.
In a previously unpublished impact assessment, the Department for Business and Trade said that employers would face additional burdens as a result of the bill and that small businesses would be the worst affected.
It concluded: “Costs will be proportionately higher for small and micro businesses due to the fixed costs of admin and compliance burdens. For business who rely on flexible contracts or low-paid employment these changes could be more disruptive, at least in the short run.”
The department predicted “a direct and positive impact on economic growth” but added that it was likely to be “small”.
The Conservatives have warned that the new legislation will make it harder to companies to grow and lead to higher unemployment.
But some in Labour and the trade unions want Ms Rayner to go further, for example by giving workers the “right to switch off” so they do not have to be respond when their employers contact them out of hours.
Andy McDonald, an MP on Labour’s left, said: “These measures should pave the way for further changes in future to balance up the interests of employees and unions, including on a single status of employment, on union recognition, and on collective bargaining.”
‘My fight to support others out of insecurity is deeply personal – I’ve been there’
By Angela Rayner
Days like this are why I came into politics.
Having started my working life as a carer on casual terms, not knowing if there’d be a pay cheque next month, that fear stuck with me – of not being able to provide for my young family; losing everything.
My fight to support others out of insecurity into stability and restore respect is deeply personal. I know how it feels, and I’ve been there.
Now I am at the Cabinet table, I am determined to deliver for the millions of people in the position I was once in.
The Tories left behind a battered economy, riddled with insecurity and blighted by low pay. Too many have been waiting too long for change. This Labour Government promised the biggest overhaul of rights at work for a generation for millions of workers.
And thanks to our new Employment Rights Bill, more than 10 million people all around the country can look forward to stronger protections, and extra cash in their pockets – up to £600 for some of the lowest paid.
Even better: what works for employees works for Great Britain plc.
Our pro-employee bill is also pro-business and pro-growth, and gives British workers a well deserved uplift in their wage – making them better off, and better equipped to deal with the terrible financial situation we inherited.
And of course, this won’t come as a surprise to many enlightened companies that operate in our modern economy.
They already know that there is a direct link between empowering employees and treating them well, retaining talent and seizing opportunities to grow.
And that’s true of both big and small companies, from Sainsbury’s and the Co-op down to family-owned firms.
Since we unveiled our proposals less than a fortnight ago, I’ve had them come to me and say: “We’re doing this, Angela – in fact, we’re doing even more to look after our people.”
But those are the ones with a record to be proud of.
We need to make sure all companies are on board.
And we also need to look after some of the most vulnerable – and lowest paid – in society better than we do under the current system.
It’s why the Bill will protect nearly 9 million people against unfair dismissal from Day One.
It’s why up to 2 million will be entitled to bereavement leave and 1.7 million will benefit from new policies on flexible working.
Why thousands of pregnant women and mothers will have new maternity protections, as will thousands of fathers and their partners benefit for the first time from paternity leave.
And why we are looking after the working poor – the lowest-paid people, living in some of the most deprived areas of the country, who also do the least secure jobs.
I care about everyone who will benefit from this Bill. But this is particularly personal.
I know of too many people who are having to go to food banks even when they are in a job.
Around 2.4 million people in the UK are in irregular work – on zero hours or low hours contracts for example, or who do agency work. Some of them are carers, like I used to be.
I remember us having to fork out for expensive childcare and taxis at the last minute to make a last-minute shift – or losing out on desperately-needed pay altogether when the work was snatched away.
For these workers, our strengthened basic protections – including guaranteed hours and reasonable notice, and being paid when shifts are changed or cancelled at short notice – will be life-changing.
The Living Wage Foundation suggest this could be a boost of up to £600 a year.
But it’s not just about having more money in their pocket – invaluable though that is.
It’s also about having a sense of pride and self-worth – and being able to plan for the future. And that is priceless.
We all remember how the Equal Pay Act changed our country.
How the national minimum wage changed our country.
This is a Labour government back in the service of working people, building an economy fit for the future and making work pay.
So, if you are in casual work, unable to rely on guaranteed hours – this is a government delivering for you.
If you are working hard on low pay and struggling to make ends meet – this is a government delivering for you.
The Tories bestowed us a world of work in dire need of an upgrade. Now as we turn the page on outdated working practices, it’s time for our pro-growth Employment Rights Bill to change our country – for good.