Work Foundation sets out tests ahead of the Queen’s Speech
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In December 2019, Boris Johnson and the Conservative Party swept back to power with an 80-seat majority and the highest percentage of the vote since 1979.
Two and half years later, following the impact of the Covid-19 pandemic and in the midst of a cost of living crisis, the UK Government will lay out its priorities for the next year in the Queen’s Speech on 10 May. This is perhaps the last opportunity for the Government to set-out a substantial legislative agenda to achieve its manifesto pledges before a likely General Election in 2024.
The Government faces an increasingly difficult task in delivering its manifesto commitments such as funding for the NHS and delivering Net Zero by 2050, while tackling the largest fall in UK living standards since the 1950s as inflation outpaces wage growth. In March 2022, the Office for National Statistics reported that 87% of adults saw cost of living rise last month and 34% of adults living in deprived areas reported it was difficult to pay usual household bills.
Against this backdrop, we would hope to see some short-term measures to support working families through the cost of living crisis such as uprating Universal Credit in line with inflation alongside longer-term interventions to improve work in the UK. The Work Foundation has set out three key tests for the Queen’s Speech to help judge whether the long-term policies and measures announced are likely make working lives better.
1. Has the UK Government provided security to low-paid and insecure workers?
In the first Queen’s Speech after winning the General Election 2019, the Government committed introduce an Employment Bill which would, “Build on existing employment law with measures that protect those in low-paid work” and include establishing a new single enforcement body for employment rights. However, despite the continued expansion of platform and other non-traditional models of work in recent years, this Bill has failed to materialise.
Government sources have stated that the pandemic has delayed the Bill and it will be introduced "when the time is right". However, the Covid-19 pandemic has hit those in low income and insecure jobs the hardest, and the current cost of living crisis will significantly increase the risk that vulnerable workers find themselves open to exploitation as they look for additional work to make ends meet.
The recent outrage at P&O Ferries sacking 800 members of staff and replacing them with cheaper agency workers, who are reported to being paid under the minimum wage, has only highlighted the urgent need for further Government legislation to tackle abuse within the labour market.
In the eventuality that an Employment Bill does not feature, there are a range of other proposals that the Government should look to introduce to strengthen worker protections and improve working lives across the UK, including:
- Increase minimum wage enforcement powers to ensure all workers receive their basic employment rights: Pre-pandemic data shows that 420,000 employees were paid less than the national minimum wage, and two million workers missed out on holiday pay.
- The right to request flexible working from day one: The Government committed to consult on making flexible working the default in their 2019 Manifesto, and launched a consultation in 2021.
- Reforming Statutory Sick Pay (SSP): The pandemic has put the spotlight on current SSP not adequately supporting workers, with the CIPD finding that 5.6 million (17.2%) do qualify for it and 62% of employers think the sick pay rate needs to rise.
2. Are there proposals for how Levelling-Up will be measured, funded and delivered to meet 2030 ambition?
The UK Government released their flagship Levelling-Up the United Kingdom White Paper in February 2022, with a focus on twelve key missions and target metrics to be achieved by 2030. The first mission is to boost productivity, pay, jobs and living standards by growing the private sector, especially in those places where they are lagging.
The proposals have widely been welcomed, however, there has been criticism about the lack of funding attached to the plans. Sources within Government have suggested a new Levelling-Up and Regeneration Bill will be introduced to focus on rejuvenating high streets through forcing landlords to rent out empty retail units and shops.
However, in order to get anywhere near the 2030 ambitions, we rapidly need to see clear and funded proposals for driving up productivity, pay, jobs and living standards, and tackling ingrained issues around health and well-being places where it is weakest.
3. Have proposals been put forward to ensure those who would benefit most from upskilling can access training and development?
High-quality skills provision is a key part of a Levelling-up mission to spread opportunities, with the Government aiming for 200,000 more people a year to complete skills training in England. Previous Work Foundation research has found that being on lower pay, having caring responsibilities and having time pressures can make it more difficult for people to access training.
The barriers are even greater for those receiving benefits, with many people who are unemployed or working on low pay being required to spend up to 35 hours a week looking for new jobs. This means they cannot take part in training that might allow them to get a better-paid role.
To tackle this issue, we will need to see new proposals to allow people on Universal Credit more time to study, with access to tailored careers advice and training that might unlock better job opportunities and improve their working lives.
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