Tag Archives: National minimum wage

Manifesto 2015: how does Labour measure up?

In the second of our series of Workflex posts assessing the likely manifesto pledges of the main political parties, Richard Dunstan looks at how Labour Party policy measures up against our own ‘Families & Work’ manifesto for May 2015.

On the eve of its conference in Manchester, Labour released the annual report of its National Policy Forum (NPF), which oversees the development of party policy. At 218 pages, the report is almost three times as long as the Liberal Democrats’ pre-manifesto. And, with most of those pages consisting entirely of densely typed text, it’s a tome that is unlikely to be read cover-to-cover by anyone other than hard-core party members. But having been agreed by delegates in Manchester, the document now forms Labour’s “official policy programme”. So how does this programme measure up?

Time and equality

While there is disappointingly little mention of fathers – and certainly nothing to match the Liberal Democrats’ headline promise of six weeks’ statutory paternity leave – the NPF report rightly notes that the right to request flexible working has been weakened by abolition of the statutory procedure.” It pledges “Labour will support flexible working for parents, and will consider how best to support grandparents who need to fit the care of their grandchildren around their working hours.”

Labour will also “examine ways to improve support for those who are bereaved, including how flexible working rules can be used to support them.” However, the report is silent on whether Labour will continue with, tweak, or ditch the right to shared parental leave (SPL), which will have come into force just one month before the next government takes office. In our ‘Families & Work’ manifesto, we call for reform of SPL so as to simplify the legal framework, open eligibility to all fathers from Day One of their employment, and enable SPL to be taken on a part-time basis.

There is welcome recognition of the proliferation of pregnancy and maternity discrimination in UK workplaces in recent years, and a pledge to “close legal loopholes which allow pregnancy discrimination.”  More broadly, there is a “commitment to ensuring that all workers are properly protected in the workplace” and to “acting to end unfair practices and abuses in the labour market.” However, the NPF report does not explain how “increased protection for agency workers” will be enforced by an employment agencies inspectorate that, since 2010, has been reduced to a rump of just three staff.

But it is one of the few more specific policy pledges that is also the most significant. Noting that the hefty, upfront employment tribunal fees introduced in July 2013 have “resulted in prohibitive costs locking people out of justice they are entitled to”, the NPF report commits Labour to abolishing the fees regime and replacing it with “a system where affordability will not be a barrier to justice”. This would be a very welcome move, as restoring access to the tribunal system is essential to tackling pregnancy and other discrimination in the workplace, and to underpinning the newly-extended right to request flexible working.

Money

One of the few policy announcements in Manchester to grab headlines was leader Ed Miliband’s pledge to raise the National Minimum Wage (NMW) rate to £8.00 per hour “by 2020”, which in practice means from 1 October 2019. This put flesh on the bone of the NPF report’s commitment to giving the Low Pay Commission a “new framework” with a “strengthened role in tackling in-work poverty,” and a “five year target” for increasing the NMW rate “so that it gets closer to average earnings.” The proposed hourly rate of £8.00 from October 2019 would raise the NMW from 54 to 58 per cent of the median wage, but still leave it some way short of 66 per cent, the standard definition of ‘low pay’.

Interestingly, the NPF report also states that HMRC’s role in enforcing the NMW “should be expanded to include non-payment of holiday pay” and that Labour “will also consider expanding enforcement to include non-payment of statutory sick pay and statutory maternity, paternity and adoption pay.” That would be very welcome.

Disappointingly, there is no commitment to addressing the ludicrously low rate at which statutory maternity, paternity and adoption leave are currently paid. In our ‘Families & Work’ manifesto, we call for restoration of the real value of such pay, lost as a result of the one per cent cap on annual uprating since April 2013, and a programme of annual, real-terms increases to bring parity with the NMW within ten years.

On Universal Credit, the NPF report promises “a full review” and, if it goes ahead, “major changes [to] ensure the system makes work pay for both first and second earners … and is easy to access.”  This would be welcome.  In our ‘Families & Work’ manifesto, we suggest the potential of Universal Credit to ensure that work really does pay could be enhanced by (a) introducing a work allowance for second earners, and (b) strengthening safeguards to prevent parents being pushed into family-unfriendly jobs by the threat of sanctions.

Childcare

The NPF report reiterates Labour’s previously announced policy of “extending free childcare for three and four year olds from 15 to 25 hours per week for working parents, paid for by an increase in the bank levy”, together with “access to ‘wraparound’ childcare from 8am to 6pm” for parents of primary school children, through their local school. The report states this will “benefit those families that most require childcare support and currently struggle to find good quality before-and-after school care.”

Clearly, any increase in the provision of free childcare is welcome. But, as with the Liberal Democrats’ pre-manifesto, Labour’s offer falls a long way short of the “national strategy on childcare, aimed at delivering universal access to good quality, affordable childcare within ten years” that we call for in our ‘Families & Work’ manifesto.  And again it is disappointing to find no specific pledge to address the harsh childcare crunch faced by parents of disabled children – the subject of a recent parliamentary inquiry.

[The next post in this series will look at how the Conservative Party’s policies measure up against our ‘Families & Work’ manifesto]

 

 

 

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The Living Wage: key to improving work-life balance

In this guest post, Guy Stallard, Head of Facilities at KPMG UK, argues that a living wage is key to improving work-life balance.

The Living Wage is being discussed widely by politicians, which is unsurprising as recent KPMG research showed that 5.2 million people in the UK are paid below the Living Wage rate, and there are wider concerns from the public about the rising costs of living. The view from many politicians across the political spectrum is that the Minimum Wage at its current level is insufficient. There are a growing number of employers, now over 700, who have voluntary accredited themselves for paying the Living Wage, including almost 10 per cent of the FTSE 100. Accredited businesses are finding that the productivity and flexibility of staff is improved for those paid the Living Wage, and in light of this I want to highlight just how the Living Wage improves the work-life balance of employees as well.

Individuals who only earn the Minimum Wage are likely to be working multiple jobs or excessive hours just to provide a basic standard of living for their families. Those who receive the Living Wage have personal stories on how it changed their lives – such as housing conditions, time spent with families, or the challenge of providing adequate food and shelter.

I recall vividly, the testimony from one individual who now receives the Living Wage, that getting to work used to mean a four-hour bus journey and now means a one hour tube ride. According to a recent BBC report, earning minimum pay means some workers are unable to afford nutritious food or are forced to rely on food banks to feed themselves and their families. These daily struggles are hard for some to imagine but are very much a reality for many people working in the UK.

The Living Wage also helps individuals to gain a better work-life balance. At the launch of the new Living Wage rate last November, Lacey, a worker paid the Living Wage explained that it meant she and her child could finally move out of her parent’s home and live independently as a family unit. The small things that meant a lot to her were the ability to take her son to karate and football lessons. A catering worker in London told me that before moving to a Living Wage job they used to be on the Minimum Wage, having to work weekends which, “no longer allowed me to survive without working my body to the brink”.

Another worker giving testimony in the North West recently said that the Living Wage allows him to work confidently as a father and provider. It means not relying on friends for support, loans and food banks and gave him pride in being able to feed his own family. In another example, Amin, a worker from London who previously worked two jobs, explained that it wasn’t just him who benefited from receiving the Living Wage. Amin was able to prioritise the one job, spend more time with his family, and set up a youth group in his community – showing that the benefits spread wider than the individual.

The Living Wage is not a one-stop solution to finding the best work-life balance, but it has certainly helped tens of thousands of people to earn enough in a full-time role to maintain an acceptable yet modest standard of living. Compelling evidence shows that those working for less than the Living Wage are overstretched, and unable to spend time with the families they work to provide for. Being able to strike a work-life balance not only allows them to focus at work, with increased productivity and commitment, but allows quality time with their family and community.

Everyone who supports employees being able to live in a socially acceptable manner should applaud the organisations which are accredited Living Wage employers and support more firms to make the change, which will benefit individuals, their communities and the UK overall.

Guy Stallard is Head of Facilities for KPMG UK, responsible for services into the offices, and has a team of over 700 in-house and outsourced staff. Guy is a member of KPMG UK’s Corporate Responsibility Leadership Committee where there is a strategic focus on social mobility, the environment, and promotion of the Living Wage. Since KPMG became a living wage employer in 2006, Guy has worked within and outside of the organisation to promote the Living Wage and share his experiences of implementation. Guy also represents business as a commissioner on the Living Wage Commission, which is led by the Archbishop of York.

One year to go: a ‘families and work’ manifesto for May 2015

By Richard Dunstan, Policy & Parliamentary Campaigns Officer

Previously on this blog, we set out a draft ‘families & work’ manifesto for the General Election in May 2015, with 14 specific policy proposals grouped under four headings: time; equality; money; and childcare infrastructure.  Using feedback on that draft from a wide range of partners, we have now honed the manifesto down to eight key policy proposals.

These eight proposals have been selected as being emblematic of what we believe should be the broader thrust of policy in these four areas. And each offers an opportunity for the political parties to demonstrate a practical commitment to our vision of work that actually works for all families and all employers – whatever their size and shape.

There is now less than a year to go until the General Election in May 2015, and over the coming weeks we will be using this manifesto to engage policy makers in dialogue on these issues, and will be further refining the manifesto in the light of feedback. So please do tell us your views, either by posting a comment below, or by emailing me at: richard.dunstan@workingfamilies.org.uk

Time

Despite great progress in both the law and employer best practice, negative assumptions about flexible and family-friendly working persist. Reduced-hours working is still heavily gendered and all too often seen as a lack of commitment, with senior roles and flexible working wrongly held to be incompatible. There are key gaps in the legal framework for time off work in order to fulfil family responsibilities, especially at times of crisis. And there are simply too few good quality part-time or otherwise flexible jobs, putting single parents and parents of disabled children at particular disadvantage.

With an ageing population, we need to recognise and support the growing role of grandparents in family care, including by granting grandparents a leave entitlement similar to the existing right to unpaid parental leave. The law on employment status needs to be updated to ensure that workers on zero-hours contracts, agency workers and others all enjoy access to ‘family-friendly’ rights. And we need to greatly increase the supply of good quality, flexible jobs.

The government elected in 2015 should:

  1. Establish a new  right to a period of adjustment leave, to enable families to weather relatively short-term life crises such as the death, serious illness, or onset of disability of a partner, parent or child, or other major change in their caring responsibilities, without having to give up work.
  2. Adopt a flexible by default approach to job design and recruitment in the public sector, so that all jobs in central and local government are advertised on a flexible basis unless there is a specific, good business reason not to. Ministers should act and recruit business leaders as ‘flexible working’ champions, and should encourage private sector employers to adopt Working Families’ Happy to Talk Flexible Working strapline.

Equality at work and at home

Take-up of additional paternity leave beyond a short period at or shortly after the time of birth has been pitifully low.[i] And, whilst the rate at which it is paid remains so low, take-up by fathers of the new shared parental leave is also likely to be low. Yet it is vital that we get fathers more involved in caring for their children, to ensure gender equality in the home as well as at work, limit the time that very young children spend in non-parental care, and reduce childcare costs for families.

The evidence from other countries is that fathers take full advantage of paternity leave only when it is well paid, and is a stand-alone right. So we need to work towards longer, more flexible and better paid periods of dedicated leave for fathers.

To be meaningful, rights on paper need to be enforceable. To drive gender equality in the workplace and tackle the increasingly widespread discrimination around pregnancy and maternity leave, the hefty employment tribunal fees for claimants introduced in July 2013 must, at the very least, be reduced to a nominal level.[ii] And we need a clear statutory right to time-off and facilities for breastfeeding mothers upon return to work.

The government elected in 2015 should:

  1. Increase the current statutory entitlement to paid paternity leave, from two weeks to six weeks, with four of the six weeks available to be taken at any point during the child’s first year. This should be a Day One right and, like the first six weeks of statutory maternity leave, this leave should be paid at 90 per cent of earnings.
  2. Reform the new right to shared parental leave – due to come into force in April 2015 – so as to simplify the legal framework, open eligibility to all fathers from Day One of their employment, and enable statutory paid leave to be taken on a part-time basis.

Money

To achieve a good work-life balance, working parents need a flexible job that pays well enough to support a family. Yet Britain is suffering an increasingly entrenched crisis of low pay, which steals time from families and consumes vast subsidies by the State.

This challenge requires robust action. We need to see more employers adopting the Living Wage, and the government should take an active role in making this happen. The national minimum wage needs to be both increased and better enforced, which means more human and other resources for enforcement.  The design of Universal Credit needs to be further improved, to ensure work really does pay. And we need to start raising the astonishingly low level of statutory maternity and paternity pay – currently paid at just 60 per cent of the national minimum wage.

The government elected in 2015 should:

  1. Restore the real value of statutory maternity and paternity pay, lost as a result of the one per cent cap on annual uprating since April 2013, and set out a programme of annual, real terms increases so as to raise such pay to at least the level of the national minimum wage within ten years.
  2. Enhance the potential of Universal Credit to ensure that work really does pay for all working families, by (a) introducing a work allowance for second earners, and (b) strengthening safeguards to prevent parents being pushed into family-unfriendly jobs by the threat of sanctions.

Childcare infrastructure

Despite a series of welcome political initiatives and considerable public investment, our childcare system is still not fit for purpose, with demand outstripping the supply of affordable childcare. All too often, parental choice about whether or how many hours to work is constrained or even dictated by the local availability of affordable childcare. And the childcare crunch is particularly acute for single parents, those working atypical hours, parents of disabled children, and those living in rural areas.

We need to work towards a system that delivers good quality, affordable childcare to all working parents when they need it, whilst at the same time protecting and enhancing the well-being of our children. However, the challenge must be met not by children spending excessive time in costly childcare, but by more flexible working for parents and a better, more flexible supply of good quality, affordable childcare.

That amounts to a very significant challenge, which we believe will only be met when the issue of childcare is treated as one of economic and social infrastructure on a par with education and transport.

The government elected in 2015 should:

  1. Appoint a cabinet-level, cross-departmental minister for childcare. In recognition of the fact that good childcare infrastructure boosts economic activity as well as child development, this minister should be based in both the Department for Education and the Department for Business, Innovation & Skills. He or she should lead on developing a new national strategy on childcare, aimed at delivering universal access to good quality, affordable childcare within ten years.
  2. Appoint a minister with specific responsibility for urgently driving up the supply of good quality, affordable and appropriate childcare for disabled children. At present, only one in four local authorities report sufficiency of childcare for disabled children in their area.

Endnotes

[i] Official figures released by HM Revenue & Customs in April 2014 show that the employers of fewer than 3,900 fathers were reimbursed for statutory additional paternity leave in 2012/13. Hansard, House Commons, 3 April 2014, col. 746W.

[ii] The most recent figures made available by the Ministry of Justice show a dramatic fall in the number of employment tribunal claims by individual claimants, from an average of 4,530 per month prior to the introduction of claimant fees of up to £1,200 on 29 July 2013, to just 1,000 in September, 1,620 in October, 1,840 in November, and 1,500 in December.

Making work actually work for all: a ‘families & work’ manifesto for 2015

By Richard Dunstan, Policy & Parliamentary Campaigns Officer

With fewer than 400 days to go until the general election in May 2015, teams of strategists, number-crunchers and policy wonks in each of the main parties will be burning the midnight oil between now and the party conference season in September, when the party manifestos are likely to be finalised. And, to help them in their task, we at Working Families have come up with some key policy actions we believe the next government must take if work is actually to work for families – whatever their size and shape.

In recent decades, the world of work has changed enormously – in many ways for the better. But for all too many families, work simply isn’t working. Time-poor or cash-poor, or both, they struggle to achieve more than a barely tolerable work-life compromise. For them, the world of work has not changed anywhere near enough.

And for employers, the lack of flexibility in how we organise work brings very real costs in low productivity, lost skills and experience, and a reduced talent pool.

The next government needs to act to ensure that work actually works for all. Working parents, grandparents and carers need the twin currencies of time and money.  They need equality in the home, as well as at work. They need access to justice. And they need proper support with childcare.

So below we set out a draft ‘families & work’ manifesto for 2015, with 14 specific policy actions grouped under the headings of time, equality at work and at home, money, and childcare infrastructure. Over the next few weeks, we will be trying to pare these down to a handful of key policy calls – and we want your input!

Please take the time to read this draft manifesto, and either post a comment in the box below or get in touch with me at richard.dunstan@workingfamilies.org.uk  We are listening!

Time

Despite great progress in both the law and in employer best practice, negative assumptions about flexible and family-friendly working persist. Reduced-hours working is still heavily gendered and all too often seen as a lack of commitment, with senior roles and flexible working wrongly held to be incompatible. There are key gaps in the legal framework for time off work in order to fulfil family responsibilities, especially at times of crisis.  And there are simply too few good quality part-time or otherwise flexible jobs, putting single parents and parents of disabled children at particular disadvantage.

It is vital that we get fathers more involved in caring for their children, to ensure gender equality in the home as well as at work, limit the time that very young children spend in non-parental care, and reduce childcare costs for families. We need to recognise the growing role of grandparents. And we need to increase the supply of flexible jobs.

The government elected in 2015 should:

  1. Establish a new statutory right to a period of unpaid adjustment leave, to enable families to weather life crises such as the death, serious illness, or onset of disability of a partner, parent or child, or other major change in caring responsibilities, without having to give up work.
  2. Establish a new, statutory leave entitlement, similar to the existing right to unpaid parental leave, for grandparents.
  3. Adopt a flexible by default approach to job design and recruitment in the public sector, so that all jobs in central and local government are advertised on a flexible basis. Ministers should act and recruit business leaders as ‘flexible working’ champions, and encourage private sector employers to adopt Working Families’ Happy to Talk Flexible Working strapline.
  4. Reform the new right to Shared Parental Leave – due to come into force in April 2015 – so as to simplify the legal framework, open eligibility to all working fathers from Day One of their employment, enable leave to be taken on a part-time basis, and enable the sharing of leave with a close relative other than the child’s father.

Equality at work and at home

Take-up of paternity leave over the past decade has been pitifully low. And, whilst the rate at which it is paid remains so low, take-up by fathers of the new Shared Parental Leave is also likely to be low. The evidence from other countries is that fathers take full advantage of paternity leave only when it is well paid, and is a stand-alone right. To ensure equality in the home, we need to work towards longer, more flexible and better paid periods of dedicated leave for fathers.

To be meaningful, rights on paper need to be enforceable. Yet access to justice in relation to workplace rights – including the right not to be unfairly dismissed – has been seriously eroded in recent years. To drive gender equality in the workplace, and tackle the widespread discrimination around pregnancy and maternity leave, this must be remedied.

The government elected in 2015 should:

  1. Increase the current statutory entitlement to paid paternity leave, from two weeks to six weeks, with four weeks available to be taken at any point during the child’s first year. This should be a Day One right and, like the first six weeks of statutory maternity leave, this leave should be paid at 90 per cent of earnings.
  2. Reform the hefty, upfront fees for employment tribunal claimants introduced in July 2013, so as to reduce claimant fees to a nominal level.
  3. Undertake a review of the law on employment status, with a view to giving workers on zero-hours contracts, agency workers, freelancers, and home-workers  access to the same set of ‘family-friendly’ rights as other employees, as well as effective legal protection against unfair dismissal.
  4. Introduce a statutory right to time-off and facilities for breastfeeding mothers upon return to work, and clear legal protection against discrimination.

Money

To achieve a good work-life balance, working parents need a flexible job that pays well enough to support a family. They need the twin currencies of time and money. Yet Britain is suffering a crisis of low pay, which steals time from families and their children.

This crisis requires robust action. We need to see more employers adopting the Living Wage, and the government should take an active role in making this happen. The national minimum wage needs to be both substantially increased and better enforced, which means more human and other resources for enforcement.  And we need to start raising statutory maternity and paternity pay – currently paid at a shockingly low 60 per cent of the national minimum wage – towards wage-replacement levels. For with better and more equal pay will come better and more equal parenting.

The government elected in 2015 should:

  1. Immediately restore the real value of statutory maternity and paternity pay, lost as a result of the one per cent cap on annual uprating since April 2013, and set out a programme of annual real terms increases so as to raise such pay to at least the level of the national minimum wage within ten years.
  2. Rapidly raise the national minimum wage rate towards 60 per cent of median wages, and introduce a London supplement.
  3. Reform the work allowances in Universal Credit, to allow families to earn more before they have their support withdrawn.

Childcare infrastructure

Our childcare ‘system’ is simply not fit for purpose, with demand far outstripping the local supply of affordable childcare. And the childcare crunch is particularly acute for single parents, those working atypical hours, and parents of disabled children.

We need to work towards a system that delivers good quality, affordable childcare to all working parents when they need it, whilst at the same time protecting and enhancing the well-being of our children. Our childcare crisis must not be solved by excessive time in non-parental care for children, but by more flexible working for parents and a better, more flexible supply of good quality, affordable childcare.

The government elected in 2015 should:

  1. Appoint a cabinet-level, cross-departmental minister for childcare. In recognition of the fact that childcare infrastructure facilitates economic activity, this minister should be based in both the Department for Education, and the Department for Business, Innovation & Skills.
  2. This minister should lead on developing a new national strategy on childcare, aimed at delivering universal access to good quality, affordable childcare within ten years.
  3. Appoint a minister with specific responsibility for urgently driving up the supply of good quality, affordable and appropriate childcare for disabled children.

 

1500 nappies: NCT reveals cost of the parent penalty

By Richard Dunstan, Policy & Parliamentary Campaigns Officer

A few weeks ago, this blog highlighted the ludicrously low level of statutory maternity and paternity pay, compared to the national minimum wage, the Living Wage, or average earnings.  Yet just how new parents are supposed to get by on less than 60 per cent of the minimum wage – at a time when their outgoings have gone through the roof – is not a question you are likely to have heard any politician address recently.

Well, today NCT has had a go at trying to change that, with a great little report – based on some number-crunching by think tank IPPR – demonstrating the detrimental impact on family incomes of the Government’s decision to limit the annual uprating of statutory maternity and paternity pay to one per cent, rather than the inflation rate, in each of the three financial years from April 2013.

As this neat NCT infographic shows, by 2015 parents will effectively lose out by £224 over their full period of parental leave.  And this ‘parent penalty’ could have paid for 1,500 nappies, a year’s supply of sleep suits, or two months’ energy bills.parentPenaltyInfoGraphic

Ahead of this week’s Budget, NCT is calling on the Government to “end this parent penalty and increase maternity and paternity pay in line with the cost of living”.

Hear hear to that.  However, as the Valuing Maternity campaign has highlighted, the ‘parent penalty’ actually extends well beyond the cap on the annual uprating of statutory maternity and paternity pay. The campaign notes that the abolition of some benefits – such as the £190 Health in Pregnancy grant – and real-terms reductions in others, including the freeze on Child Benefit, has cost women and their families up to £3,000 since 2010. (If you are pregnant or a new mother in work or on maternity leave, you can use the campaign’s Cutbacks Calculator to see just how much you’ve lost).

What’s more, in the words of employers surveyed by the Department for Business, Innovation & Skills (BIS), in a report published earlier this month, statutory maternity and paternity pay is simply not “a liveable wage”.  And it is “immoral and damaging to society to force new mothers back into work before they [are] ready”. Hear hear to that.

So, in our ‘families & work’ manifesto for 2015, we are likely to call for a series of annual, real-terms increases in the level of statutory maternity and paternity pay, so as to raise it, over time, to at least the national minimum wage.  Sure, that would carry a price tag. But seen as investment in Britain’s human capital – and, more specifically, in family health, child development, maternal employment, and gender equality – we believe it is a price well worth paying.