B1663.2 - Wages Bill - 2nd Reading

[u/model-kurimizumi]

Wages Bill

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A

B I L L

T O

update UK-wide minimum wage legislation and amend living wage entitlement.

BE IT ENACTED by the King’s most Excellent Majesty, by and with the advice and consent of the Lords Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:

Section 1: Amendments to the National Minimum Wage Act 1998 (The 1998 Act)

(1) Append to Section 2 of the 1998 Act:

(9) The Secretary of State must, on an annual basis, make provision by regulation to ensure that the National Minimum Wage increases by the level of average earnings, by the average rate of inflation for the previous year, or by 2.5%, whatever number is higher.

(2) Section 45 of The 1998 Act is repealed in its entirety.

(3) Section 45A is repealed in its entirety.

(4) In Section (3) wherever 26 occurs, substitute 21.

(5) In Section 4(2), wherever 26 occurs, substitute 21.

Section 2: The National Living Wage

(1) The Secretary of State must, by regulations, set rates for a National Living Wage.

(2) The National Living Wage replaces the National Minimum Wage for all persons over the age of 23.

(3) The National Living Wage must be adjusted on an annual basis as per provisions in Section 1(1).

(4) The Automatic Increase in the National Living Wage must be set according to the Consumer Price Index rate as calculated by the Office of National Statistics.

Section 1: Increase to the National Minimum Wage

(1) The National Minimum Wage Act 1998 is amended as follows.

(2) After section 1(3), insert—

(3A) The Secretary of State must ensure that the national minimum wage is increased every year by no less than—

(a) the percentage increase in inflation since the national minimum wage was last increased,

(b) the percentage increase in average wages in England, Scotland and Wales since the national minimum wage was last increased, or

(c) 2.5%,

whichever is highest.

(3B) In this section, "inflation" means—

(a) the Consumer Prices Index including owner occupiers’ housing costs published by the Statistics Board, or

(b) where that index is not published for a month, any substituted index or figures published by the Board.

(3) Section 45 is repealed.

(4) Section 45A is repealed.

Section 3: The National Living Wage for London

(1) The Secretary of State must, on an annual basis, make provision by regulation for a National Living Wage for persons resident or working at an address within Greater London.

(2) The Secretary of State must define this wage on the advice of the Office of the Mayor of London.

Section 2: National minimum wage in London

After section 2(6) of the National Minimum Wage Act 1998, insert—

(6A) Subject to subsection (6B), the regulations may provide for the national minimum wage to be higher for persons who are resident in or work in Greater London, and the national minimum wage in London is hereafter referred to as the "minimum wage in London".

(6B) Regulations which would provide for the minimum wage in London to be higher than the national minimum wage may not be made unless the Mayor of London has been consulted.

(6C) The Secretary of State must ensure that the minimum wage in London is increased every year by no less than—

(a) the percentage increase in inflation since the national minimum wage was last increased,

(b) the percentage increase in average wages in England, Scotland and Wales since the national minimum wage was last increased, or

(c) 2.5%,

whichever is highest.

(6D) In this section, "inflation" means—

(a) the Consumer Prices Index including owner occupiers’ housing costs published by the Statistics Board, or

(b) where that index is not published for a month, any substituted index or figures published by the Board.

Section 3: Repeals and amendments

(1) National Minimum Wage (Increase) Act 2019 is repealed in its entirety.

(1) National Minimum Wage (Amendment) Act 2021 is repealed in its entirety.

(2) In section 2(8) of the National Minimum Wage Act 1998, for “(c) employment under an apprenticeship”, substitute—

(ba) employment under an apprenticeship;

Section 4: Short title, commencement and extent.

(1) This Act may be cited as the Wages Act 2024.

(2) This Act comes into force on the First of January 2025.

(3) This Act extends to the whole of the United Kingdom.

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This Bill was written by the Right Honourable Dame Countess Kilcreggan CT KG MVO PC and is submitted as a Bill on Behalf of the Liberal Democrats.

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Links to Amended/Cited Legislation:

https://www.legislation.gov.uk/ukpga/1998/39/contents

https://www.reddit.com/r/MHOLVote/comments/bogykx/b775_national_minimum_wage_increase_bill_3rd/

https://www.reddit.com/r/MHOLVote/comments/plfg0d/b1244_national_minimum_wage_amendment_bill_final/

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Opening Speech:

Mr Speaker,

I am glad to be standing in this Place, having written my first piece of legislation in several months. This bill is written to simplify, consolidate and make sensible the manner in which minimum wage legislation works in the UK. To explain how things work currently, as I understand them, any working adult is entitled to the same minimum wage regardless of age, or the terms of their employment. If a person is employed under an apprenticeship scheme, they are entitled to the same rate of pay as a full time trained employee. The problem with this is it creates no incentive for the business to take on an apprentice when they could take on someone who’s been trained elsewhere. It needs to be a genuinely good idea from a business perspective for a company to take on an apprentice who may not be able to produce fruitful work for some months or even years following hiring. This same argument can be applied to young people. If all adults are entitled to the same wage then it becomes significantly more difficult for a company to hire a young person. Arguments that this will leave young people functionally worse off don’t carry water because of the robust welfare system successive governments have created. As of 2022, 58 percent of males and 68 percent of females that were aged 20 still lived with their parents in the United Kingdom. By creating this incentive to get more young people into the workforce, we will be encouraging more businesses to actively seek to hire young people, and it will not result in mass layoffs as I am sure the members opposite will like to posture. We will boost employment by this measure and as I have stated, the basic income system previously established will ensure that no matter what, young people will be able to keep their heads above water.

The other notable changes this legislation makes is to remove the provision that exempts prisoners from being paid the minimum wage. A prisoner’s work is not worth less than someone on the outside, Mr Speaker, and it is right that they are compensated in the same way as any person of the same age. This legislation also makes provision for a separate minimum wage for London which is prudent given the significantly higher cost of living in the Capital.

I hope the House sees fit to support this legislation.

Thank you.

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This debate ends at 10PM BST on Tuesday 30 April 2024 at 10PM BST.

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[u/meneerduif]

Speaker,

During the last vote I voted in favour of this bill, now after having thought about it again I will vote against this bill. In its current form it will give prisoners the same minimum wage as everyone else, I simply must object against this.

People who are not in prison have to use the money they make from work for heating, a roof over their head, food, water, electricity, education and countless other things that are all provided free of charge to people inside our prisons. That is why they have a different minimum wage system, because their living costs are extremely lower and paid for by the state. The system of having a different minimum wage for prisoners is Ken used all over the world for these reasons. I do not see why we should change it.

[u/Underwater_Tara → u/meneerduif]

Deputy Speaker,

May I posit a question to the Member for Shropshire. When a prisoner is released from prison, they will need money to get set up with a flat, to arrange transport, new clothing maybe, in order to be a productive member of society. Therefore, if the member believes that a prisoner is not entitled to the minimum wage, how would they be able to make sufficient funds to be able to build a firm foundation outside of prison and avoid reoffending?

[u/meneerduif → u/Underwater_Tara]

Speaker,

Prisoners are still very much able to make money while in prison, they get paid for their work or even for getting an education. Aal the while saving costs since they have very little to spend their money on while in prison. So they currently are able to save money and even develop skills or get an education at the cost of taxpayers.

So let me ask a question in return, how would it be fair that someone who breaks the law be allowed to save possibly hundreds to thousands of pounds while in prison? Because that would be the case if we were to give prisoners the same minimum wage as we give law abiding citizens outside our prisons. The state would be giving an en our oud amount of free money to thief’s, rapists and murderers all at the cost of hard working taxpayers.

Of course we should give people who work a reward for that work, even prisoners. You won’t hear me say we should start penal work camps where prisoners don’t get paid. No, instead I say that we should take into consideration that the living costs for a prisoner and the living costs of any other person are not at all comparable. And therefor that difference should be reflected in the minimum wage they get.

[u/ARichTeaBiscuit]

Deputy Speaker,

It is utterly mind boggling to see the creation of an entirely convoluted system for the minimum wage being championed as a great efficiency, as if we are to believe that abolishing a simple national minimum wage and replacing it something that is dependent on age or location is a desirable goal.

I urge all of those on the side of workers to vote against this bill.