“Make Work Pay” Initiative
1/34. What assessment he has made of the potential impact of the “Make Work Pay” initiative on workers in Scotland.
Our plan for change will benefit workers in Scotland more than most. More than 100,000 workers in Scotland on zero-hours contracts could benefit from the Employment Rights Bill. The Bill will have significant benefits for workers in insecure and low-paid jobs, and central Scotland is one area where those workers will stand to benefit the most.
In 2023, the Low Pay Commission estimated that approximately 13,500 employees who lived in Glasgow were paid at or below the relevant minimum wage—4.8% of all employees living in the city. What assessment has the Minister made of the impact of the Government’s “Make Work Pay” initiative for those workers and others in Scotland?
The increase in the national minimum wage is delivering on our commitment from day one in government that work should always pay. Modernising the UK labour market, including through extra pay and secure jobs, is at the heart of rebuilding our economy and will help us to achieve our plan for long-term national renewal and growth. In addition to the more than 13,000 workers in Glasgow my hon. Friend mentioned, national minimum wage increases will benefit workers across Scotland, with more than 4,000 in Dundee, 4,400 in the highlands and 2,900 in the Scottish Borders set to benefit, to name just a few.
The Government’s Employment Rights Bill will increase costs on small and medium-sized enterprises by £5 billion a year. It will make it easier to strike, and easier for employees to sue their employers. Combined with the tax rises announced in the Budget, is it not inevitable that this Labour Government will increase unemployment?
The hon. Gentleman might not be aware that unemployment actually came down in Scotland this week. We promised that there would be no return to austerity, and workers’ payslips across Scotland were indeed protected in the Budget. More than half of employees will see either a cut or no change in their national insurance bill. The smallest businesses and charities are protected, and our decision to increase employer national insurance will raise more than £25 billion to help to rebuild Britain.