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Senior business leaders have welcomed discussions with Angela Rayner over proposals to improve workers’ rights as “positive”, but warned the “devil will be in the detail” of legislation due to be put before Parliament next month.

The deputy prime minister and business secretary, Jonathan Reynolds, met the bosses of major employers including John Lewis, Octopus, BT, McDonald’s and Sainsbury’s in Whitehall on Tuesday, at the start of a consultation over the new government’s plans.

Labour’s manifesto promised to overhaul employment rights, with measures including the right for all “zero hours” workers to be offered a contract in line with their normal hours, and the extension of full employment rights to all workers from day one.

The meeting comes amid concern among employers and business groups that a reduction in flexibility as employers could increase costs and hamper their ability to drive growth.

Several businesses present told Sky News the atmosphere was constructive and friendly, with the emphasis on Ms Rayner and Mr Reynolds explaining what they have planned, and listening to the concerns of employers.

Business leaders are understood to be concerned over how the phasing out of zero-hours contracts will be achieved. It’s a key issue in the hospitality and retail sectors which employ large numbers of younger and part-time workers.

Ministers have proposed that every worker must be offered a contract reflecting typical hours worked over a 12-week period, but there is concern that metric could lock employers into hours irrespective of seasonal fluctuations.

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Employers will argue for the hours to be calculated over a longer period to avoid distortions.

Businesses also argue that to extend the right from day one, they will need to impose longer probationary periods for new employees so they retain some flexibility.

Labour has promised to introduce legislation during its first 100 days in office, which gives them until 20 October, but are expected to continue consulting on measures beyond that date.

Ms Rayner and Mr Reynolds are understood not to have offered any specific timetable for changes they have billed as the biggest overhaul in a generation, but business leaders remain encouraged.

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One said: “None of what Labour is proposing comes as a surprise and we respect that they have a mandate, but the practical delivery will be complex and we can help with it.

“The feeling is this was a positive sign that the government understands the need to consult with business on the things that affect us. The devil will be in the detail, but this was a good first step.”

Another described the atmosphere as friendly and said it was clear the ministers want to be seen to be working with rather than against business.

Ahead of the meeting, Ms Rayner said: “This government is pro-worker and pro-business, and we are committed to working with our brilliant businesses across the country to create a stronger, growing economy and to raise living standards as a result.”

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Washington’s second-biggest city, Spokane, bans crypto ATMs

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Washington’s second-biggest city, Spokane, bans crypto ATMs

Washington’s second-biggest city, Spokane, bans crypto ATMs

Spokane City Council has banned crypto ATMs to curb rising scams, giving operators 60 days to remove machines amid concerns over fraud and vulnerable residents.

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Archetyp dark web market shut down, but ecosystem adapts: TRM Labs

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Archetyp dark web market shut down, but ecosystem adapts: TRM Labs

Archetyp dark web market shut down, but ecosystem adapts: TRM Labs

The Archetyp dark web market had over 600,000 users, a total transaction volume of at least $287 million and over 17,000 listings, mainly offering drugs for sale.

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Battle to convince MPs to back benefit cuts to more than three million households

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Battle to convince MPs to back benefit cuts to more than three million households

Plans for cuts to benefits which will impact more than three million households will be published today – as the government faces a battle to convince dozens of Labour MPs to back them.

Liz Kendall, the welfare secretary, has set out proposals to cut £5bn from the welfare budget – which she has said is “unsustainable” and “trapping people in welfare dependency”.

Disabled people claiming PIP, the personal independence payment which helps people – some of them working – with the increased costs of daily living, face having their awards reviewed from the end of next year.

An estimated 800,000 current and future PIP recipients will lose an average of £4,500 a year, according to a government assessment.

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Government’s battle over welfare reforms

The government also intends to freeze the health element of Universal Credit, claimed by more than two million people, at £97 a week during this parliament, and cut the rate to £50 for new claimants.

Under pressure from Labour MPs concerned particularly that changes to PIP will drive families into poverty, Ms Kendall will announce new protections in the bill today.

Sky News understands they include a 13-week transition period for those losing PIP; a higher rate of Universal Credit for people with the most serious conditions; and a commitment that disabled people who take a job will not immediately lose their benefits.

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Some 40 Labour MPs have signed a letter refusing to support the cuts; and dozens of others have concerns, including ministers.

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Benefits cuts explained

Ms Kendall is determined to press ahead, and has said the number of new PIP claimants has doubled since 2019 – at 34,000, up from 15,000.

Ministers say 90% of current claimants will not lose their benefits; and that many people will be better off – with the total welfare bill set to continue to rise over this parliament.

To keep the benefit, claimants must score a minimum of four points out of eight on one of the daily living criteria.

Ministers say claimants with the most serious conditions, who cannot work, will not face constant reassessments.

A £1bn programme is proposed, intended to give disabled people who can work tailored support to find jobs.

Some Labour MPs have angrily opposed the reforms – which will be voted on later this month.

Last night in a parliamentary debate, Labour MP for Poole Neil Duncan-Jordan disputed the Department for Work and Pensions (DWP) figures.

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He said: “We already know that PIP is an underclaimed benefit. The increase in claims is a symptom of declining public health and increased financial hardship disabled people are facing.

“We have the same proportion of people on working-age benefits as in 2015. This is not an economic necessity, it’s a political choice.”

Liz Kendall
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Liz Kendall

Rachael Maskell, Labour MP for York, called the proposals “devastating “. She said: “We must change direction and not proceed with these cuts.”

Disability groups say they fear an increase in suicides and mental health conditions.

The government’s own assessment forecast an extra 250,000 people could be pushed into poverty – including 50,000 children. It did not include the impact of people moving into work.

Ms Kendall was urged by MPs on the Commons Work and Pensions committee to delay the reforms, to carry out an impact assessment, but wrote back to the committee saying the reforms were too urgent to delay – and that MPs would be able to amend the legislation.

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