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Terms and Conditions of Employment 2025-03-25
25 March 2025
Lead MP
Justin Madders
Debate Type
General Debate
Tags
EconomyTaxationEmployment
Other Contributors: 22
At a Glance
Justin Madders raised concerns about terms and conditions of employment 2025-03-25 in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The regulations aim to increase the national living wage rate and the national minimum wage rates on 1 April 2025. The Government is committed to making work pay by tackling low pay, poor working conditions, and job insecurity. These changes will benefit more than 10 million workers and deliver real terms pay increases to an estimated 3 million workers with a rise of £77p for those aged 21 and over, representing a 6.7% increase. For workers aged 18-20, there is a record 16.3% increase from £8.60 to £10 per hour. The rates for under 18s will also see an 18% rise to £7.55 per hour.
Harriett Baldwin
Con
West Worcestershire
While not opposing the increases, questions were raised about the impact on public sector workers, particularly in NHS and universities where the new legal minimum is higher than current rates. Concern was also expressed regarding the impact on younger workers due to the national insurance threshold dropping to £5,000 per year from April 2024, potentially affecting hiring practices for young people. Additionally, there are concerns about the disproportionate burden placed on small and medium-sized enterprises (SMEs) which will face 56% of the cost increase despite representing only 37% of employment share. The impact assessment suggests businesses in retail, hospitality, and leisure sectors will be most affected.
Yuan Yang
Lab
Earley and Woodley
Acknowledges the concerns raised but points to economic evidence showing that increases in minimum wages generally lead to overall pay rises without significant negative impacts on employment. The first time the national minimum wage is being linked directly to the cost of living, beginning a journey towards making it a genuine living wage.
Mark Ferguson
Lab
Gateshead Central and Whickham
Agrees with his colleague's point that similar concerns were raised at the time of introducing minimum wages but notes that historical evidence shows no significant negative impact on employment when such increases are implemented.
Jayne Kirkham
Lab/Co-op
Truro and Falmouth
The hon. Member agreed that the uplift in the minimum wage is a huge boost for equality, benefiting women, younger and older workers, and those from minority ethnic backgrounds more than others.
Sarah Gibson
LD
Chippenham
The Liberal Democrat spokesperson welcomed the statutory instrument and acknowledged that it uplifts the minimum wage. She noted its importance for apprentices under 18 and expressed concern about care workers' low wages, suggesting a carer's minimum wage proposal which would see carers receive £2 more per hour than the current minimum wage.
Liz Twist
Lab
Blaydon and Consett
The hon. Member drew attention to her trade union background and highlighted the introduction of the national minimum wage in 1999 which was a significant achievement. She stated that the changes with this legislation mean a direct, real-terms pay increase for over 3 million workers including record increases for those aged 18 to 20.
Chris Law
SNP
Dundee Central
The SNP Member supports the changes but believes in a real living wage for all workers. He argued that the current definition falls short of meeting actual cost-of-living expenses, and questioned why rent is not 18% lower for those under 21.
MSP
SNP
Scotland
The Scottish Government have taken proactive steps to ensure the real living wage is implemented wherever they have control. Since 2011, all staff within their pay scheme, including NHS staff, are paid the real living wage. Scotland has the highest proportion of employees paid the living wage in the UK with 25% of accredited employers based there. The Scottish Government also provide funding to enable adult social care workers to be paid the living wage.
Sally Jameson
Lab/Co-op
Doncaster Central
Welcomes the Government's move for a record pay boost of around £1,400 to over 3 million workers. This includes a gross annual full-time earnings rise by £2,500 for 18 to 20-year-olds and an 18% increase for apprentices.
Honiton and Sidmouth
Welcomes the increase in national minimum wage but highlights challenges faced in social care, both nationally and in Devon. He calls for a separate higher minimum wage for social care and proposes an additional tax on gambling industry to fund it.
Deirdre Costigan
Lab
Ealing Southall
Welcomes Labour’s Employment Rights Bill which includes negotiating frameworks for social care staff, ensuring they are properly paid and can progress in their jobs.
Alan Strickland
Lab
Newton Aycliffe and Spennymoor
Strongly welcomes the proposed increases to minimum wage rates, particularly for apprentices and 18 to 20-year-olds. He argues that fair reward for economic contributors is crucial for economic growth.
Rosie Wrighting
Lab
Kettering
Supports this Government's actions in making work pay, highlighting the benefits of a motivated workforce and local economy support through decent wages.
Hendon
This debate about four numbers: 3 million, £1,400, £2,500 and 10 million. Three million people will benefit from the fantastic measures being announced today; £1,400 is how much they will benefit—a real life-changing amount—while £2,500 is how much someone aged 18 to 20 years old will benefit from these changes and 10 million people’s lives will see a transformative impact. The introduction of the national minimum wage was a radical and transformative step opposed every step of the way by the Conservatives.
Deirdre Costigan
Lab
Ealing Southall
The Labour Government have made it clear that this is only the start of a journey. We are working towards increasing the youth rate so that we eventually have a single adult rate. The change in the youth rate goes hand in hand with our youth guarantee and our plan to create pathways to good-quality employment for those under 22 with health conditions.
Yuan Yang
Lab
Earley and Woodley
The introduction of the national minimum wage was a radical and transformative step. When Labour brought it to this place as legislation in 1998, the Conservatives fought it tooth and nail every single step of the way.
Sally Jameson
Lab
Doncaster Central
Young people in my constituency deserve a minimum wage that reflects the work they do. I speak to many 18 to 20-year-olds who face the same financial pressures as adults older than them.
Richard Foord
Con
Honiton and Sidmouth
The hon. Member for Honiton and Sidmouth talked about the importance of that sector. Our impact assessment has established that about one in five social care workers will receive a direct pay rise as a result of the increases announced today.
Raised concerns about the costs and bills of an 18-year-old being similar to those of adults, emphasising the importance of parity for that age group on the full adult rate. Criticised the current status quo and highlighted the need for further action.
Emphasised the regional impacts of the wage increase in his constituency, noting that 140,000 workers (14.5% of the total workforce) in the north-east will benefit from the increase.
Discussed in-work poverty and supported the change to ensure that in-work poverty is consigned to history books, highlighting the need for action on this issue.
Highlighted figures associated with the regulations, noting the tangible proof of a Labour Government delivering for working people. Also commented on the empty Opposition Benches.
Government Response
The Low Pay Commission is keen to look into it, and I am sure that once the fair work agency is up and running, it will focus on it as well. My hon. Friend the Member for Earley and Woodley has great knowledge and experience in this area. She said that this is the beginning of the journey. That is right. We recognise that it will take time to achieve our ambitions for the Low Pay Commission for the people in this country, but it is a journey we are determined to finish. Defended the government's position on minimum wage increases and addressed concerns raised by opposition members. Emphasised that 18 to 20-year-olds will receive a £2,500 pay rise this year. Noted regional impacts with figures showing benefits for workers in different parts of the UK. Addressed concerns about public sector workers and burdens on SMEs, stating that the Low Pay Commission takes these factors into account. Highlighted support measures such as increased employment allowance and business rates relief. Mentioned the youth guarantee and apprenticeship levy transformations. Rebutted negative headlines with facts showing record numbers of people in work. Commended the regulations to the House.
Shadow Response
Dame Harriett Baldwin
Shadow Response
Questions were raised about the impact of increased minimum wages on public sector workers, young people's employment opportunities due to national insurance changes, and the disproportionate burden on small businesses. She expressed concerns that additional costs imposed by measures like the Employment Rights Bill could harm industries already facing financial challenges. Asked about the impact on public sector workers, cumulative impact of changes, and burdens on SMEs. Raised concerns about the overall labour market and the impact of measures on young people.
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Assessment & feedback
Summary accuracy
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