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Tag: Paul Scully

  • Paul Scully – 2022 Statement on the UKCA Product Regulation Regime

    Paul Scully – 2022 Statement on the UKCA Product Regulation Regime

    The statement made by Paul Scully, the Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 20 June 2022.

    I am pleased to announce that the Government are going further to make it easier and cheaper for businesses to move to the new UKCA product regulation regime.

    Our new UKCA regime gives us the chance to take control of the way products are regulated and ensure these rules work to the benefit of business and consumers in Great Britain. The UKCA marking will become mandatory for most goods which previously used the CE and reverse epsilon markings if they are first placed on the market in Great Britain after 31 December 2022.

    The Government understand that moving to this new regime has meant changes for businesses. While change is necessary, we want to take a pragmatic approach. We have been consulting with industry to understand their key concerns in the transition to the UKCA marking regime.

    The Government want to make it easier for businesses to comply with the changes so we will introduce four measures to further support businesses adopting UKCA. These measures are designed to reduce compliance burdens and prevent costs that could be passed on to consumers. These changes will apply to BEIS sectors requiring the UKCA marking, other Departments will make related announcements on arrangements for their sectors as required in due course. The Department for Levelling Up, Housing and Communities is making a UKCA announcement in conjunction with BEIS today, as indicated below.

    These measures are as follows:

    Government will reduce re-testing costs for UKCA certification, by allowing certificates provided by EU (European Union) conformity assessment bodies (CABs) issued before the end of this year to be used as a basis for UKCA marking certification—including a specific arrangement for construction products, via the Department for Levelling Up, Housing and Communities. This will prevent duplication and immediate increased costs for businesses.

    Government will make clear there is no need to re-test existing imported stock, as these products will be considered already placed on the Great Britain (GB) market. This will prevent the costly, and unnecessary re-labelling of existing stock for businesses.

    Government will make clear that spare parts that repair or replace goods already on the GB market can meet the same requirements as the goods that they repair or replace. This will allow products and goods requiring spare parts to continue to be maintained.

    Government will allow the UKCA marking and importer details to be added to products using a sticky label or on an accompanying document until 31 December 2025. This will allow business to adjust their product design to accommodate marking changes at a convenient and cost-effective time.

    The Government intend to lay secondary legislation before the end of the calendar year to give effect to the changes for labelling and testing. Our guidance will be updated to reflect our changes to spare parts and existing stock.

    These measures are being implemented to address the concerns we have heard through working closely with industry. Officials in the Department for Business Energy and Industrial Strategy, in collaboration with other Departments, will continue to engage actively with industry and support their preparations ahead of the full introduction of UKCA rules at the end of 2022.

  • Paul Scully – 2022 Speech on the Hospitality Industry in Liverpool

    Paul Scully – 2022 Speech on the Hospitality Industry in Liverpool

    The speech made by Paul Scully, the Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 6 June 2022.

    I congratulate the hon. Member for Liverpool, Walton (Dan Carden) on securing today’s important debate.

    Nationally, the hospitality sector is a really big deal. It employs about 2.4 million people across 167,000 businesses, and it generated revenues of about £83 billion last year. However, as MPs who care about the prosperity and the wellbeing of our constituents, we all know that hospitality is even more important, as the hon. Member has said, at a local level. Hospitality is important for its contribution to our local economies and communities, providing accessible jobs and the social spaces that people need.

    I was in Liverpool a few months ago, and I really saw how the city has changed in leaning more towards tourism and hospitality. The projects it has there are really exciting, as indeed are its plans for “Liverpool Without Walls” to try to bounce back after the regional lockdowns are really innovative. I hope that it continues to lean into hospitality in that way, because it is really important for the colour and the vibrancy it brings to our high streets and in helping to showcase the rich diversity of British society, our culture and, indeed, our heritage. It is important for levelling up because everyday high street businesses such as hospitality, retail and personal care are the foundation on which strong local economies and communities are built.

    Over the course of the pandemic, I worked closely with the hospitality sector, listening to its concerns and representing its interests across Government. That engagement helped to shape the Government’s business support package and ensured that as many businesses as possible had access to some form of support. Overall over that period, the Government provided £408 billion of support, including furlough, grants, loan guarantees, regulatory easements, cuts in VAT and business rates, and a moratorium on commercial rent recovery. That support provided a lifeline for many businesses. We all hoped that once the covid restrictions were lifted and businesses were able to operate more freely, we could look forward to a period of recovery, but as we have heard, an increase in global energy prices and the war in Ukraine has made that recovery even more challenging.

    The hon. Member for Liverpool, Walton talked about Byrnes fish and chip shop. I have talked a lot about the headwinds that our economy and our businesses face. Fish and chip shops—real stalwarts of the British hospitality scene—face those headwinds probably more than any hospitality business at the moment, because, as the hon. Gentleman mentioned, clearly a lot of vegetable oil and rapeseed oil comes from Ukraine, hence the colours in its flag. A lot of the cod and white fish—I think about 50% or so—that we consume in this country comes from Russian seas. A lot of flour, from wheat, also comes from that part of the world. We are indeed paying the price for freedom. With the headwinds I have talked about, our fight against Russian aggression in Ukraine comes at a cost to our economy. Byrnes, which I think is a fourth generation family-run business, has gone through a lot; I really hope it remains for many generations to come.

    I continue to work closely with the sector. I am still listening and representing its interests, and we continue to provide support. The Chancellor obviously needs to strike the right balance between helping businesses and the families that are most in need, while at the same time continuing to restore the public finances to ensure that we have resilience. The hon. Gentleman talked about food banks, families and individuals. Clearly that is why the Chancellor continues to flex and respond, and has announced £37 billion of support to date—it is coming over the next year—to tackle the energy price situation and other pressures on family finances.

    In the autumn Budget, the Chancellor announced reforms to the business rates system worth £7 billion over the next five years, including a new temporary relief for retail, hospitality and leisure businesses worth almost £1.7 billion in 2022-23. In the spring statement, the Chancellor cut the cost of employment for half a million small businesses by increasing the employment allowance from £4,000 to £5,000. As a result of that announcement, 670,000 business will not pay national insurance contributions and the health and social care levy at all.

    We have introduced legislation to ringfence covid-related rent debt, and to establish a new binding arbitration process to help tenant businesses and their landlords to reach amicable settlements. Our help to grow scheme is supporting businesses to increase productivity, grow their businesses, and access discounted software and free advice.

    The Queen’s Speech set out our plans to bring forward legislation to make permanent some of the temporary regulatory easements that we introduced during the pandemic, including pavement licence easements that provide businesses with greater flexibility to trade and help to create the vibrant, bustling outdoor spaces needed to encourage people back to our high streets again, some great examples of which I saw on my visit to Liverpool.

    We recognise the impact of rising energy prices on businesses. Both the Government and Ofgem are in regular contact with business groups and suppliers to understand the challenges they face, and explore ways to protect consumers and businesses.

    In July last year, we published the first ever hospitality strategy, which set out our ambition for the recovery and future resilience of the sector. We produced that strategy because covid highlighted the fact that hospitality businesses right across the country needed resilience. The sector is characterised by high fixed costs and low margins, so it is not necessarily in a strong position to adapt to new shocks and challenges, including longer-term challenges that businesses face, such as climate change.

    We have also established the Hospitality Sector Council, which will oversee the delivery of the strategy. Kate Nicholls, whom the hon. Gentleman mentioned, sits on the council and chairs some of its sub-groups. The council has established thematic working groups to consider issues including access to finance, the role of hospitality in local economies and communities, hospitality careers and skills, environmental sustainability and international trade. The working groups will bring forward recommendations and highlight examples of good practice that will help to provide the best possible trading environment for hospitality businesses and ensure that the sector is fit to face any future challenges head on. The Government will not just be telling hospitality businesses what to do; hospitality businesses and the Government will co-create the solutions.

    I mentioned that hospitality has an important role to play in levelling up. More than that, it can have a transformative effect, particularly in deprived areas. It was really interesting to hear about the Homebaked bakery’s initiatives, which sound great—I know that they will play a major role in the area that the hon. Gentleman represents. When I was in Birmingham only a couple of weeks ago, I saw the Digbeth dining club and the Aston Villa Foundation to learn about their great work regenerating the areas of Birmingham in which they operate, using street food as the driver and providing training and qualification for local people who want to start their own street food businesses.

    Effectively, that is the blueprint for hospitality-led regeneration, which was one of the commitments in our hospitality strategy. Near the hon. Gentleman’s constituency, Sefton Council is delivering the first pilot in Bootle. When I visited Sefton Council last October, I was excited to hear about its plans to transform the Strand shopping centre, create an incredible events space in the centre of Bootle and deliver training and qualifications for local people so that they can fully contribute to the regeneration of their town.

    The hon. Gentleman spoke about qualifications, including T-levels, which cover catering and will play a huge role in the future of hospitality, along with wider training. I visited Hugh Baird College in Bootle, which will support Sefton Council by providing hospitality training, allowing local people to take advantage of the new jobs and businesses that the regeneration project that I outlined will deliver. Given all that, perhaps it is not surprising that I am passionate about the sector.

    I spoke about the £37 billion of support that we are providing to individuals, especially the lowest paid and those who are most vulnerable to changes in energy prices and food prices. It is really important that we look to grow the economy overall, ensuring that people can take on more hours and fill the record number of vacancies in our very tight labour market, because that is the best way to face down the cost of living situation.

    I congratulate the hon. Gentleman again on securing today’s important debate. Hospitality has always been at the heart of Liverpool, especially over the past few years with the legacy changes since it was the city of culture. I always welcome the opportunity to talk about hospitality, a sector that I am particularly passionate about. It is easy to take hospitality for granted: it is always there in the background, supporting us when we need it, but covid showed us what it would be like to live without it. We missed it; we cannot take it for granted. There are undoubtedly difficult times at the moment, but the creativity and the adaptability—

    Dan Carden

    I am grateful to the Minister for responding to the debate. I want to take the opportunity to emphasise again that the potential short-term impact of spiralling prices and high inflation this year puts many businesses—many restaurants and cafés—at risk of closure. Will he keep his eye on the ball with regard to businesses that are closing and what needs to be done?

    Paul Scully

    Absolutely, I will. We do not want—the Chancellor in his response, from the spring statement to the other changes and the Budget, does not want—to bring in measures that are in themselves inflationary and could add to the problem in the longer term. Clearly, however, we want to make sure that we can always flex to support as many businesses as we can.

    During a lot of covid, when we were gripping the economy so hard, insolvencies were at a 40-year low. We will not be able to solve every problem now—the Government never can—but I will absolutely keep my eye on the ball to make sure that, as I say, we work with the sector to co-create those solutions so that we can tackle as many problems and cover as many businesses as we can. The hospitality sector continues to show real creativity and real adaptability, particularly over the past two years, and that gives me the confidence that it will recover and thrive.

  • Paul Scully – 2022 Statement on Low-income Workers and Exclusivity Clauses

    Paul Scully – 2022 Statement on Low-income Workers and Exclusivity Clauses

    The statement made by Paul Scully, the Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 11 May 2022.

    I am pleased to announce the latest steps the Government have taken to better protect and support low-income workers as we look to build a high-skilled, high-productivity, high-wage economy.

    The UK’s flexible and dynamic labour market has always been the envy of the world. It gives businesses the confidence to create jobs and invest in their workforce, whilst giving workers more choice over who they work for, and how often.

    This Government want to put more power into the hands of individuals and businesses to find and create work that suits their personal circumstances. Today we are confirming our intention to widen the ban on exclusivity clauses, ensuring the lowest-paid workers have the freedom to boost their income through extra work if they wish.

    Exclusivity clauses, which restrict staff from working for multiple employers, were banned in zero hours contracts in 2015. Since then, the number of people on zero hours contracts with a second job has risen, and more workers have been able to take advantage of the opportunity to boost their income. Our latest reform will build on the success of those changes.

    The Government proposals will widen the ban on exclusivity clauses which restrict staff from working with multiple employers, to those whose income is below or equivalent to the lower earnings limit at £123 a week. An estimated 1.5 million workers are earning on or below £123 a week and the new reforms will ensure that workers in this group that have exclusivity clauses have the freedom to top up their income with extra work if they choose.

    While not everyone will want a second job, the reforms will remove any barriers that currently prevent those who want to do so, and give workers more flexibility over when and where they work to best suit their personal circumstances such as childcare or study.

    As well as supporting workers to increase their income, the reforms will also benefit businesses by widening the talent pool of job applicants to those who may have been prevented from applying for roles due to an exclusivity clause with another employer, and also helps businesses to fill vacancies in key sectors like retail and hospitality. The reforms will support low-paid workers to make the most of new opportunities where demand is growing.

    The reform will be delivered through new secondary legislation which will be laid before Parliament in due course. It follows a consultation launched by the Government in December 2020, where the majority of responses agreed with the approach to extend the ban to contracts where the workers’ guaranteed weekly income is below or equivalent to the lower earnings limit of £123 a week.

    Additionally, many responses to the consultation highlighted the impact that covid-19 has had on job security and the decrease in guaranteed working hours for many people. Extending the ban to those earning below or equivalent to the lower earnings limit will therefore enable workers who have been moved to reduced hours contracts due to the pandemic to increase their income by taking on additional work if they wish.

    The Government also announced its commitment to publishing employment status guidance, making it easier for individuals and businesses to understand which employment rights apply to them.

    This Government have been absolutely clear that we will do whatever we can to protect and enhance workers’ rights, and give businesses the confidence to create jobs and invest in their workforce. These reforms will put more power into the hands of individuals and businesses to find and create work that suits their personal circumstances.

  • Paul Scully – 2022 Comments on Employment Exclusivity Clauses

    Paul Scully – 2022 Comments on Employment Exclusivity Clauses

    The comments made by Paul Scully, the Business Minister, on 9 May 2022.

    We are creating a high skilled, high productivity labour market that supports workers by removing unnecessary red tape, helping the British people boost their incomes and keep more of what they earn.

    By extending the ban on exclusivity clauses, we are putting more control into the hands of the lowest paid, giving them the freedom to decide who they work for and how often, including the option to top up their pay packet if they wish.

  • Paul Scully – 2022 Speech on Long Covid

    Paul Scully – 2022 Speech on Long Covid

    The speech made by Paul Scully, the Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 31 March 2022.

    I congratulate the hon. Member for Oxford West and Abingdon (Layla Moran) on opening the debate so incredibly well, and I congratulate her, the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) and my hon. Friend the Member for Central Suffolk and North Ipswich (Dr Poulter)—unfortunately he could not be here—on securing this important debate on the impact of long covid in the workplace. I thank the Backbench Business Committee and all those who have taken part in the debate for their thoughtful and insightful comments.

    We heard about the ONS estimate that, in the four-week period ending 31 January 2022, 1.5 million people in the UK reported experiencing ongoing symptoms following covid. Of them, nearly 300,000 reported that their ability to undertake day-to-day activities had been significantly limited. It is therefore clear, as we have heard, that long covid presents a growing challenge for the workplace and more widely. The emergence of a completely new condition such as long covid is a real rarity and, much like our experience of the covid-19 pandemic itself, we must be and are constantly developing our understanding.

    We have put support in place for those suffering from the condition. NHS England has invested £224 million to date to provide care for people with long covid. It has established 90 long covid assessment services across England, which are assessing and diagnosing people experiencing long-term health effects as a result of covid-19 infection, whether they have had a positive test or are likely to have long covid based on their clinical symptoms, regardless of whether they were admitted to hospital during their covid-19 illness. The services offer physical, cognitive and psychological assessment and, where appropriate, refer patients to existing services for treatment and rehabilitation. The hon. Member for Oxford West and Abingdon talked about the $1 billion in the States. Not all of that has been allocated yet, while the UK is already ploughing ahead, and we are quite far ahead of other countries, including the States, in our research in the area. Of course, there is always more that we can do.

    It is clearly essential to get the right healthcare and treatment in place for individuals, for employers and for the wider economy. However, the theme of the debate is the impact of long covid in the workplace. People can suffer from many long-term health and other conditions that may affect their work. We have heard about ME, and we could talk about fibromyalgia, Guillain-Barré, Miller Fisher all those things. Indeed, there are other conditions that are not necessarily post-viral.

    Earlier this month, I gave evidence to the Women and Equalities Committee on the impact of the menopause in the workplace, and in February I responded for the Government to a Westminster Hall debate on supporting people with endometriosis in the workplace. Those are different conditions, but, none the less, they are long lasting and we need to ensure that we can get people the right treatments and adjustments. Indeed, in the case of the hon. Member for Denton and Reddish (Andrew Gwynne), a simple, natural adjustment made his working life so much easier, and for so many of these other conditions there are examples of small things that employers can do to keep people in the workplace. They do not have to be complicated, and they certainly do not have to be expensive.

    We believe that employers should play a significant role in supporting people with long-term health conditions to access and remain in work. That can certainly benefit individuals as well as bringing real bottom-line benefits to employers through, for example, avoiding recruitment costs and not unnecessarily losing experienced and valued members of staff.

    However, it is not sustainable for every condition to get different or special treatment. For employers, that could lead to confusion and complexity; likewise for employees. That is why the Government’s starting position is that, specifically in the workplace and in the overall framework for providing health support to employees, long covid should be treated the same as any other long-term health condition. Let me set out that framework, which, as hon. Members would expect, is a cross-departmental effort.

    The Government’s response to the “Health is everyone’s business” consultation, led by the Department for Work and Pensions, was published in July 2021. It sets out some of the measures that we will take to protect and maintain the progress made to reduce ill health-related job loss and see 1 million more disabled people in work from 2017 through to 2027.

    Debbie Abrahams

    I am listening keenly to the Minister, but the issue is that this is an infectious disease that is contracted partly as a result of exposure, and there is clear evidence that exposure happens in the workplace. It is therefore not the same as existing progressive or fluctuating illnesses; it is very much an infectious disease contracted in the workplace. That is the basis for our recommendations.

    Paul Scully

    I understand the hon. Member’s point. I am trying to set out the framework for managing long-term illness, but clearly, we still have support in the workplace for those with infectious diseases. I cited ME, fibromyalgia, Guillain-Barré syndrome and Miller Fisher syndrome, which are all post-viral infections—an infection beforehand typically leads to those other long-lasting conditions. That is why I am compartmentalising the framework, but none the less, I take the hon. Member’s point about the infections happening in the first place.

    “Health is everyone’s business” did not consult on long covid, or any other specific health condition for that matter; it looked at system-level measures to support employers and employees to manage any health condition or disability in the workplace. The measures that we are taking forward include providing greater clarity on employer and employee rights and responsibilities by developing a national digital information and advice service; working with the Health and Safety Executive to develop a set of clear and simple principles that employers would be expected to apply to support disabled people and those with long-term health conditions in the work environment; and increasing access to occupational health services, particularly for small and medium-sized enterprises, which, as we know, are currently underserved.

    As I said, although those measures are not long covid-specific, they are key steps in our effort to change the workplace culture around health and sickness management. That will benefit those suffering from long covid in the same way as those suffering from other longer-term health issues or disability.

    As the hon. Member for Motherwell and Wishaw (Marion Fellows) said, we are also responsible for flexible working. We know that that policy can be incredibly helpful to those suffering from many long-term health conditions, including long covid, as they seek to manage the symptoms, some of which we have heard about today, such as extreme tiredness, insomnia, depression and anxiety. Although flexible working does not provide the whole answer, it can be an important tool for employers and employees as they have discussions about how better to balance the demands of work and life, particularly for those managing long-term health conditions.

    The consultation on flexible working introduced plans for a future call for evidence on ad hoc flexible working; we want to explore how non-contractual flexibility works in practice. I discussed that with the Flexible Working Taskforce in February. We will ensure that the role of ad hoc flexible working to support those with long covid and other health conditions—such as the menopause and endometriosis, which I have mentioned—is part of its considerations.

    Marion Fellows

    Is the Minister looking at cutting the time before someone can apply for flexible working? At the moment, they have to have been in work for quite a long while before they can do so.

    Paul Scully

    Our manifesto committed to consult on this issue. Within that consultation, we looked at a day one right to request flexible working. That is key, because it will attract people to and keep them in a good workplace. We might as well start as we are set to carry on.

    Another significant part of the cross-departmental framework is the Government Equalities Office, which is responsible for the Equality Act 2010. That is an important part of the matrix, because it may protect those with long-term health conditions from discrimination. That Act ensures that any person with a condition that meets the definition of a disability is protected, so it should not be stigmatised. The Act describes disability as

    “a physical or mental impairment”

    that

    “has a substantial and long-term adverse effect”

    on a person’s

    “ability to carry out normal day-to-day activities”.

    We heard about that not least from the hon. Member for Denton and Reddish and during the incredibly passionate speech of the hon. Member for City of Chester (Christian Matheson), who cited the example of his family member. By the way, I know how difficult it is for an hon. Member to describe a family member who is suffering from something that we are debating, and I thank him for his personalised experience, which has informed the House and positively contributed so much to the debate.

    As I said, the disability should not be stigmatised, though some may do so. This is simply about the impairment, as we have heard loud and clear. “Long-term” is defined having lasted, or being likely to last for, at least 12 months. “Substantial” is defined as more than minor or trivial, as we have heard strongly in Members’ examples today.

    The Act makes it clear that it is not necessary for the cause of the impairment to be established, nor does the impairment have to be the result of an illness. A disability can therefore arise from a wide range of impairments. That means that any person who falls within that definition will already be protected as having a disability. That can therefore encompass some of the emerging effects of long covid, but every case will be different and should be considered on its merits.

    As well as paying tribute to the hon. Member for City of Chester, I thank the hon. Member for Oxford West and Abingdon and ask her to pass on our regards to Andrew, Nell and Rebecca. We also heard about Julie Wells and her daughter and the caring responsibilities involved. The examples that we have had really add colour and inform the debate.

    The hon. Member for Motherwell and Wishaw talked about statutory sick pay. We have discussed the fact that we need to look at statutory sick pay, but this is not the time to do so, particularly while we are in the middle of the pandemic. However, we also need to look at statutory sick pay in the round. She mentioned people earning under £120 a week, but many in that situation are already in receipt of other benefits. That is what I mean about not just concentrating on one issue; we need to look at the whole person and their whole personal finance.

    In summary, we are supporting people with long-term health conditions, including long covid, by working hard on the general approach to work and health, through our response to the “Health is everyone’s business consultation”, and taking steps to make some of our employment rights work a little harder to support those balancing work with other issues and challenges. All that is underpinned by the protections against discrimination provided by the Equality Act. We must also showcase the good employers, as was mentioned by the hon. Member for City of Chester.

    Layla Moran

    If I understand this correctly, the consultation is happening and guidance will be provided more comprehensively for all longer-term illnesses. The issue particularly with long covid is that it is so new that many employers do not have a clue what it is. Will he consider suggesting a public health information campaign particularly targeted at businesses so that they know that it exists and where they can go for such guidance?

    Paul Scully

    I often talk about ACAS guidance, which, obviously, is available in this area. The hon. Lady mentioned what she saw as shortfalls in that guidance. We will always look at that to make sure that guidance is up to date, especially with an evolving condition such as long covid. I keep citing the example of ME, which, like fibromyalgia, is one of those diseases that is very poorly understood by so many people in the workplace and even, frankly, by health professionals. It will evolve and I am sure that we will able to push that information out to employers.

    I hope that hon. Members would agree that there is a wide-ranging set of actions to address long-term health issues in the workplace, whatever those health conditions are. We want to encourage a better culture around work and health, including for those suffering from long covid. I firmly believe that it is an important principle to have a single, consistent and clear approach to managing health in the workplace. It is unsustainable to have a number of different approaches for different conditions. I close by thanking everyone once again for this helpful and informative debate.

  • Paul Scully – 2022 Statement on Postmasters Compensation

    Paul Scully – 2022 Statement on Postmasters Compensation

    The statement made by Paul Scully, the Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 22 March 2022.

    As the House is aware, the Post Office Horizon scandal, which began over 20 years ago, has had a devastating impact on the lives of many postmasters. The High Court Group Litigation Order (GLO) case against the Post Office brought by 555 postmasters exposed the Horizon IT scandal which had seen many postmasters forced to “repay” to Post Office sums which they had never received. Many were dismissed, prosecuted and even imprisoned.

    The Government have long considered unfair the unequal treatment received by members of the GLO and their non-GLO peers. I am therefore pleased to announce that the Chancellor will make additional funding available to give those in the GLO group compensation similar to that which is available to their non-GLO peers.

    Because they had signed a “full and final” settlement of their court case in 2019, postmasters in the group were ineligible to apply to the Historical Shortfall Scheme (HSS) which their legal action had established. So despite winning the case, the group was left worse off than the other affected postmasters for whom they had blazed the trail. Each postmaster in the group received an average of around £20,000.

    To enable the GLO Group to undertake litigation against Post Office they secured funding from litigation funders Therium. Following extensive work to ensure the full compensation went to the postmasters, I am pleased that Therium have agreed to waive their rights to any claim on this compensation.

    I plan to return to the House in due course to announce our next steps.

  • Paul Scully – 2022 Statement on the Post Office Horizon IT System

    Paul Scully – 2022 Statement on the Post Office Horizon IT System

    The statement made by Paul Scully, the Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 24 February 2022.

    First, I apologise, Mr Speaker, for the misunderstanding. I was prepared to make a statement, but obviously the current situation and affairs have got in the way. I am happy to provide an update on Horizon matters since I last made a statement in December. I met the Business, Energy and Industrial Strategy Committee last month, and last week the Select Committee published its interim report on the Post Office and Horizon IT scandal. The Government will consider the Committee’s recommendations and respond in due course.

    People need to know about how this scandal came about and what protections are in place to avoid history repeating itself. That is why the Government established the Post Office Horizon IT inquiry to investigate exactly what went wrong. The evidence from postmasters who have participated since the inquiry hearings began last week has been harrowing to hear, and I thank those postmasters for their courage and their willingness to revisit the trauma they have experienced. Compensation cannot take away the suffering that affected postmasters have experienced, but we are determined that each eligible person gets what is due to them, and that that is paid as quickly as possible. Of the 72 postmasters whose convictions have been overturned, more than 95% have applied so far for an interim compensation payment of up to £100,000, of which 63 offers have been accepted and paid. The Government are pushing for final settlements for quashed convictions to follow as quickly as possible, and negotiations on the first two have begun. The Government are determined that all unjust convictions are quashed. The Post Office is reaching out to affected postmasters.

    The Post Office is also in discussion with other public prosecuting bodies responsible for the convictions of postmasters that may have relied on Horizon evidence to ensure that those postmasters are also contacted and enabled to appeal. Offers have been made to over 40% of applicants and compensation has been paid to 764 postmasters who have applied to the historical shortfall scheme. So far, 28 postmasters are proceeding through a dispute resolution process aimed at achieving acceptable settlements. At least 95% of those cases should have been dealt with by the end of the year.

    With compensation for overturned convictions and the historical shortfall scheme well under way, the postmasters on whom my attention is now focused are those who exposed the whole scandal by taking the Post Office to the High Court. I know that many hon. Members support the Select Committee’s view that it is unfair that they received less compensation than those who were not part of the case. I sympathise with that view too. I cannot yet report a resolution of that legally complex issue, but we are doing everything we can to address it.

    The compensation that postmasters are due will exceed what the Post Office can afford, so the Government are stepping in to meet a good deal of the cost of that compensation. I recognise that is an unwelcome burden on the taxpayer, but the House, and I am sure taxpayers themselves, will agree that the alternative is unacceptable.

  • Paul Scully – 2022 Speech on Neonatal Leave and Pay

    Paul Scully – 2022 Speech on Neonatal Leave and Pay

    The speech made by Paul Scully, the Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 9 February 2022.

    I congratulate my hon. Friend the Member for Thornbury and Yate (Luke Hall) wholeheartedly on securing today’s debate. This is an important issue, and I am very grateful to him for bringing it to the attention of Parliament in the way he did, baring his soul. I know Roisin will be proud of him today.

    We have heard his personal account that the impact of having a young baby in neonatal care has on parents, and the additional pressure that having to balance employment with caring for their child places on them. My hon. Friend has spoken with such depth of personal experience and it brings home that what we do here, when we are looking to bring forward the Employment Bill, and all the work the officials do matters. This really matters on a human scale to people on a day-to-day basis, as we have just heard. I am grateful to him for his candour, and for raising awareness of this issue. It is a shame that the rhythm of this House means that that speech has not had the audience in the Chamber, but I know people will be watching it and reading the account in the Official Report. Bringing this matter to our attention is amazing.

    In the UK, an estimated 100,000 babies are admitted to neonatal care every year following their birth. Many of those babies spend prolonged periods of time on a neonatal care unit in a hospital as a result of having been born prematurely, or for other health conditions. It is, as we have heard, an incredibly worrying and stressful time for parents. They will naturally want to be able to focus their attention on getting through that period, supporting each other and their baby. However, some may have concerns about their ability to do that and keep their jobs. I sympathise with anyone who has found themselves in that position.

    Currently, parents in those circumstances tend to rely on their statutory leave entitlements, for example maternity or paternity leave. In practice, that means a considerable proportion of their leave may be used while the baby in still neonatal care or that they do not have sufficient leave to remain with their baby for the necessary period.

    A survey conducted by the charity Bliss in 2019 found that 66% of fathers had to return to work while their baby was still receiving specialist neonatal care, and that 36% of fathers resorted to being signed off sick in order to spend time with their baby in a neonatal unit. That can, in some cases, have a negative impact on their employment record. Fathers and partners may also experience negative effects on their physical and mental health from trying to combine work with caring for the child and the mother. Other parents of babies in neonatal care have reported that they had to return to work earlier than they had planned due to suffering financial hardship from being away from work.

    Considering those different scenarios, it is clear that the current leave and pay entitlements do not adequately support parents of babies in neonatal care. In March 2020, following a Government consultation on the issue, we committed to introducing the new entitlement to neonatal leave and pay, and I can assure my hon. Friend that we remain very much committed to that. Our planned neonatal leave and pay entitlement will allow parents to take additional time off work in circumstances where their child is admitted to neonatal care, ensuring that they are no longer in the incredibly difficult position of having to choose between risking their job and spending much-needed time with their baby.

    Neonatal leave and pay will apply to parents of babies who are admitted into hospital up to the age of 28 days and who have a continuous stay in hospital of seven full days or more. Eligible parents will be able to take up to 12 weeks of paid leave on top of their other parental entitlements such as maternity and paid paternity leave. Neonatal leave will be a day-one right, meaning that it will be available to an employee from their first day in a new job. Statutory neonatal pay, like other family-related pay rights, will be available to those employees who meet continuity of service and minimum earnings tests.

    While we understand that the introduction of neonatal leave and pay will create a small burden on businesses, we believe that the benefit to business will outweigh any costs. Policies such as neonatal leave and pay that enable parents to participate in the labour market and to succeed and progress in work not only benefit individual employees but give employers access to a bigger pool of talent. Such reforms will also help businesses, because employers who embrace family-friendly policies are so much more likely to see greater employee loyalty, commitment and motivation.

    In addition to our plans to introduce neonatal leave and pay, the UK has a range of policies in place that support employees to balance work with family life and other personal commitments and responsibilities. They include: a right to request flexible working; generous family-related leave and pay entitlements; and protections from detriment for parents who take or seek to take family-related time off work. The UK’s maternity leave system is one of the most generous in the world. Pregnant women and new mothers are entitled to take up to 52 weeks of leave—that is a day-one right with no qualifying period of service—and up to 39 weeks of statutory maternity pay if they are eligible. Maternity leave can be started up to 11 weeks before the expected week of childbirth.

    Fathers of premature babies have the flexibility to take their one or two weeks of paternity leave and pay within eight weeks of the expected date of birth rather than having to take the leave within eight weeks of the baby’s actual birth, if they wish. We also have a manifesto commitment to make paternity leave more flexible and will set out our response on that in due course.

    The right to emergency leave—time off for dependants —allows all employees a reasonable amount of unpaid time off work to deal with an unexpected or sudden emergency involving a child or dependant and to put care arrangements in place. Additionally, all employed parents have a right to up to 18 weeks of unpaid parental leave for each child up to a child’s 18th birthday.

    The Government are committed to introducing new employment measures as we seek to build a high-skilled, high-productivity, high-wage economy that delivers on our ambition to make the UK the best place in the world to work and grow a business. I reassure my hon. Friend that further detail on reforms to our employment framework will be published in due course. Naturally, covid-19 has affected our progress in introducing the new entitlement to Parliament, but we remain committed to doing so as soon as parliamentary time allows. In the meantime, we are moving forward with the work. That includes working with lawyers on our legislative approach, which is likely to include both primary and extensive secondary legislation, as well as considering how the entitlement will be implemented. It will also, in due course, require accessible and thorough guidance for both employers and employees.

    As I mentioned, delivery of the new entitlement will need primary legislation as well as changes to the HMRC IT payment system to allow employers to administer statutory neonatal pay on behalf of the Government. Officials are in discussion with HMRC colleagues about the establishment of that IT system. It is a large-scale project, and we are ensuring that the relevant teams in HMRC are as prepared as possible, that they fully understand what is required and how much resource will be needed. We are doing the necessary groundwork so that we are in the best position to implement neonatal leave and pay once legislation is in place.

    I recognise my hon. Friend’s points about whether the entitlement could be delivered through a stand-alone Bill or alternative measures. Due to pressures on parliamentary time, it might be challenging to introduce a stand-alone Bill, but we remain committed to introducing neonatal leave and pay and will do so as soon as parliamentary time allows. We understand and sympathise with the position of parents with children in neonatal care and remain fully committed to the introduction of neonatal leave and pay. In the meantime, we have other parental leave entitlements that are available to new parents and we encourage employers to continue to respond with flexibility and compassion to parents in that very difficult position. I have spoken to a number of businesses that have great schemes in place to deal with such life events, such as ASOS. I try to showcase that good work, because they do not need to wait for a legislative framework.

    I close by thanking my hon. Friend for his incredible contributions to the debate and I thank everyone who has worked hard to raise awareness of the difficult situation of parents remaining in employment when their children are in neonatal care. As always, I would be delighted to meet my hon. Friend and other Members of the House to discuss the issues further as we move towards getting these provisions on the statute book.

  • Paul Scully – 2022 Speech on the Commercial Rent Bill

    Paul Scully – 2022 Speech on the Commercial Rent Bill

    The speech made by Paul Scully, the Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy, in the House of Commons on 12 January 2022.

    Before I respond to the Opposition amendments, I would first like to thank the hon. Members for Feltham and Heston (Seema Malhotra) and for Brentford and Isleworth (Ruth Cadbury) for their continued constructive engagement with the Bill and for their contributions to date.

    The Bill is key to ensuring we support viable businesses that will continue to thrive and contribute to our economy in a way that does not risk the insolvency of their commercial landlords. We remain committed to these principles. The arbitration system is designed to be a quick, effective and impartial solution for rent debts that cannot otherwise be resolved, and we currently expect that all applications for arbitration will be made within six months and that cases should be resolved as soon as practicable afterwards.

    Requiring a review of the arbitration process within three months of the Bill being enacted could slow down the process by adding additional steps and requirements for arbitrators that have already proved their suitability for the role. It might also delay the resolution of cases while arbitrators await the findings of the review before making awards.

    Under the Bill’s existing provisions, the Secretary of State can already request a report from approved arbitration bodies covering the exercise of their functions under the Bill, including details of awards made and the application of the principles set out in the Bill in the arbitrations they oversee.

    Additionally, there is a requirement for arbitrators to publish the detail of awards made, including the reasons behind them. This will show how arbitrators have applied the principles of the Bill in coming to their decisions. We will carefully monitor the position, and if there is a need to revise the guidance, such as to clarify or add new information for arbitrators, the Secretary of State is already able to do so.

    I believe that requiring a review would not benefit the aims of the Bill or, indeed, the people who would want to use the new arbitration system to resolve rent disputes, and I therefore hope new clause 1 will be withdrawn.

    On amendment 9, as hon. Members will be aware, the Bill defines a business tenancy as a tenancy to which part 2 of the Landlord and Tenant Act 1954 applies—that is to say it is a tenancy comprised of property that is or includes premises that are occupied by the tenant for business purposes. I reassure hon. Members that the Government intend such property to be considered occupied even if it has been mandated to close for some time in full or in part. A tenant will still be in occupation if they are operating their business remotely and intend to return, so I do not believe amendment 9 is necessary. I hope it will be withdrawn.

    I should say that we also anticipate courts will take a pragmatic view of occupancy, given the underlying rationale behind the Bill to introduce a system of binding arbitration for businesses that have built up rent debt as a result of Government-mandated closures.

    On amendment 13, the operation of approved arbitration bodies follows a market-based policy approach, leaving it to arbitration bodies to manage their internal capacity processes. Our engagement with arbitration bodies suggests that this is the right approach. Looking purely at the number of arbitrators disregards the fact that an arbitrator will be able to take on more than one case at a time. Although the application process will contain a question on the number of arbitrators available, we recognise that this will provide an under-representative picture of capacity in the market, so I am not able to accept the amendment.

    On amendment 10, I am grateful to the hon. Members for Feltham and Heston and for Brentford and Isleworth for seeking to ensure consistency between the Bill and the code of practice. I reassure them that the Government’s intention under both the Bill and the code is for the Bill, including the arbitration system it establishes, to come into force as soon as possible. We want the arbitration system to start as soon as possible given its importance to supporting resolution of protected rent debt and a return to normal market operation. The aim remains to bring the Bill, including the arbitration system, into force by 25 March 2022. That is reflected in the code of practice, as updated on 9 November 2021. I am happy to consider whether clarification would be useful within the code. The code outlines the processes and principles that we are seeking to introduce through the Bill. It has given, and continues to give, businesses the opportunity to negotiate in line with those principles until the Bill comes into force.

    The March timing is linked to the expiry of the moratorium on forfeiture and the restrictions on use of the commercial rent arrears recovery regime. The Government have been clear that they intend such measures to remain in place until the Bill is passed, if that is earlier than their expiry.

    I turn to amendment 14. Clause 11 as it stands must be read with section 34 of the Arbitration Act 1996, which states:

    “It shall be for the tribunal to decide all procedural and evidential matters”.

    That provides arbitrators with the discretion to call for further evidence where that is considered necessary. There is also no express limit in the Bill on the types of evidence that parties can put forward to support their proposals. We are aiming for a quick and efficient process to restore businesses to normality. The aim of requiring supporting evidence is therefore to help focus participants’ minds on the most pertinent evidence that will support their proposals. It will have to be sufficient to show why the proposal is consistent with the principles and should be adopted. That will help arbitrators to resolve cases quickly. A widening of the clause could lead the paper-based arbitration process to become lengthy, inefficient and costly for the parties, who must meet their own legal and other costs.

    I turn to amendment 15. As I have previously explained, clause 17 establishes the timeframe for making awards, requiring arbitrators to make an award as soon as is practicable, or within 14 days in the case of an oral hearing. While we expect that most cases will be resolved quickly, the clause also provides arbitrators with the necessary flexibility to take additional time to make decisions on more complicated cases. One or both of the parties may each simply submit one formal proposal that is final, or one or both may decide to submit revised proposals as final proposals. They may also agree to extend the time limit for submitting initial or revised proposals. That means that it is hard for an arbitrator to know exactly when final proposals have been submitted and when the clock on the 14-day time limit would start running.

    Arbitrators may need to request further information after receiving proposals. It would therefore be impractical to impose a time limit. Imposing a 14-day time limit for issuing awards following an oral hearing, as the Bill does—although the time limit can be extended—is less problematic because the arbitrator will have seen the final proposals and had time to consider them before the hearing. They also have an opportunity to ask questions about them during the hearing, which would conclude on that set date.

    On amendment 16, I agree that fee levels are an important consideration. The Bill adopts a market-based approach. Arbitration bodies are best placed to decide on fee levels given their experience in costing arbitration schemes to make it affordable for all and attractive enough for arbitrators to want to take on cases. The Secretary of State’s powers are intended to be used only when circumstances determine that to be appropriate. Setting a limit on fees at this point could reduce the number of arbitrators able to act, which could undermine the arbitration mechanism in the Bill. There is no evidence that such a limit is needed. However, if it is, the Secretary of State is prepared to exercise the power as appropriate based on the available evidence.

    On amendments 11 and 12, I agree that it is important to encourage behaviour in line with the code of practice and the Bill’s general principles. A key aim of the Bill is to restore businesses to normality as quickly as possible. We have carefully designed the process with arbitrators to make it quick and cheap to navigate, and accessible without further support. The amendments, however, could result in prolonged arguments on costs, appeals and enforcement, delaying a return to that normality that we all seek. They could also encourage the use of legal and other support where that is not needed, lengthening the time to resolution and potentially increasing costs for all parties.

    The amendments could create a situation in which one party’s viability or solvency could be endangered through having to pay costs other than arbitration fees. Widening the discretion to include other costs could also lead to an uneven playing field, especially for smaller businesses who could end up paying high legal costs for larger companies. Under the Bill, the arbitrator has discretion to deviate from the general rule of evenly splitting the costs of arbitration fees between parties where appropriate, based on the circumstances of the case, such as when one party has not reasonably co-operated.

    On amendment 17, the Bill as drafted allows for a stay of debt claims that include ringfenced debt and are issued between 10 November 2021 and the Bill coming into force. The Bill enables ringfenced debt under those claims and under judgments made in respect of such claims to be subject to arbitration. I understand the concern about the date, but it is not an arbitrary date, because 10 November 2021 follows the Bill’s introduction and the Government’s announcement of the policy. The Bill seeks to introduce proportionate measures that address the interests of both landlords and tenants, whereas the amendment would allow for arbitration of protected debt which was subject to earlier proceedings or judgments when the parties could not have known that this was proposed at the time when the proceedings were issued, so reopening those situations.

    Let me now deal with the technical amendments tabled by the Government and the substantive amendment that we are tabling at the request of the Northern Ireland Assembly. Amendments 1 and 2 are technical amendments to make it clear that the definition of “service charge” in clause 2 covers both fixed and variable costs, as well as costs incurred by the landlord insuring against loss of rent. That has always been our intention, and the amendments help to make it clear, ensuring that all relevant costs and charges are within the scope of the arbitration process.

    Technical Government amendments 3 and 8 make it clear that the provisions of clauses 10 and 24, in so far as they relate to company voluntary arrangements or certain restructurings, apply to limited liability partnerships. That is in addition to their usual application to companies. These are minor clarificatory amendments to improve the technical drafting of the Bill.

    Amendments 4 to 7 are minor and technical, and clarify the operation of arbitration and all hearing fees and expenses. Amendments 4 and 7 make it clear that the general rule is that the party that has paid fees is to be reimbursed half the amount by the other party, but where appropriate, the arbitrator may determine a different proportion, including zero. Amendment 5 makes a small correction to clause 19(6) to make it clear that except for reimbursement of arbitration or oral hearing fees, a party must meet its own legal or other costs. Amendment 6 makes it clear that costs incurred in connection with arbitration are not recoverable under an existing clause in the lease. Allowing cost recovery via the lease concerned would undermine the specific provisions in the Bill on fees, expenses and costs. It would also put the party able to rely on the lease terms at an advantage, as they could be more confident about investing money in their case, in the knowledge that the costs could ultimately be recovered from the other party. In addition, allowing this could potentially put the viability of the other party at risk, even when an arbitral award had been handed down in that other party’s favour.

    I turn now to amendments 18 and 19. The Northern Ireland Department of Finance and Department for the Economy have requested the removal of the existing delegated power for them to make regulations for purposes corresponding to the purposes of the Bill, set out in clause 28. This decision was taken for several reasons, which include the availability of existing dispute resolution facilities, plus a lack of compelling evidence that rent debt in Northern Ireland is on a scale to require additional measures. The rationale for the policy in England and Wales remains strong, and this is where our evidence of rent arrears threatening jobs and business insolvency is focused. The removal of clause 28 necessitates an amendment to the Extent provision in clause 30(2), which currently refers to this provision.

    Amendments 20 and 21 ensure that clause 24(4) extends to Northern Ireland in relation to company compromises and arrangements, but not company voluntary arrangements. That reflects the territorial extent of the Companies Act 2006 referred to in this provision.

    I commend the amendments to the House.

  • Paul Scully – 2021 Comments on New Hospitality Council

    Paul Scully – 2021 Comments on New Hospitality Council

    The comments made by Paul Scully, the Small Business Minister, on 29 September 2021.

    The hospitality industry has shown incredible creativity and resourcefulness through the pandemic, pivoting to new ways of doing business like al fresco dining and takeaway pints to stay safe, meet changing consumer demands and protect livelihoods.

    With the launch of this council, we’re taking the next step in the journey to build back better from the pandemic by unveiling the experts who’ll be driving the reopening, recovery and resilience of the sector. It’s a real ‘Avengers Assemble’ moment for the industry.