Fair Pay Agreements

10. What assessment he has made of the potential merits of implementing fair pay agreements in a range of business sectors.

I thank my hon. Friend for his long-standing advocacy in this area. We want to work constructively with unions, employers and stakeholders to build on the Employment Rights Bill. Our first priority for a fair pay agreement is adult social care, a large and complex sector with over 19,000 providers and 1.5 million dedicated workers. As such, our priority is ensuring that this process works effectively, which is why I am delighted that the Government have announced a £500 million investment in the first ever fair pay agreement in the social care sector. We will use what we learn to consider where fair pay agreements can offer similar benefits across other sectors.

I thank the Minister for her response, but with the cost of living pressures continuing, it is clear that delivering increased real incomes and better living standards is our No. 1 priority. Can the Minister say a little more about which further sectors are most ready for fair pay agreements, and what steps the Department is taking to meet the UK’s obligations, as a member of the International Labour Organisation, to extend sectoral collective bargaining as a means to raise pay and improve living standards?

I welcome my hon. Friend’s support for sectoral collective bargaining and collective agreements as a key steer for improving living standards across workplaces in the country. As he knows, we are demonstrating our commitment to sectoral collective bargaining with the social care and school support staff sectors. The UK is committed to working internationally to strengthen workers’ rights and enhance Labour standards globally. We fully support the work of the International Labour Organisation and will continue to meet our obligations under the ILO.