To ask His Majesty’s Government what plans the Prime Minister has to meet representatives of the Trades Union Congress, as well as individual trade unions, in the light of the current economic situation.
The Department for Business, Energy and Industrial Strategy is responsible for labour relations and works closely with trade unions. Engagement is essential to developing and delivering our policies, and during the pandemic it helped to support jobs and to keep workers safe. For example, the unions and business worked together to help deliver a package of economic support through the job retention scheme that has protected millions of jobs.
My Lords, can the Minister request his colleagues to make clear what the basis is for the Government’s current policy, which comes across as rather dismissive and uncaring in view of the rapid rise of inflation? Can I ask him to encourage the Government, in view of the sharp rise in inflation since the last pay review body reports, to ask the pay review bodies to reconvene and bring forward in January proposals for an interim settlement that takes account of the recent rapid rise in inflation and of staffing levels, such as the 600-midwife shortfall reported to me by the Royal College of Midwives this morning?
I thank my noble friend for that question but, as he knows, the Government have said that they will accept the recommendations from the independent pay review bodies in full. We certainly hope that the trade unions will call off the actions that are causing so much misery to billions of people all over the country.
As the former leader of Unite the Union, let me tell noble Lords that no worker wants to go out on strike, as it costs them wages that they can least afford to lose. But workers, such as our marvellous nurses and others, are being driven to despair and desperation; their must-go place before Christmas is the local food bank, unfortunately. Pay the nurses and other public servants proper wages covering inflation that is not of their making, and stop hiding behind the farcical and outdated review body’s recommendations. It is corporate profiteering that is driving inflation. Does the Minister agree?
It will not surprise the noble Lord to know that I do not agree with him. The reason we have independent pay review bodies is to try to take the politics out of these settlements. The Government have said that we will accept those recommendations in full. Frankly, some of the increases that are being asked for are unaffordable.
My Lords, over the weekend several senior government spokespeople have justified not increasing the offer on public sector pay because it would fuel inflation. I believe that the Minister here is more economically literate than those spokesmen, because he knows well that public sector pay does not fuel inflation, neither is it driving private sector pay—you have only to look at the discontinuity now. Will the Minister please disabuse his colleagues of this specious argument? Will he urge them to sit down with the nurses and settle this dispute?
Of course we want to see the action ended and the dispute brought to an end, but it remains the case that, if above-inflation pay rises are accepted, that will mean less money for the services that everybody wants to see expanded. There is a limited pot of money that can go only so far.
My Lords, at some point the Government are going to have to find a way out. The Minister’s noble friend has suggested a very elegant way—by asking the review body to review the evidence. Would he confirm that the report of the review body for nurses came out in July, based on evidence submitted three months before? Surely there is a unique case here to ask the review body to look again.
I understand the point that the noble Lord is making but the problem is that, once you make an exception for one group, I imagine that lots of other deserving groups will also want exceptions made for them. Pretty soon, the exception becomes the rule. We are sticking to the position that we asked the pay review bodies to look at the appropriate level of remuneration; they have done so and we have accepted their recommendation.
My Lords, is it not true that, in the National Health Service, there are many different grades that nurses can achieve? They can go on doing the same job but be promoted up the grades and get more pay.
I am not overly familiar with the pay grades in the National Health Service—perhaps my noble friend Lord Markham could have answered that on the previous Question better than me.
My Lords, is the Minister aware that the Government have lost the public opinion battle? Nobody believes that the independent pay review is independent or the Government’s figures about how much it will cost per household. The Government frittered away billions on the PPE scandal, so people just do not believe them any more. Will the Minister accept that it is time to sit down and talk money with nurses, posties and railway workers?
It is very easy for Opposition Members to say that we should grant this and that pay rise, but only a limited number can be funded. The noble Baroness talks about PPE; I seem to remember that, when we had these debates in the House at the time, the Opposition Benches were united in telling us that we needed to procure more of it as quickly as possible and not let other things get in the way of delivering essential PPE for our health service professionals. That is what we did.
Lord Morris of Aberavon (Lab)
My Lords, does not the independent report predate a further surge in inflation? What do the Government consider to be appropriate to deal with that further surge?
I am not familiar with the details of the negotiations. I can tell the noble and learned Lord only that the Government have accepted in full the recommendations of the pay review body. I assume that, when it reports again next year, it will take account of the inflation that has taken place this year.