UK Government confirms increase to Scottish Government borrowing

Scotland Act Order approval will increases borrowing resource to fund vital public services including schools, hospitals and key infrastructure to boost growth

More money to fund vital public services will be at the disposal of the Scottish Government after a motion passed in the House of Commons yesterday that will see their borrowing powers increased in line with inflation.

Scotland Office Minister John Lamont secured the approval of a Scotland Act Order that increases the Scottish Government’s resource borrowing limit from £1.75 billion to £1.78 billion and the capital borrowing limit from £3 billion to £3.05 billion in 2024-25, enabling them to invest further in schools, hospitals, roads and other key infrastructure that will help to grow the economy and create better paid jobs and opportunity in Scotland.  

The move upholds the UK Government’s commitment to the new Fiscal Framework agreed in August 2023 between the UK and Scottish governments which included annual uprating and gives the Scottish Government certainty over borrowing limits for the 2024/25 financial year.

UK Government Minister for Scotland John Lamont said: “We have listened to calls from the Scottish Government for greater certainty and flexibility to help them manage their budget. This is a great example of devolution in action and how we can deliver for people of Scotland when our two governments work together.

“The wider Fiscal Framework deal – worth billions of pounds to Scotland over the coming years – builds upon work to support economic growth and provide more high-skill jobs, investment and future opportunities for local people, such as through Investment Zones and Freeports in Scotland. 

“The UK Government has made great strides in growing the economy and by halving inflation sooner than forecast. With our direct investment in Scotland now standing at more than £3billion, we are creating opportunities right across the UK.”

In addition to the changes made to the cumulative borrowing limits through today’s Order, the Fiscal Framework agreement also saw the permanent doubling of the resource borrowing annual limit from £300 million to £600 million.

Limits on how much can be withdrawn from the Scotland Reserve to spend in future years was also removed. This boosts spending through borrowing by £90 million in 2024/25. All future limits will increase in line with inflation. 

The new arrangements compare with the previous Fiscal Framework, where the Scottish Government’s capital borrowing limit was £450 million per year within a £3 billion cap, as well as receiving a Barnett-based share of UK Government borrowing. Going forward these amounts now rise with inflation instead, which supports additional investment across Scotland and lays the foundations for economic growth. 

The funding arrangements for tax continue, with the Scottish Government continuing to keep every penny of devolved Scottish taxes while also receiving an additional contribution from the rest of the UK.

Background:

  • Scotland act orders in the UK Parliament fully support devolution by facilitating amendments to be made to UK legislation affecting Scotland, to enable Scottish legislation to have full effect, or additional powers to be transferred to Scottish Government ministers.
  • On average, seven Scotland Act Orders are made each year and more than 250 have been passed since the start of devolution.
  • The target date for the order to come into force is 17 June 2024, subject to the date of signing.

Visa scheme for Palestinians to be debated at Westminster

MORE THAN 103,000 PEOPLE HAVE SIGNED PETITION

NEXT Monday 13 May, MPs will debate a petition calling for a visa scheme for Palestinians.

Cat Smith MP, Chair of the Petitions Committee, has been asked by the Committee to open the debate. MPs from all parties can take part, and the Government will send a minister to respond.

Create a visa scheme for Palestinians

The petition, which has more than 103,000 signatures, states:

We want the government to take action and create a Visa scheme that allows Palestinian individuals affected by war, to be allowed into the UK. Just like we did for Ukraine.

In its response to the petition, provided on 21 December 2023, the Government said: “There are no plans to introduce bespoke arrangements for people arriving from the region. Those wishing to come to the UK who currently have no visa can apply under one of the existing visa routes.”

What are petitions debates?

Petitions debates are ‘general’ debates which allow MPs from all parties to discuss the important issues raised by one or more petitions, and put their concerns to Government Ministers.

Petition debates don’t end with a vote to implement the request of a petition. This means MPs will not vote on the request of the petition at the end of the debate. Instead, the aim is to give MPs an opportunity to discuss the issues raised by a petition, and get a response from the Government.

Petition debates are scheduled by the Petitions Committee. Only e-petitions started on the Parliament petitions site are considered by the Petitions Committee.

Tories taking back control … of England’s toilets

Westminster government to introduce new law to ‘halt the march of gender-neutral toilets’

New requirements will be brought forward for single sex toilet facilities in new non-domestic buildings to alleviate safety, privacy and dignity concerns.   

The new legislation follows the results of a consultation on the proposals, where responses showed 81% agreed with the intention for separate single-sex toilet facilities and 82% agreed with the intention to provide universal toilets where space allows.  A universal toilet is self-contained, and a fully enclosed toilet room with a wash hand basin for individual use.

Responses highlighted particular concerns from women, elderly and the disabled who felt unfairly disadvantaged as publicly accessible toilets are increasingly being converted into gender neutral facilities where users share cubicle and hand-washing facilities. This leads to increasing waiting in shared queues, decreased choice and less privacy and dignity. 

The new requirements will mean everyone can access appropriate facilities either through a separate single-sex space or a self-contained, universal toilet.   

Changes to building regulations will mean that new non-domestic buildings, including restaurants, shopping centres, offices and public toilets will be required to provide separate single-sex toilets for women and men.  Self-contained, universal toilets may be provided in addition, where space allows, or instead of single-sex toilets where there isn’t enough space.   

In addition to single-sex toilets becoming the default for new non-domestic buildings and places undertaking major refurbishment, the policy encourages provision of self-contained universal toilets, which are a fully enclosed toilet room with a washbasin and hand-drying facilities for individual use.   

Minister for Women and Equalities Kemi Badenoch said: “These regulations will guide organisations to design unisex and single-sex toilets, ending the rise of so-called “gender-neutral” mixed sex toilet spaces, which deny privacy and dignity to both men and women.

“Today’s announcement will also create better provision for women so that our particular biological, health and sanitary needs are met.

“This is following our work last week limiting the use of mixed-sex wards in the NHS and demonstrates how this government is committed to ensuring single-sex spaces are protected for all.”

Housing Minister Lee Rowley said:  “We know all members of society value safety, privacy and dignity, and this new legislation will help ensure the right facilities are in place for everyone. 

“It is vital that new buildings, particularly in public spaces, are serving the community with right toilet provision.

“The Government is clear that single-sex spaces are essential for ensuring privacy and dignity for the elderly, women, and girls.”

The move comes following a set of announcements of firm action to protect spaces for women and girls, such as the Government’s introduction of a new NHS constitution which put patient safety and dignity at the heart of care, including reinforcing the NHS’s commitment to providing single-sex wards. 

It also follows the Minister for Women and Equalities’ call for examples of organisations issuing incorrect guidance on single-sex spaces. 

In addition, the Department for Education re-enforced that Schools in England are required to comply with minimum standards, including that separate toilets for boys and girls aged 8 years and over are to be provided.

While England’s colleges are not subject to the same legal requirements, they should take the same approach given the same safeguarding considerations apply.

Changes to building regulations will ensure that:   

  • Separate single-sex toilets facilities are provided for men and women;    
  • Self-contained, universal toilets may be provided in addition to single-sex toilets, where space allows;  
  • Self-contained universal toilets may be provided instead of single-sex toilets only where lack of space reasonably precludes provision of single-sex toilet accommodation.    

Cash injection for millions as National Insurance cut hits payslips

  • Millions of workers checking payslips tomorrow will see a tax cut
  • As the economy turns a corner, the government is rewarding hard work, with over £900 a year boost for typical worker
  • Marks another step in long-term ambition to end unfair double tax on work

There are 27 million employees in the UK, and today [Tuesday 30 April] millions of them on monthly salaries will wake up with a little more cash in their pockets, as the UK government’s Spring Budget cut to National Insurance appears in April’s pay-packets.

Since Autumn 2023, National Insurance Contributions (NICs) for workers have been slashed by a third – the largest cut to employee and self-employed NICs in history.

The main rate of employee National Insurance has been cut for 27 million workers from 12% to 8%, saving the average employee on £35,400 over £900 a year. An average full-time nurse will save £1053, a typical junior doctor £1508 and an average teacher £1270.

These cuts are possible because the economy is turning a corner, thanks to the government’s decisive action that has helped bring inflation down from 11.1% to 3.2% and ensure borrowing costs start to fall. Because of this progress, the government can now cut taxes to reward work and grow the economy.

This marks another step towards the longer-term ambition to end the unfair double tax on work and abolish employee and self-employed NICs altogether.

These tax cuts – worth over £20 billion a year – have been achievable while protecting spending including keeping the Triple Lock and the government has commitment to going further only when it’s possible to do so.

Prime Minister Rishi Sunak said: ““At the start of last year I made to pledge to half inflation. And because of the difficult decisions we have taken, inflation has more than halved and we are now able to reward work, and cut taxes for millions of workers who are seeing the benefit in their pay checks today.

“We have now cut National Insurance by £900 because it’s unfair that workers pay double tax on their income. We need to make it much simpler and much fairer and we are going to continue cutting this tax until it’s gone – while continuing to protect pensioners with the triple lock and providing record levels of funding to the NHS.”

Chancellor of the Exchequer Jeremy Hunt said: “We’re on the right track – we’ve been able to slash National Insurance to return hundreds of pounds back into the pockets of hard-working Brits because of the decisions we’ve made to manage the economy responsibly.

“Over the years ahead we want to get rid of National Insurance completely for workers – it is an unfair double tax on work and we’ve shown we can protect spending on public services while eliminating it.”

The tax cuts to date mean that for single individuals on average salaries, personal taxes would be lower in the UK than every other G7 country, based on the most recent OECD data.

The smart nature of the tax cuts will also help grow the economy by bringing more people into the labour market. The Office for Budget Responsibility (OBR) expects that, as a result of these combined cuts, total hours worked will increase by the equivalent of almost 200,000 full-time workers by 2028-29.

To mark the record cuts to NICs, HMRC launched an updated online tool earlier this month to help people understand how much they personally could save in National Insurance this year.

These cuts to reward work follow a raft of changes that came into force on 1 April and could save households up to £3,850 a year to help those struggling with cost-of-living while igniting the economy.

This includes a record increase in the National Living Wage from £10.42 an hour to £11.44, and a 12.3% drop in energy bills from the previous quarter.

In addition, households can benefit from a separate increase to the Local Housing Allowance that will mean some of the poorest families on either Universal Credit or Housing Benefit will gain £800 a year on average.

Who does this help?

The combined cuts to National Insurance mean:

  • A ‘hard-working’ family with two earners on the average salary of £35,400 each will be better off by £1,826.
  • An average full-time nurse on £38,900 will be better off by £1,053.
  • A senior nurse with five years experience on £42,618 will be better off by £1,202.
  • The average police officer on £44,300 will be better off by £1,270.
  • A cleaner working night shifts on £21,058 will be better off by £340.
  • A typical junior doctor on £65,000 will be better off by £1,508.
  • A typical self-employed plumber on £34,361 will be better off by £846.
  • The typical teacher on £44,300 will be better off by over £1,270.

Rwanda Bill to become law in ‘major illegal migration milestone’

Final phase of implementing the flagship policy WILL commence

UK government efforts to stop the boats and tackle illegal migration took a major step forward, after the Safety of Rwanda Bill completed its passage through Parliament overnight.

The Bill’s passing means the government can enter the final phase of operational planning to get flights off the ground to Rwanda, pioneering a new response to the global challenge of illegal migration.  

Robust operational plans are in place to ensure a first flight to Rwanda can be delivered within 10-12 weeks, with multiple flights set to take off after this.  

The landmark legislation means that going forward, Rwanda should be deemed a safe country for the purposes of relocating people, including in UK courts and tribunals.   

It will prevent legal challenges from being used to delay or halt a person’s removal to Rwanda on the grounds that Rwanda is generally unsafe, or that an individual will be returned to an unsafe country after removal to Rwanda – an act known as refoulement.    

The Bill makes it unambiguously clear that UK Parliament is sovereign, and the validity of any Act of Parliament is unaffected by international law. Ministers will be able to retain the decision on whether to comply with interim measures from the European Court of Human Rights, for example, a Rule 39 injunction.  

 

Home Secretary James Cleverly said:   ”This vital legislation means we can now proceed with our Rwanda plan and begin removing people with no right to be here.   

“The only way to stop the boats is to eliminate the incentive to come – by making clear that if you are here illegally, you will not be allowed to stay.   

“Our policy does exactly that and plans are well under way to begin flights within 10-12 weeks.”

Prime Minister Rishi Sunak said: “The passing of this landmark legislation it not just a step forward but a fundamental change in the global equation on migration.

“We introduced the Rwanda Bill to deter vulnerable migrants from making perilous crossings and break the business model of the criminal gangs who exploit them. The passing of this legislation will allow us to do that and make it very clear that if you come here illegally, you will not be able to stay.

“Our focus is to now get flights off the ground, and I am clear that nothing will stand in our way of doing that and saving lives.”

The Westminster government is ready to deliver a first relocation flight and teams are working at pace to prepare. This includes: 

  • an airfield on standby and commercial charter planes booked for specific slots
  • detention spaces increased to 2,200
  • 200 trained dedicated caseworkers are ready and waiting to quickly process claims
  • the judiciary have made available 25 courtrooms to deal with any legal cases quickly and decisively
  • to escort illegal migrants all the way to Rwanda, we have 500 highly trained individuals ready, with 300 more trained in the coming weeks.

Responding to the concerns raised by the Supreme Court, the Safety of Rwanda Bill was introduced in December last year and builds upon the UK-Rwanda Treaty.  

Together, these measures and evidence of changes in Rwanda since summer 2022, will allow government to implement the policy, supporting the wider plan to stop the boats by removing the incentive to come here illegally.   

The new law, which is one of the toughest pieces of legislation ever introduced, builds upon the Treaty, reflecting the strength of the Government of Rwanda’s protections and commitments relocated to Rwanda in accordance with the Treaty. It also:   

  • confirms that, with the new Treaty, Rwanda is safe
  • prevents UK courts and tribunals from delaying or preventing a person’s removal to Rwanda on matters relating only to the general safety of Rwanda
  • allows for an exceptionally narrow route to individual challenge to ensure that the courts will interpret the relevant provisions in accordance with the will of Parliament
  • disapplies relevant sections of the Human Rights Act 1998
  • confirms that only a Minister of the Crown can decide whether to comply with an interim measure issued by the European Court of Human Rights.

In November 2023, the Supreme Court upheld the lawfulness of resettling illegal migrants for the purposes of determining their asylum claims, but required more assurance that they would not be refouled.   

The internationally binding Treaty between Rwanda and the UK was announced by the Government in response to this finding and introduces measures to make clear Rwanda will not return anyone to an unsafe country.   

Under the Treaty, Rwanda has also introduced a strengthened end-to-end asylum system, including a new, specialist asylum appeals tribunal to consider individual appeals against any refused claims. It will have two co-presidents, from Rwanda and from another Commonwealth country, and be made up of judges from a mix of nations. 

The Treaty also enhances the role of the independent Monitoring Committee, which will ensure adherence to obligations under the Treaty and have the power to set its own priority areas for monitoring.   

But this ‘significant step forward’ remains just one part of the government’s wider plan to stop the boats. Solid progress has been made, with the number of small boat arrivals falling by more than a third in 2023. UK Government work with international partners prevented more than 26,000 crossings last year, as well as helping to dismantle 82 organised crime groups since July 2020.   

Westminster’s new agreement with Albania has cut Albanian small boat arrivals by more than 90 per cent; and we recently signed a ground-breaking deal with Frontex, the European Border and Coast Guard Agency, marking another crucial step in securing our borders.   

The Bill is expected to receive Royal Assent in the coming days.

In a statement on X, Migrant Voice campaigners said: “You cannot legislate to say that some people deserve fewer human rights than others.

“We remain absolutely opposed to the #RwandaBill, and stand in solidarity and support with all those who have been left more fearful for the future this morning, having come here seeking safety.”

Former Labour leader Jeremy Corbyn commented: “The Rwanda Bill is a disgusting piece of legislation designed to demonise the world’s most vulnerable people.

“This government has done everything it can to make the lives of refugees even harder. What a sorry and shameful legacy to leave behind.”

Commenting on the passing of the Safety of Rwanda (Asylum and Immigration) Bill, Edinburgh North and Leith MP Deidre Brock said: “I’m saddened by the UK Government’s actions in forcing through the Rwanda Bill last night.

“This shameful bill doesn’t just defy international law, it flies in the face of basic human decency. The UK which once proudly helped pen the refugee convention is now choosing to ignore its obligations. It has descended into gutter politics.

“My thoughts are with all those fleeing war and persecution who seek refuge on our shores. They should be met with empathy and compassion, not hostility.  I will continue to stand by them and do all I can to assist.

“We need to look at where the asylum system is failing and improve the safe legal routes into our country, to cut out the people smuggling gangs. Instead, the UK is stooping to their level with something akin to state sponsored people trafficking.

“As Burns put it, Man’s inhumanity to man, Makes countless thousands mourn.”

MPs to vote on landmark Bill to create Smokefree generation

MPs to vote on legislation to create first smoke-free generation, protecting young people turning 15 this year or younger from harms of smoking

MPs will vote today (16th April 2024) on world-leading legislation to protect future generations across the UK from the harmful effects of smoking.

The Tobacco and Vapes Bill would make it an offence to sell tobacco products to anyone born after 1 January 2009 – children aged 15 or younger today. Smoking itself would not be criminalised and anyone who can legally buy tobacco today will never be prevented from doing so in the future by the legislation.

If passed, the Bill will progress to the next stage, bringing the UK closer to creating the first smoke-free generation. 

Responsible for around 80,000 deaths annually, smoking is the UK’s single biggest preventable killer and costs the NHS and economy an estimated £17 billion a year—far more than the £10 billion annual revenue from tobacco taxation.

It is also highly addictive – 4 in 5 smokers start before the age of 20 and remain addicted for the rest of their lives despite most smokers having tried to quit.

The legislation will cover all tobacco products, recognising that tobacco kills two-thirds of long-term users. In England alone, almost every minute someone with a smoking-related condition is admitted to hospital.

The Bill will help deliver the Prime Minister’s commitment of creating a smokefree generation which could prevent over 470,000 cases of heart disease, stroke, lung cancer and other deadly diseases by the turn of the century.

Alongside action to prevent creating future smokers, the government has already announced significant additional funding for stop smoking services over the next five years, effectively doubling the money available for local initiatives that can help existing smokers to quit. The government is also rolling out an innovative financial incentives scheme to help all pregnant smokers to quit.

Health and Social Care Secretary, Victoria Atkins, said: “Too many people know someone whose life has been tragically cut short or irreversibly changed because of smoking, which despite significant progress remains the UK’s biggest preventable killer.

“The truth is that there is no safe level of tobacco consumption. It is uniquely harmful and that is why we are taking this important action today to protect the next generation.

“This Bill will save thousands of lives, ease the strain on our NHS, and improve the UK’s productivity.”

The Tobacco and Vapes Bill would also give the government new powers to tackle youth vaping by restricting flavours and regulating the way that vapes are sold and packaged to make them less appealing to children.

While vaping can play a useful role in helping adult smokers to quit, non-smokers and children should never vape. The long-term health impacts of vaping are unknown and the nicotine contained within them can be highly addictive.

To ensure compliance with the new rules, trading standards officers will be given new powers to issue on-the-spot fines (fixed penalty notices) to retailers unlawfully selling tobacco or vapes to children. All the money raised would be used to fund further enforcement action.

The Bill follows the government’s previously stated commitment to ban the sale and supply of disposable vapes under existing environmental legislation, which have been a key factor behind the rise in youth vaping. The ban is planned to take effect from April 2025.

Public Health Minister, Andrea Leadsom, said: “Smoking is the number one preventable cause of disability, ill health and death in this country. Once it becomes a habit, its addictive nature means that it is extremely difficult to stop.

“Because the case against these harmful products is so strong, it’s not surprising that the majority of the British public—including those who smoke and those who sell tobacco—support plans to protect the next generation from the misery of smoking.

“Our plan will save lives, ease the strain on our NHS, and ensure a brighter future for our children.”

Professor Chris Whitty, Chief Medical Officer for England said: “Smoking kills and causes harm at all stages of life from stillbirths, asthma in children, stroke, cancer to heart attacks and dementia.

“This Bill, if passed, will have a substantial impact – preventing disease, disability and premature deaths long into the future.”

Deborah Arnott, Chief Executive of Action on Smoking and Health, said: “The Tobacco and Vapes Bill being voted on today is radical but, hard as it is now to believe, so were the smokefree laws when they were put before parliament. Parliamentarians can be reassured that the public they represent back the Bill.

“New research just published by ASH shows that the majority of tobacco retailers and the public, including smokers, support the legislation and the smokefree generation ambition it is designed to deliver.  This historic legislation will consign smoking to the “ash heap of history.” 

Dr Charmaine Griffiths, Chief Executive at the British Heart Foundation said: “Smoking continues to devastate the nation’s health, taking 15,000 UK lives every single year due to cardiovascular disease alone. 

“Raising the age of sale for tobacco each year will be a game changer, meaning that future generations are protected from serious disease and death caused by smoking. 

“Decisive action is needed to end this ongoing public health tragedy – we urge every MP to vote for this landmark legislation at the Bill’s Second Reading.”

Professor Steve Turner, Royal College for Paediatrics and Child Health President, said: “Without a doubt the introduction of the Tobacco and Vapes Bill will save lives.  

“By stopping children and young people from becoming addicted to nicotine and tobacco we decrease their chances of developing preventable diseases later in life, and will protect children from the harms of nicotine addiction.  

“As paediatricians, we strongly urge MPs to use the important responsibility they have and support this Bill to protect children’s and our nation’s current and future health.” 

Dr Ian Walker, Executive Director of Policy at Cancer Research UK, said: “Today’s vote is a critical step towards the UK becoming a world leader in tobacco control. By voting in favour of the age of sale legislation, MPs will be putting us on the right side of history, and helping to create the first ever smokefree generation.

“Smoking is still the leading cause of cancer in the UK. Now is the time to take action, end cancers caused by smoking and save lives.”

‘To the shoplifters and those abusing shopworkers, enough is enough’

Prime Minister launches retail crime crackdown

Serial or abusive shoplifters will face tougher punishments as the Prime Minister sets out tough new action to crack down on retail crime and protect UK highstreets.

Assaulting a retail worker will be made a standalone criminal offence in England, sending a clear message that there will be tough consequences for this unacceptable behaviour. 

Perpetrators could be sent to prison for up to six months, receive an unlimited fine and be banned from going back to the shop where they committed their crimes, with Criminal Behaviour Orders barring them visiting specific premises. 

Breaching an order is also a criminal offence and carries a five-year maximum prison sentence. For the most serious cases of assault, such as causing grievous bodily harm with intent, offenders could face a life sentence.

The move to create the new offence follows longstanding campaigning on this issue from Matt Vickers MP, and some of the biggest retailers, calling for more action to better protect their staff. 

The UK government is also stepping up action to clamp down on offenders who repeatedly target the country’s high streets, with serial offenders forced to wear tags to track their movements. 

These tags will be a constant and physical reminder to offenders that the Probation Service can find out where they have been and when, and that they risk being sent to prison if they refuse to obey the rules. Under an amendment to the Criminal Justice Bill, if an offender is found guilty of assaulting staff three times, or is sentenced for shoplifting on three separate occasions, they should be made to wear a tag as part of any community order.

Ahead of this legislation coming in, the UK government will partner with a police force to pilot a bespoke package of community sentencing measures which can be used by judges to tackle high levels of shoplifting, sending a clear message that repeat criminality will not be tolerated.

The government is also ramping up the use of facial recognition technology to help catch perpetrators and prevent shoplifting in the first place. Backed by a £55.5m investment over the next four years, the police will be able to further roll this new state of the art technology.

This will include £4m for bespoke mobile units that can be deployed to high streets across the country with live facial recognition used in crowded areas to identify people wanted by the police – including repeat shoplifters.

The mobile units will take live footage of crowds in towns and on highstreets, comparing images to specific people wanted by the police or banned from that location. Police in the area will then be alerted so they can track down these offenders.  

Prime Minister Rishi Sunak said: “Since 2010, violent and neighbourhood crime in England and Wales has fallen dramatically, showing our plan to keep our streets safe is working. Yet shoplifting and violence and abuse towards retail workers continues to rise.

“I am sending a message to those criminals – whether they are serious organised criminal gangs, repeat offenders or opportunistic thieves – who think they can get away with stealing from these local businesses or abusing shopworkers, enough is enough.

“Our local shops are the lifeblood of our communities, and they must be free to trade without the threat of crime or abuse.”

The action set out today builds on the successes already through the police’s Retail Crime Action Plan, which was commissioned by the Crime and Policing Minister, Chris Philp last year.

This included a range of measures, such as a police commitment to prioritise urgently attending the scene of shop theft involving violence against a shop worker, where security guards have detained an offender or where attendance is needed to secure evidence, which is showing signs of progress.

Home Secretary James Cleverly said: “There is quite simply no excuse for threatening behaviour or stealing – which can run other people’s livelihoods into the ground, while being traumatic for workers. 

“To turn a blind eye to retail crime shakes the foundations of law and order which protect our society and that is unacceptable. We are enhancing our plan and doubling down on the zero-tolerance approach needed to fight back. 

“The number of offenders being charged for these crimes is increasing and while I want to see more people face consequences for their actions, our plan is designed to help put a stop to these crimes happening in the first place.”

The government has driven forward significant efforts to tackle retail crime in the past year, bringing together policing and business to commit to smarter, more joined up working to reduce criminal behaviour and rebuild public confidence in the police response when it does occur. 

Crime and Policing Minister Chris Philp said: “Sadly if you speak to anyone working in retail, they will tell you of the verbal abuse and sometimes violent assaults they’ve been victims of, simply for trying to do their job. 

“In no other work place would this be accepted. I have been driving forward action to improve the police response to retail crime since I became Policing Minister, because nothing less than a zero-tolerance approach will do.

“That’s why today we’re sending a clear message to criminals that enough is enough bringing forward further measures to protect retail workers and crack down on those who continuously disregard the law.”

A specialist new police team set up last year is building intelligence on organised retail crime gangs funded through ‘Pegasus’, a first-of-its-kind business and policing partnership backed by 14 of the UK’s biggest retailers, National Business Crime Solutions and the Home Office, launched to radically improve the way retailers are able to share intelligence with police to identify more offenders. The unit forms part of Opal, the national police intelligence unit for serious organised acquisitive crime.   

Where CCTV or other digital images are secured, police are committed to running this through the Police National Database, as standard, to aid efforts to identify prolific offenders or potentially dangerous individuals. This builds on the pledge by police forces across England and Wales that they will follow up on all lines of enquiry, where there is a reasonable chance it could lead them to catching a perpetrator and solving a crime.

All police forces across England and Wales made another significant commitment last year to prioritise police attendance at the scene of a retail crime incident where violence has been used towards shop staff, where an offender has been detained by store security, or where evidence needs to be secured and can only be done by police personnel.

Paul Gerrard, Campaigns and Public Affairs Director of The Co-op Group, said: “The Co-op sees every day the violence and threats our colleagues, like other retail workers, face as they serve the communities they live in.

“We have long called for a standalone offence of attacking or abusing a shopworker and so we very much welcome the Government’s announcement today.

“The Co-op will redouble our work with police forces but these measures will undoubtedly, when implemented, keep our shopworkers safer, protect the shops they work in and help the communities both serve.”

Helen Dickinson, Chief Executive of the British Retail Consortium, said: “After relentless campaigning for a specific offence for assaulting retail workers, the voices of the three million people working in retail are finally being heard.

“The impact of retail violence has steadily worsened, with people facing racial abuse, sexual harassment, threatening behaviour, physical assault and threats with weapons, often linked to organised crime. Victims are ordinary hardworking people – teenagers taking on their first job, carers looking for part-time work, parents working around childcare.

“This announcement sends a clear message that abusive behaviour will not be tolerated and it is vital the police use this new legislation to step up their response to incidents. Together, we must stamp out this scourge in crime that has been sweeping the nation and ensure retail workers are given the vital protections they deserve.

Sharon White, Chairman of the John Lewis Partnership, said: “Retail crime is never victimless – it costs retailers over £1 billion every year and can have a huge impact on the shop workers involved. 

“We’ve long called for violence towards retail workers to be recognised as a standalone offence so welcome this announcement, which sends a clear message that abuse will never be tolerated. It will help deter acts of aggression, and allow police to drive prosecutions should instances escalate.”

MPs call for statutory sick pay reform to address inadequate financial support for workers most in need

Statutory sick pay (SSP) is failing to provide enough support for those who most need financial help when ill and should be increased and made more widely available, MPs say today.

The report from the Work and Pensions Committee says that a modest increase to SSP in line with Statutory Maternity Pay would strike a reasonable balance between providing extra financial support and not placing excessive extra costs on businesses. It also says that all employees should be eligible for SSP, not just those earning above the lower earnings limit.

Rates of sickness absence and ill health have increased in recent years, with a record 185.6 million working days lost to sickness or injury in 2022. During its inquiry, the Committee heard the current system of SSP was an insufficient safety net for those who relied on it, and no use at all to those who were not eligible.

Despite consultations by previous governments, no permanent changes have been forthcoming. While the Committee understands why the Government decided that the Covid-19 pandemic was the wrong time to introduce changes, due to the immediate additional costs on employers, it finds that this argument is now less valid.

In addition to recommending changes to the SSP rate and eligibility, the report calls on the Government to amend legislation to enable SSP to be paid in combination with usual wages in order to encourage phased returns to work.

On the cost to businesses, the report concludes that the overall impact of SSP reform is difficult to predict, but even if they did not result in lower levels of sickness absence, larger firms would be able to absorb the costs. It says this would not be true of smaller businesses, however, and calls on the Government to consult with small and medium-sized businesses on the design of a small business rebate for SSP.

Finally, the report says that the Government should establish a contributory sick pay scheme for the self-employed to increase support during periods of illness.

Rt Hon Sir Stephen Timms MP, Chair of the Work and Pensions Committee, said: “Statutory sick pay is failing in its primary purpose to act as a safety net for workers who most need financial help during illness.

“With the country continuing to face high rates of sickness absence, the Government can no longer afford to keep kicking the can down the road on reform. The Committee’s proposals strike the right balance between widening and strengthening support and not placing excessive burdens on business.

“A growing number of workers are now classified as self-employed and a new contributory sick pay scheme for self-employed people would be a welcome step towards ensuring they are they are no worse off financially during periods of sickness than employees on SSP.”

A full list of the Committee’s conclusions and recommendations is available on Pages 34–36 of the report.

Commenting on the publication of a Work and Pensions Committee report on whether the government should reform statutory sick pay to provide more financial support to low-paid employees, TUC General Secretary Paul Nowak said: “The Covid-19 pandemic showed that our sick pay system is in desperate need of reform. 

“It beggars belief that ministers have done nothing to fix sick pay since. 

“It’s a disgrace that so many low-paid and insecure workers up and down the country – most of them women – have to go without financial support when sick. 

“The committee is right that ministers urgently need to remove the lower earnings limit and raise the rate of sick pay. 

“Wider reform is also needed to remove the three days people must wait before they get any sick pay at all.  

“Working people deserve better. 

“It’s time for a new deal for workers, like Labour is proposing – which includes stronger sick pay and a ban on zero hours contracts.” 

Analysis published by the TUC in January revealed that 1.3 million people do not earn enough to qualify for statutory sick pay – and 70% are women. 

And zero-hours contract workers are eight times more likely than those on secure contracts (30.3% compared to 3.6%) to miss out on statutory sick pay because they don’t earn enough to qualify. 

MPs call for new regulatory approach to secure thriving future for defined benefit pension schemes

Changes to proposed regulation and improvements in governance standards are urgently needed to ensure private sector defined benefit (DB) pension schemes remain an active and thriving part of the pensions landscape and work in the best interest of scheme members, MPs say today.

The Work and Pensions Committee report concludes that despite a steady decline in number in recent years, DB pension schemes are still of critical importance to both savers and the UK economy.

It warns however that two decades of regulatory and policy caution from DWP and The Pensions Regulator (TPR) have led to a low-risk approach to investment that threatens to inadvertently finish off the few remaining DB schemes still open to new members.

With an improvement in funding levels over the past decade presenting new challenges and opportunities for schemes, the report calls for a fresh approach both to funding regulation and the treatment of surpluses in pension and compensation schemes.

Among recommendations on the latter, the report calls for DWP and TPR to look at ways of ensuring the reasonable expectations of scheme members for benefit enhancement are met where there has been a history of discretionary increases.

On the new funding regime proposed by the Government to come into force in September, the Committee’s inquiry heard concerns that open schemes would be forced to de-risk unnecessarily, potentially leading to premature closure.

The Committee calls for the Government to address such concerns in the final version of the Funding Code and for TPR’s objective to protect the Pension Protection Fund to be replaced with a new duty to protect future, as well as past, service benefits.

PPF reserves now stand at £12 billion and the report calls for legislation to allow the levy to be reduced to zero and for compensation levels to be improved.

To encourage better governance, the Committee welcomes the introduction of a trustee register to improve TPR oversight. The report notes TPR’s view that consolidation, including through pension Superfunds, is one of the main ways to improve governance, and calls for the required legislation as soon as possible.

Rt Hon Sir Stephen Timms MP, Chair of the Work and Pensions Committee, said: “Defined benefit pension schemes are hugely important to savers planning for a comfortable retirement and for the UK economy.

“The improvement in scheme funding levels presents opportunities for both to benefit, but a new approach to regulation and governance is needed to protect the best interest of scheme members and allow still open schemes to thrive.

“The flexibility afforded by the much-improved financial position of the PPF, which we applaud, gives the Government an opportunity to ensure open schemes are not hindered by overly cautious restrictions imposed by regulations.

“While many trustee boards operate to high standards, new standards for trustees can foster confidence that this is the case across DB schemes.”

The report follows up on some of the points raised during the Committee’s previous inquiry into DB pensions with Liability Driven Investments, which examined the events of autumn 2022. The Committee heard that a repeat of the events was now unlikely given the steps taken to improve resilience.

A full list of the Committee’s conclusions and recommendations is available on Pp 54–58 of the report.

Benefit levels in the UK: MPs call for annual uprating guarantee

Committee calls for cost of living benchmark

The UK Government must outline the extent to which benefits should be supporting people with daily living costs and bring forward a plan so that benefit levels meet the new benchmark, a House of Commons committee said yesterday.

The Work and Pensions Committee’s report on benefit levels in the UK also calls on the Government to introduce a new ‘uprating guarantee,’ to uprate working-age benefits and the Local Housing Allowance rate each year, to end the uncertainty faced  by people claiming benefits.

The Committee also recommends that the Household Support Fund, which enables local authorities to help those in need, be made a permanent part of the social security system.

The recommendations follow a year-long inquiry launched after the Committee’s recommendation in its 2022 cost of living report to review the adequacy of benefits levels. The 2022 report highlighted evidence that a root cause of the financial challenges faced by households “lay in the fundamental inadequacy of social security support”, but the Government insisted that there was no objective way of deciding what benefits should be.

In response to that challenge, Thursday’s report says that the Government should develop a framework of principles and set a benchmark and objectives linked to living costs to measure the effectiveness of benefit levels.

If DWP finds that it is not meeting these objectives, it should set out how it intends to reach them, for example by increasing benefit levels when the financial situation allows.

The report also says that the Government should make an ‘uprating guarantee’ to increase benefits annually, based on, for example, prices. It would be required to set out its reasoning to Parliament if it decided to deviate from this guarantee.

On the Household Support Fund, the Committee welcomes the extension announced in Spring Budget 2024. The report says that it should become a permanent feature of the social security system to improve the ability of local authorities to plan their provision of discretionary support to households.

Rt Hon Sir Stephen Timms MP, Chair of the Work and Pensions Committee, said: “It is right that our benefit system incentivises work, but it should also provide an effective safety net for jobseekers, people on low incomes, carers and those with disabilities.  

“We have heard plenty of evidence that benefits are currently at a level that leaves many unable to afford daily essentials or meet the unavoidable extra costs associated with having a health impairment or disability.

“The Government has previously said that it is not possible to come up with an objective way of deciding what benefits should be.  Our recommendations are a response to that challenge, and the ball is now back in the Government’s court.

“On top of acknowledging and acting on a new benchmark and objectives linked to living costs, Ministers should commit to consistent uprating of benefits each year.  It is time to end the annual ‘will they or won’t they’ speculation and all the worry that brings to those who rely on the social security system for financial support.

“The Household Support Fund has provided a vital layer of additional support for households during the cost of living crisis.

“The Government should build on the extension announced in the Budget, and make it a permanent part of the social security system to allow councils to continue to reach those in their local areas who most need help.”

A full list of the Committee’s conclusions and recommendations is available on P74 of the report. The Report is also available in British Sign Language, audio and EasyRead formats.