Measures for small businesses and low paid worker outlined in Queen’s Speech

RA Now

Support for small business to access finance and improvements in the fairness of contracts for low paid workers are among the measures announced in the Queen’s Speech.

In her last speech before next year’s General Election, the Queen also outlined reforms to the pensions system in which employees can pay into collective pensions funds, enabling lower administrative costs. Apprenticeship places will also increase to two million by May 2015, the Queen said.

“Legislation will impose higher penalties on employers who fail to pay their staff the minimum wage,” she said. “Measures will be brought forward to limit excessive redundancy payments across the public sector.

“In respect of National Insurance contributions, legislation will be brought forward to tackle avoidance and to simplify their collection from the self-employed.”

Katja Hall, CBI deputy director general, said that the organisation supported the introduction of an increased fine for employers who intentionally don’t pay the NMW and stronger enforcement of the law.

Hall added: “The UK’s flexible labour market is a strength of our economy, keeping the number of people out of work down and boosting employment – it should be protected. A ban on exclusivity clauses in zero hours contracts would be a proportionate response to some of the issues that have been highlighted, as it focuses on poor practice rather than demonising flexible work in general.”

The speech also outlined the Modern Slavery Bill, which aims to strengthen the powers to prevent modern slavery and human trafficking whilst improving support for victims of such crimes.