2. Will the Cabinet Secretary make a statement on the growth of the gig economy in Wales? (OAQ51143)

Our national strategy, ‘Prosperity for All’, sets out our ambition for an economy that delivers individual and national prosperity, one that reduces inequalities and grows wealth and well-being in the aggregate, where people can fulfil their ambitions and enhance their well-being, and secure sustainable employment.

Thank you, Cabinet Secretary. The issue of modern working practices and wider questions about how we structure our labour market are hugely important. Chwarae Teg have noticed that the Taylor review, and the creation of the Fair Work Commission, help to change the nature of the debate around work and our ever-changing labour market. It’s crucial that we don’t miss the opportunity to ensure that secure, flexible and well-paid employment is available to all. Does the Cabinet Secretary agree that we need to collate and have access to more data on the gig economy in Wales in order to maximise the benefits and minimise the disadvantages to the people of Wales?

Can I thank the Member for her question and say that I do welcome the work of the Taylor review, although, of course, the recommendations appear to stop short of the strengthened enforcement of legislation needed to prevent exploitation of low-paid workers. With regard to what could be beneficial, and the enhancement of data on the gig economy, to help us understand the nature and impact of this on the Welsh economy, I think that it’s important that we go on working with the Office for National Statistics, and other parts of the UK, to consider how best the data can be captured. I can inform the Member that officials are part of a group that was set up to look at scoping out analytical needs and methods of measuring the gig economy, which is an issue right across the UK, but which has particular significance for us here in Wales. And, clearly, given the nature of the gig economy, the insight and new sources of data available through the data science campus could well play a very important role.

Cabinet Secretary, the growth of the gig economy and the rise in non-standard working practices has created problems for significant numbers of workers and has tested the limits of existing labour market protections. It is also a problem for employers, who struggle with this regulatory and tax system, designed for formal and reliable employment. The UK Government set up the Taylor review, headed by Matthew Taylor, a former senior advisor to Tony Blair, to look into the employment practices in the modern economy, and its recommendations are subject to consultation. What study has the Cabinet Secretary made of the Taylor review, and will he take it into account when forming employment rights and responsibility in Wales? Thank you.

Well, I think I answered much of the Member’s question when I responded to Jayne Bryant, by saying that I do welcome the Taylor review. However, I do think the UK Government now needs to move at speed in responding to the recommendations. And, as I also said to the Member, I do feel that the recommendations appear to have stopped short of where they should have gone to. The recent decision, though, by the Supreme Court that tribunal fees introduced by the UK Government in 2013 are unlawful I think is a positive step to improve access to justice for those who have been subject to unlawful employment practices. I should say that work within Wales, in terms of procurement within the public sector, and in terms of the work that the First Minister has led on, on fair work, I think is important. It takes us ahead of much of the UK in ensuring that we have fair working practices across the economy.

Working in the gig economy suits some workers—it always has suited some workers, probably always will. But I’d suggest that the majority are not in the gig economy out of choice. What they’re actually getting in reality is no job security, no ability to budget. I’m sure you agree with me on all those things. The UK Government has identified the problem as being a reduction in the tax take, and Philip Hammond recently came out with a statement that he was going to readjust the tax regime to find more effective ways of taxing these workers. Personally, I think they’re completely ignoring the real problem. So, what representations have you made to the Chancellor of the Exchequer with respect to increasing the growth of secure employment, rather than focusing on the tax take?

I’d agree with the Member that, for some people, the gig economy may offer attractions. But, for the majority, I think it’s probably an insecure, uncertain environment in which to earn a living. And my problem isn’t so much with the tax take; that’s clearly an issue for UK Treasury. My problem is with the impact that the gig economy is having on the collective well-being and mental health of the nation, and the health of the economy as a whole. We’ve been very clear within Welsh Government that we need to have a proper living wage, that we need to embrace and enhance the best employment practices that take place, and work is therefore ongoing to explore embedding employment practices within the sustainable development charter across the economy. It’s our view, and it’s captured within ‘Prosperity for All’, that we should ensure that there is wealth, health and well-being for all people in Wales, and that access to employment should be on the basis of sustainable employment and secure employment.