Theresa May hires former Blair policy boss to review workers' rights

The former head of Tony Blair’s policy unit has been hired by Theresa May to head a review of workers’ rights and practices, which will try to address concerns that millions are stuck in insecure and stressful work.

Matthew Taylor, who worked for Blair before heading the Royal Society of Arts, will undertake the “review of modern employment”, looking at why so many low paid workers are anxious about their jobs.

Writing for the Guardian, Taylor said he would examine the “particular problem with job security” in modern Britain that affects millions of people.

“While 92% of people consider job security to be important, only 65% people think their job is secure and 15% think it is insecure – that’s around 5 million people wondering if they will be able to pay the bills each month, or what will happen to the mortgage if they’re suddenly out of work,” he said.

He said stress in employment used to be correlated with seniority. Now those with lower incomes are just as likely to suffer anxiety at work.

“What’s more, around 6 million people are not covered by the standard suite of workplace rights,” he said. “Worryingly, that number continues to grow, and it shows how rapidly changing business models and working practices are continually stretching the limits of our employment rules.”

He said the current system works for the majority of people but there are many who work flexibly and may need better protections. In particular, it will look at how new forms of work might undermine the effectiveness of policies such as the minimum wage, maternity and paternity rights, pensions auto-enrolment, sick pay, and holiday pay.

Taylor is an unusual choice for May, as someone who has advocated the concept of a form of universal basic income in the longer term – a policy being examined by Jeremy Corbyn and John McDonnell.

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Last month, he also said the government’s flagship new benefit system, universal credit, was on the way to joining an “inglorious list” of disasters alongside the poll tax and rail privatisation.

Despite being politically neutral in his RSA role and having helped write election manifestos for Labour, Taylor said credit should be given to May for looking at how to extend workers’ rights.

He said the review would be independent and based on conversations with workers in different jobs and types of employment across the country. It may also examine longer term potential trends in work such as automation, which could make millions of traditional jobs unnecessary.

In terms of the longer term trends, he said he would like the review to think about a future world of work where many more people work flexibly and how “we can have a tax and welfare system that is properly resourced” to reflect that.

“It will be really important to get out and listen to people. I don’t just want to be crunching data and numbers. I want us to get out and explore what these issues about modern work mean in very different labour markets and different parts of the country. We will have to be guided by what people tell us.”

The opposition is likely to be sceptical of such a review given the Conservatives have presided over an increase in job insecurity over the past six years and a refusal to ban zero-hour contracts, arguing that many workers like the flexibility.

Corbyn has drawn attention to the corporate behaviour of businesses such Sports Direct, BHS, and the Byron burger chain, which he said in July has “driven home the reality faced by a huge number of workers today: a race to the bottom in insecurity, low pay, stress and exploitation”.

Labour pro-remain campaigners and trade unions also warned repeatedly that Brexit could lead to a watering down of employment rights, as many derive from EU law.

However, the move fits in with May’s attempt to make helping those who are “just managing” a major theme of this week’s Conservative party conference in Birmingham. It also suggests she is mounting an attempt to move on to Labour’s turf and address the concerns of voters who opted for Brexit in the hope that it might improve their circumstances.

She claimed to be “building a new centre ground in British politics”, which would involve improving pay, security, and the employment rights of ordinary working people.

“Flexibility and innovation are a vital part of what makes our economy strong, but it is essential that these virtues are combined with the right support and protections for workers,” May said. “The UK has one of the strongest labour markets in the world – with record numbers of people in work, and an unemployment rate almost half the EU average.

“That’s a proud record, but if we are to build a country that works for everyone – not just the privileged few – we need to be certain that employment regulation and practices are keeping pace with the changing world of work.”