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Mandelson backs away from new 'family' hours
Joe Murphy, Political Editor20 Oct 2008
A CABINET split opened today after Peter Mandelson put a question mark over new family-friendly working rights for parents.
The Business Secretary was slapped down by a Treasury minister for calling into jeopardy new family-friendly working rights for parents.
He infuriated Labour MPs by announcing a review of the flagship policy of flexible hours, implying it might be too big a burden for firms during a slump. The flexitime policy, aimed at 4.5 million parents of under-sixes, was championed by Gordon Brown and last month adopted as policy at Labour's party conference.
Lord Mandelson revealed he was reviewing policies that may be too costly to firms. Plans to extend paid maternity leave from 39 to 52 weeks and to create an extra bank holiday may be postponed or watered down.
He was contradicted by Treasury minister Yvette Cooper, who said: "What we clearly can't do is [help small businesses] in a way which makes life more difficult for people who need flexible working."
A Prime Minister spokesman said Lord Mandelson was "rightly" checking policies as he was "new in the job", but seemed to side with Ms Cooper. "As Yvette Cooper made clear, we need to do all we can to support families," he said.
The apparent retreat was seized on by the Tories, who said it was the latest in a line of Labour announcements that had fallen apart under scrutiny. A pledge to cut immigrant numbers by Home Office minister Phil Woolas was hastily withdrawn after a day.
Ms Cooper was accused of exaggerating a promise to stop banks repossessing homes of people who fall behind with mortgages, which turned out to involve merely gentle pressure on banks to be lenient.
The Tories said Alistair Darling failed to live up to headlines declaring that he planned to spend his way out of recession. They said his plans involve bringing forward capital spending from future years in an attempt to boost jobs, with no overall increase in expenditure.
Employers said Lord Mandelson's review should go further. Miles Templeman of the Institute of Directors said: "If the Government now thinks they would impose burdens on small businesses, it is surely right to abandon the proposals."
Reader views (1)
All the legislation regarding employment needs an overhaul - it is way too complex and in places draconian. While some employment legislation was put in with the best of intentions, it has had the effect of making employers (particularly of small companies) far more cautious about taking on more staff. Given we are in a recession, employers need all the encouragement possible and freedom from red tape.
- Jeremy E, London, UK., 21/10/2008 10:13
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