Accountants welcome plans to scrap Agricultural Wages Board

Andrew Heskin
Andrew Heskin

Fenland specialist agricultural accountants Moore Thompson have welcomed proposals to abolish the Agricultural Wages Board.

MPs have voted to scrap the board following an opposition debate called by Labour. Labour argued getting rid of the AWB, which sets rate of pay for labours and managers, would lead to a “race to the bottom” over wages, while government ministers said the quango was obsolete and wasteful.

Andrew Heskin, a partner in Moore Thompson’s Farming Sector team, said: “The abolishment of the AWB is good news as it will break employers free from the shackles of this outdated wages board.

“Our farmers and growers need the freedom to set competitive wages in an expanding market where there is substantial demand for labour.”

During the debate Labour’s shadow environment secretary Mary Creagh, said: “We don’t want a race to the bottom on wages or a great increase in the amount employers charge workers for their tied accommodation, for their hot bed in a caravan, which would mean they would end up effectively working for below national minimum wage and under-cutting British workers out of the market.”

However Owen Paterson, the Environment Secretary said: “I am absolutely confident that wages will be well above those set by the AWB.”

The board, which sets pay levels for 153,000 workers in England and Wales, was established in 1948, and also ensures that employers provide a bed and drinking water, as well as holiday pay.

Following the debate, parliament voted 283 to 213 to support plans to abolish the board.

The AWB will now be abolished if the Enterprise and Regulatory Reform Bill gains Royal Assent in its present form.

The timeframe for its abolishment has yet to be confirmed, although it is likely to coincide with the expiration of the current Agricultural Wages Order at the end of September this year.

Andrew warned: “Until the expiration of the order, employers must still comply with its terms, alongside other employment legislation.”