Stephen Mosley (City of Chester) (Con)
15. What steps he is taking to tackle benefit fraud in areas where its prevalence is high.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
I remind my hon. Friends of our inheritance from the previous Government: fraud and error in the benefit system were at £3.1 billion and progress had plateaued since 2005. The joint strategy with Her Majesty’s Revenue and Customs started in 2010 and included mobile regional taskforces to look at different areas. We are targeting claimants in high fraud areas with visits, phone calls and letters. One pilot has been completed in Birmingham and we have two more in Cardiff and Croydon. We will carry out evaluation once all three are completed. So far, since October, from case cleansing alone we have saved more than £100 million.
Nadhim Zahawi
I thank my right hon. Friend. Will he share with the House how many benefit fraudsters were actually prosecuted last year?
Mr Duncan Smith
We prosecuted almost 10,000 benefit fraudsters in 2010-11, up from 8,200 the year before. Of those, 86% were successfully convicted—[Interruption.] I would have thought that the right hon. Member for Birmingham, Hodge Hill (Mr Byrne) would like to keep quiet, because he has made one mistake already and is bound to put his foot in it again. We will push for the strongest possible sentences. In all cases, benefit fraudsters are required to pay back the money they have stolen.
Stephen Mosley
Benefit fraud is not just stealing from the taxpayer; it also leads to less money being available to those who are most in need. One measure that should deter benefit cheats is the one, two and three strikes rules. How successful does my right hon. Friend think that those rules will be in reducing benefit fraud?
Mr Duncan Smith
When the Welfare Reform Bill has passed through the other place, that process will begin and I think it will be very successful. Another important thing that we will do is bring together all the disparate benefit groups chasing fraud so that we have a much more cohesive strategy. Under the previous Government data were collected so shoddily that it is difficult to get to the absolute truth about the figures, so finally and importantly, we intend to change that.
Kevin Brennan (Cardiff West) (Lab)
The right hon. Gentleman is absolutely right to tackle benefit fraud, and he mentioned the scheme in Cardiff. Is he being equally assiduous in tackling a lack of benefit take-up among people who should be entitled to benefits?
Mr Duncan Smith
That is exactly what universal credit will help to change. The most important point is that its automatic nature will mean far fewer cases of people not receiving in the first place what they are entitled to. One good example is child care: many women, in particular, who are responsible for looking after children do not get the child care that they need, and under the universal credit that should change.
Yvonne Fovargue (Makerfield) (Lab)
Universal credit is supposed to be much simpler than the current system. Why, according to the Government’s own impact assessment, will 380,000 people receive penalties for mistakes on their application and when will negligence be defined?
Mr Duncan Smith
The point about universal credit is that it gets rid of quite a lot of the complexity in the system. That complexity has led to so many mistakes by individuals claiming and by the officials who are meant to be settling those claims. The hon. Lady, and her party, should welcome the arrival of universal credit at the earliest opportunity.
Laura Sandys (South Thanet) (Con)
2. What support is available through Jobcentre Plus for people who wish to start their own business.
The Minister of State, Department for Work and Pensions (Chris Grayling)
I am pleased to refer my hon. Friend to the announcement we made a couple of weeks ago that our new enterprise allowance is now available nationwide for people who are looking to move from unemployment to self-employment. The early indications from Merseyside, where the scheme started back in the spring, are that a significant number of people have moved into self-employment. Those to whom I have spoken regard it as a really positive experience and are doing well as a result.
Laura Sandys
I thank the Minister for that answer. One resource that we do not necessarily use effectively is the help of retired business men and women who are interested in mentoring new start-ups. Would Jobcentre Plus consider recruiting them across the country to ensure that such start-ups have a much greater likelihood of success?
Chris Grayling
My hon. Friend is absolutely right about the importance of mentoring. The difference between the new enterprise allowance and previous schemes is that it involves mentoring, which is often, as she says, provided by retired business people. We are looking to recruit as many mentors as possible through the Jobcentre Plus network and the organisations supporting enterprise allowance participants. Hon. Members on both sides of the House have an important role to play in helping to encourage people whom they come across in their constituency work to put themselves forward as mentors.
Bill Esterson (Sefton Central) (Lab)
What advice is available now through Jobcentre Plus? I am sure the Minister agrees that we do not want people to end up back on benefits having started businesses which failed only a few weeks or months later because they did not know how to run them effectively.
Chris Grayling
That is absolutely the reason we have put mentoring at the heart of the new enterprise allowance—so that participants have a mentor who will work alongside them, not simply to prepare a business plan but to ensure in the first few months of trading that they do not make the kind of mistake that can cause the business to fail immediately.
Stephen Lloyd (Eastbourne) (LD)
I am greatly encouraged by the efforts of the Minister and the Department for Work and Pensions to encourage entrepreneurship among the unemployed. The plan currently includes the provision of low-interest loans of up to £1,000, but sadly that amount does not go an awfully long way these days. I would welcome hearing from the Minister that the Department might consider, down the line, providing low-interest loans of up to £2,000, as that would make a significant difference.
Chris Grayling
My hon. Friend makes an important point. There are several aspects to the scheme that we intend to review and consider as time goes by to see whether changes can be made to make the scheme even more effective. I will happily give serious consideration to the point he raises.
Stephen Timms (East Ham) (Lab)
The Low Incomes Tax Reform Group points out that tax credits today support self-employment much better than the proposals for universal credit will in future because universal credit will assume that people are earning at least the minimum wage, which is completely unrealistic in the early years of self-employment. Will the Minister look again at that particular problem with universal credit at least for people in the first year or two of self-employment?
Chris Grayling
We will monitor carefully how the decisions we have taken on universal credit work. As the right hon. Gentleman knows, we want to encourage and support self-employment, and we cannot allow people to shelter themselves on benefits under the false excuse that they are self-employed. In order to encourage people and to make sure that claimants are genuine, we are putting in place new rules. However, as I have said to him in Committee, every individual will have the right to self-assess or self-refer each month, so that we always get amounts right and do not penalise people who are trying to do the right thing.
Greg Mulholland (Leeds North West) (LD)
3. What steps he is taking to improve public understanding of benefits available for people with (a) a hidden disability and (b) other forms of disability.
Jo Swinson (East Dunbartonshire) (LD)
5. What steps he has taken to improve public understanding of benefits available for people with (a) a hidden disability and (b) other forms of disability.
The Parliamentary Under-Secretary of State for Work and Pensions (Maria Miller)
As my right hon. Friend the Secretary of State said earlier, the Government’s welfare reform programme will help to make our benefits system more understandable, less complex and better focused on those who really need help to live an independent life, so restoring trust in benefit provision, which has been so badly eroded in recent years. The Government also provide support for better understanding through Jobcentre Plus and work to support user-led organisations.
Greg Mulholland
I thank the Minister for that answer. The Government are right to tackle benefit fraud, but is she aware of the “Bad News for Disabled People” report by the university of Glasgow, which showed that the public dramatically overestimate the level of fraud in disability benefits by as much as 70%, based on inaccurate media reporting? What can the Government do to challenge that?
Maria Miller
I thank my hon. Friend for that question on an issue of which many hon. Members are aware. We are very conscious of the language we use when we talk about these issues, because we are clear that it is the system that has trapped people in a spiral of welfare dependency and that there has been a failure to reform benefits such as disability living allowance and to build any sense of reassessment into them. Those are the sorts of things that can create such problems and the Government are tackling them.
Jo Swinson
Despite the public’s overestimation of benefit fraud, in our constituency surgeries we see cases of the exact opposite—people who have a severe disability that affects their ability to work but who are found by the initial Atos assessment to be fit for work. Appeals can be stressful and costly, so will the Department implement Professor Harrington’s recommendation and publish data on the quality of Atos assessments and the percentage of successful appeals, so that we can judge for ourselves whether improvements are being made?
Maria Miller
We have accepted all of Professor Harrington’s proposals. Let me draw to my hon. Friend’s attention the fact that the number of successful appeals against the work capability assessment are substantially lower than for its predecessor, the personal capability assessment.
Kate Green (Stretford and Urmston) (Lab)
What work have the Minister and her Department undertaken with employers to make them more aware of hidden disabilities and the adaptations that they may need to make in the workplace to enable disabled people to keep or obtain a job?
Maria Miller
As the hon. Lady knows, we work on an ongoing basis with employers through a number of forums. In particular, I am aware of the work that an organisation such as BT does to support its employees in such matters. It is by showcasing that sort of good practice that we will get a better understanding more broadly among employers.
Mrs Anne McGuire (Stirling) (Lab)
Given that evidence of public understanding of disability benefits is often hazy, does the Minister with responsibility for disabled people agree with the Secretary of State when he said earlier this month in a comment in a daily newspaper:
“At the moment . . . millions of pounds are paid out in . . . benefits to people who have simply filled out a form”,
thereby giving credence to yet another negative and erroneous story about disabled people? If she does not, what efforts has she made personally to discover who briefed the story, and what action has she or her Secretary of State taken to correct the facts in this instance and to challenge future stories of a similar ilk?
Maria Miller
The right hon. Lady will know, from her time working in the Department for Work and Pensions, that there are indeed many people who simply fill in a form and receive a benefit, and that we are not making the right sort of assessment to ensure that that is correct in future. She may also be aware that £600 million is given out each year for disability living allowance, which is an over-assessment of people’s needs.
Alec Shelbrooke (Elmet and Rothwell) (Con)
4. What steps he has taken to ensure that work contracted by his Department will not be moved offshore.
Karen Lumley (Redditch) (Con)
16. What steps he has taken to ensure that work contracted by his Department will not be moved offshore.
The Minister of State, Department for Work and Pensions (Chris Grayling)
We have a policy to control contracted work being offshored. Our suppliers are required to seek approval before they offshore any contracted work. Those approvals are predicated on their meeting stringent guidelines. I should also say that, as a team of Ministers, we have indicated very clearly to our suppliers that we will not countenance seeing existing UK employment offshored.
Alec Shelbrooke
My right hon. Friend’s comments will be welcome news for many of my constituents, who are employed by his Department in Leeds. Can he tell the House what the future holds for the disabled benefits centre in Leeds?
Chris Grayling
As my hon. Friend knows, we are in the process of rationalising our estate, where we have a number of part-empty and under-used buildings. We have not made a formal announcement about the future situation, but I can confirm that it is our intention to continue to process disability benefits in Leeds.
Karen Lumley
Following a recent meeting of business leaders in my constituency, we are working hard to try to ensure that contracts stay in Redditch and that we bring new jobs to Redditch. Will the Minister consider Redditch as a serious contender for any new contracts that he wishes to award?
Chris Grayling
I commend my hon. Friend for her commitment to her constituency. Clearly, my colleagues and I have listened to the point that she makes, but there is a more important issue behind what she says—that each one of us as Members of Parliament, even including yourself, Mr Speaker, have an important role to play in building links between employers, welfare-to-work organisations and others who can help make sure that the unemployed in this country find an opportunity to get back into work as early as possible.
Mrs Mary Glindon (North Tyneside) (Lab)
Last July, during Department for Work and Pensions questions, the Minister said that in his view,
“British-based staff are the best contact centre staff”.—[Official Report, 18 July 2011; Vol. 531, c. 604.]
Will he therefore acknowledge the role played by MPs, workers and the Public and Commercial Services Union in persuading Hewlett Packard to drop its plans to offshore more than 200 DWP jobs, and will he commit to ensuring that his Government’s procurement policies do not permit contractors to jeopardise UK jobs and sensitive public data in this way in future?
Chris Grayling
The hon. Lady is right. I personally intervened as Minister to say that that offshoring should not take place. It is important that we do not see Government-controlled employment move offshore. We have a job to try to maximise employment in this country, and I pay tribute to all those involved in that work force for drawing our attention to the issue and the challenge. It is by far the best option to see people investing in the UK. It is particularly gratifying to see the contact centre industry around the UK increasingly reopening centres, recognising that British workers are far better at delivering good customer service than their counterparts in other parts of the world.
Matthew Hancock (West Suffolk) (Con)
6. What assessment he has made of the effect of work experience programmes on employment prospects.
Richard Graham (Gloucester) (Con)
13. What assessment he has made of the effect of work experience programmes on employment prospects.
The Minister of State, Department for Work and Pensions (Chris Grayling)
Early indications show that the work experience programme is proving extremely successful. The first figures we published for the period up to August show that more than half the young people starting a work experience placement under the scheme are off benefits within three months. As the scheme is extremely cost-effective, that is welcome news.
Matthew Hancock
Will the Minister visit one such successful work experience programme in Haverhill in my constituency, where youth unemployment has fallen by 15% since the programme started? Some 40% of young unemployed people are on the programme and, as with the national average, half of them are going into full-time jobs, even where there were no vacancies.
Chris Grayling
I pay tribute to the staff of Jobcentre Plus in my hon. Friend’s constituency for their part in delivering a successful scheme. I will be delighted, the next time I am in Suffolk, to drop in with him to meet and pay tribute to them for what they have done.
Robert Halfon
Does my right hon. Friend agree that work experience schemes need to progress to apprenticeships, and will he support the scheme I am working on with the charity New Deal for the Mind, Harlow college and Essex county council, which aims to employ genuine apprentices in Parliament?
Chris Grayling
I am very happy to support and pay tribute to my hon. Friend’s efforts. He is a model example of how an individual Member of Parliament can make a real difference by identifying an area where they can transform people’s prospects. His work on apprenticeships is a credit to him and to the House.
Mr Amess
As someone who was involved in recruitment for many years before becoming a Member of Parliament, I know that it is certainly better to have work experience on a CV than a gap, so will my right hon. Friend take this opportunity to condemn those people who have described the scheme as akin to modern-day slavery?
Chris Grayling
My hon. Friend is absolutely right. There are times when I read things and have to step back in amazement and think, “Some people just don’t get it.” The work experience scheme is making a real difference for young people. I pay tribute to the firms taking part in the scheme, particularly, given recent publicity, our supermarkets, which are large and diverse employers with wide-ranging opportunities. They are playing an important role in giving young people a start in their careers. The scheme is working, and that is enormously down to the work of employers in helping to give young people an opportunity.
Richard Graham
I believe, like other colleagues, that work experience is beginning to have a real effect on the employment prospects of the young. I also see from the sister programme, the Work programme, a really encouraging drop in long-term unemployment in my constituency of Gloucester. I understand the reasons for waiting a year to analyse the results, but will the Minister consider publishing data, at least on a preliminary basis, after six months to show the results across the country?
Chris Grayling
I hear what my hon. Friend is saying. I am not in the business of burying good news. We are hearing encouraging noises from the early stages of the Work programme. Indeed, one of our providers has said on the record that it is going much better for them than the previous Government’s flexible new deal. I will bring forward statistics on the Work programme as soon as it is practical to do so, but I am under obligations from the Office for National Statistics to produce statistics that are valid and appropriate, which is what I will do.
Mr Dennis Skinner (Bolsover) (Lab)
I had drawn to my attention today the case of a constituent's grandson who has worked at Debenhams on one of these courses for four days a week, then for three, then for two, then for one, and now it is down to four hours only, for £24 with a bus fare for travelling to and from Derby. Surely that is not benefit plus, but benefit minus. Will he ensure that people placed in that predicament do not lose their benefit?
Chris Grayling
From what the hon. Gentleman says, I do not think that he is describing our work experience scheme. If he wants to write to me about the individual case, I will look at whether it is due to something that the Government are doing or something else.
Sheila Gilmore (Edinburgh East) (Lab)
Will the Minister comment on reports that even young people with qualifications are being sent for 13 weeks of shelf stacking? What sort of experience is that giving them?
Chris Grayling
I am always very disappointed to hear Members attacking major employers such as our supermarkets. A few months ago I met a man who had been long-term unemployed, who was given a job at one of our major supermarkets and who, within a few months, had graduated to running a department of 20. These are major employers with good opportunities, and we are about giving young people a start in life.
Mr David Hanson (Delyn) (Lab)
Youth unemployment in the north, the north-west and my area of north Wales is rising higher and is deeper and longer than in the south. Does the Minister have any assessment of the quality and number of work placements in the north versus those in the south of England?
Chris Grayling
I have talked to Jobcentre Plus about the availability of placements, and I am confident that, together with the changes that we announced last Friday, which will double the size of the work experience scheme, we will be able to offer every single young person who needs such a placement the opportunity to embark on one.
Ian Austin (Dudley North) (Lab)
Youth unemployment has now hit 1 million, and the OECD has forecast today that unemployment is set to climb to 9%, as thousands and thousands more people lose their jobs. The Government scrapped the future jobs fund in their very first month, but the new measures that they have announced do not start until April—two years later. Will this morning’s shocking projections finally wake up the complacent and out-of-touch Ministers before us and persuade them to implement our plan for 100,000 jobs, paid for by a tax on bankers’ bonuses?
Chris Grayling
The trouble is that we just cannot take the Opposition seriously when we know that they have already announced 10 different ways of spending that money. We as a Government are delivering real action through real schemes that work and are affordable, and that is something that they failed to do. It is worth saying also that Labour is the party under which, back in 2009, more than 1 million young people were not in education, employment or training—despite the fact that Labour Members tell us otherwise.
Sajid Javid (Bromsgrove) (Con)
7. What steps he is taking to ensure that individuals are able to build up pension pots under automatic enrolment.
Harriett Baldwin (West Worcestershire) (Con)
10. What steps he is taking to ensure that individuals are able to build up pension pots under automatic enrolment.
The Minister of State, Department for Work and Pensions (Steve Webb)
I am pleased to confirm that we will go ahead with the introduction of auto-enrolment next year as planned, and I can confirm further that all businesses remain in scope. We have, however, decided to extend the reform’s current five-year implementation, so that small businesses will not have to start enrolling their workers until the start of the next Parliament. The revised plans will, nevertheless, still result in more than half of all workers being enrolled before the end of this Parliament. This is a positive programme, and there will be no exemptions.
Sajid Javid
This Government are doing a huge amount to help people deal with the challenges of old age. In that context, does my hon. Friend have any plans to change the rules governing short-service pension refunds?
Steve Webb
As my hon. Friend points out, certain pension schemes but not others currently allow people to take money out within the first two years, and that is an anomaly. We need to ensure that money put into pension savings stays there, and that is why short-service refunds for defined contribution schemes will not be part of the long-term landscape under automatic enrolment.
Harriett Baldwin
Does the Minister agree that auto-enrolment will bring into pension savings for the first time millions of low-paid workers in the private sector, both men and women, and that they can begin to look forward to the same kind of retirement income that we rightly offer our public sector employees?
Steve Webb
As my hon. Friend points out, at the moment not only do literally millions of people in the private sector not have a moderate pension; they have no pension at all. Auto-enrolment remains key to our policy goals, and as I just observed, more than half the work force will have been auto-enrolled by the next election.
Dame Anne Begg (Aberdeen South) (Lab)
I am disappointed to hear that there will be a delay in the roll-out of auto-enrolment, but I appreciate that the Minister was under a lot of pressure from noises off to bring in some exemptions, so I am pleased that that is not to be. What guarantee can he give to businesses, however? They need an absolute guarantee that the scheme will go ahead on time and to a new timetable, and that there will be no stepping back by the Government.
Steve Webb
I am grateful to the Chair of the Work and Pensions Committee for welcoming our decision to keep everybody in. In terms of certainty, everybody who was due to be enrolled this side of July 2013 will see no change in their dates, and we will publish early in the new year the revised schedule. I entirely agree that certainty is needed, and I can confirm that there will be no further changes to the timetable.
Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)
Auto-enrolment is—or should I say, was?—central to the Pensions Minister’s strategy, so his resorting to bureaucratic language, saying that “all businesses remain in scope,” is not going to reassure anyone. The fact is, as I hope he will confirm, that the schedule has been moved back and millions upon millions of the employees whom he was keen to get saving in a pension scheme will not be auto-enrolled until after 2015. Is that correct?
Steve Webb
I am not sure whether the hon. Gentleman is aware of this, but under his party’s plans the roll-out of employers with one to 50 employees was already scheduled to go into 2016. I can confirm that the majority of the work force will be auto-enrolled during this Parliament. There was already a five-year roll-out for auto-enrolment, so it was already a phased process. Yes, we have changed the schedule, but, as he may be aware, his party changed it twice in a three-month period.
Mr Julian Brazier (Canterbury) (Con)
Does my hon. Friend agree that the difficulties and dilemmas involved in deciding what to do about the pension pot, particularly with regard to small businesses, should send a message out there to all those who can look forward to index-linked public sector pensions that they should be grateful?
Steve Webb
My hon. Friend is right that we do not want to see a levelling down in pension provision. We want quality pensions for our public servants, but we want to make sure that many more people in the private sector get quality pension provision as well, and auto-enrolment will help to achieve that.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
11. If he will amend his proposed welfare reforms to minimise the risk of children entering poverty.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
The overhaul of the benefits system through the Welfare Reform Bill will hugely improve the incentives to work. Universal credit will bring in an improvement for children, in that 350,000 children will be lifted out of relative poverty. As the hon. Lady may be aware, we have also made available an extra £300 million for the poorest people who are caring for children.
Debbie Abrahams
The Children’s Society’s analysis of the impact of the welfare reforms says that they will push more children into severe poverty and homelessness. Currently, one in four children in my constituency is in severe poverty. Eighteen bishops have called for the Secretary of State to reconsider his position on the reforms—will he listen to them?
Mr Duncan Smith
I think the hon. Lady is referring to the cap, but I do not agree with her. The cap, which I understand Labour Front Benchers support, is rational and reasonable in that nobody who is out of work should be earning more than average earnings—that is, about £26,000 net. She may deal with constituents who have to travel perhaps an hour into work in the morning and an hour back, who work very hard and who look at those who are out of work and on benefits and find it difficult to accept that they are unable to earn as much.
Damian Hinds (East Hampshire) (Con)
With child poverty targets repeatedly missed pre-2010, what role does the Government’s support for child care and the extension of early years provision play in helping families and keeping children out of poverty?
Mr Duncan Smith
My hon. Friend has hit the issue right on the head. If we focus narrowly on income, we get a perverse result. Through our early years work, through the support provided by the pupil premium in schools, and through the work that we are doing with universal credit, we have been hugely improving future outcomes for parents and their children who currently languish in poverty.
Huw Irranca-Davies (Ogmore) (Lab)
As the Secretary of State will know, the Institute for Fiscal Studies predicts that by 2015 there will be 400,000 more children in poverty. Does he agree with us about this, and if so, what is he going to do about it—or does he just accept that it is a necessary evil of the Government’s current policies?
Mr Duncan Smith
With respect, we are already doing a lot about it. Of course, people can predict as far ahead as they like, without making big assumptions that nothing ever changes, and they will get the kind of results that they want. The reality for us is that all the work that I described to my hon. Friend the Member for East Hampshire (Damian Hinds) is vital in changing outcomes for parents and children. Unlike Labour when in government, we do not think that children should be considered separately from their families; we lift families out of poverty and children out of poverty too.
Jessica Lee (Erewash) (Con)
A genuine challenge for us is to move into work those young unemployed people who have not had the role model of a parent getting up and going out to work in the morning. Can my right hon. Friend assure us that we are tackling this cycle of dependency to assist children and young people for the future?
Mr Duncan Smith
I refer my hon. Friend to the answer given earlier by my right hon. Friend the Minister of State. The Work programme is a huge change for people who have been out of work for a long time. If we couple that with work experience and the opportunities for apprenticeships, we can see that this is a big step forward. Together with the introduction of universal credit, which will ensure that someone is always better off in work than out of work, the whole benefit and welfare system should be changed positively to support those sorts of people.
Iain Stewart (Milton Keynes South) (Con)
12. What plans he has to publish a strategy on disability.
The Parliamentary Under-Secretary of State for Work and Pensions (Maria Miller)
I will publish a discussion document in December to support debate, and a new disability strategy next year. Our vision is to enable disabled people to fulfil their potential. We will co-produce the strategy with disabled people and their organisations, focusing on the themes of realising aspirations, individual control, and changing attitudes and behaviours.
Iain Stewart
Has my hon. Friend assessed how many disabled people the Department will be able to support back into work as a result of the Government’s reforms?
Maria Miller
I am sure that the strategy we develop will include an action plan and that work will form an important part of it. The Work programme is already providing important support for disabled people to get into work. The further work that is being done with the Sayce review suggests that an additional 35,000 disabled people could be supported into work if we use the money that is there to support specialist disability employment more effectively.
Derek Twigg (Halton) (Lab)
Will the review look into the impact of the severe cuts in the public sector and in public sector jobs on the availability of jobs for disabled people?
Maria Miller
We of course always consider the availability of jobs for all people, and particularly for disabled people. Remploy’s employment services have been particularly successful in securing employment for disabled people, even over the past year in these difficult economic times.
Nick Smith (Blaenau Gwent) (Lab)
14. What steps he is taking to tackle youth unemployment.
The Minister of State, Department for Work and Pensions (Chris Grayling)
The measures that we announced on Friday build on the support that we have in place. There will be more intensive support for all 18 to 24-year-olds, including through the doubling of the work experience and sector-based work academy schemes. There will also be a wage incentive for any young person under the age of 24 who is placed in long-term employment, usually in the private sector, through the Work programme.
Nick Smith
In Blaenau Gwent, there has been a 70% rise in young people who have been on the dole for more than six months. The Government now acknowledge that high long-term youth unemployment is a slow-burning social disaster. How many of their private sector, subsidised work places for young people will be delivered in Wales next year?
Chris Grayling
Let us deal head-on with the issue of an increase in long-term youth unemployment. The only reason that the figures for long-term youth unemployment show an increase is that we no longer hide young unemployed people on Government schemes and training allowances, which created a totally misleading figure. The reality is that long-term youth unemployment on a like-for-like basis is now almost identical to what it was two years ago under the previous Administration. Every single young unemployed person in Blaenau Gwent will have access to a work experience placement through our work experience scheme or to the Work programme, through which they will receive a wage subsidy for any employer who takes them on and gives them a long-term job.
Tony Baldry (Banbury) (Con)
Does my right hon. Friend agree that the £25 million that is being made available for 10,000 advanced and higher apprenticeships is welcome not only because it will help to rebalance the economy towards manufacturing, but because it will provide a number of skilled jobs for young people? Is not the challenge now to encourage employers to take up and offer those apprenticeships?
Chris Grayling
Absolutely; I completely agree with my hon. Friend. We have regular meetings with employer groups, where I encourage them to take up apprenticeships. I am delighted that my hon. Friend the Minister for Further Education, Skills and Lifelong Learning has met his target for delivering apprenticeships, unlike the previous Government. The Opposition seldom refer to this point, but the increase in the number of apprenticeships far exceeds the number of places that were available through the future jobs fund.
Diana Johnson (Kingston upon Hull North) (Lab)
What impact does the Minister think the youth contract will have in Hull, where in my constituency 58.2 people go after each vacancy? As I understand it, the youth contract will provide only a third of the jobs that the future jobs fund would have provided.
Chris Grayling
Of course, the young people of Hull now have access not simply to the guarantee that we will find them a work experience placement and to intensive, personalised support through the Work programme for those who have not found work, but to far more apprenticeships than was ever the case under the previous Government. That package is designed to create long-term employment and not the short-term, artificial placements that were created by the previous Government.
Mark Pawsey (Rugby) (Con)
17. What steps his Department is taking to ensure the new system of universal credit accommodates changes in personal circumstances.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
The design of universal credit will largely be about improving people’s personal circumstances. It will take account of such changes. That is the point of using the real-time information system. Essentially, such information will flow automatically, thus stopping what happens at present. All too often, there is too much of a delay in changing people’s circumstances, which can damage their outcomes, as was the case for one of my hon. Friend’s constituents. That should be brought to an end. At last, we will have a system that reflects people’s needs.
Mark Pawsey
The constituent to whom the Secretary of State refers, whose domestic circumstances changed, immediately notified Her Majesty’s Revenue and Customs, but she tells me that it took seven weeks to reassess her claim for working tax credit and child tax credit. During that period, payments were suspended and my constituent was placed in some hardship. Can the Secretary of State reassure the House that under the new system of universal benefit, such delays will not occur?
Mr Duncan Smith
May I say on behalf of the Government that such a delay is unacceptable? My hon. Friend knows that I have already written to him about that. The current system, much improved though it is, still leads to great difficulty because of the complexity of the benefit system that we have inherited. Universal credit will change that and at last give constituents such as his a chance to take a job, change their circumstances and get the money they should have got in the first place.
Amber Rudd (Hastings and Rye) (Con)
Women’s working lives often have much variation in them, as they sometimes take a few years off to have children. What assessment has my right hon. Friend made of the benefits of universal credit in taking account of such changes, specifically for women?
Mr Duncan Smith
Universal credit is now widely perceived as being very beneficial to women, particularly to lone parents who struggle a lot. They are in and out of work, and often their hours change. That will be reflected almost immediately in universal credit. I know that many who come out of work temporarily lose some of their housing benefit because it takes so long to reorganise it, and thus are worse off. That should all be brought to an end by universal credit, and it will also improve the support for child care.
John Robertson (Glasgow North West) (Lab)
18. How much his Department paid in winter fuel allowance in (a) Glasgow North West constituency and (b) Scotland in 2010; and how much it will pay in 2011.
The Minister of State, Department for Work and Pensions (Steve Webb)
Winter fuel payment expenditure in 2010-11 was £3.6 million for Glasgow North West and just under £240 million for Scotland. If those shares of total Great Britain expenditure in 2010-11 were maintained in 2011-12, the projected figures would be approximately £2.8 million for the hon. Gentleman’s constituency and £185 million for Scotland.
John Robertson
This year, 440 fewer households will receive winter fuel payments in my constituency, and 3,560 fewer in Glasgow as a whole. With the elderly population and housing numbers growing, how can that happen?
Steve Webb
As the hon. Gentleman knows, it was the policy of the previous Government to link the age of eligibility for the winter fuel payment to the women’s state pension age. As that increases, the number of pensioners within its scope will fall.
Mr Philip Hollobone (Kettering) (Con)
20. What estimate he has made of the potential cost to the public purse of the removal of the habitual residency test.
The Minister of State, Department for Work and Pensions (Chris Grayling)
The initial estimates shared with the European Commission showed that the additional annual costs of awarding benefits to economically inactive EU nationals may be as much as £2.5 billion.
Mr Hollobone
Will the Minister confirm that this matter is a red line for Her Majesty’s Government which the European Commission shall not be allowed to cross? Will he undertake to lead a coalition of EU countries against these Commission proposals to interfere in the domestic business of quite a few member states in an area where the Commission should not be going?
Chris Grayling
I very much agree with my hon. Friend. We have had a number of robust discussions with the European Commission about this matter, and I can confirm to the House that we are formally rejecting in the strongest possible manner the Commission’s reasoned opinion against the right to reside condition of the habitual residency test. I am in regular discussions with my counterparts in other European countries, many of whom share the same concern. I regard this as a battle that I do not intend us to lose.
Mr Peter Bone (Wellingborough) (Con)
With all due respect, that sounded like ministerial waffle and a refusal to answer the question asked by my hon. Friend the Member for Kettering (Mr Hollobone). Surely the answer should just have been yes.
Mr Speaker
We are most grateful to the Minister, who has brought some additional happiness into the life of the hon. Member for Wellingborough (Mr Bone).
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
I am pleased to announce today the publication of the Löfstedt report on health and safety legislation. We have accepted its findings, including the recommendation to move about 1 million self-employed people out of health and safety regulation altogether where their work activity poses no potential risk or harm to others. I believe that the report is good for everybody and will help us put some much-needed common sense back into health and safety.
Stephen Metcalfe
At a recent meeting of the Basildon and Thurrock branch of Epilepsy Action, concerns were expressed that the work capability assessment does not fully take account of the debilitating effect that a condition such as epilepsy can have on a person’s ability to work. Can my right hon. Friend assure the House that those conducting the work capability assessment do understand the complexities and intermittent nature of neurological conditions such as epilepsy, and that those are taken into account when making the assessment?
The Minister of State, Department for Work and Pensions (Chris Grayling)
I can absolutely give my hon. Friend that assurance. We are expecting further work from Professor Harrington about fluctuating conditions shortly, but I have also extended an invitation to voluntary sector groups that specialise in particular conditions to come into Jobcentre Plus and give briefings and training sessions about those conditions to our decision makers, so that we do everything we can to ensure that we get this right.
Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)
With the OECD forecasting that unemployment is set to spiral to more than 9% in the next year or two, it is clear that the squeeze on working families will only get tighter and tighter. Can the Secretary of State remind the House how much extra it is budgeted will come off tax credits over the next year?
Mr Duncan Smith
I have to say to the right hon. Gentleman that he needs to wait until the autumn statement to have all those figures set in place—if such a thing does exist.
Mr Byrne
I am happy to write to the Secretary of State with his own figures. Budgets laid out by the Chancellor project that more than £3 billion will come off tax credits and child benefit for working people, starting from next April. That squeeze is already serious, and that is why it is unacceptable to propose a further squeeze on tax credits in order to pay for the Secretary of State’s failure to get young people back to work.
On Friday, the Deputy Prime Minister was asked where the money for the new youth contract would come from. He said:
“Well the money clearly comes from the Government”.
He is full of insight. Will the Secretary of State confirm that he has been rolled over by the Deputy Prime Minister and that tax credits will be squeezed to pay for his failure to get young people back to work?
Mr Duncan Smith
Just in case the right hon. Gentleman has missed the point, I remind him that decisions about tax credits are a matter for the Chancellor. I am surprised that he does not know that, because he was once in the Treasury himself. That reminds me that he is the individual who left a letter saying that there was no money left. Where does he think we were going to get the money from to get our successful programmes under way? The answer is that we have made a great start through the work experience programme, the Work programme and the changes to universal credit. We as a Government are doing more to get people back to work than anything his Government did when they were in power.
Chris Kelly (Dudley South) (Con)
T2. What assessment has the Minister made of the potential effect on UK defined benefit pension schemes of the European Union proposal to review the institutions for occupational retirement directive and align it with the solvency II directive? Is not that just a further EU assault on the hard-pressed UK occupational pension sector, and the last thing we need? Will the Minister stand firm against that?
The Minister of State, Department for Work and Pensions (Steve Webb)
We are gravely concerned about these proposals. The UK Government do not accept the need for new solvency arrangements for defined benefit schemes based on solvency II, which would have potentially serious effects for UK defined-benefit pension schemes. We are especially concerned about any proposals that would increase costs for employers at a time when we are looking to keep costs down, or that might affect the vital role pension funds play as investors in the UK. We will oppose these proposals.
Karl Turner (Kingston upon Hull East) (Lab)
T4. Has the Minister revised his previous estimate that, by 2012, 25,000 single parents will be in work when their income support ends when their youngest child is five years old? Does he not accept that unemployment in my area, Hull, is at a record high, thanks to his Government’s policies?
Mr Duncan Smith
I am always astonished by the Opposition’s defeatist idea that trying to get single parents back into work to support their children is somehow a bad thing. The reality is that the hon. Gentleman’s Government left this country bust, and without any money to do any of the things that he wants to do. They keep spending the same money again and again in their proposals. It is time that they grew up and got on with the real opposition that we expect.
Simon Hart (Carmarthen West and South Pembrokeshire) (Con)
T3. The Secretary of State will be aware that it is still possible to study David Beckham, Harry Potter and surfing as part of degree courses in the UK. Following the Government announcement about the youth contract, can he assure me that he is in touch with the Department for Education to ensure that young people are equipped to deal with jobs in the real world?
Chris Grayling
My hon. Friend is right. It is of paramount importance that our higher and further education systems are as focused as possible on delivering the right skills for young people. The partnership that now exists between the Department for Business, Innovation and Skills, which is responsible for these areas, and ourselves is unprecedented, and it is making a real difference.
Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)
T5. I was appalled to hear the sort of advice that jobcentre staff had given to a Master’s graduate in Liverpool. She was told to stop claiming her jobseeker’s allowance and, instead, to carry out an unpaid internship. Does the Minister of State think that that is morally correct? If he does not, what will he do about it?
Chris Grayling
I obviously cannot comment on that specific case, but what I can say is that anyone who is going through a work experience placement can continue to draw their benefits. That is the big difference that we made. Under the previous Government, somebody who was offered a work experience place was forced to lose their benefits.
Richard Graham (Gloucester) (Con)
T6. Does my right hon. Friend agree that many people of both sexes, in Gloucester and elsewhere, who are currently without a pension will benefit considerably from the on-time and on-budget auto-enrolment that will arrive next summer? Does he also agree that many more people, especially women, would benefit from the current proposal under consideration for a single-tier state pension?
Mr Duncan Smith
I absolutely agree. Auto-enrolment is not a negative; it is a positive. The fact that the Government are to plough ahead with it, that there will be no exemptions and that all companies will be brought under its scheme is critically important. I support the proposals of the pensions Minister, my hon. Friend the Member for Thornbury and Yate (Steve Webb). Furthermore, the reason that we were left in such a parlous position, with too many people owing money, was that not enough people in Britain had saved; now is the time to start changing that.
Mr William Bain (Glasgow North East) (Lab)
T7. Last week, the Office for National Statistics revealed that the real value of average median wages has declined by 3.5% this year, with an even bigger fall for the lowest paid. Does the Secretary of State recognise the impact that the child tax credit has in improving the living standards of the low paid, and would it simply not be an attack on the poor to refuse to uprate the child tax credit in line with inflation next April?
Mr Duncan Smith
I need to remind the hon. Gentleman that whatever our opinions on this, it is a matter for the Chancellor and not the Department for Work and Pensions.
Mark Pawsey (Rugby) (Con)
T8. Over the past 12 months, unemployment in my constituency has fallen by 13%. According to the headline on the front page of the Rugby Advertiser, that is the largest fall in the country. In contrast to the picture painted by the Opposition, there are some good news stories. Does the Minister agree that in dealing with unemployment, this Government are taking the right steps?
Chris Grayling
My hon. Friend is absolutely right. I congratulate all of those who are involved in the labour market in his constituency. This is an important point. All we hear from the Opposition is doom and gloom and that inevitably depresses those who are looking for a job. We should start to talk in a more positive way about the real opportunities that are still out there, even in these difficult times.
Grahame M. Morris (Easington) (Lab)
The Department itself recognises that many people will simply flow through the Government’s Work programme without securing a proper job at the end of it. How many people does the Minister estimate will end up on his mandatory workfare placement scheme after the Work programme? Does he have an estimate of the numbers?
Chris Grayling
The whole point about the Work programme is that it is uncapped; we have not set specific targets for it. The community action programme, which was announced a couple of weeks ago, is designed to help those who do not find a role through the Work programme. I would be delighted if it achieves 100% outcomes, but it probably will not. We have been determined to ensure that we do not simply send those who do not find a job in the first two years back home so that they end up sitting on benefits doing nothing. They will be asked to take part in a constructive and positive programme of useful work in our community that will, I hope, build their skills and give them a better opportunity to go back into the process, and to get a job the second time around.
Miss Anne McIntosh (Thirsk and Malton) (Con)
There has been a 42% increase in apprenticeships in Thirsk and Malton. There are currently almost 700 vacancies. How can we marry up the apprentices, when they have finished their apprenticeships, with the local vacancies?
Chris Grayling
I hope very much that most employers will view taking on an apprentice as a precursor to giving them a permanent job. Nevertheless, we need to ensure that the support we provide through Jobcentre Plus and Work programme providers, as well as the work that we, as Members of Parliament, can do to support the growth of job clubs and enterprise clubs, will make it much more likely that if something goes wrong and an apprenticeship does not last, the skills built up will still lead to a role elsewhere and a longer-term career.
Jessica Morden (Newport East) (Lab)
There have been several recent cases in Newport in which children with autism have been routinely turned down for the mobility component of disability living allowance only to be successful on appeal—although many are discouraged from appealing. Will the Minister consider this matter, and does she understand that this is precisely the kind of issue that is making many of my constituents extremely fearful of the new assessment for the personal independence payments?
The Parliamentary Under-Secretary of State for Work and Pensions (Maria Miller)
The hon. Lady will be aware that there have been no changes in the assessment or eligibility criteria, so I am not sure why there might be perceived changes in the case she raises. I am obviously happy, however, to pick up on any issues that she wants to raise with me separately.
Duncan Hames (Chippenham) (LD)
Here last month, the Minister with responsibility for disabled people said that she wanted to reflect on the Low review into personal mobility in state-funded residential care before announcing her final decisions. I am glad that the matter has received careful attention since then, but when might she be able to lift this cloud from over disabled care home residents and their families?
Maria Miller
I thank my hon. Friend for his assiduous attention to this issue. We are considering very carefully Lord Low’s extremely helpful report and will come forward soon with our final response.
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
A constituent of mine, Abigail McGhee, was engaged to, and living with, the father of her two young children when he sadly died. Her application for widowed parent’s allowance was declined on that basis. Will the Minister reconsider the application of this benefit for people who find themselves in that sad position?
Mr Duncan Smith
Yes, I will, and if the hon. Gentleman would like to send me the details of that case, I will pay particular attention to it.
Andrew Bridgen (North West Leicestershire) (Con)
May I thank my right hon. Friend for his Department’s swift adoption of the Löfstedt review’s recommendations today? Does he agree that when introduced they will have the capacity not only to reduce the burden of red tape on organisations, but to improve their understanding of health and safety and therefore its effectiveness?
Chris Grayling
I agree absolutely with my hon. Friend. I pay tribute to him and the hon. Member for Ellesmere Port and Neston (Andrew Miller), who took part in the panel working with the TUC, the British Chambers of Commerce, John Armitt, who runs the Olympic Delivery Authority, and Professor Löfstedt himself, for putting together a report that gives a really good blueprint for the future of health and safety regulation that will ease the burden on business without endangering life and limb in the workplace—the core purpose of health and safety laws.
Andrew Miller (Ellesmere Port and Neston) (Lab)
Following on from that question, will the Minister confirm that there will be no attempt to remove any necessary protections preventing injuries and the causes of ill health in the workplace? Has he agreed with the Treasury that the necessary resources will be made available to his Department to do the very detailed work that Professor Löfstedt recommends?
Chris Grayling
I regard good health and safety as of paramount importance. Britain can be proud of having the best record on health and safety in the workplace in Europe, and nothing that the Government do will undermine that. I can confirm that it is my view and that of the Health and Safety Executive that it has the necessary resources to get the job done and to deliver in reality on this very good report.
George Hollingbery (Meon Valley) (Con)
Has the Minister received representations on the Löfstedt review from employers or trade unions?
Chris Grayling
I have been very encouraged by the participation of employer groups and the TUC in the Löfstedt proposals. The fact that we had people from both sides of the employment and political spectrums supporting the report at this morning’s launch was a tribute to the work of everybody involved. It is a sign that we now have a cross-party blueprint for the future of health and safety in this country.
Ms Karen Buck (Westminster North) (Lab)
Since last May, an extra 155,000 working households have been forced on to local housing allowance—an increase of 42% on the previous year. Is that because rents have risen or because wages have fallen?
Mr Duncan Smith
As the hon. Lady knows, when we entered office we inherited a housing benefits system in a mess and local housing allowance was already spiralling —it has approximately doubled in the last 10 years—so she should look at what happened before as much as at what happens now.
Mr Peter Bone (Wellingborough) (Con)
Does the Secretary of State agree that new policy announcements from his Department should be made to Parliament first?
Mr Speaker
I am glad that I asked for the question to be put again—and I am glad I heard the answer. Very satisfying.
Dame Anne Begg (Aberdeen South) (Lab)
I was particularly disappointed to hear the reply that the Minister with responsibility for disabled people gave to my right hon. Friend the Member for Stirling (Mrs McGuire). The Minister seemed to imply that the only way one could trust a disabled person to tell the truth was in a face-to-face interview. The Government seem hellbent on making every disabled person go through multiple face-to-face interviews to get any kind of benefit. She was disparaging about filling in a form and getting supporting medical evidence. Dame Carol Black has said in her most recent reports that there should be fewer face-to-face interviews for employment and support allowance. What is the Minister’s response to that?
Maria Miller
The problem with disability living allowance is that 70% of those currently in receipt of it have it as a lifetime award, and do not have the necessary updates and reassessments to keep track of whether that assessment is right. Having a face-to-face assessment in the first place means that disabled people get the opportunity to talk to a health care professional about their condition and ensure that they receive the right support.