Andy McDonald (Middlesbrough) (Lab)
1. What recent assessment he has made of the performance of the Work programme.
The Minister of State, Department for Work and Pensions (Esther McVey)
First, I am pleased to inform the House that the Work programme is working, and that its performance has significantly improved since being launched in June 2011. By the end of June 2012, 24,000 people had found lasting work. By June 2013, there had been a dramatic increase to 168,000. I should like to put on the record that credit must go to my predecessor, my hon. Friend the Member for Fareham (Mr Hoban), for his rigorous and meticulous work, which brought about that dramatic increase.
Andy McDonald
Of the 10 worst constituencies for longer-term unemployment, seven have seen the number of people out of work for more than 12 months increase, and that includes my own town of Middlesbrough. Why are the Minister’s policies failing so badly among the people and in the places that most need help?
Esther McVey
I am pleased to inform the hon. Gentleman that, actually, despite the picture he portrays, work is improving. There have been significant job outcomes across the country—they are up 1 million—and the claimant count is down. Inactivity is at record low levels and the number of households where someone is in work is higher now under this Government than it was in any year under the previous Labour Government.
Andrew Bridgen (North West Leicestershire) (Con)
Can my hon. Friend confirm that tackling youth unemployment is a major priority for the Government, and that young people—18 to 24-year-olds—have benefited from the Work programme, with more than 100,000 finding some sort of work through it? Does she agree that the Work programme is working?
Esther McVey
I agree with my hon. Friend that the Work programme is working. In particular, let us look at the figures for youth unemployment. The number of 18 to 24-year-olds on jobseeker’s allowance has fallen for 15 consecutive months. It is now 60,000 less than in May 2010. Youth unemployment is down from the numbers we inherited from Labour, and the number of young people not in education, employment or training is at its lowest for a decade.
Dame Anne Begg (Aberdeen South) (Lab)
But for one group of people—those who have health problems or a disability—the numbers are truly dreadful. What will the Government do to change their approach so that that group of people is not left behind?
Esther McVey
For the first time in history, we are dealing with the people the hon. Lady—the Chair of the Select Committee on Work and Pensions—is talking about. Labour Members shake their heads, but I am afraid that they abandoned those 1.4 million people; we are supporting them. Of those on the Work programme, more than 380,000 are in work, and 168,000 have found lasting work. Ninety per cent. of those have been in employment for nine months or more. We are working on and dealing with that matter, but Labour abandoned it.
Stephen Timms (East Ham) (Lab)
I welcome the Minister to her new brief, and the Minister of State, Department for Work and Pensions, the hon. Member for Hemel Hempstead (Mike Penning), to his.
The invitation to tender for the Work programme said that, if there was no programme at all, 15% of people on employment and support allowance, to whom my hon. Friend the Member for Aberdeen South (Dame Anne Begg) has just referred, would be in a sustained job outcome within two years. With the Work programme, the number has been about one third of that. Surely that underperformance is unacceptable.
Esther McVey
That is not true at all. We have reached out and supported people who were never supported under the Labour Government. Equally, I would like to separate those on JSA, who have exceeded targets, and those on ESA who must move closer to the workplace, which is what we are statutorily obliged to do, but not to put them in a job. We are doing that. Because of that, we are looking at the programme as a whole and putting further support in for those people. It is successful and, as I have said, Labour failed to do it.
Stephen Timms
The Minister should ask her civil servants about pathways to work.
In his spending review on 26 June, the Chancellor of the Exchequer called on the Secretary of State to make a hard-headed assessment of underperforming programmes in his Department. What progress is there with the hard-headed assessment of the Work programme?
Esther McVey
The Work programme is not an underperforming programme: 60% of people are off benefits. We continue to modify and improve it, which is only right. We have set up a best practice committee so that people can get even better. There is no underperformance. We are proud of the record. I will tell the right hon. Gentleman one thing: those people who have got jobs, whom he dismisses so discourteously, are very proud of what we have done.
Alec Shelbrooke (Elmet and Rothwell) (Con)
2. What recent discussions he has had with representatives of the UN on the under-occupancy penalty.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
Strangely, I was not asked to discuss the removal of the spare room subsidy, or any other matter, with the UN representative.
Alec Shelbrooke
Does my right hon. Friend share my concern that the UN housing expert made no reference to the 250,000 households living in overcrowded accommodation or the efforts that the Government are making to bring fairness and respect to the welfare system after the mess that lot left it in?
Mr Duncan Smith
Mrs Rolnik from the UN appeared over here, seemingly at the invitation of those opposed to all our policies, the Labour, or welfare, party included. I was interested in the notes that came back from the UN after she left. Some of the officials said,
“who is that strange woman; why is she talking about bedrooms and why on earth do we have a UN Housing Rapporteur.”
My thoughts entirely.
Mr Nick Raynsford (Greenwich and Woolwich) (Lab)
The statement from the United Nations not only reveals that Mrs Rolnik visited the Department for Communities and Local Government, the Department for Work and Pensions, the Department for Environment, Food and Rural Affairs, the Ministry of Justice, the Homes and Community Agency and Manchester city council, but gives a statement of housing need in this country to which most serious commentators would wholly subscribe. Will the Secretary of State now stop his delusional approach to a scheme that cannot work because there is an inadequate supply of smaller accommodation for people to move into?
Mr Duncan Smith
It was the right hon. Gentleman’s Government who left office with the lowest level of house building since the 1920s—[Interruption.] It is higher now than it was under them—nearly 1.8 million on waiting lists in England and 250,000 tenants in overcrowded accommodation. The Opposition never talk about that. Never do we hear them say they were sorry for the overcrowded mess they left behind them. Instead of little gimmicks with people from Brazil, they would be better off apologising for the mess they left us in in the first place.
Mr Julian Brazier (Canterbury) (Con)
I commend my right hon. Friend’s robust approach. Does he agree that it cannot be part of any responsible welfare system to support people in accommodation of a size that they do not need when so many families have no proper accommodation at all?
Mr Duncan Smith
I agree with my hon. Friend. It is also worth reminding the Opposition that they introduced a policy for social tenants in the private sector that does not allow housing benefit recipients to have spare rooms. So they are being hypocritical in saying that they are against one and in favour of the other.
Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
How can the Secretary of State continue to defend the bedroom tax when there are not enough smaller properties for people to move into, even if it were the right thing to do?
Mr Duncan Smith
I keep reminding the Opposition—and this may be the real reason why they got in such a mess over the economy—that a subsidy is not a tax. They need to understand that a tax is something that the Government take away from people, but this is money that the taxpayers have given to people to subsidise them to have spare rooms. We simply cannot go on like that. I remind the hon. Lady that the Government she was a member of nearly doubled the housing benefit bill in the 10 years they were in power, and that is why we have to take action.
Robert Halfon (Harlow) (Con)
Is my hon. Friend aware that there are 4,000 people in Harlow on the council house waiting list, many of whom are not on benefits? Does he agree that the single room supplement will free up housing so that some of those people can get the housing that they rightly deserve?
Mr Duncan Smith
I agree with my hon. Friend. The coalition is concerned about people who have to live in overcrowded accommodation. Never do we hear one single comment from the welfare party about people living desperately in the overcrowded accommodation that they left them in.
Chris Bryant (Rhondda) (Lab)
The Secretary of State is so out of touch he is even out of touch with his own Minister, Lloyd Freud—[Hon. Members: “Lloyd?”] Lord Freud. It was a Freudian slip.
Last week, Lord Freud admitted that there are not enough one-bedroom properties in this country. How would the Secretary of State describe a Government who tell the poorest in the land that they have to move into a one-bedroom property or pay a substantial penalty when they know that there are not enough one-bedroom properties? Is that perniciously cruel or utterly incompetent?
Mr Duncan Smith
I am not closely associated with Lloyd George, but I am always ready to read what he has to say. I welcome the hon. Gentleman to his post, but he is completely wrong. My noble Friend Lord Freud chastised housing associations and others for continuing to build houses that are not required when there is a demand for single bedroom accommodation.
Lorraine Fullbrook (South Ribble) (Con)
3. What assessment he has made of the effect of the expansion of the new enterprise allowance on young entrepreneurs.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
The new enterprise allowance offers support for people of all ages who want to start a business—to date, more than 1,700 young people have done so. We now have an additional 60,000 mentoring places available, so many more will be helped in the future. This is a very successful programme.
Lorraine Fullbrook
My constituent Paul Williams recently received help from the new enterprise allowance to start up his business, Choc Amor. He has twice moved to larger premises, has recently opened a new tea room and now employs nine people. Does my right hon. Friend agree that Paul Williams is a great example of why we should extend the scheme further, so that other hard-working people with drive and determination can get on in life, start a business and support our recovering economy?
Mr Duncan Smith
My hon. Friend is absolutely right. The example she gives is one of many that prove the programme is working. The scheme was due to end in September 2013, but now, as a result of its success, referrals will extend to 2014. More than 54,000 have taken up the mentoring offer and there is an extra £35 million for an additional 60,000 mentoring places. I hope my hon. Friend, and all hon. Members, will ensure that many more people know about the scheme and have the same opportunity as her constituent.
Stephen Mosley
Last month, I organised a small business fair in Chester. We had the support of the local provider, Blue Orchid, which seems to be doing an excellent job of helping people to start businesses in Cheshire. There are a large number of providers across the country. What assessment has my right hon. Friend made of their effectiveness?
Mr Duncan Smith
For the most part they provide a good service to all constituents and have been successful in all parts of the country. They operate within Jobcentre Plus districts and are monitored locally. If there are concerns, they are raised with the Jobcentre Plus. Their monthly management information flow gives us a very good overview of the scheme. In the north-west, my hon. Friend’s region, 8,000 have started working with a mentor and 4,420 have started claiming the weekly allowance—a big success.
Bill Esterson (Sefton Central) (Lab)
Most businesses do not survive beyond the first year, and failing generally leaves their owners significantly out of pocket. Would it not be better to concentrate on boosting the economy to create jobs for young people, rather than recommending self-employment which, sadly, may make matters worse for the vast majority?
Mr Duncan Smith
I am sorry to hear the hon. Gentleman cavil about this programme. The reality is that the two are not mutually exclusive. For those who have a good idea and want to start a business, the scheme provides an opportunity that otherwise would not be there. I remind him that approximately 1,800 18 to 24-year-olds, 18,000 25 to 49-year-olds, 6,000 aged 50-plus, who may well have had difficulty getting a job later on, and 4,800 with disabilities who would have been written off under the old scheme, have now started a business.
Kerry McCarthy (Bristol East) (Lab)
Will the Secretary of State look at the problems people are having in making the transition from jobseeker’s allowance to the new enterprise allowance regime, particularly with regard to housing benefit? A constituent, who is keen to set up his own business, came to see me the other day, but immediately found that his housing benefit had been stopped. He is of course still entitled to it in the early stages of claiming NEA.
Mr Duncan Smith
I am grateful to the hon. Lady for raising the issue and I will definitely have it looked into immediately. It is meant to flow easily. If there is a misunderstanding, or people do not know what it is, we must take that on and ensure that they do.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
25. As Essex has a long and rich tradition of enterprise and entrepreneurial endeavour, I thank the Government for introducing the scheme to support the next generation of business leaders in Basildon and Thurrock. Will the Secretary of State tell the House how many businesses have been started with the support of the allowance in Essex, preferably in south Essex?
Mr Duncan Smith
I will get back to my hon. Friend about the more specific details, if he wants. About 26,000 new businesses have started already and the target is to get 40,000 going by December 2013. There are about 2,000 start-ups every single month under this scheme. Out of the first 3,000 people on it, 85% are still off benefit a year later. That is a successful scheme.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Is the Secretary of State aware that many Labour Members support this measure, but we are careful about ensuring that the quality of mentoring is good, that the evaluation of the likelihood of success be built on initiatives such as the new scheme of Hertfordshire university and that the scheme leads to long-term sustainable businesses?
Mr Duncan Smith
As the hon. Gentleman knows, I have great deal of respect for him, and he is right that much depends on the quality of the mentoring; we are doing our level best to make sure that it is as good it could possibly be. If he has any suggestions about how to improve it further, the door is open and I am always happy to see him and discuss them with him. I would revisit any project he would like to nominate if he wanted us to look at any difficulties and I would consider looking at any improvements that might be worth making.
Jeremy Lefroy (Stafford) (Con)
22. I welcome the extension of this excellent scheme to 2014. What discussions has my right hon. Friend had with the Chancellor about extending it further, should it continue to be successful?
Mr Duncan Smith
The Chancellor and I of course discuss these matters quite regularly, and the reality is that he is very interested in this scheme. The truth is that a successful economy relies on new business start-ups. This plays exactly into the right arena. In comparison with competitors all over the world, new business start-ups and new businesses are providing the way for us to be successful. I am sure that the Chancellor will readily take my hon. Friend’s suggestions.
Mrs Emma Lewell-Buck (South Shields) (Lab)
5. What assessment he has made of the performance of Atos Healthcare in delivering occupational health assessments.
The Minister of State, Department for Work and Pensions (Mike Penning)
In the last week, I have looked carefully at the key performance indicators for delivery times, which have been met or exceeded. In the last 12 months, they have gone from 93% to the contracted target of 97%.
Mrs Lewell-Buck
Last year, my constituent Alan Johnson, a dedicated paramedic, was diagnosed with chronic fatigue syndrome. At 55 years of age, he was advised to retire early. Atos went on to ignore the advice of his GP and his specialist, refused him a medical and told him that he had not had the condition long enough to qualify, and then forced him to return to work. Will the Minister meet me to discuss this appalling case so that Mr Johnson can receive the pension he is due?
Mike Penning
Of course I will meet the hon. Lady, but there is an appeals process, and I suggest her constituent goes through that full process—in case he has not—before we meet, as we do not want jeopardise an appeal in any way. This was a problem we inherited from the previous Administration. Occupational health assessments were set up under Atos in 2008; it was not great, but we are working hard to sort it out.
Margot James (Stourbridge) (Con)
6. What assessment he has made of the effectiveness of the benefit cap in encouraging people back to work.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
It is my strong belief that there is a connection between what is happening with the benefit cap and getting people into work. The findings of polls we conducted show that of those notified or aware that they would be affected by the cap, three in 10 then took action to find work. To date, Jobcentre Plus has helped some 16,500 potentially capped claimants back into work.
Margot James
Some of the few families in my constituency affected by the benefit cap have particular issues in accessing employment. Does my right hon. Friend feel that the Work programme has the specialist knowledge required to deal with some of the difficulties that this group sometimes encounter in accessing employment?
Mr Duncan Smith
It does, which is the whole point of the Work programme—to get more individuals to involve themselves and to help such people find the right courses, the right application and then the right skilling. The Work programme is able to do that in a more intense way than Jobcentre Plus is, so it should provide enormous help. The reality is that the benefit cap is enormously popular, which may account for why the welfare party opposite has come and gone on this issue from the beginning. First, Labour Members say they are opposed to it; then they say they are for it: we have no idea what they will do about it.
Glenda Jackson (Hampstead and Kilburn) (Lab)
A new report by the New Policy Institute and Trust for London shows that 57% of working-age adults and children living in poverty in London are in households that work. That work is almost inevitably low paid and increasingly part time. Will the Secretary of State drop this mantra of making work pay and begin perhaps to discuss with his colleagues the possibility of encouraging a living wage?
Mr Duncan Smith
I am always very willing to discuss issues relating to the living wage with the hon. Lady or with anyone else. However, I hope that when the hon. Lady talks to her constituents she is honest enough to tell them that the reason they find themselves in so much difficulty is that the last Government made such a mess of the economy, and caused so many people to collapse into low incomes and very poor jobs. It was the Labour party that caused that. We are changing it, and restoring the previous position.
Mr David Ruffley (Bury St Edmunds) (Con)
The European Commission said this morning that more than 600,000 EU migrants live in this country without working. Does my right hon. Friend agree that we could cap the benefits paid to those individuals by introducing a more stringent residence requirement, and by insisting that they have a longer social security contribution record?
Mr Duncan Smith
I have not read the report in any detail, but I do know that the 600,000 figure does not necessarily refer to people of working age who could be working. There is a big question mark over the number of people to whom it relates. I do not want to find myself in the middle of a debate between some of the media and the European Union, so let me simply say that our own assessment—our habitual residency test—currently prevents people who could be working and not on benefits from claiming those benefits. It is the Commission that is trying to get us to change that, and I am utterly refusing to do so.
Alex Cunningham (Stockton North) (Lab)
The unemployment rate in my constituency is nearly 9%. One mother whose benefits have been capped has little opportunity of getting a job, especially as she has several small children to look after. She is putting feeding and clothing them and paying bills ahead of paying her rent, so her landlord, Miguel Contreres, is receiving just £30 a week. Can the Secretary of State provide a fair alternative to the landlord’s throwing that mother and her children out on to the street?
Mr Duncan Smith
Can we please return to reality? [Interruption.] I love the fact that my new shadow, the hon. Member for Leeds West (Rachel Reeves)—whom I welcome to her position—was out over the weekend saying “We are going to get really tough on benefits”, and at the first opportunity Labour Members are carping about the cap and the spare room subsidy. The truth is that the cap applies to people with average earnings. May I ask the hon. Gentleman what he might like to say to those who are trying and working hard, and who wonder why people on benefits are earning more than they are?
Sir Bob Russell (Colchester) (LD)
8. How many individual cases were raised with the Child Support Agency by hon. Members in 2012.
The Minister of State, Department for Work and Pensions (Steve Webb)
Out of 1.1 million cases registered with the Child Support Agency, hon. Members raised 7,540 with the agency. That is still too many, but I am pleased to tell my hon. Friend that 12% fewer letters were received in 2012 than in 2011.
Sir Bob Russell
I think that that is a bit of an underestimate. The figure is certainly lower than I expected it to be, given that the hon. Member for Colchester has raised more than 1,000 cases in the past 16 years. Does the Minister agree that if a Member of Parliament is having to make representations to the CSA, those cases constitute failures?
Steve Webb
I do not have figures showing how many of the 7,000 or so letters came from my hon. Friend, but I suspect that a fair proportion of them did. However, he is right to say that matters should not have to reach the stage at which a Member of Parliament has to raise a case. We are reforming the CSA for that reason, and we believe that the new 2012 system will provide much better customer service.
Philip Davies (Shipley) (Con)
When dealing with CSA cases raised by constituents, one is left with the feeling that the CSA has strayed from its original remit, which was to chase absent fathers. It seems that the agency has filed that under “too difficult”, and is now pursuing people who are already paying in an attempt to extract more money from them. Can the Minister find a way of restoring the CSA’s original purpose, which was to chase absent fathers rather than hounding people who are already trying to do the right thing?
Steve Webb
My hon. Friend will be pleased to know that the thinking behind our reforms is to ensure that when families can sort things out for themselves, they do so. That will enable the CSA to pursue the remaining cases involving absent fathers—or mothers—much more vigorously, so that those who are refusing to pay feel the full force of our enforcement action.
Steve Brine (Winchester) (Con)
9. What steps he is taking to reduce waiting times for work capability assessments.
The Minister of State, Department for Work and Pensions (Mike Penning)
The work capability process was introduced by the previous Labour Administration in 2008. We are committed to ensuring that work capability assessments are as fair and accurate as possible in determining who is fit to work and when they can return to work. The Department has instructed Atos to introduce a quality improvement plan, as was announced in this House by written statement.
Steve Brine
I thank the Minister for that. Can he just confirm that nobody will be worse off as a result of the necessary push on quality that he has just mentioned and the slow-down it may cause for some of our constituents?
Mike Penning
No one will be worse off. Quality is very important, so as to ensure that when the assessments are done the first time, they are done accurately and do not have to go back on appeal. If there is an overpayment to someone because they are assessed at a lower rate, they will be able to keep that payment.
Tom Greatrex
The Minister’s predecessor, who is in his place, previously said from the Dispatch Box that one reason for the number of incorrect decisions was people not providing the right medical evidence. May I invite the new Minister to have a look at the wording of the ESA50 form? It states:
“If you have any medical documents that you think will support your claim, send them in with your questionnaire. For example, this could be a medical report from your doctor, consultant or support worker.”
It then says, immediately afterwards:
“Please do not send medical statements”.
It is little wonder there is confusion.
Mike Penning
In my first week, I must admit that I have not had a chance to look at that part of the form. I will do so, and if it needs amending I will do that.
Mr Philip Hollobone (Kettering) (Con)
Will my hon. Friend undertake a work capability assessment on the Ministry of Justice, because the waiting time for appeal hearings for WCA claims is now up to 40 weeks in the Kettering area? That is completely unacceptable.
Mike Penning
I think we all accept that the delays are unacceptable. We need to ensure that the assessments are done correctly when they are first done, and the Department is working closely now to make sure that they are assessed before they get to the referral situation.
Dr Eilidh Whiteford (Banff and Buchan) (SNP)
The changes to the WCA appeals process that are due to come into effect later this month will put some very sick and disabled people in a dreadful position, whereby those who are clearly unfit for work and are appealing a bad decision by Atos will be unable to claim any replacement benefits for the duration of the reconsideration process because being able to work is a prerequisite for claiming jobseeker’s allowance. What assessment has the Minister made of the impact that these changes will have on local authorities, housing associations and primary health care?
Mike Penning
As the Minister of State for disabled people—a brand new role, with not a junior Minister but a senior Minister—it is my role, across government and including local authorities, to make sure that the system is working. Where there are problems, I will look at them. I will be working closely with all the authorities that the hon. Lady has suggested, but I do not accept her premise as to how many of them will be worse off.
Rosie Cooper (West Lancashire) (Lab)
10. How many former Remploy workers are now in employment.
The Minister of State, Department for Work and Pensions (Esther McVey)
At 4 October 2013 1,326 disabled former Remploy workers are engaging with personal case workers to find jobs; 535 are in work, and 390 are on Work Choice and training, which makes a total of 925 in work or training.
Rosie Cooper
Notwithstanding that answer, more than 93% of disabled people on the Work programme are simply failing to find work. I put it to the Minister that the Government’s record on disability employment is simply a disgrace and is another example of the Government talking big and tough but failing to deliver.
Esther McVey
The hon. Lady has bounced across various subjects there, but may I just put on the record the fact that the Remploy factories had faced an uncertain future since 2008 and that her Government closed 29? We have sought to support the people involved in the best way possible, and so 925 out of the 1,325 are in work or training. We are talking about significant support and significant movement into work; the rate is higher than the one relating to regular redundancies. As I said before, the Work programme is working. It has significantly improved under my predecessor and we will continue that.
Paul Maynard (Blackpool North and Cleveleys) (Con)
I welcome the information that the Minister has given about the role that Work Choice has played in helping former Remploy employees. Will she confirm that we have no plans, despite rumours I am hearing, to roll Work Choice up into the Work programme? Such an approach would lose the specialisation that has made Work Choice the success it has been so far.
Esther McVey
My hon. Friend is right. Work Choice has been a success. We are looking at the disability employment strategy. For the first time ever we are considering greater segmentation and greater differentiation, and the greater support that is needed. We have also engaged with business as never before. We have started a two-year disability confident programme, engaging with 430 businesses and 35 of the FTSE 100. We need employers to work with us to give these people jobs.
Huw Irranca-Davies (Ogmore) (Lab)
19. In the same way that the miners’ buy-out of Tower colliery succeeded in sustaining well-paid jobs and exposed the lie that every pit was uneconomic, does the reopening this week of the former Forestfach Remploy site in the constituency of my hon. Friend the Member for Swansea West (Geraint Davies) with workers’ redundancy money give the lie to the need to shut so many viable Remploy factories, such as that in Bridgend, where the workers and management had both the business case and the burning desire to keep the factory open?
Esther McVey
I think that the hon. Gentleman does not really understand what happened with the whole set of Remploy factories. In 2008, the Labour party put in £555 million for a modernisation plan that failed. Those factories that can exist as viable businesses are doing so. We have helped them in that. We have supported them, and more than nine have reopened. Of those that could not, we have got some of the employees into work and others are opening up as social enterprises. The Opposition tried and failed. We are doing something about this and supporting those people.
Mr Dominic Raab (Esher and Walton) (Con)
11. What steps he is taking to get the long-term unemployed into work.
The Minister of State, Department for Work and Pensions (Esther McVey)
From next April, those hardest to help jobseekers returning from the Work programme will get the intensive support they need to get a job. A third will sign on every day; a third will go on community work placements for six months; and a third will receive intensive support from Jobcentre Plus.
Mr Raab
Research for the Institute for Fiscal Studies shows that since 2010, the Government’s welfare reforms have already increased tax incentives to work and cut welfare disincentives by 6%. Does my hon. Friend agree that we must continue this recalibration of the system to end the dependency culture that the last Government left behind and ensure that hard work pays?
Esther McVey
My hon. Friend is spot-on. That is exactly what we said we would do—a recalibration; a rebalancing of the economy—to get more people into private enterprise and to make fewer people state dependent. We have done that with 1.4 million jobs in the private sector. Opposition Members said that it was not possible. This is down to an environment that we have set and the great British businesses that have provided this employment.
Lucy Powell (Manchester Central) (Lab/Co-op)
It is good to be back. The Minister will be aware that a key barrier to many long-term unemployed women returning to work is the prohibitively high cost of child care. What is she doing to ensure that work will always pay once universal credit is implemented, given the concerning findings of the Resolution Foundation published yesterday showing the opposite to be the case?
Esther McVey
I am very proud of our Government’s policies, which have got a record number of women into work and supported them into businesses and in setting up their own businesses. Of those in part-time work, 80% have chosen that work, some of which fits in with their life balance. We are supporting women with child care. That is a difficult job, especially as the price of child care went through the roof under Labour. We are particularly supporting them under universal credit, and, as I said, all credit to this Government.
Miss Chloe Smith (Norwich North) (Con)
I welcome the Minister to her place and encourage her to come to Norwich to see the steps that I and a really great team of volunteers are taking to get Norwich’s youth unemployment down. We call it Norwich for Jobs and we have already got literally hundreds of young people into work. Her predecessor had kindly agreed to visit the team; would she like to do the same?
Esther McVey
If it was good enough for my hon. Friend the Member for Fareham (Mr Hoban), it is good enough for me, and I will be there.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
Is it not the case that the Secretary of State has been rebuked not once but twice by the chair of the UK Statistics Authority for the misleading, if not false, claims that he is making about the welfare reform programme? Will he take the opportunity to apologise to the House and to the public at large, not least to those on social security, whom the Government continue to denigrate?
Esther McVey
I will not be taking this moment to apologise, but I hope that those on the Labour Benches will apologise for the mess they left us, which we have corrected. Employment is up by 1 million since the election and unemployment is down by 400,000. Inactivity records are at an all-time low and the number of people not in employment, education or training is at the lowest rate for a decade. That is what we are doing, and the statistics we are putting out are correct. I am really disappointed that we cannot all celebrate the great work this Government have done.
Katy Clark (North Ayrshire and Arran) (Lab)
12. What assessment he has made of the effect of the Government’s housing benefit changes in Scotland; and if he will make a statement.
The Minister of State, Department for Work and Pensions (Esther McVey)
All the Government’s housing benefit changes have been subject to full impact and equality impact assessments. We have closely monitored the implementation of the measures and commissioned independent evaluations of the local housing allowance reforms and the removal of the spare room subsidy.
Katy Clark
Alex Salmond is coming down from Edinburgh on Wednesday to ask the Prime Minister to scrap the bedroom tax, and the Scottish Labour party is putting a Bill before the Scottish Parliament to stop evictions and provide funding to councils and housing associations for discretionary housing payments. Does the Minister accept that in the meantime, councils and housing associations are under huge pressure to raise rents because of the massive rent arrears resulting from the introduction of the bedroom tax?
Esther McVey
What I will say is that we are putting in place support for those housing associations and local authorities that are finding that they cannot come to terms with the issue, although they have had three years to do something and have failed to do so. I would like to talk about the 1.8 million people on housing waiting lists and the 250,000 people in overcrowded accommodation, whom nobody had looked after. We are looking after everybody and supporting them as best we can with discretionary housing payments.
Sheila Gilmore (Edinburgh East) (Lab)
Tenants who are not on housing benefits and pensioners are now being affected by the bedroom tax, because councils such as mine are being forced to look at either rent rises or cutting their modernisation programmes because of the impact of the bedroom tax. Will the Minister now look at that again and stop this nonsense, which is not even saving money overall?
Esther McVey
There is one point to clarify: pensioners are exempt. If people could get the facts right, it would work better.
Jesse Norman (Hereford and South Herefordshire) (Con)
14. What steps the Government are taking on pension charges.
The Minister of State, Department for Work and Pensions (Steve Webb)
We have already banned consultancy charges in automatic enrolment schemes and, in the light of the recent report by the Office of Fair Trading, we will shortly be publishing a consultation setting out plans for a cap on pension scheme charges.
Jesse Norman
It is extremely difficult for pensioners, and indeed fund trustees, to obtain accurate and timely data about transaction costs, which can have an enormous impact on fund performance. Does the Minister share my view that managers of both private and public funds should be required to publish that information?
Steve Webb
My hon. Friend highlights the important point that we need a great deal more transparency about the many different pension scheme charges—the OFT report identified 18 different sorts of charges. We will be looking at its recommendation that the fees he refers to should be reported to governance committees, which will be best placed to act upon them.
Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)
It was the Leader of the Opposition who led the way in exposing the pension charges rip-off, only for the Minister to respond—I have the press cutting to hand—by accusing Labour 15 months ago of scaremongering. Now that the OFT has published its damning report, does he not accept that Labour was right all along and that pension charges must be tackled in a serious and timely fashion?
Steve Webb
May I first congratulate the hon. Gentleman on keeping his post in the Labour reshuffle, which I understand was codenamed the Blair Ditch project? He says that we need to cap pension scheme charges. What I do not understand is why they were not capped at any point when Labour was in office. Why has it decided to cap them only now? The OFT did not recommend a cap on pension scheme charges. I am sure he was disappointed when he read its report, because he thought that it would. That is why we are now consulting and gathering evidence. We will act where the previous Government did not.
Fiona O'Donnell (East Lothian) (Lab)
16. What plans he has to improve the performance of his Department’s programmes referred to by the Chancellor of the Exchequer in his spending review statement on 26 June 2013.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
I am cutting the running costs of my Department from what I inherited from the last Government of £9 billion in 2009-10 to less than £6 billion by the end of this Parliament. What is more, by 2016-17 spending on out-of-work benefits will be back at 2008-09 levels. Working with the Treasury, we are always looking to drive down costs further still, and we will make further announcements.
Fiona O'Donnell
I thank the Secretary of State for that answer. The Chancellor of the Exchequer called in his spending review statement for a hard-hearted assessment of underperforming programmes in the DWP. Does the Secretary of State accept this review, and what steps is he taking to tackle underperformance in his Department?
Mr Duncan Smith
The No. 1 thing we could do was to get rid of Labour—a great move to get more performance and not underperformance, and judging by the performance of its Front-Bench team, that is one of the areas where we ought to start straight away—but I must say to the hon. Lady that we are driving costs down and making savings in every programme. I would love to know this: out of the £80 billion plus we will save as a result of our welfare changes, which the Chancellor welcomes, which ones does she welcome?
Mr Frank Field (Birkenhead) (Lab)
How many permanent secretaries does the Secretary of State think he will get through before universal credit is rolled out nationally?
Mr Duncan Smith
Universal credit will roll out very well and it will be on time and within budget. We should consider the reality of the record of the right hon. Gentleman’s Government on Departments and the mess they got into. They left us with IT blunders of over £26 billion. With respect to him, as he was not always involved, but the others were, I therefore think they should apologise first.
Diana Johnson (Kingston upon Hull North) (Lab)
17. What discussions he has had with Motability on the changes from disability living allowance to personal independence payment.
The Minister of State, Department for Work and Pensions (Mike Penning)
DWP Ministers have regularly met the management of Motability to ensure that they are well placed to manage the introduction of personal independence payments and are able to effectively support their customers through this transitional period.
Diana Johnson
There are 3,200 people in Hull who have a vehicle under the Motability scheme. What assessment has the Minister made of the number who will lose their vehicle under the new PIP criteria?
Mike Penning
We are working very closely with Motability, and if someone does lose their Motability vehicle and they were in the scheme prior to January 2013 there will be a £2,000 lump sum to help. I must say to the hon. Lady that only 30% of people on the higher rate take Motability, but we will work very closely to ensure those who deserve it continue to get it.
Paul Blomfield (Sheffield Central) (Lab)
T1. If he will make a statement on his departmental responsibilities.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
Today I welcomed the national roll-out of the claimant commitment across around 100 jobcentres a month from now, mirroring a contract of employment. These contracts are about a cultural shift making it easier for claimants to understand what they must do in return for benefits and that they are in work now to find work. During the pathfinder both claimants and staff have found this helps enormously in focusing people on their requirements and the consequences if they do not meet them. This now marks the next stage of delivery.
Paul Blomfield
One of my constituents who is still without a job after his involvement in the Work programme came to one of the public consultation meetings I organised during the recess because he was angered by his experience of the programme. Bright and articulate with a postgraduate degree from Oxford, he had been sent on an eight-week employability course that included the completion of questions by ticking boxes with smiley faces or sad faces. Does the Secretary of State understand why he and others on the course angrily felt it was a waste of time, and does his experience explain why the Work programme has failed the overwhelming majority of people who have been sent on it?
Mr Duncan Smith
I just do not agree with that because the reality is that the Work programme figures show that it is performing incredibly well and it will just get better: some 72% of the first tranche or cohort are off benefits; 380,000 people who before were written off by the last Government are now in work; 168,000 are now in sustained employment; and we now know that 90% of those who are in sustained employment go on to another year at least of employment, which is better than any of the last Government’s programmes—cheaper, more effective and better for those trying to get into work.
Andrew Stephenson (Pendle) (Con)
T6. As this month marks the first anniversary of automatic enrolment, will the Minister update the House on progress so far?
The Minister of State, Department for Work and Pensions (Steve Webb)
Yes, as my hon. Friend says, it has been a year since the first firm automatically enrolled. This has been a striking success. Over 1.5 million employees have been automatically enrolled and the staying-in rates have been far higher, with over 90% of employees who have been placed in a workplace pension remaining in it. It is a superb start and I congratulate all those who played a part in it.
Rachel Reeves (Leeds West) (Lab)
Labour Members support the principle of universal credit, but we have repeatedly raised concerns about the Secretary of State’s ability to deliver it. Since 2011 he has consistently promised that 1 million people will be claiming universal credit by April 2014. Will he now tell the House how many people he expects actually to be claiming universal credit by then, and whether he will proceed with the previously announced plans to close down new claims for tax credits by that date?
Mr Duncan Smith
May I start by welcoming the hon. Lady to her position? As I told the Committee and have said consistently, universal credit will be rolled out within the time scales we set, and we are planning very clearly to enrol as many people in it as possible. This will be a success. As she says she is in favour of universal credit, perhaps she can explain why Labour Members voted against it at the start and continue to do so.
Rachel Reeves
Despite what the Secretary of State says, the truth is that by April next year it will be possible to claim universal credit at just 10 jobcentres out of a total of 772. Meanwhile, the National Audit Office says that £34 million has already had to be written off, £303 million is now at risk, and Ministers have failed to set out how the policy will work. It is a catalogue of errors. Will the Secretary of State tell us how much money spent on the project will be money down the drain? Instead of blaming everybody but himself, would it not be better for him to turn down the volume on off-the-record briefings against his own permanent secretary and start taking responsibility for his own failed policy?
Mr Duncan Smith
Just in case the hon. Lady does not realise it, I should point out that this is not a failed policy: it will roll out successfully on time and within budget. Where does the word “failure” apply to that? She is part of a party whose time in office saw more than £28 billion wasted on IT programmes, with complete chaos most of the time it was there. This will roll out on time and within budget. At any time when we announce the new reset, she can, if she would like, come and talk to us about it. Perhaps for once, instead of voting against stuff and then saying she supports it, she might tell us how many of the benefit cuts Labour Members voted against they are now in favour of.
Mr David Amess (Southend West) (Con)
T10. Is my right hon. Friend aware that the number of jobseeker’s allowance claimants in Southend West has fallen by 12% in the past year? Will he join me in congratulating everyone on this very encouraging trend?
The Minister of State, Department for Work and Pensions (Esther McVey)
I will indeed do that. Although my hon. Friend talks about an average of 14% fewer people claiming in his constituency, across the country the average is 11%, and 400,000 fewer people are claiming since 2010, so it is success all round for this Government.
Julie Hilling (Bolton West) (Lab)
T2. With well over 1 million unemployment benefit claimants being sanctioned since 2010, rumours abounding that targets are in place for sanctioning, and all of us facing many desperate people in our surgeries, will the Secretary of State tell us when we will see the results of his investigation into sanctioning?
Mr Duncan Smith
It is obvious and clear that Labour Members do not support sanctioning. The reality is that they spend their whole time saying that they are in favour of benefit changes and at every single turn they oppose them. People who deserve sanctions deserve sanctions, and we impose them on those who do not play a part in the system.
Dr Julian Huppert (Cambridge) (LD)
People with autism and mental health problems have particular problems with the work capability assessment, and the courts recently found that the test put people with mental health problems at a substantial disadvantage. Will the Minister or the Secretary of State rethink the work capability assessment for those people and pause the process, for which Rethink Mental Illness called?
The Minister of State, Department for Work and Pensions (Mike Penning)
I have looked at this very closely in the past week. Of course, lots of groups would want us to look at individual cases. The way the assessment is done is not rigid, and it will evolve. We will look at this carefully, but I cannot make promises on individual groups today.
Andy Sawford (Corby) (Lab/Co-op)
T3. Will the Secretary of State confirm whether benefits officers been have told not to sanction people when the only job offered is on a zero-hours contract? Do Ministers recognise that the new claimant commitments mean that people will not actually be able to sign zero-hours contracts without risking losing their in-work benefits?
Mr Duncan Smith
The claimant commitment is about people’s obligations under the existing terms. They will have to seek work, attend interviews and try to get a job, and once they are offered a job they must take it. Those are the sanctions coming up under universal credit. People will lose benefits for three months for a first offence, six months for a second offence and three years for a third offence. Right now, zero-hours contracts are legal. If Labour wants to change the law, we want to hear that from the hon. Gentleman.
Henry Smith (Crawley) (Con)
Will the Secretary of State update the House on the innovation fund and how it is helping separated families?
Steve Webb
This is money designed to help and support separated families. We have spent £6.5 million so far on seven projects in the voluntary and private sector designed to help with things such as mediation. Although it is early days, we have anecdotal examples whereby we have enabled families to function together for the benefit of the child, and whereby the child’s performance at school is improving as well as maintenance flowing.
Huw Irranca-Davies (Ogmore) (Lab)
T4. Housing associations in Ogmore are carrying a rising level of debt on their balance sheets as a result of rent arrears. They have a desperate scarcity of one and two-bedroom properties to rent, and yet they have three-bedroom properties lying empty. Is this just a necessary but painful adjustment to the Secretary of State’s benefit and bedroom tax changes?
Esther McVey
This is something we have to do. I have answered this before: how many people we have to look at who are on waiting lists, how many are in overcrowded housing, and how the bill doubled under Labour. The hon. Gentleman is quite right—we have to get the stock right: the fact that there are three-bedroom houses and why in the last three years they have not been modified into one and two-bedroom houses. Those questions have to be asked. That is what we have to do: get the stock right and support people as best we can.
David Mowat (Warrington South) (Con)
The pensions Minister mentioned earlier that the Office of Fair Trading report highlighted some of the abusive practices in the private pensions industry, such as active member discount and charges of up to 3% on many schemes. I welcome his consultation, but does he agree that it will be important to put a cap in place before auto-enrolment is rolled out at volume?
Steve Webb
My hon. Friend raises the crucial issue that, while the largest firms have been able to negotiate very good charging levels, we cannot be certain that the smaller firms will even be offered them or, indeed, that employers will necessarily be interested in charging levels when it is the employees, rather than the employers, who pay them. Our consultation will touch on that issue and on that of active member discounts.
Kerry McCarthy (Bristol East) (Lab)
T5. The Government continue to disregard warnings from the likes of Oxfam and Church Action on Poverty that many of the 500,000 people being forced to use food banks are doing so because of delayed, reduced or withdrawn benefits. The Department seems not to be interested in collecting any statistics behind the reasons for that referral. Will the Secretary of State look into this to see what impact his benefit changes are having on people who simply cannot afford to feed themselves?
Mr Duncan Smith
We do spend our time looking carefully to see whether the effects of our policies are negative on some families and how we can best support them. We have localised to local authorities the support for things such as crisis loans. Local authorities are now much better at focusing on what people really need. Our general view is that there are people in some difficulty, but lots of people are taking some of this food because it is available and it makes sense to do so. We are working with local authorities to ensure that those in real need get support.
Mike Freer (Finchley and Golders Green) (Con)
What estimate has been made of the annual number of surviving civil partners who qualify for widow and widower pensions?
Steve Webb
As my hon. Friend knows, our data on the pension rights of people in civil partnerships are very patchy, but I can tell him that, in response to the Marriage (Same Sex Couples) Act 2013, we have committed to a statutory review. We are gathering data as we speak and we will report back on our proposals by next July.
Diana Johnson (Kingston upon Hull North) (Lab)
T8. Given the woeful performance of the Work programme in Hull and local job losses, does the Secretary of State agree with The Economist that Hull’s long-term jobseekers should give up looking for jobs in Hull and travel elsewhere in the country?
Esther McVey
I would never put out a message that people should not look for work, because work is vital to self-esteem, motivation and supporting one’s family, so I totally disagree with that statement.
Greg Mulholland (Leeds North West) (LD)
The roll-out of universal credit will be complete by 2017, yet the contract for the Post Office card account will be up for renewal in 18 months. What assurance can the Secretary of State give that people will still be able to access their benefits through their post offices?
Mr Duncan Smith
I have looked at this matter carefully. The Post Office contract is due to expire in 2015, but there is the option to extend it and we will keep the matter under review. The Post Office is piloting a new current account and we hope that many people will transfer on to that. I assure the hon. Gentleman that we will ensure that those who are in the circumstances that he describes will always be properly supported.
Ian Austin (Dudley North) (Lab)
Every single week, constituents tell me that Atos claims that it has not received the forms that they have completed. Last week, a young disabled constituent told me that that had happened on several occasions, leaving him penniless for weeks at a time. Why can the Secretary of State not sort this shambles out?
Mike Penning
The personal circumstances that the hon. Gentleman has described are completely unacceptable. If he gives me the details of the case, I will look at it. The performance of Atos is ever so important and it was an issue for the previous Administration. We are working on it, but those circumstances are not acceptable and I will look at the matter.
Graham Evans (Weaver Vale) (Con)
Will the Secretary of State confirm that since the benefit cap was introduced, his Department has helped more than 16,000 people who would have been affected by it into work? Does that not show that those who voted against the benefit cap cannot be trusted on welfare reform?
Mr Duncan Smith
My hon. Friend is right that the benefit cap is popular and effective. Although the new shadow Secretary of State said that Labour would be tougher on welfare, we have all noticed throughout questions that the only thing we have heard from Labour is opposition to every single spending reduction and welfare reform. That party is not fit for government.
Mr Speaker
The hon. Member for Brighton, Pavilion (Caroline Lucas) has been looking doleful for much of questions. I shall do my best to rescue her from her misery.
Steve Webb
To be clear, we have made one change to the pension position of the women to whom the hon. Lady refers: we have improved the indexation of their pensions by introducing the triple lock. I make no apology for that.