(10 years, 5 months ago)
Commons ChamberRead Hansard Text Read Debate Ministerial Extracts
Rosie Cooper (West Lancashire) (Lab)
1. What steps he is taking to improve the administration of the work capability assessment.
The Minister of State, Department for Work and Pensions (Mike Penning)
I am committed to continually improving the administration of the work capability assessment. I am pleased to say that since the announcement in the House during our last Question Time, the backlog has fallen from 766,000 to 712,000.
Rosie Cooper
On 10 June, the Minister admitted to the Select Committee that 712,000 work capability assessments were outstanding. That number includes 234 recipients of incapacity benefit who are to be assessed for employment and support allowance, and 84,000 incapacity benefit recipients who have not yet been migrated. My constituents would like to know who is at fault, Atos or the Minister.
Mike Penning
When the coalition Government came to office, the WCA backlog did not suddenly happen; the problem already existed. However, we take responsibility for what we are doing. [Interruption.] There is no point in Labour Members’ shouting us down. They have short memories, but their backlog existed. If they do not wish to admit that, perhaps we can see the documents, which will enable us to know the facts. We have carried out 1 million incapacity benefit assessments, and 700,000 people are currently being helped into work or are looking for work.
Mr Julian Brazier (Canterbury) (Con)
Does my right hon. Friend agree that it would have been cynical if we had simply turned our back on all the existing claimants and not considered them too? That, of course, has been the cause of much of the backlog.
Mike Penning
I entirely agree. If we had not assessed those 1 million incapacity benefit recipients, those people would have been left, as the Labour party left them for 13 years. At least they now have an opportunity to look for work, and those who are not capable of going to work, or seeking work, are receiving the assistance that they require.
Pat Glass (North West Durham) (Lab)
22. Leaked memos reported by the BBC on Friday show that ESA is one of the largest fiscal risks that the Government currently face. What is the Minister going to do about that?
Mike Penning
No Government of any description talk about leaked documents, but I can say that the information in that document was not new. I had released most of it earlier, and I believe that the BBC worked up the story for its own benefit.
Charlie Elphicke (Dover) (Con)
The Minister said that the WCA problems were long-standing. Is there a process whereby the last Government’s figures could be made available to the House? Who entered into the Atos contract?
Mike Penning
There is no doubt that the Atos contract was taken out by the last Labour Administration. I would love to know exactly what the backlog was, but, as an incoming Minister, I am not allowed to see the figures. Perhaps Her Majesty’s Opposition would be happy to release them. If those documents were published, we would all know exactly what the backlog was before the present Administration came to power.
Dame Anne Begg (Aberdeen South) (Lab)
The backlog does not involve only ESA. There are also huge backlogs of decisions relating to personal independence payments and universal credit. Only 7,000 universal credit claimants have been dealt with, although at this stage the number should be about 1 million. In comparison with figures such as those, the passport fiasco pales into insignificance. Does the Minister not think that his Department has bitten off far more than it can chew?
Mike Penning
No, I do not. As the Chair of the Select Committee knows, there is no universal credit backlog, so her statement about that is not particularly helpful. I think that we need to concentrate on ensuring that benefits go to the people who deserve them. That is what is most important.
Andrew Bridgen (North West Leicestershire) (Con)
Can the Minister confirm that Atos Healthcare will not receive one penny of compensation from the taxpayer for the early termination of its contract?
Mike Penning
There is no doubt that the contract was taken out by the last Labour Administration. Her Majesty’s Opposition called for me to sack Atos. If we had done so, we would have had to pay it a huge amount of compensation, but, instead, it will pay substantial damages to the Government when the contract is terminated.
Clive Efford (Eltham) (Lab)
20. Judge Robert Martin has said that Her Majesty’s Courts and Tribunals Service has seen a huge reduction in the number of work capability assessment appeals, not because of the quality of decisions, but because of the huge backlog and the quality of the service that is being provided.
Mike Penning
I am afraid that that is factually incorrect. I read Judge Martin’s comments, and I do not think that that is quite what he said. There has been a reduction of more than 80% in the number of people who are appealing. That is because better decisions are being made, which is right and proper for everyone.
Stephen Timms (East Ham) (Lab)
It is high time that Ministers took responsibility for their failings. It was their decision, after the election, to migrate all recipients of incapacity benefit to employment and support allowance. That was the decision that triggered the delays and backlogs about which we have heard. Now, the memos that were leaked last week have revealed that ESA
“is not delivering more positive outcomes for claimants”
than incapacity benefit did, and the Work programme has proved hopeless, with a 94% failure rate. How long will Ministers allow this shambles to continue?
Mike Penning
Clearly Her Majesty’s Opposition have a short memory as to what happened when they were in government. This problem started under Labour, Atos was in place under Labour—[Interruption.] Opposition Front Benchers are saying “No, not us”; then they should release the documentation that proves what the backlog was before the last election.
Ann McKechin (Glasgow North) (Lab)
2. What steps he is taking to improve the claims and decision-making process for personal independence payments.
Fiona O'Donnell (East Lothian) (Lab)
12. What steps he is taking to improve the claims and decision- making process for personal independence payments.
Nick Smith (Blaenau Gwent) (Lab)
16. What steps he is taking to improve the claims and decision-making process for personal independence payments.
The Minister of State, Department for Work and Pensions (Mike Penning)
Yet again I am committed to improving our performance and that of our contract providers. I want to make sure the right decisions are made as soon as possible. With that in mind, I have looked, particularly working with Macmillan, at how we can reduce waiting times for terminally ill people waiting for PIP. That stood at 28 days when I first met the Work and Pensions Committee, and I said that was unacceptable. It is inside 10 days now, and I want it to become lower.
Ann McKechin
As the Minister of State is aware, by his own Department’s statistics it will take 42 years to clear the current backlog. In the meantime people are running out money, and they are becoming more stressed and more ill as a result of his Department’s failure to get a grip on a payment which his Government introduced. When will the backlogs be reduced to a decent level, as people have a right to entitlements in this country?
Mike Penning
It is really important that we get the decisions right and that the right people get those payments. I said before the Select Committee that I promise to do that within my own Department’s administration, and we are addressing that. There was a real performance issue as to how many people were coming through the schemes. I am addressing that now with the providers, and it will improve, and not in the length of time the hon. Lady mentions, which is scaremongering.
Fiona O'Donnell
An awareness campaign last week by the MND Association and MND Scotland informed us that about half of people diagnosed with motor neurone disease die before 14 months. They do not fit into the Minister’s definition of “terminally ill”, so how long does he think those people should wait for their claim to be assessed?
Mike Penning
Now I have addressed the issue of the terminally ill, we are particularly addressing progressive illnesses. We want to look at that very quickly. As soon as we can get that situation addressed, I will come before this House and say so, but the priority must be that the people who need it get it, and the people who do not need it, do not get it.
Nick Smith
Some Blaenau Gwent constituents have waited months and months for assessment. Why did the Minister’s Department not properly pilot what has become this fiasco?
Mike Penning
It is interesting that yet again a Labour Member uses the word “fiasco”, and I know the Public Accounts Committee Chairman, the right hon. Member for Barking (Margaret Hodge), made a similar comment. It was not actually in the PAC report, however, so this was a made-up comment that was not in the report. [Interruption.] Well, it was not in the report, and how on earth can we be talking about something that was not in the report? At the end of the day, we need to make sure we address this situation. I have admitted that the waiting time is too long, and we will get it down. We will do something about it; the previous Administration did not do so.
Duncan Hames (Chippenham) (LD)
I was recently able to inform a constituent that they were about to receive a cheque for over £5,000—welcome news until we realise it is an arrears payment for a personal independence payment claim submitted some 300 days earlier. The Minister tells us he is addressing the matter; what is he doing to stop disabled people being out of pocket by so much for so long?
Mike Penning
What we are doing is making sure we speed up the process on our side and the contractors doing the assessments speed up their side. As I have said before, if necessary there will be a cash incentive for them to make sure that they deliver, which will be paid only when they deliver faster.
Miss Anne McIntosh (Thirsk and Malton) (Con)
I congratulate my right hon. Friend on reducing the time taken to handle these claims, but what is he doing to reduce the time taken for the appeals mechanism procedure, so that that part can be speeded up as well?
Mike Penning
The appeals process is a matter for my colleagues at the Ministry of Justice, and I intend to write to them today, but fewer people are going to appeal, particularly on PIP—it is much lower than predicted—and there has been more than an 80% reduction on work capability assessment. There is more to be done, but if the judges have less work to do on appeals, I will be very happy about that.
Nigel Mills (Amber Valley) (Con)
I also welcome the improvement in the process. What lessons have the Government learned for rolling out other new assessment schemes, perhaps including a replacement for Atos in respect of WCA?
Mike Penning
One of the things we will look at very carefully is making sure that the contract bids are judged not just on the lowest price, but on whether the contractor can produce the capacity that is required. That is exactly what we are doing; when we release a new contract, we look at whether the contractor has the capacity and the skills to produce quality decisions.
Mr Frank Field (Birkenhead) (Lab)
What is the Government’s target for how long people will have to wait for these benefits by the time of the next general election? As the Minister tries to restore order from this chaos, will he be in a position soon to tell those in the queue how much longer they will have to wait?
Mike Penning
One of the things we are trying to do is communicate much better with people who are waiting, which is the most important thing we can do. What we do not want to do is build up promises, so that people think they will be assessed quicker than they will be. On PIP in particular, we will make sure that the providers are doing the job we are asking them to do, and that we are acting as fast as we can and taking the correct decisions. On the first point, I cannot give a time scale at this time, and it would be wrong for any Minister to stand before the House and do so.
Kate Green (Stretford and Urmston) (Lab)
The Government did not bother to pilot PIP properly, Atos made misleading statements in its bid, Ministers have presided over a 42-year backlog in cases, and each decision costs £1,500—more than the benefit of some £1,120 that many receive. Reassessments have had to be postponed while sick and disabled people wait for a decision, including cancer patients, who according to Macmillan are experiencing anxiety, financial worries and worsening health. Is it not time that the Minister acknowledged that it is another catalogue of DWP chaos and that the £1 billion savings promised by 2015 will not be achieved, while sick and disabled people are living with the worry and hardship that he has caused?
Mike Penning
I do not accept many of the points that the hon. Lady makes, but what I do accept is that it is unacceptable for people who are in desperate need to wait, which is why I acted with Macmillan really fast to bring the time down from 28 days to inside 10 days for people with terminal illness. We are now looking at the other cases and working with as many of the charity and other groups as we can to make sure that we get the figure down. If they work with us, we can work on this together. The Opposition keep moaning about the policy, but the previous Administration left people on the disability living allowance for years, with only 7% of them ever having a face-to-face assessment. That was an appalling situation.
Mel Stride (Central Devon) (Con)
3. What assessment he has made of recent trends in employment figures.
Mr David Amess (Southend West) (Con)
4. What assessment he has made of recent trends in employment figures.
Oliver Colvile (Plymouth, Sutton and Devonport) (Con)
15. What assessment he has made of recent trends in employment figures.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
The recent trends are remarkable: there are more people in work than ever before, youth unemployment is down 91,000 since the election, the claimant count for 18 to 24 year-olds has fallen for 30 consecutive months, and we have seen the largest annual fall in long-term unemployment since late 1998. I also note that in the constituency of my hon. Friend the Member for Central Devon (Mel Stride), the claimant count is down 33% and the youth claimant count is down 41%.
Mel Stride
As my right hon. Friend has pointed out, youth unemployment in my constituency is substantially down since the last election, not least due to his efforts to ensure that work always pays. However, does he agree with me that approaches to incentivising work are always best if they are universal, unlike the Opposition’s proposal for means-tested youth allowances, which would punish hard-working families and those people who do the right thing?
Mr Duncan Smith
Yes, the reality of what we have been trying to do is to make sure that people can get into the jobs that are available. What they do not need—and what is quite ridiculous about the Opposition’s proposal—is to try to take everybody who is below level 2 up to a level 3 qualification. Some people who do not even have a GCSE in maths, for example, are expected now to do training courses to take them to level 3 before they go into work. The reality is that we are getting them work-ready and giving them the training they need. That is why there are record employment levels of some 30.5 million, which beats what we were left by the last Government.
Mr Duncan Smith
It is worth noting that under the last Government, youth unemployment increased by nearly a half—up almost 300,000—and long-term youth unemployment increased by 74,000. Since then, excluding full-time students, youth unemployment has come down to 7.9%, which is the lowest figure since 2008. Youth unemployment is down 98,000 on the year, and down 91,000 since the election, and long-term youth unemployment is down 25,000 on the year. That is getting the job right.
Oliver Colvile
Plymouth, as my right hon. Friend knows, is a low-wage, low-skills economy. Does he support the Government’s proposal to give Plymouth the city deal for a marine energy park, which will create more than 10,000 new jobs and help provide jobs for the young unemployed?
Mr Duncan Smith
I absolutely agree with that; it is the right thing to do and it shows how this Government are investing in providing in an area the right kind of jobs for the right kind of people. Even in a difficult area such as my hon. Friend’s, the claimant count is down by 27% and the youth claimant count is down by 30% on the year. This kind of investment helps us to get people into real jobs, not jobs subsidised by the Opposition’s proposals.
Mr Dennis Skinner (Bolsover) (Lab)
Is the Secretary of State aware that a disabled unpaid voluntary worker has been told by the Department for Work and Pensions that as from now she will be in the same category as part-time workers who have a job? Is this a way of padding out the number of people in employment?
Mr Duncan Smith
I do not know what this case is, but if the hon. Gentleman would like to write to me about it, I will deal with it specifically—
Mr Duncan Smith
Well, I have not seen the letter, but I will once I have ferreted it out. We are not padding anything out—we do not need to, because there are about 600,000 vacancies now in jobcentres up and down the country and we are doing our level best to help people of all descriptions, including those who have disabilities, most of whom would genuinely like to seek and find work. We are working with them to help them get the kind of job that can change their lives, rather than parking them for many years in a row, as Labour did.
Lucy Powell (Manchester Central) (Lab/Co-op)
With so many young people still in unemployment, especially long-term unemployment, does the Secretary of State not think it anomalous that young people can get support in higher education but not in further education?
Mr Duncan Smith
That is not true really, because young people can get help in further education. Under jobseeker’s allowance, traineeships allow up to 30 hours’ training per week—we have made that more generous, because under the previous Government the figure was only 16 hours. For others, two to eight weeks’ full-time training is allowed, depending on the duration of the jobseeker’s allowance. It is one thing to come up with a policy, but another to come up with a policy answering a question that nobody has ever asked.
Hywel Williams (Arfon) (PC)
Employment rates in Wales are about the same as elsewhere in the UK, which is very welcome, even if historically rather anomalous. However, we have a large number of people who are involuntarily employed part-time, because they cannot get the hours required. Is it fair or even reasonable for the Government to insist that people take on hours when those hours are just not available?
Mr Duncan Smith
The jobcentres do not force anybody to take on something that is not there; the jobcentres are working will all those individuals. I welcome the hon. Gentleman’s welcome for the figures from Wales, because it has been particularly successful, having had some very difficult times, particularly in the valleys. I welcome that improvement in employment. Jobseekers go to the advisers, who help them to find those jobs and take the hours that are available. No one will be punished or penalised for trying to take a job or for working with the advisers and only taking the jobs that are there.
Stephen Mosley (City of Chester) (Con)
6. What assessment he has made of the performance of Universal Jobmatch.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
Universal Jobmatch revolutionises the way jobseekers look for work. Since it was launched in November 2012, we have seen 6.9 million jobseekers register on the site; 4.3 million average daily job searches; over 560,000 jobs available; and more than 550,000 companies set up an account. It has been a successful transformation.
Stephen Mosley
My right hon. Friend will be delighted to hear that more than 5,500 jobs within 5 miles of Chester are being advertised at the moment, which is a massive testament to the number of new jobs that have been created under this Government. However, Universal Jobmatch depends on accurate data, so what steps is he taking to ensure that all the jobs on the site are described accurately, are real and are available for jobseekers?
Mr Duncan Smith
We regularly talk to all the employers. New employers are seen by advisers in the jobcentres in the local area. Fraudulent jobs are rare on the site; it is estimated that fewer than 0.1% of these vacancies have been fraudulent since go-live, and those have been removed. We constantly monitor the Universal Jobmatch system and we crack down on abuse. In addition, employment advisers are meeting all those employers they are not aware of or who have just come up on the system for the first time.
Sheila Gilmore (Edinburgh East) (Lab)
The problem is that that is just not happening, and perhaps the Secretary of State should accept that. For example, I saw a job advertised in my constituency today for a care assistant in a care home that has just closed down. Jobs are being wrongly categorised. Among sales assistants, we find jobs for account executives, for which qualifications are needed. What exactly is happening with Universal Jobmatch?
Mr Duncan Smith
The problem is not what the hon. Lady describes. It is with Labour Members, who cannot bear the idea that, when they were in government, they had an archaic system that worked only from 8am to 6pm. Our system works for 24 hours. It works while people’s computers are shut down. It nominates jobs, and advisers can offer advice online. This is a major success story. The problem is that Labour does not get it. We are getting more people into work, higher levels of employment and falling levels of unemployment. In fact, we have some of the lowest levels in the European Union.
Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)
7. What recent progress he has made on the universal credit programme; and if he will make a statement.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
Universal credit is on track to roll out against the timetable set out last year. The claimant commitment is in place across all jobcentres. Universal credit is live in 14 sites, and from today further expansion is under way across the north-west, with couples and families joining at a later stage. Based on the case load projections, there are, at the moment, around 11,000 people making those claims on universal credit.
Mark Lazarowicz
I am interested in the Secretary of State’s answer. In 2011 he announced that a million people would be claiming universal credit by April 2014, when the true figure was just 6,000. What went so badly wrong with his projections, and what are his current milestones for the delivery of universal credit?
Mr Duncan Smith
I think I made that clear before, but I will repeat it again. Back in 2012, I was not happy with the plan for the roll-out, because it mirrored too much the roll-outs that used to happen under the previous Government—[Interruption.] We hit the bump. [Laughter.] It is interesting that Opposition Members sit there laughing, because I remember the tax credit fiasco. They launched tax credits and people suffered. People did not get their payments and were out of pocket. That has not happened with universal credit. In answer to the hon. Gentleman, I simply say that we deliberately set a pathfinder and we are expanding it now, with 90 new sites. Universal credit is rolling out carefully, and we are ensuring that all those who are eligible get the money that is due to them when it is due. It is not the disaster that we had under the previous Government.
Sir Nick Harvey (North Devon) (LD)
What progress is the Secretary of State making in his discussions with other Government Departments about the various forms of state support they give in the era of universal credit? I am thinking of free school meals, which could be considerably improved. Is the matter all sorted? If it is not, how is he getting on?
Mr Duncan Smith
I believe it is getting sorted. Very soon, the Department for Education will be able to make announcements about its preferred options for universal credit, and we will be able to accommodate them regardless of what it asks for.
Chris Bryant (Rhondda) (Lab)
That is very interesting. In 2011, the then employment Minister, the right hon. Member for Epsom and Ewell (Chris Grayling), said that the Department would consult on new eligibility criteria for passported benefits such as free school meals
“in good time to take decisions to meet our overall timetable to introduce universal credit by October 2013.”—[Official Report, 7 November 2011; Vol. 535, c. 66W.]
The Schools Minister has only just admitted that it would cost an extra £750 million to give free school meals to the children of all those whom he eventually expects to be on universal credit. Can we clear this up this afternoon? Do the Government intend to give free school meals to everyone on universal credit, or do they intend to introduce a new means test for free school meals? If the Secretary of State cannot give a proper answer this afternoon, as I suspect from the way he is performing, will he at least tell us when he will make up his mind?
Mr Duncan Smith
It is interesting that the hon. Gentleman does this publicly—he was told the answer to this the other day when he came to my office to talk to me directly. Just in case he does not know how free school meals work, let me tell him that they are means-tested today: there is no change to that.
Mr Duncan Smith
Yes, they are, because they are set against means-tested benefits. I wish the hon. Gentleman would get his facts right and learn something about the benefits system. We have a system that will enable us to deliver the free school meals to those who are eligible for them, and not to those who are not eligible for them. The reality is that the mess that the Opposition left us is being cleared up and they cannot bear it. They do not even know whether they support universal credit. They flip-flop more on every policy than any other Opposition ever have.
Julie Elliott (Sunderland Central) (Lab)
8. What estimate he has made of the number of people below the threshold for auto-enrolment in a workplace pension.
The Minister of State, Department for Work and Pensions (Steve Webb)
We estimate that around 2.7 million individuals, aged 22 to pension age, who have earnings below the earnings threshold for auto-enrolment are not saving in a qualifying workplace pension in the private sector. About 1.6 million of those individuals are earning between £5,772 and £10,000 and have the right to opt in. Employers must tell workers about this right.
Julie Elliott
I thank the Minister for that answer, but does he agree that it would be right to extend pension auto-enrolment to all low-paid workers who are missing out at the moment?
Steve Webb
I am grateful to the hon. Lady, but let me explain why I disagree with her. She would enrol people at, for example, £6,000 a year—that is the policy of the Labour Front-Bench team. At current contribution levels, someone earning £6,000 a year would be putting 8.8p a week into a pension. If they did that for 35 years, they would end up with a pension of £1.93 a week. That does not seem a sensible policy to me.
Graham Jones (Hyndburn) (Lab)
21. Does the Minister agree that the Government have stealthily been depriving more low-paid women of pension contributions every year? Is it not time that that was put right?
Steve Webb
No, on the contrary, the people we are excluding from auto-enrolment are those for whom we think the default should be not to save in a pension, because they will get a state pension typically of £7,500. If they are earning £6,000 now, should the Government take money out of their pay packet, when they are earning £6,000, to top up a pension of £7,500? That does not make any sense.
David Mowat (Warrington South) (Con)
The Pensions Minister has made some welcome changes to the way in which smaller pots will be managed, with aggregation, pensions following workers and so forth. If that works well, will there be scope in the future to review this limit?
Steve Webb
We are keen to avoid discrediting automatic enrolment with trivially small amounts of money. My hon. Friend can imagine the newspaper headlines if we had required a firm to set up a pension scheme so that the employee and employer combined put 8p a week into a pension. We would have been laughed out of court. We have reformed auto-enrolment, and it is going extremely well. It has a good, strong reputation, and I want to protect it.
Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)
What the Minister does not tell the House, of course, is that Library figures show that someone earning just below the raised threshold for auto-enrolment could save up to £20,000 over a working lifetime—quite a decent nest egg, I am sure that we would all agree. So why have the Government deliberately removed 1.5 million people—the majority of whom are low-paid women—from auto-enrolment? Although that sum is not enough to buy a Lamborghini, does the Minister agree that millions of people are losing out?
Steve Webb
On the contrary, the Pensions Commission—the hon. Gentleman often refers to the Pensions Commission, one of whose members is now a Labour peer—recommended that low earners needed an 80% replacement rate. Someone on the wage that he just gave gets an 80% replacement rate based on the state pension alone, so we are delivering—[Interruption.] That is after tax and national insurance. [Interruption.] They are paying national insurance at £10,000 a year, so they get about an 80% replacement rate without needing to be automatically enrolled. Setting up auto-enrolment for tiny amounts of saving is simply inappropriate.
Mr Stephen Hepburn (Jarrow) (Lab)
10. What assessment he has made of the effect of sanctions on claimants of jobseeker’s allowance.
The Minister of State, Department for Work and Pensions (Esther McVey)
Sanctions have always been part of the benefits system and are imposed only where claimants fail to meet reasonable requirements. Sanctions play an important role in encouraging compliance: 70% of claimants say that sanctions are useful for them to follow the rules.
Mr Hepburn
Can the Minister explain why more than 50% of benefit claimants in my constituency whose benefits have been sanctioned have had the decision overturned? In the meantime, they had to live for weeks on nothing—unlike that lot over there, who stuff their nests. Is it not true that this scheme is nothing more than a con? The Government say that they are cutting benefits. They are cutting benefits, but they are taking them off the most vulnerable people in the country and leaving them out for ever.
Esther McVey
There are a couple of points I need to answer, because what was said was inaccurate. The figure for the overturns is 10%, not the high number the hon. Gentleman alluded to. At the same time, people on sanctions are still on benefits and have an underlying qualification to them. The hon. Gentleman is incorrect. Perhaps he does not like the fact that the number of people in work has gone up significantly under this Government and the number needing to claim benefits has gone down significantly.
Philip Davies (Shipley) (Con)
Sanctions as a principle are a very fine part of the benefits system. May I urge the Minister to maintain a system of sanctions and not to listen to the Labour party? It is clear that it is the Conservative party that has become the party of labourers and that Labour is the party of layabouts.
Esther McVey
My hon. Friend makes a very good point. As I have said, sanctions have always been a part of the benefits system, because it is about compliance. I would welcome an announcement today from Opposition Front Benchers on whether they would remove sanctions. That would be very interesting.
Mr Philip Hollobone (Kettering) (Con)
11. If he will take steps to reduce (a) the number of benefit claimants who appeal against decisions and (b) the length of time it takes to have such appeals heard.
The Minister of State, Department for Work and Pensions (Mike Penning)
Appeals on all benefit decisions have dropped by 79% in the first quarter of this year compared with the same period last year. The introduction of mandatory reconsideration and the decision assurance call is having a positive impact.
Mr Hollobone
My right hon. Friend will be as concerned as I am that some of the waits for first-tier tribunal appeal hearings for Kettering constituents have been up to 40 weeks, which is more than twice the national average. What success is he having with the Ministry of Justice to get the appeal waiting times down?
Mike Penning
One of the first things we can do to get appeal waiting times down is to have fewer people needing to appeal. I accept that it is taking too long in Kettering and perhaps in other parts of the country. That is for another Department, but I will contact it today.
Ian Lucas (Wrexham) (Lab)
A constituent of mine has had an application for the personal independence payment refused—a decision that I regard as perverse. I wrote to the Minister personally to draw to his attention how bad the decision was, but received a reply from a civil servant. I wrote to the Minister because I thought he was interested in creating an efficient system. Will he please do me the courtesy of replying to my letter and addressing his mind to the case of my vulnerable constituent, who has been so badly affected?
Mike Penning
I have a personal policy that I write to all Members of Parliament—from both Houses—if they write to me. If a civil servant wrote back, that is wrong. I will reply and perhaps the hon. Gentleman would like to come to see me at his leisure to discuss his constituent’s case.
David Rutley (Macclesfield) (Con)
13. What assessment he has made of recent trends in employment in the private sector.
The Minister of State, Department for Work and Pensions (Esther McVey)
There are more people in private sector jobs than ever before, up more than 2 million since the 2010 election.
David Rutley
Given the strong growth in self-employment in recent years and innovative schemes such as the Pop-Up Business School, which has helped people in Macclesfield start their own business, what steps are the Government taking to encourage the unemployed actively to explore opportunities in self-employment?
Esther McVey
My hon. Friend, who is a Harvard graduate and has been a senior executive in many high-flying companies, has a huge interest in people setting up their own business. This Government introduced the new enterprise allowance, which has led to 2,000 people a month setting up new businesses. We have done videos with people such as Levi Roots to reach out into different communities, and the link-up, start-up programme enables employers to speak to people who hope to be able to set up their own business.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
What is the right hon. Lady doing about the trends that show that more and more people are working in small and medium-sized companies in the service sector, which demands high skills? What are we doing to equip young people in particular with the right skills for a good life in the future?
Esther McVey
I will be glad to answer that question for the hon. Gentleman. We are taking significant steps to allow more than 1 million young people to earn and learn through apprenticeships. Equally, through sector-based work academies, we are helping people to get a job and then to progress in that job. We have put in place work experience to help young people to find out what a business entails and then to get a job in it, so there is considerable support to get young people into work, which is why youth unemployment has fallen for nine consecutive months, with 100,000 fewer people in that group than at the election.
Wayne David (Caerphilly) (Lab)
How many people are now employed on zero-hours contracts?
Esther McVey
Roughly the same number who were employed on zero-hours contracts under the Labour Government in 2000. I know that Opposition Members like to say that the number has significantly increased, but I believe that they were taken to task for getting that information wrong. Local councils such as Doncaster, where the Leader of the Opposition resides, have the highest number of zero-hours contracts.
Dr Julian Huppert (Cambridge) (LD)
14. What assessment he has made of the effect on homelessness among under-35-year-olds of the extension of the shared accommodation rate.
The Minister of State, Department for Work and Pensions (Steve Webb)
The Department has commissioned an independent review of the changes to local housing allowance, including the extension of the shared accommodation rate. The final report of that review is due to be published this summer.
Dr Huppert
I thank my hon. Friend for that answer. The situation worries many of my constituents, and a recent study by Crisis showed that in many parts of the country such as Cambridge only a tiny fraction of shared houses are available for people to rent. When he considers the review, will he change the broad rental market areas and ensure that people can find somewhere to live if they wish to be in Cambridge, Blackpool or any other location?
Steve Webb
My hon. Friend has made repeated representations about the broad rental market area for his constituency. We have used targeted funding to provide additional local housing allowance rates in areas of pressure, so although the general increase in the LHA rate is 1%, four of the five LHA rates for Cambridge, including that for shared accommodation, increased this April by 4%.
David Wright (Telford) (Lab)
What specific meetings has the Minister had with his colleagues in government with responsibility for housing to discuss schemes such as foyer projects, which link training initiatives with housing and support for young people?
Steve Webb
The hon. Gentleman raises the valuable work of foyer projects. My noble Friend Lord Freud, the Minister for welfare reform, leads on housing benefit for the Department, and I will ensure that he is aware of those projects, if he has not already held specific meetings about them. If the hon. Gentleman would like to give us further details, we will be happy to look at them.
Kerry McCarthy (Bristol East) (Lab)
The under-35 shared accommodation rate is a particular problem for fathers who do not live with the mother of their children, but want their children to stay with them at weekends, when it is simply not suitable for children to be in the sort of accommodation with other young men that people get under the rate. Has the Minister examined that situation?
Steve Webb
The hon. Lady will be aware that, in exceptional cases, housing benefit can be topped up, but she will also know that the same issue could arise under the shared accommodation rate for under-25s. However, if two single people choose accommodation together, the combined total of their shared accommodation rates is larger than one family’s standard rate for a two-bedroom flat, so two people coming together can rent a larger property than a family requiring two bedrooms.
Mr David Ruffley (Bury St Edmunds) (Con)
18. What steps he is taking to introduce stricter criteria on eligibility benefit for applications from foreign workers.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
Our reforms have ended a situation in which migrant workers had indefinite access to jobseeking benefits, which we inherited from the previous Labour Government. Since April, we have banned access to housing benefit. From July, migrant workers will have their claims to jobseeker’s allowance stopped if they have claimed for six months and cannot show that they have found employment. I intend to tighten this up further still.
Mr Ruffley
I am grateful for that reply. I congratulate the Secretary of State on the tougher habitual residence test and the new minimum earnings guarantee. Has he received support from European partners for his tougher approach to curb benefit tourism, and are they taking further steps to move the approach forward?
Mr Duncan Smith
I am in discussions with colleagues from various countries in the European Union. Many of them, including the Dutch and the Germans, have made it clear that they essentially support our direction of travel and that some kind of change must be made to the regulations. The German Chancellor made Germany’s position clear, saying that the EU is “not a social union” and there cannot be de facto immigration into other EU social systems.
Kelvin Hopkins (Luton North) (Lab)
19. What estimate he has made of the number of people who will receive face-to-face guidance at the point of retirement in 2015-16.
The Minister of State, Department for Work and Pensions (Steve Webb)
From April 2015, we expect over 300,000 individuals who retire each year to be able to take advantage of the new pension flexibilities and access the offer of free guidance. The Government have recently consulted on the delivery framework for the guidance, to ensure that it is designed to give consumers the support they need to make informed choices in the way they choose to access it.
Kelvin Hopkins
How will the Government ensure absolutely that retirees who cash in their annuities are not exploited by private sector financial vultures in the guise of advisers?
Steve Webb
The hon. Gentleman raises an important point. We already hear anecdotal examples of people getting cold-calls that say, “This is your Government guidance offer.” We want to make it clear that that is not based on Government guidance, because that has not started yet. We are trying to make sure that instead of people making retirement choices with no information or advice, which often happens, they will have a right to go to a reputable provider and get information and guidance from someone who does not have a commercial interest in selling them something.
Rehman Chishti (Gillingham and Rainham) (Con)
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 welcome the National Audit Office’s positive response to the report on the child maintenance scheme, which simplifies the system and helps parents work together in the best interests of their children. There will be further to come on this soon. Already we know that twice as many parents intend to pay direct, even before the second stage of our reforms and ahead of expectation.
Rehman Chishti
What support are the Government giving to older workers and their employers in Medway to assist them into work and to build a fairer society?
The Minister of State, Department for Work and Pensions (Esther McVey)
I, along with the Pensions Minister, my hon. Friend the Member for Thornbury and Yate (Steve Webb), recently published the “Fuller Working Lives—A Framework for Action” document, which sets out the support that we are going to give to older workers. That includes a new health in work service, Jobcentre Plus tailored support, guidance and a toolkit for employees, and from next week the right to request flexible working hours.
Rachel Reeves (Leeds West) (Lab)
At the start of this year 3,780 people were claiming universal credit. The most recent numbers show that 5,610 people are receiving the benefit. At this rate of progress, how long will it be until the 7.7 million households that are supposed to receive this Government’s flagship benefit, as the Secretary of State originally set out, are receiving it?
Mr Duncan Smith
We have already made that clear. To date around 11,000 people are on the pathfinders. We have started a roll-out to another 90 sites beyond the 10 sites where the pathfinder took place. There will be further changes and enhancements, and we expect and believe, according to the plan that we laid out, that everybody eligible will be on the benefit by 2017.
Rachel Reeves
I think that is the first time I have not heard the Secretary of State say that his project is on time and on budget, but we still hear total and utter complacency. At the present rate of progress, it will take a staggering 1,052 years before universal credit is fully rolled out. So what do we have? Universal credit delayed, personal independence payments delayed and employment and support allowance delayed. Does not the Secretary of State realise that his incompetence is not only wasting tens and hundreds of millions of pounds of taxpayers’ money, but causing untold pain and hardship for some of the most vulnerable people in our country?
Mr Duncan Smith
As I said, we are rolling out universal credit to 90 sites and we will deliver it safely and carefully, unlike what the Labour Government did with tax credits. To answer the hon. Lady’s general question about what we are doing, this Department and this Government have undertaken the biggest welfare reform programme ever and we are getting more people into work—there are record numbers in work and record falls in unemployment; and we are getting more young people into work and more young people who have been long-term unemployed back into work. The benefit cap means that 42,000 people have been capped, as a result of which 6,000 have moved into work.
On universal credit, 600,000 claimant commitments have been signed. There are 6.9 million people registered for Universal Jobmatch. The Work programme—[Interruption.] She does not want to hear this because these are all records of the success of welfare reform. Through the Work programme, 550,000 people whom the previous Government wrote off and who never got a job are now back in work, and through auto-enrolment under the Minister of State, my hon. Friend the Member for Thornbury and Yate (Steve Webb), 3.6 million people have moved into a workplace pension. This is a Government who are reforming welfare. The Opposition have no policies, no purpose and no prospects.
Mr Robert Buckland (South Swindon) (Con)
T5. This morning I was with the staff and students of Farleigh college of further education in my constituency, which offers excellent education and training opportunities to young people with autism and other complex conditions. What more can my right hon. Friend do to ensure that we reach the goal of full employment by ensuring that increased opportunities exist for young people with learning disabilities and autism?
The Minister of State, Department for Work and Pensions (Mike Penning)
I think the whole House would agree that we need to give everyone the opportunity to live their dreams and have their aspirations, and that is exactly what this Government want to do. I would love to come and see the scheme that my hon. Friend is talking about, so that I can see for myself what it is delivering.
Nic Dakin (Scunthorpe) (Lab)
T2. In last week’s Westminster Hall debate, the Minister said of the closure of the independent living fund that “there really should not be concern.”—[Official Report, 18 June 2014; Vol. 582, c. 91WH.] How will he ensure that the concern being expressed by current ILF recipients that they will lose their independence is unfounded?
Mike Penning
I also said during that Westminster Hall debate that, for nearly three years, new recipients of ILF have been dealt with by local authorities. There have not been any major problems. We are confident that this will roll out correctly and we intend to roll it out as soon as possible.
Mr Brooks Newmark (Braintree) (Con)
T7. Unemployment in Braintree between May 2010 and May 2014 has dropped from 3.4% to 2%, and youth unemployment in that same period has dropped from 6.3% to 3.8%. There remains a challenge, however, in that the unemployment rate is not falling as fast for young women as it is for young men. What are the Government’s policies doing to help young women to get back into work?
Esther McVey
I am pleased to say that unemployment is falling right across the country and across all age groups. Employment is up as a consequence. We are doing significant things. We now have record numbers of women going into work, and at record rates. Our policies, more than anything, are supporting young girls.
Mr Andrew Love (Edmonton) (Lab/Co-op)
T3. It is all very well for the Minister to say that, but more than 200,000 young people have been out of work for over a year, which has consequences for the possibility of their finding work in the future. Youth unemployment is falling more slowly than overall unemployment, so what is she doing to help the youth of this country get back into employment?
Esther McVey
It is quite incredible that the hon. Gentleman should ask that question, considering that youth unemployment shot up by 45% under the Labour Government, and that we have managed to get more young people into work. As I have said, youth unemployment has fallen for nine consecutive months; it is 100,000 fewer than at the general election. He would be better off reading about what we have done, if he wants to know how to get young people into work.
Tracey Crouch (Chatham and Aylesford) (Con)
Will the Minister provide the House with an update on the implementation and delivery of the mesothelioma compensation payment scheme?
Mike Penning
I am really proud that the coalition Government have introduced this new scheme. It is now fully funded and it is rolling out on time. Payments will be made on time to the people who need those funds so much, through no fault of their own, and we are all very proud of that.
Mrs Emma Lewell-Buck (South Shields) (Lab)
T4. My local citizens advice bureau has been contacted by a young single woman who has been hit by the bedroom tax. After paying her rent and utility bills, she has just 84p a day left to spend on food and toiletries. With eight households for each available one-bedroom property in my area, moving is simply not an option. How can the Secretary of State continue to try to justify a policy that results in such extreme poverty?
Mr Duncan Smith
We have given local authorities between £300 million and £400 million for discretionary payments. It is their job to ensure that individuals with particularly difficult circumstances can be helped with that money. The overall policy is very simple. It is about people who are living in accommodation that they do not fully utilise, and about others, including the quarter of a million left by the last Government in overcrowded circumstances and the 1 million people on waiting lists. I do not think that the hon. Lady has ever got up and asked a question about those people. The reality is that this policy will help them to get the accommodation they need to improve their lives, and not waste it on people who do not need it.
Dr Julian Huppert (Cambridge) (LD)
I hear repeated concerns that there may be targets for benefit sanctions at jobcentres. Will the Secretary of State confirm that that is not the case, and send a clear message to advisers that they should not be seeking to sanction people inappropriately to hit some sort of target? Their aim is to help people.
Mr Duncan Smith
I can assure my hon. Friend that there is no target on benefit sanctions, that the advisers give benefit sanctions as a last resort, and that the system has a full set of checks and balances. There is a mandatory reconsideration almost immediately of that decision, and then there is the opportunity to appeal. The purpose of a sanction is to help to remind the individual that this taxpayers’ money comes with an obligation to co-operate; to find work by seeking work.
Lyn Brown (West Ham) (Lab)
T6. Why will the Government not pay universal credit payments to the main carer of children in a family rather than the main earner?
Mr Duncan Smith
Let us pause and get this absolutely right. The reality is that what the Opposition are now saying is utterly illogical. [Interruption.] Let me give the hon. Lady the figures. What is fascinating is that 93% of cohabiting couples and 98% of married couples share their finances, so most of those people will reach a conclusion. The second point is that we have put safeguards in place within universal credit so that the payments can be nominated as an exception if the carer is to receive the money. Right now, this is about a household getting more money than under the existing systems. This is a benefit that benefits more people, and, honestly, the idea of micro-managing everybody’s lives from Westminster is the kind of absurdity that the Labour party tried when it was in government.
Stephen Mosley (City of Chester) (Con)
It is welcome that youth unemployment has fallen by some 59,000 in the past three months, but I understand that there has been an underspend of some £50 million on the Youth Contract budget. Can my right hon. Friend reassure the House that that money will be spent on supporting young people into work?
Esther McVey
Absolutely, I can. All the money that we said that we would be spending on youth schemes—we are doing just that.
Kerry McCarthy (Bristol East) (Lab)
T8. It is a great shame that Tory Members of Parliament criticised the Trussell Trust and Oxfam—in fact, some might say threatened them—for daring to suggest a link between food poverty and the social security system: the cuts, the delays, the misapplied sanctions and the abolition of the social fund. Will the Secretary of State now accept his responsibility for what has been a 54% increase in the need for food aid in just one year, and commit to working positively with those organisations to see how his Department can help to address the root causes of food poverty?
Mr Duncan Smith
Inequality is at its lowest since 1986. There are 500,000 fewer people in relative poverty than at the election; 300,000 fewer children in relative poverty than at the election; 200,000 fewer pensioners in relative poverty than at the election; and 450,000 fewer workless households than at the end of 2010. We have done more to help people who are hard up than the hon. Lady’s Government ever did.
Charlie Elphicke (Dover) (Con)
What impact has the Government’s long-term plan had on long-term unemployment, and what representations have the Government received on long-term unemployment from the Opposition?
Esther McVey
I thank my hon. Friend for asking that question because we have seen the biggest annual fall in long-term unemployment since 1998—108,000 fewer people on long-term benefits. That is a significant change. When we came into office we said that we would help those whom the Labour Government left behind and forgot about. We have set up the Work programme and other schemes, and the consequences are more of them in work.
Heidi Alexander (Lewisham East) (Lab)
T9. Last week I met a constituent who received her husband’s personal independence payment only after he had passed away. Will the Minister guarantee that no one else will suffer that deeply distressing situation in the future?
Mike Penning
Of course I cannot guarantee that, but we need to do everything we possibly can on this. Perhaps the hon. Lady will pass on our thoughts to her constituent for her loss. It is very important that we get the scheme to run faster, but the quality needs to be right. I am very sad when that sort of thing happens, but I cannot possibly guarantee to the House that it will not happen again. We just have to make sure that it does not happen very often.
Mr David Winnick (Walsall North) (Lab)
I have been here since the beginning of Question Time and may I tell the Secretary of State that I have been sickened—there is no other way to describe my feelings—by his complacent indifference to the agonising hardship suffered by the most vulnerable in our society? He should be ashamed of the policies he is pursuing.
Mr Duncan Smith
The only sickening thing is the last Government plunging the economy into such a crisis that more people fell into unemployment and hardship as a direct result of the incompetence of the people whom the hon. Gentleman has progressively supported.
Daniel Kawczynski (Shrewsbury and Atcham) (Con)
Under this Government, how many more women are now in employment?
Esther McVey
The rate is the highest it has ever been, at nearly 68%. The number and rate of women in employment is the highest we have ever seen.
Mr Andy Slaughter (Hammersmith) (Lab)
After nine months, fewer than 200 people in Hammersmith and Fulham are on universal credit. This morning the shadow ministerial team visited Hammersmith’s citizens advice bureau to hear directly from my constituents about the catastrophic failure of the Secretary of State’s Department in every area of operation. Is his failure to roll out universal credit just a cover-up of another DWP crisis in the making?
Mr Duncan Smith
Isn’t that interesting? What a revealing statement. We have endlessly offered the Opposition Front Bench team the opportunity to visit jobcentres where universal credit is rolling out, but only one spokesman went—[Interruption.] No, the shadow Secretary of State never went and is refusing to go. Now she would rather visit citizens advice bureaux than the people who are actually delivering universal credit. Surely that is the most pathetic excuse I have ever heard.
Dr Eilidh Whiteford (Banff and Buchan) (SNP)
I have a number of very sick constituents who have been pushed into severe financial hardship as a result of unacceptable delays in the PIP process. Some of them are now dependent on food banks. I listened carefully to the Minister earlier, but will he set out a timetable for clearing the backlog for all applicants, not just the terminally ill? What interim support will he offer to those having to wait more than 28 days?
Mike Penning
I repeat that it is taking too long. I accept that and am determined to get the time down. We are working with the providers to ensure that we get it down. I will look into individual cases if the hon. Lady wants to bring them to me, but we are doing everything we possibly can. I would rather see people being assessed than left without any assessment, as the previous Administration did, or with paper-based assessments.
Andrew Gwynne (Denton and Reddish) (Lab)
Underlying the overly positive spin that Ministers have put on the employment figures is the fact that for the first time ever the majority of families living below the poverty line are in work. What are the Government going to do to make sure that work is always a route out of poverty?
Mr Duncan Smith
Nothing is more revealing than when the Opposition start claiming that we somehow have to spin the fact that there are more people in work now than when we came into office. We will soon break through the barrier and have the highest proportion of people in work. Unemployment is falling, youth unemployment is falling, and adult unemployment is falling. We do not need to spin facts, because facts in this case tell us that our welfare reforms are working.
Mr Speaker
Order. I am sorry, but as usual demand exceeds supply and we must move on.