Nigel Adams (Selby and Ainsty) (Con)
1. What estimate he has made of the number of people in full-time employment in the last 12 months.
The Minister for Employment (Esther McVey)
Full-time employment has risen by nearly 600,000 in the past 12 months, making up 85% of the total rise in employment.
Nigel Adams
I am grateful to the Minister for that reply. Unemployment in my constituency has gone down by almost 60% since the general election. I am very pleased with the co-operation of my local Jobcentre Plus offices in the jobs fairs I operate. Most right hon. and hon. Members on the Government side of the House tend to organise and fund jobs fairs themselves or with sponsorship. What sort of support is available to the Jobcentre Plus scheme and to hon. Members, as we might be able to tempt one or two Opposition Members to get involved?
Esther McVey
I congratulate my hon. Friend, because that is his fourth jobs fair, with over 400 jobs and 50 apprenticeships available. I understand why it is so important to him, because he left school at 17, got a job and was made redundant, so he set up his own business, on £20 a week with a Government enterprise scheme, and built the company up so much that he then sold it to a plc. That is why he wants to help more and more people into jobs and to set up businesses. Jobcentre Plus can offer practical support to publicise jobs fairs, help with getting in touch with claimants and, where possible, and on a case-by-case basis, there might also be financial support.
Mr Gerry Sutcliffe (Bradford South) (Lab)
Is the Minister not concerned about the number of people working full-time on zero-hours contracts, and does she know how many such people there are?
Esther McVey
Those people on zero-hours contracts comprise 2% of all workers, and I remind the hon. Gentleman that the UK Statistics Authority called the Opposition to account for inflating the number of people on zero-hours contracts. What I can tell him is that the vast majority of jobs are full-time and permanent. That is what we should be celebrating now, with nearly 2 million more people in work since the general election.
Ian Paisley (North Antrim) (DUP)
Will the Minister look at the case of my constituent Albert Dowie, whose small service pension is preventing him from doing part-time work, because to do so would deny him income support and reduce his housing benefit?
Esther McVey
I will indeed meet the hon. Gentleman to talk about that case. However, that is why the Secretary of State is leading the way in bringing in universal credit so that we do not have all those discrepancies in the system, with points and differentials and things that are preventing people who want to return to work from doing so. The Government should be supporting them, and that is what we are doing.
Mr Jim Cunningham (Coventry South) (Lab)
2. If he will make it his policy to pay employment and support allowance during the period of mandatory reconsideration.
The Minister for Disabled People (Mr Mark Harper)
I am afraid that I am going to disappoint the hon. Gentleman. We are not going to change our policy in that way. When someone is found fit for work, they should claim jobseeker’s allowance and work with Jobcentre Plus to get back into the work force.
Mr Cunningham
I think that the Work and Pensions Committee has also termed the policy illogical, but does the Minister not realise that, by virtue of the fact that he is not prepared to change it, he is driving more and more people into hardship and that they, in turn, are having to use food banks? The Government must hold some sort of record on food banks, because under this Government their use is the only thing that is increasing.
Mr Harper
That was not the sort of question I normally expect from the hon. Gentleman. If someone is found fit for work, they should immediately apply for jobseeker’s allowance, which is paid at the same rate as the assessment rate of employment and support allowance, so there is no change in their income. They should then engage with their Jobcentre Plus contact so that they can be moved into work. That is the right way for someone to behave when they have been found fit for work, and there is no reason at all why their income should fall.
Stephen Mosley (City of Chester) (Con)
During my first couple of years in Parliament—2010-11 and 2011-12 —every week my constituency surgery seemed full of people concerned about appealing against ESA decisions. Recently, the number of appeals seems to have declined. Is that also the case nationally?
Mr Harper
We have seen a significant reduction in the number of appeals. The mandatory reconsideration process is helpful, because it means that we can make sure that the right decision is made more quickly rather than having to force someone to go through a very lengthy appeals process within the tribunals service.
Dame Anne Begg (Aberdeen South) (Lab)
I am surprised by the Minister’s answer, because my Select Committee made exactly this recommendation and the Government have turned it down. The situation has got worse for people who are reapplying for employment and support allowance, because they think that their ill health has got worse. In future, they are to be denied getting ESA at the assessment rate. Why does the Minister think that is the right approach rather than allowing people to claim an out-of-work benefit because they are too ill to work?
Mr Harper
The hon. Lady, notwithstanding her position as Chairman of the Work and Pensions Committee, has not outlined the change correctly. If someone’s condition has significantly worsened or if they are claiming for a new condition, of course they can claim employment and support allowance. What they cannot do is to keep reclaiming employment and support allowance for the same condition when they have already been found to be fit for work.
Mr David Nuttall (Bury North) (Con)
Will the Minister confirm that for no other benefit is payment usually made pending the claimant’s appeal for the benefit to be returned?
Mr Harper
I can confirm that that is right. In all other benefits, when someone is found not to be entitled to it and then chooses to appeal, they are not paid anything while the appeal is ongoing. My hon. Friend is right that employment and support allowance is rather odd in that regard.
Sheila Gilmore (Edinburgh East) (Lab)
Nevertheless, the position is that when people do appeal, their ESA will be reinstated. There is no financial saving to the Government unless they expect people not to claim JSA during this period. It is therefore not just hard for the claimant but administratively expensive for the Department to put people through that process.
Mr Harper
This is about making sure that when someone goes for a work capability assessment and is found to be fit for work, the most important thing is that they then engage with the jobs market and get back into the workplace. It is not just about the benefits; it is about making sure that people are getting the benefit of getting into work. For most people with a mental health problem, it is very clear that working will not just be the right thing but will be better for their condition.
John Pugh (Southport) (LD)
3. What his policy is on the freezing of pensions of British nationals living abroad; and if he will make a statement.
The Minister for Pensions (Steve Webb)
The policy of the Government on the uprating of UK state pensions paid to people living overseas is the same as that of successive post-war Governments—namely, to uprate such pensions where we are legally required to do so under the terms of EU law or a bilateral social security agreement.
Steve Webb
I agree with my hon. Friend in the sense that if one were designing a system from scratch, one would not necessarily design the one that we have arrived at over the course of 50 years. He will be aware, however, that paying for this indexation would cost some half a billion pounds a year, and I do not believe that any party in this House has committed to such an increase in public spending.
Gregg McClymont (Cumbernauld, Kilsyth and Kirkintilloch East) (Lab)
The state pension and associated benefits are very important to UK pensioners. Will the Minister therefore explain why, following last week’s uprating statement, 1.6 million pensioners will see their state pension income rise by just 87p?
Steve Webb
I am surprised that the hon. Gentleman did not raise this point last Thursday when I made an oral statement on this issue; perhaps he heard about it on “Money Box” on Saturday. As he knows, not all pensioners receive the full rate of the state pension. Many people—many women, particularly older women—receive a reduced rate, and, as has always been the case, the increase is proportionate to the rate of pension they receive. They get the same percentage increase; it is lower if they get a lower pension.
Simon Kirby (Brighton, Kemptown) (Con)
4. What steps he has taken to increase support for heads of households in the workplace.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
In October we introduced the family test, putting the family at the heart of policy making across Whitehall. From April 2015, for the first time ever, shared parental leave will enable both parents to retain a strong link with the labour market, allowing fathers to play a greater role in raising their children and helping mothers to return to work at a time that is right for them.
Simon Kirby
I thank my right hon. Friend for that answer. How many troubled families have been helped in Brighton, Kemptown?
Mr Duncan Smith
The troubled families programme has turned around the lives of over 69,000 families in England, and 120,000 had been helped by August 2014. In Brighton and Hove, the programme has worked with 675 families, changing their lives, and 417 families were turned around by August 2014, giving them a new start in life.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Did the Secretary of State hear the wonderful Professor Elizabeth Dowler on the “Today” programme this morning, when she very articulately said that what poorer people—those on low wages, working hard—want is a decent job paying enough to put food on the table and to pay the bills that have been going up inexorably?
Mr Duncan Smith
I heard that interesting debate between Professor Dowler and the head of the Oxford food bank, who talked about the wider ramifications of issues concerning access to food and food distribution, which is a matter for supermarkets. Of course, we want people to earn more. The key thing after the recession was to get people into work. We have got 2 million people back into work as a starting point, and we know that for every year in work a person’s salary rises on average by about 4%. Is there more to do? Yes, of course there is. We are looking carefully at that report and we will respond appropriately. I promise the hon. Gentleman that I take the report very seriously.
Diana Johnson (Kingston upon Hull North) (Lab)
5. What the average time taken is for a decision on an award of personal independence payment.
The Minister for Disabled People (Mr Mark Harper)
The delays that some people applying for PIP have experienced are unacceptable, as I have said a number of times in the House. Getting those delays down is my No. 1 priority. The hon. Lady will be aware of the Secretary of State’s very clear commitment, which the Department is working very hard to achieve.
Diana Johnson
My constituent Simon Brown waited seven months for his PIP application to be processed. That delay meant that he was unable to apply for other help—such as additional housing benefit—that a PIP award allows. Given that eventual backdated payments do not compensate for the hardship and misery that people experience while waiting for months, and given that benefit delays are one of the main reasons that people are accessing food banks and going to loan sharks, can the Minister say what specifically he is doing to make sure that other people do not suffer in the same way as my constituent?
Mr Harper
Yes, I can. Overall, I accept there has been a problem with PIP and I have set that out in the House on a number of occasions. As far as benefits across the Department are concerned, the Department now pays benefits more quickly than when we came to office, so that has improved. Since the start of the year the assessment providers have trebled the number of health professionals they employ. Since April we have doubled the number of monthly assessments and tripled the number of decisions made, and by the beginning of next year we will have almost quadrupled the number of health professionals. That is making a real difference to making decisions on a timely basis for the hon. Lady’s constituents and mine.
Duncan Hames (Chippenham) (LD)
Rearranging assessment appointments because of unrealistic expectations for the travel of disabled people has not helped with the timeliness of some decisions. Community transport providers in Wiltshire have a trusted reputation for assisting people with travel to medical appointments. Will the Minister consider opening discussions with volunteer community transport providers about the resources they would need to help people with travel to PIP assessments?
Mr Harper
I am familiar with community travel providers; I have a number of excellent ones in my own constituency, including a couple of very good dial-a-ride services, namely Lydney Dial-a-Ride and Newent Dial-a-Ride. My hon. Friend makes a very good point. We currently aim for a one-and-a-half hour maximum travel distance by public transport, and I will ask my officials to look at whether we could work more closely with those community providers. My hon. Friend makes a very good point that is worth further study.
Clive Efford (Eltham) (Lab)
It is no good the Minister coming here saying that he is very concerned about PIP and wants to do something about it. This has been going on for too long. Patients that suffer a downturn in their condition are suffering an extra 28-day delay and the Multiple Sclerosis Society says that that could lead to their missing out on up to £3,500. It is about time the Minister sorted this out, so what is he going to do about it?
Mr Harper
I do not think the hon. Gentleman was listening very carefully to the answer I gave to the hon. Member for Kingston upon Hull North (Diana Johnson). I set out that the assessment providers have hired more staff, that we have significantly increased the number of decisions we are making, and that backlogs are being reduced. I also set out very clearly the commitment made by my right hon. Friend the Secretary of State, which I am working very hard to achieve.
Tessa Munt (Wells) (LD)
One of my constituents—a British citizen—returned to the UK, having lived in New Zealand for five years, to look after her ill mother. She now has cancer, but she cannot claim PIP due to the habitual residence test. Does the Minister agree that she is falling foul of regulations that are really meant to stop benefit tourism by EU migrants? Will he meet me to discuss this particular constituent’s plight?
Mr Harper
I do not know all the facts of that specific case, but I would be delighted to discuss it with my hon. Friend. The general position is that tests about habitual residence and past presence are meant to make sure that only people with a close connection to Britain are able to claim our benefits. I will, of course, meet my hon. Friend to discuss the specific case.
Kate Green (Stretford and Urmston) (Lab)
Last week’s economic and fiscal outlook from the Office for Budget Responsibility shows that, following the PIP delays under discussion, spending on the benefit will be £1.2 billion higher than the Government planned last December. At the same time, disabled people are having to wait months for a decision, with more than 300,000 stuck in the queue, according to the most recent figures. In a Westminster Hall debate on 25 November, the Minister said that the DWP was receiving between 30,000 and 40,000 claims per month, and the most recent figures show 35,000 decisions per month being taken. The Minister is therefore running to stand still, so will he say exactly how he is going to bring down the backlog?
Mr Harper
Yes; obviously, I was talking about the figures that have been published so far. The hon. Lady will know, as she attended the debate in Westminster Hall, that I set out the timetable for publishing clearance statistics. Her general point is well made. I am very well aware of the delays—I have to reply to Members from across the House—and that is why we have put in a considerable amount of effort. Both the Department and providers are making considerable progress towards the Secretary of State’s commitment, and we will be able to say more about that in the new year.
Kate Green
Disabled people are being left, sometimes for months, without support. Some are very seriously ill, some have degenerative conditions, some are being hounded for a planned intervention—effectively, resubmitting their claim part way through their award—and, as my hon. Friend the Member for Kingston upon Hull North (Diana Johnson) pointed out, some are losing their passported benefits. All that, alongside delays in processing employment and support allowance assessments and today’s decision on the closure of the independent living fund, mean that disabled people are facing huge anxiety and uncertainty. Does the Minister really think it is right that they should take the pain for the Government’s welfare failures?
Mr Harper
I do not agree at all with the way the hon. Lady has set that out. Right at the beginning of my answer I said that I was seized of the delays to PIP, and we have made a lot of progress in dealing with them. She refers to today’s judgment on the independent living fund. She will know, of course, that that has nothing to do with saving money; it is about making sure that people are using the care and support system, which will be further improved by the Care Act 2014 in the new year. The judge was very clear and gave a very clear decision today about the proper, robust decision making in the Department. The ILF is working closely with local authorities to make sure that the transition from ILF to local authority support is as seamless as possible.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
6. What comparative assessment he has made of unemployment rates in the UK and other European countries.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
The UK’s unemployment rate of 6% is now the fifth lowest in the European Union. In France, Italy, Spain and across the euro area all unemployment rates remain in double figures. In the past year alone, the UK has seen a larger fall in its overall unemployment rate and its youth unemployment rate than Germany, France, Italy and all the major G7 countries.
Stephen Metcalfe
Youth unemployment in my constituency of South Basildon and East Thurrock is down by 42%. Does my right hon. Friend agree that this jobs revolution would not have happened if we had pursued the policies across the channel, which were supported by the Leader of the Opposition?
Mr Duncan Smith
It is well worth reminding ourselves that when the present French President was elected, the Leader of the Opposition extolled his virtues and his plan for France. Right now, France’s unemployment rate is more than 75% higher than the UK’s and it has been rising faster, and its youth unemployment rate is 50% higher than the UK’s. If that is the prospect for the UK, I am sure I know what the result will be at the next election.
Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)
The fall in youth unemployment is very welcome, but it remains the case that our youth unemployment levels are much higher than many European countries, such as Germany, Austria and the Netherlands. Why will the Government not sign the European Union’s youth jobs guarantee?
Mr Duncan Smith
I do not know whether the hon. Gentleman was listening to what I said earlier. The reality for us is that our youth unemployment is falling faster than anywhere else. Only a few countries in Europe actually have lower youth unemployment. I am determined to drive it down to the levels that other countries have. Our rate of youth unemployment is a success, and I honestly do not think that bogus schemes—they cost a lot of money, but do not get anybody into work—will do anything but instil a certain amount of apathy among young people.
Kwasi Kwarteng (Spelthorne) (Con)
Does my right hon. Friend believe that the Government’s success on youth unemployment shows that our long-term economic plan is working?
Mr Duncan Smith
It is true. Here is the long-term economic plan—a record employment level of 30.8 million, up 1.75 million since 2010; over three quarters of the rise in employment since 2010 in full-time work, and two thirds of the rise in employment in managerial, professional jobs; and the number of British people in work up by over 1 million in the past four years, two thirds of the total rise in employment.
Mr Dennis Skinner (Bolsover) (Lab)
Is the Secretary of State aware that in Bolsover and the village of Shirebrook, Mike Ashley has a different rule? Most of his employees at SportsDirect are on zero-hours contracts. It is time those contracts were abolished. That is what we will do if we get into power in May. Is he aware that the way in which employment agencies bring people over to work at SportsDirect resulted in one employee having a baby in the SportsDirect toilet on new year’s day? That proves that all the talk about the wonderful employment figures is totally wrong, because she should have been on maternity benefits and probably should not have been working on new year’s day. That is what is inflating the bogus employment figures. It is time he sorted it out.
Mr Duncan Smith
The reality is different from what the hon. Gentleman describes. The personal circumstances of individuals may be appalling and that needs to be dealt with, but people on zero-hours contracts represent 2% of the work force. We are moving to get rid of the one excess that makes them a problem, which is when people are blocked from taking any other work. That will not be allowed, but it was allowed under his party’s Government. The last point I would make about zero-hours contracts is that nearly 70% of those who have them prefer them, because they give them flexibility. That comes from independent polling. Zero-hours contracts were never attacked by his party’s Government and I do not think that it is his party’s policy to get rid of them. We think that they add something to the economy.
David Rutley (Macclesfield) (Con)
7. What steps his Department is taking to help unemployed people find work and start their own business.
The Minister for Employment (Esther McVey)
The new enterprise allowance scheme offers mentoring support to help people on benefits develop a business plan and a weekly allowance that is payable over six months. That successful scheme has already supported 50,000 new start-up businesses.
David Rutley
Given the progress that is being made with the new enterprise allowance, what steps are being proposed to extend its benefits so that more people can establish more businesses?
Esther McVey
My hon. Friend is correct that we need to extend the scheme, and we will do so. People can be referred to places through to March 2016. Not only are we extending the time limit for people to apply; we are extending eligibility to the partners of people who are on jobseeker’s allowance or employment and support allowance, and to those on income support. It is a successful scheme. We want to keep it that way and to expand it as much as we can.
Jenny Chapman (Darlington) (Lab)
Single parents in Darlington who are on the Work programme have been to see me because they are being told to leave their nine and 10-year-old children at home unsupervised during the school holidays so that they can attend the Work programme. Will the Minister look into that urgently and ensure that such foolish, dangerous, reckless advice is never given to parents?
Esther McVey
I thank the hon. Lady for raising that point. We work closely with charity groups such as Gingerbread to ensure that the hours that lone parents have to work and the commitments they have to live up to fit around their lives and the children they look after. That is key to offering the right support for lone parents.
Nick de Bois (Enfield North) (Con)
Many unemployed people have been helped back to work by the Government’s excellent apprenticeships scheme. Will the Minister consider extending the scheme to include people who are over 50 so that we can help older people as well?
Esther McVey
We will be offering more support to the over-50s. I know how much work my hon. Friend does in this area, not only on jobs fairs, but especially to help people who are over 50. We are supporting people through our fuller working lives initiative and are looking at things such as sector-based work academies and work experience to give returners the extra skills they need to go into a second or third career.
Chris Bryant (Rhondda) (Lab)
It is one thing to get a job; it is quite another to get a job that pays enough to put food on the table. That is why the majority of people who use the food bank in the Rhondda are in work, which is surely a Dickensian-style disgrace. Is it not a particularly bitter irony that the Conservative club in Tylorstown in the Rhondda closed and is now a food bank?
Esther McVey
What we know is that we provide £94 billion in working age benefits. We also know that, for the extra people we have got into work, in-work poverty has actually fallen by 300,000 since the election. The Government are getting more people into work so that they can have a job, a career and a progression—they can move forward. The hon. Gentleman does not want to hear independent statistics, but that is the case. We have more people in jobs than ever before.
Andrew Bridgen (North West Leicestershire) (Con)
8. What recent assessment he has made of levels of youth unemployment.
The Minister for Employment (Esther McVey)
Youth unemployment is continuing to fall. In this year alone, it has fallen by the biggest ever number: more than a quarter of a million. There are just more than 700,000 unemployed young people, but if we take out those in full-time education, the number is below half a million.
Andrew Bridgen
Since the Government came to office, youth unemployment in my constituency has fallen by 60%, helped in part by a near trebling in the number of apprenticeships. Will the Minister join me in congratulating the agencies and businesses that have delivered those figures? What plans does her Department have to ensure that we build on that success?
Esther McVey
My hon. Friend is right: this has been an incredible success. The Government came forward with the Youth Contract. What could we do? Was it wage incentives, work experience or sector-based work academies? We have helped more than a quarter of a million young people through work experience and sector-based work academies. That is working: extra work experience seems to be what young people need and that is what we are going to do. My hon. Friend knows a lot about this. He was young executive of the year when he ran his own business and young director of the year. He helped his family business to grow, extending it and turning it into a plc. He wants real jobs for real people. He is all about social mobility.
Wayne David (Caerphilly) (Lab)
Does the Minister agree that, under the Welsh Labour Government, Jobs Growth Wales has been a big success?
Esther McVey
It is interesting to see what the Welsh Government have been doing. We have made sure that what is happening in England is a huge success, but better value for money: work experience for young people costs £325, with 42% getting into work. The Welsh Government have chosen to spend £6,250 for children within six months, when we know that 80% of young people get a job within six months anyway.
Heather Wheeler (South Derbyshire) (Con)
In South Derbyshire, youth unemployment has dropped by 67% since May 2010. Does the Minister agree that that is because we have superb businesses—Nestlé, Rolls-Royce and Toyota—that are very keen on STEM subjects and encourage young women, in particular, to get into technical work?
Esther McVey
I congratulate my hon. Friend on working closely with those magnificent businesses. She is right: government itself cannot give young people jobs. It can help with schemes and it can work with businesses, such as the ones she talks about. The Government are working with Movement To Work, 14 big organisations, and Feeding Britain’s Future—business working with government to support young people. That is what we are doing.
Ann McKechin (Glasgow North) (Lab)
The unemployment figures for young people actually increased last month, with many still in long-term unemployment. They are not apathetic: they are frustrated and angry. Is it not time we gave them a decent youth guarantee of paid work, so they can enter the work force and not be left behind?
Esther McVey
Youth unemployment is falling right across the country. There might well be a tiny difference in a single constituency, but from 2010 it has come down across every region and area. What we are doing is right. We are giving the right support to the right people, because we have had the biggest fall in youth unemployment since records began.
John Healey (Wentworth and Dearne) (Lab)
9. What legal costs his Department has incurred in legal proceedings involving disabled people relating to the under-occupancy penalty and the closure of the independent living fund.
The Minister for Disabled People (Mr Mark Harper)
The Government have robustly defended their policies in relation to the closure of the independent living fund and the removal of the spare room subsidy. The total known legal costs to date, in respect of both policies where disability formed part of the grounds of the claim, are £415,000: £236,000 for the ILF and £178,000 for the removal of the spare room subsidy.
John Healey
That is a part answer to a very direct question about the cost to the taxpayers of Government lawyers defending the indefensible—axing the ILF and introducing the hated bedroom tax. Will the Minister not recognise that many severely disabled people flourish with the fund but are now frightened of losing their independence when he shuts it down next year? He might have won the legal case this year, but he has lost the moral and policy arguments, so even at this eleventh hour will he rethink the protection available to ILF users?
Mr Harper
No, I will not. I have talked to disability organisations about this matter, and they agree with the Government. More than 1 million people get social care through the mainstream social care system. The Government are not making any savings by moving the ILF to local authorities and devolved Administrations, and we are working closely with each local authority to ensure that the amount of money being transferred at the point of closure next year will be exactly what is needed and what is being spent by the ILF, meaning that disabled people will be protected.
Barbara Keeley (Worsley and Eccles South) (Lab)
Some £4.3 billion has been taken out of adult social care budgets over the past four years because of the Government’s cuts. If that funding transfers across, as is planned, it will plug only a very small part of the gap. If they will not rethink this policy, as my right hon. Friend the Member for Wentworth and Dearne (John Healey) just suggested, will Ministers require that the funding be ring-fenced to ensure that 70 people in Salford and 18,000 people across the country with disabilities can look forward to keeping their independence and to this continuing support?
Mr Harper
Of course local government has had to play its part in the savings, but local authorities can make choices. My local authority in Gloucestershire has protected the value of social care because it thinks that protecting older people—[Interruption.] No, my local authority has faced cuts, like all local authorities, but it has chosen to—[Interruption.] If Opposition Members want me to answer their hon. Friend’s question, they should stop yelling. My local authority has prioritised funding for older people and people of working age. Clearly, the hon. Lady’s local authority has made different decisions. If those on her local authority want to ring-fence the money transferred from the ILF, they are absolutely free to do so, so I suggest she take that up with them.
Mr John Leech (Manchester, Withington) (LD)
10. What estimate he made of the potential savings to the public purse that would arise from implementation of the under-occupancy penalty; and what estimate he has made of the amount saved to date by that implementation.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
Before our reforms, the taxpayer had been paying for 820,000 spare rooms. To date, the policy has saved about £830 million from the housing benefit bill, and the estimated savings remain the same: approximately £500 million a year in 2013-14 and 2014-15. Those figures have been ratified by the Office for Budget Responsibility.
Mr Duncan Smith
Each local authority is dealing with this matter differently. We have given a huge amount of support, through the discretionary housing payments, so some will move, some will not, and some have had their rents dealt with and have stayed in place. We have trebled the support to £345 million, and more than 392,000 DHP awards were made last year. As I said, each authority is doing it differently. For example, Sheffield city council is using DHPs to pay removal costs and provide decorating, while Southwark and Islington councils are paying additional incentives through mutual exchanging with overcrowded households. They are all doing different things, but they are basically getting it right. We were warned that arrears would rise, but actually housing association arrears are lower than they were last year.
Stephen Timms (East Ham) (Lab)
Research published last month by the Trussell Trust, Church Action on Poverty, the Church of England and another organisation—Oxfam—showed that more than half the rocketing demand at food banks was caused by problems in the benefits system, not least by the hated bedroom tax, but also by escalating payment delays, contrary to what the Minister for Disabled People, said a moment ago. Will the Tory welfare waste party now follow the U-turn its coalition partners took and realise that the bedroom tax has to go?
Mr Duncan Smith
The right hon. Gentleman went a long way round to get to his usual comment, but most of his facts are incorrect. Let us get the facts right on benefit processing. Each year, we provide £94 billion in working age benefits, and benefits have been paid in arrears for the last 25 years, so there is not an unusual delay. People are often confused about whether or not there is a delay. On benefit processing times, 93% are processed absolutely on time, which is up seven percentage points since Labour left office. The vast majority of the delays are pre-decisions awaiting additional evidence. Of course there is more we can do. I am looking at a report today, and I am going to be positive about ensuring that we can do other things. I can thus announce today that we are looking to new measures committing the Department to raising much more awareness, as was asked for, of the short-term benefit advances. We are doing that through websites, on posters and by providing information in jobcentres. We are testing that and hoping to roll it out at the beginning of the new year. We are also issuing fresh guidance to advisers to make sure that they constantly advise those at risk of the availability, should they need them, of interim payments.
Steve Rotheram (Liverpool, Walton) (Lab)
11. What steps he has taken to accelerate the processing of personal independence payment applications.
The Minister for Disabled People (Mr Mark Harper)
The hon. Gentleman will know from my earlier answer some of the things we have done, including increasing the number of health professionals employed by the providers and opening more assessment centres. He will know that the latest set of statistics published in September showed that from March to July we more than doubled the number of cases cleared, and our performance continues to improve.
Steve Rotheram
Actually, the latest DWP figures show that of nearly 530,000 applications for the personal independence payment, only 206,000 decisions on eligibility have been made. That means 323,000 disabled people, with 1,000 in Liverpool, Walton alone, have been left in limbo, facing additional costs to cope with ill health or disability. Given his earlier answers, why is the Minister prepared to leave disabled people bottom of his list of priorities?
Mr Harper
I do not think the hon. Gentleman is listening. I very clearly said—and I have said it a number of times here—that fixing delays to the PIP process is not at the bottom of my list; I have been very clear that it is at the top of my list of priorities. I have said that from the time I started doing this job and we have made considerable progress. We will be able to set out the up-to-date position when I give evidence to the Work and Pensions Select Committee chaired by the hon. Gentleman’s colleague, the hon. Friend Member for Aberdeen South (Dame Anne Begg). I have been invited to give an update at the end of January and I will be delighted to do so.
Mr Clive Betts (Sheffield South East) (Lab)
12. What estimate he has made of his Department’s expenditure on in-work housing benefit for migrant workers from the European economic area who have arrived in the UK within the last (a) six, (b) 12 and (c) 24 months.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
The Government inherited a system that did not record the nationality of benefit recipients—we are changing that—and as a result local authorities currently hold limited data on housing benefit. However, based on the latest figures we have been able to glean, we estimate that some 420,000 EU families have been claiming child benefit at a cost of £650 million; and 317,000 EU citizens are claiming tax credits at a cost of £2.2 billion.
Mr Betts
Many of my constituents express a real sense of grievance when people come to this country and claim benefits to which they have not contributed. It is now the policy of the Government—and, indeed, of the Opposition—that before people can claim unemployment-related benefits, they should have to work in this country for a longer period. Should a similar principle apply to the claiming of housing benefit?
Mr Duncan Smith
In a sense, I agree with the hon. Gentleman. We have already introduced restrictions, right now, on access to benefits, tightening up the time scales so that people cannot get them for the first three months until they prove they are, in fact, resident here, and then only for three months after that. We have also stopped such people claiming housing benefit, but the hon. Gentleman will know that my right hon. Friend the Prime Minister has announced that we will want to go much further and ensure that people cannot claim benefits for four years until they can prove to have been resident here.
Jesse Norman (Hereford and South Herefordshire) (Con)
13. What steps he is taking to help unemployed adults with disabilities to secure and sustain employment or self-employment.
The Minister for Disabled People (Mr Mark Harper)
The Government have published today a paper called “Disability Confident Britain” about some of our programmes. I know that brandishing documents here is generally deprecated, but because this is a copy of the House magazine of 28 November, I draw the attention of hon. Members to page 42, which featured an article about “Disability Confident Britain” and about the excellent event I attended in Gloucester hosted by my hon. Friend the Member for Gloucester (Richard Graham). I urge all hon. Members who have not already done so to hold such events in their own parliamentary constituencies.
Jesse Norman
The Minister will be aware of the excellent work done by the Royal National College for the Blind, which is based in Hereford, with blind and partially sighted people from all over the country. It has struggled in recent years with a series of annual contracts for residential training. Will the Minister provide a clear date by which a long-term solution will be in place?
Mr Harper
I am familiar with this issue. We set out in the paper published today the fact that we have extended the contracts until next September. I am making every effort to make sure that we can announce a long-term solution before the general election next year, so that those colleges can have some confidence in the future. My hon. Friend can give my assurance to the college principal that I will strain every sinew to do so and will keep him fully informed.
Kerry McCarthy (Bristol East) (Lab)
Figures show that the Work programme is performing very badly when it comes to helping disabled people into work. Why are its contracts being extended for another year even though it is clearly not doing the job it was intended to do?
Mr Harper
As the hon. Lady will see if she looks at the latest figures, the programme’s performance has improved considerably—indeed, it has been more successful than previous programmes—and Work Choice is also performing very well. I think that she should have a little more confidence. The document that I published today refers to a range of programmes initiated by Departments whose spending we have protected, at a time when difficult decisions are having to be made across Government to deal with the deficit.
Mr Henry Bellingham (North West Norfolk) (Con)
15. What estimate he has made of the annual change in unemployment in the North West Norfolk constituency over the last three years.
The Minister for Employment (Esther McVey)
Over the past three years, the claimant count in my hon. Friend’s constituency has halved, from nearly 1,900 to just over 900.
Mr Bellingham
As my right hon. Friend will know, unemployment has fallen by nearly 1,000 in my constituency since May 2010, and by 770 in the last year. Does she agree that we should look behind the headline statistics, and observe that a great many families now have a breadwinner and are hopeful and confident about the future?
Esther McVey
My hon. Friend has made a very good point. Frequently, when I am out and about I find that we talk only about statistics and numbers and facts and figures, without making it clear that there are individuals who have found jobs, who are on the career ladder and who are making progress, sometimes while looking after a family or loved one. That is the real story behind the statistics: it is about individuals, their families and their local communities.
Sandra Osborne (Ayr, Carrick and Cumnock) (Lab)
17. What steps he plans to take to support older people experiencing long-term unemployment.
The Minister for Pensions (Steve Webb)
We have taken a range of steps. Most recently, in last week’s autumn statement, we announced a new pilot that will test how we support older claimants to help them return to work. It will benefit 3,000 older claimants whose age is a barrier to their finding work.
Sandra Osborne
Why does the Work programme fail the over-50s so badly, and why has it taken the Government more than three years even to begin to do anything about that?
Steve Webb
On the contrary, the labour market performance of older workers has been among the best during the last four years. During a period of slow economic growth, older workers actually did the best. Nevertheless, we are not complacent, hence the new pilots that I announced last week.
Stella Creasy (Walthamstow) (Lab/Co-op)
18. What steps he is taking to ensure that child maintenance is paid to parents with care in separated families.
The Minister for Pensions (Steve Webb)
When possible, our child maintenance options service and the £14 million investment in better support services help families to reach their own family-based arrangements in the best interests of their children. When that is not possible, the 2012 statutory scheme provides a more efficient service, including swifter action against the minority of parents who do not pay in full and on time.
Stella Creasy
The Government’s system is predicated on the idea that, on the whole, parents can negotiate, but we know that that is simply not possible for some families. What is the Department doing to ensure that women who have experienced domestic violence are aware of the application fee exemption, and what evidence has he that women who are unaware of it are not being deterred from applying for child maintenance?
Steve Webb
I discussed this issue with my officials recently. We will publish the figures shortly, but we know that a significant proportion of women are applying successfully for the domestic violence exemption from the £20 fee. We have made the rules relating to access to the exemption as relaxed as possible, and the domestic violence charities with which we have worked believe that we have drawn the right definition for the purpose.
Steve Baker (Wycombe) (Con)
20. What steps he has taken to help small businesses prepare for automatic enrolment.
The Minister for Pensions (Steve Webb)
We have deferred the date by which small businesses must be automatically enrolled, and have made a number of other changes to ensure that the system works best for them.
Steve Baker
When the time does come, how are the very smallest firms to choose a suitable pension scheme?
Steve Webb
When the Pensions Regulator notifies employers of their automatic enrolment duties, that letter flags the National Employment Savings Trust, which was designed with small businesses in particular in mind, but the regulator is considering putting more information on its website about other potential providers. I shall be hosting an event in the House for all Members to help them to support small businesses in their constituencies.
Rehman Chishti (Gillingham and Rainham) (Con)
T2. If he will make a statement on his departmental responsibilities.
The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)
Even with the employment record at a high this week, I welcome the autumn statement announcement of more help to enter work across the generations, for young or old. We are introducing intensive support for those not in education, employment or training claiming universal credit to prevent a wage scar developing any further, and we are piloting work placements for older workers, helping with the transition to a new job in later life.
Rehman Chishti
I thank the Secretary of State for that answer. I welcome the announcement that the compensation scheme for diffuse mesothelioma has paid out over £15 million in its first seven months. What plans do the Government have to ensure that all victims, such as those in the Medway towns linked to the Chatham dockyards, are made aware of their rights to this compensation?
Mr Duncan Smith
I thank my hon. Friend who, with some of his colleagues, has put in a huge amount of effort to bring this to the Government’s attention. The new scheme is already making payments, with compensation averaging £125,000 for this desperate and terrible disease. We know that there are many more victims and families to be encouraged to come forward, and the Government are promoting that through the regional press and work in administrations to publish it further. Should the need arise—and should it be possible—we will keep this under review with a view to possibly raising that as well.
Rachel Reeves (Leeds West) (Lab)
I welcome the Secretary of State’s comments that he takes today’s report on food banks seriously, especially after previously refusing to meet the Trussell Trust. However, does he recognise the reality depicted by the Archbishop of Canterbury who said that
“hunger stalks large parts of our country”,
often because of problems with the benefits system? Even being in work and earning money no longer appears to offer complete protection against extreme food poverty.
Mr Duncan Smith
I do take this report seriously. We have met the Trussell Trust—I have never refused to meet it—and I have met many others from a number of food banks. The reality is that of course there are things that need doing. It is a wide-ranging report that deals with food distribution as well, as I said to the hon. Member for Huddersfield (Mr Sheerman), and with supermarkets and the amount of food that is disposed of and how we can distribute that. There was a very good debate on Radio 4 about that, but of course, as I said to her colleague the right hon. Member for East Ham (Stephen Timms), one of the areas that they and our own internal report highlighted was what we do to raise awareness. Today I have announced that we shall be doing much more to raise awareness of interim payments for people who need them, particularly those who are in difficulty.
Rachel Reeves
I thank the Secretary of State for that answer, but frankly it is not enough. The findings of this morning’s all-party report are clear: the rise in food poverty is the consequence of the failing safety net and the worsening cost of living crisis. Just a few weeks before Christmas, it is shocking that more and more families are worrying about where their next meal is going to come from. Food banks have become the shameful symbol of this Tory-led Government, and yet another example of Tory welfare waste. Is it not about time that the Government started to put this right by raising the minimum wage, ending the abuse of zero-hours contracts, getting a grip on benefit delays, scrapping targets for sanctions and cancelling the cruel and unfair bedroom tax? If they do not do these things, is it not about time we had a Labour Government who will?
Mr Duncan Smith
The same old rubbish from the Opposition! May I just remind the hon. Lady that this Government have done a huge amount for the poorest? The tax allowance is up to £10,000 by April, saving £825 per year. Under this Government, the national minimum wage has gone up by 3%, more than earnings and more than inflation. There are free school meals for primary school pupils—1.5 million children will be getting them. The cost of living is coming down, too. Food prices are falling, and motor fuel prices are down. The hon. Lady wanted to make this a political issue, but I remind her of what the Archbishop of Canterbury said today: it would be wrong to play political games with such an important issue. Perhaps she should listen more and speak less.
Sir George Young (North West Hampshire) (Con)
T4. Does my right hon. Friend agree that as unemployment continues to fall, we have a golden opportunity to offer work to those with a learning or physical disability? Will he confirm that programmes such as Work Choice and Access to Work and the work of his Department’s disability employment advisers will continue to have top priority, so that we can make yet further progress?
The Minister for Disabled People (Mr Mark Harper)
I completely agree with my right hon. Friend. In fact, the latest labour market statistics show that disabled people are sharing in the jobs that are being created, with more than 258,000 more disabled people in work over the last year, including 75,000 in the south-east, which will cover his constituency, and there are particularly sharp rises in the number of those with learning disabilities getting jobs, which he specifically asked about.
Kelvin Hopkins (Luton North) (Lab)
T3. The former Minister for Disabled People, the right hon. Member for Hemel Hempstead (Mike Penning), repeatedly assured the House during the passage of the Mesothelioma Act 2014 that the planned 3% levy on insurers to fund pay-outs to victims was not “going anywhere”—in other words, it was not going to change. In a written ministerial statement on 28 November, however, the current Minister announced that the levy would amount to just 2.2%. A 3% levy could have funded more generous pay-outs, helped to fund research or covered more asbestos-related diseases. Is it not disgraceful that the Minister has put the interests of the insurance industry ahead of the interests of victims?
Mr Harper
We have introduced a scheme, and introduced a levy to pay for it. This continues the work that we agreed on when the previous Government introduced a similar scheme under the Child Maintenance and Other Payments Act 2008. I am proud of the scheme we have introduced. It will go a long way towards helping people who have been affected by this dreadful industrial disease.
Chris White (Warwick and Leamington) (Con)
T7. Last month, there was a debate in this Chamber on promoting the living wage. May I congratulate the Department for Work and Pensions on being the first Department in Whitehall to pay its staff and contractors the London living wage? Does the Secretary of State agree that we should encourage all Government Departments to follow suit?
Mr Duncan Smith
I thank my hon. Friend for his question. We had discussions about this quite early on with the cleaners and with those who are keen on the living wage, and I took the decision with the contractor to ensure that the London living wage was paid here in London. I speak to my colleagues every day and discuss this with them.
Sandra Osborne (Ayr, Carrick and Cumnock) (Lab)
T5. The South Ayrshire food bank is threatened with closure if it cannot find funding for premises for food storage and distribution by Christmas. Given today’s report on food banks, and given that the people involved are having to do this incredibly important work for the poorest in our society thanks to this Government’s nasty welfare policies, what practical support can the Government provide to those charities to support their important work?
Mr Duncan Smith
The Government give huge support to charities up and down the country. I do not know the specific case that the hon. Lady has mentioned, but if she wants to drop me a note about it, I would be happy to look into it and see whether there is anything more we can do to help. I have to say, though, that the Opposition go on and on about what we are doing with welfare and how it has somehow driven everybody into this situation, but in Germany 1.5 million people a week go to food banks. It has nothing to do with our welfare reforms, and Germany is a wealthier country. Food banks have grown around the world, but the latest figures from the OECD show that, in the category of the “difficulty to afford food”, the UK is almost alone in having gone down from the position that we inherited from the last Government. This Government are doing more to help poor people to get by and to get jobs, rather than leaving them parked on unemployment benefit like the last Government did.
Pauline Latham (Mid Derbyshire) (Con)
T8. Belper in my constituency won the Great British high street of year award recently. Like many of my colleagues, I spent Saturday visiting small businesses in my constituency to celebrate small business Saturday. Will my right hon. Friend outline the help that the Government are giving to small businesses to encourage them to employ more staff?
The Minister for Employment (Esther McVey)
Many of us were on the high street celebrating small business Saturday and helping our local businesses, but of course this Government are doing even more to help them to take on more people. Whether through implementing a £2,000 cut in their national insurance bills, extending the business rate relief or putting £10 billion of financing into the British business bank, we have done a great deal to help our small businesses, which are the backbone of this country.
Mr Jim Cunningham (Coventry South) (Lab)
T6. Her Majesty’s Revenue and Customs is sending letters to taxpayers detailing how their tax revenues are being allocated. This is being done in the name of transparency, but will the Minister tell his colleagues in the Treasury that teachers’ pensions are not welfare?
The Minister for Pensions (Steve Webb)
As the hon. Gentleman appreciates, the letters are sent by HMRC on behalf of the Treasury, and he is welcome to address his concern to our colleagues there. However, we clearly appreciate that there is a distinction between social security benefits and pensions paid to public servants in retirement.
Jenny Willott (Cardiff Central) (LD)
T9. We have heard today about the use of food banks, and the right hon. Member for East Ham (Stephen Timms) mentioned a recent report from the Church of England, the Child Poverty Action Group, Oxfam and the Trussell Trust that highlighted the problems that arise when those who have been sanctioned lose all their benefits, including housing benefit. I understand that the Department for Work and Pensions is working on a fix to prevent housing benefit from being stopped when a claimant is sanctioned, but while that is being worked on, will the Minister consider sanctioning all but, say, 10p of jobseeker’s allowance or employment and support allowance now so that other benefits are not automatically cancelled and claimants do not need to use a food bank and end up in rent arrears while they are being sanctioned?
Mr Duncan Smith
I take all these reports seriously, and this one particularly. It is of huge interest. We want to do everything we can to make sure that people do not stumble into a process of sanctions. I am certainly willing to consider what the hon. Lady says, but the big thing that the Oakley review told us is that communications were critical, so advising claimants all the way along that they are about to be caught in this trap is vital to making sure that they do not get caught.
Nia Griffith (Llanelli) (Lab)
Absolutely. The Secretary of State has at last begun to recognise the problem, but I would like him to go a lot further on the issue of food banks and the fact that it is benefit sanctions, changes and delays that cause the majority of food bank users to have to go there. Will he do more and have a thorough review of all his Department’s responsibilities to make sure that nobody has to go to a food bank for those reasons?
Mr Duncan Smith
Of course I take the matter seriously, but it is rather ridiculous to assume that every single person who goes to a food bank does so because of what the Department for Work and Pensions does. The report today and other reports are clear. They show that these are often people with dysfunctional lives—people who have been caught in drug addiction and family breakdown, people who have a serious illness and are not claiming benefits and get into difficulty. All these ultimately have to be dealt with by the Department, but we have had a number of reviews, which have told us that there are some things we need to improve and we are working on that. The one thing that we have improved dramatically is late payments. There are fewer late payments than there were under the previous Government.
Nigel Adams (Selby and Ainsty) (Con)
I think this was referred to earlier. What has happened to the number of people in in-work poverty since my right hon. Friend has been Secretary of State?
Esther McVey
I will indeed confirm what has happened to in-work poverty so that it is clear. It has gone down by 300,000, according to the latest figures that we have.
Mr William Bain (Glasgow North East) (Lab)
Ministers promised to cut the waiting period for assessments for PIP to 16 weeks by the end of the year, but will they apologise to 900 people in my constituency and the hundreds of thousands more across the country who have been left to wait for months on end in severe financial hardship?
Mr Harper
I am happy to do so. I have said before that that is not acceptable; I made it clear during my first time at the Dispatch Box. I am happy to say that the Government should have made sure that we did not make that mistake. People should not have had to wait that long. I am making sure that we are doing something about it, as has the Secretary of State, so that people will not have to wait for such a long time in the future.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
My daughter is on a zero-hours contract as a care assistant, which suits both her and her employer as it allows her to choose when to work and when to study. Does my right hon. Friend agree that as long as there is no exclusivity clause, such flexibility in employment is helpful?
Mr Duncan Smith
Yes. My hon. Friend is right. Some 2% of people in work are on zero-hours contracts and the vast majority of them choose to do it because it suits them. Many of them have caring responsibilities and cannot commit to a full period of work, and some of those are in very professional jobs. It has been a success.
Mr David Winnick (Walsall North) (Lab)
Is the Secretary of State really telling us that the Government have no responsibility at all for the acute financial hardship affecting so many people in our country? If so, no one believes him except Tory MPs. No wonder the Archbishop of Canterbury is so shocked by what he sees in Britain today.
Mr Duncan Smith
The Archbishop of Canterbury also said today that they should not play political games with a serious report. I agree. Of course, a Government take responsibility where that responsibility falls, but we do more than that. I am determined to do whatever it takes to make sure that far fewer people are in any kind of need and have to go to food banks. That is the vital issue. It is all very well, after four years in opposition, to lecture us sanctimoniously, as the hon. Gentleman does, when it was the Government whom he supported who crashed the economy and did not even take any responsibility for the disaster they brought to all the families who lost their jobs.