Dr Neil Shastri-Hurst (Solihull West and Shirley) (Con)
The Minister for Employment (Alison McGovern)
The Budget made the choices needed to fix the foundations of our economy. Taking those into account, the Office for Budget Responsibility forecasts that unemployment will fall to 4.1% next year and remain low until 2029. We are taking action to support jobs and growth, and to transform employment support to get Britain working.
Dr Shastri-Hurst
Will the Minister answer a simple question: since the Budget, have unemployment rates gone up or down?
Alison McGovern
I have just given the OBR’s assessment. It is worth noting that there are still a significant number of vacancies in the economy. We are determined that the Department for Work and Pensions will be reformed to serve employers better, so that they can fill those vacancies.
Deirdre Costigan (Ealing Southall) (Lab)
Many disabled people in Ealing Southall are unnecessarily unemployed purely and simply because their employer refuses to respond to their request for the reasonable adjustments that they need to do their job. Will the Minister consider strengthening the right to reasonable adjustments, so that workers receive a response within a specified number of weeks, in line with the recommendations in the groundbreaking disability employment charter?
Alison McGovern
I thank my hon. Friend for her important question. I know she met my colleague the Minister for Social Security and Disability recently, and I am sure that their conversations were productive on this important point.
Jerome Mayhew (Broadland and Fakenham) (Con)
I recognise what was behind the increase in the national minimum wage for 18 to 21-year-olds, but I have been surprised by the reaction of businesses in my constituency. Those businesses have told me, in terms, that they will reduce the number of 18 to 21-year-olds they employ, because there is a higher failure rate associated with their employment, as they are new to the workforce, yet employing them will cost the same as employing those who are older. Does the Minister recognise that issue, and what will she do about it?
Alison McGovern
Anybody who sees that, in the British economy, there are nearly 1 million young people out of work or training—not doing anything—would say that is a dreadful legacy left by the previous Administration. That is why the youth guarantee is at the heart of our “Get Britain Working” plan.
Mr Speaker
Order. Before I call Dr Jeevun Sandher, may I offer him my congratulations on his engagement?
Dr Jeevun Sandher (Loughborough) (Lab)
That is incredibly kind of you, Mr Speaker.
Young non-graduates are finding it far harder to get good, well-paid jobs. The number of young people not in education, employment or training has nearly doubled since 2013, and youth unemployment is at its highest rate in almost a decade because young people are not getting the skills they need. On top of that, they are becoming far sicker; one in three young people currently has a mental health problem, and that figure is rising. What are the Government and the Department doing to give young people the skills and the health support that they need to get good, well-paying jobs?
Alison McGovern
That question demonstrates the quality analysis I would expect from recently engaged economists on the Labour Benches. The Minister for Skills and I have been working closely on the youth guarantee, because we know that it is only by colleges and jobcentres working in hand in hand that we will get young people the skills that they need to succeed.
Helen Whately (Faversham and Mid Kent) (Con)
In the run-up to the election, Labour clearly committed to an employment rate target of 80%, but in the past few weeks I have noticed a shift in language from “target” to “ambition”. Will the Minister clear this up for us: are the Government still committed to the 80% employment target, or will that be another broken Labour promise?
Alison McGovern
I make no apologies for having ambition for people in our labour market. The figure was always an ambition, because Labour Members want our jobcentres to shift away from pointless admin towards real ambition for everybody who steps through the door.
Helen Whately
I think we all heard that loud and clear: Labour has ditched its employment target. That is already another broken Labour promise. However, I feel for the Minister. How can she be expected to boost employment when her Chancellor is busy taxing jobs and then shrinking the economy? The Government have destroyed business confidence, have put up taxes on jobs, and are piling red tape on employers. Which of those measures will help her to deliver that employment “ambition”?
Alison McGovern
I have brought forward proposals to get Britain working, together with the Secretary of State for Work and Pensions, the Secretary of State for Education, and Secretaries of State right across Government. That is how we will plot a course towards our ambition of an 80% employment rate. I thank the shadow Secretary of State for being kind enough to refer to our “Get Britain Working” plans as
“rearranging the deckchairs on the Titanic”.
It was very brave of her to acknowledge that the last Government’s legacy for us was a sinking ship.
Kanishka Narayan (Vale of Glamorgan) (Lab)
The Secretary of State for Work and Pensions (Liz Kendall)
Our ambition is an 80% employment rate over a decade of national renewal. We will get Britain working by creating a new jobs and careers service in our overhaul of jobcentres. We will bring forward a new youth guarantee, so that every young person is earning or learning, and will give local areas the power to join up work, health and skills support to help the 2.8 million people who are out of work due to long-term health conditions.
Kanishka Narayan
I thank my right hon. Friend for her response, not least given the dire inheritance from the previous Government: the worst performance of an employment rate in the G7 since the pandemic. I see that inheritance in my community, in Barry in the Vale of Glamorgan, where individuals carry not the indulgence, and not the offence, but the misfortune of ill health. What is the Secretary of State doing to tackle economic inactivity, so that we give hope again, not just to those individuals, but to my community?
Liz Kendall
In the Vale of Glamorgan, the economic inactivity rate is almost one in four people. That is higher than the rate for Wales as a whole, and certainly higher than the UK average. From spring next year, we will launch eight trailblazers to support more people with long-term health conditions into work, including in Wales. That is backed by £125 million of additional funding. We will design the programme jointly with the Welsh Government, and we aim to launch it in the spring. We are determined to boost jobs and growth in every corner of this great country.
Jess Brown-Fuller (Chichester) (LD)
Fedcap, a national organisation, is running a scheme to get economically inactive people to become the next generation of solar panel engineers. More such schemes will be necessary to plug the skills gap that developers report, especially if the Government are to meet their ambitious housing target. Will the Secretary of State commit to continued funding for schemes that are delivered by such organisations via jobcentres?
Liz Kendall
I congratulate organisations such as the one that the hon. Lady mentions for their brilliant work, not only to keep energy costs down but to support people into work. I will work closely with the Minister for energy consumers, and others in the Department for Energy Security and Net Zero, to support those organisations, including through jobcentres. More jobs and lower bills are key to improving people’s living standards.
Ms Polly Billington (East Thanet) (Lab)
In communities like mine in East Thanet, there is above-average youth unemployment. It is important to be reassured that the “Get Britain Working” White Paper will be designed to help young people, particularly in coastal communities like mine, where we need a year-round economy, and support and activity to get young people into work.
Liz Kendall
My hon. Friend is exactly right: we have to deliver better jobs in every part of the country, including coastal communities like hers. We need to give young people the skills that they need, and job opportunities, so that they can build a better life. I look forward to working with her as we deliver our youth guarantee and “Get Britain Working” plans.
Sir Ashley Fox (Bridgwater) (Con)
Can the Secretary of State confirm whether she will maintain strong sanctions against those who are capable of working but choose not to?
Liz Kendall
If you can work, you must work, and if you repeatedly refuse to, sanctions will remain, but I know from young people in my constituency that they are desperate to get the skills and opportunities that they need. Unlike the Conservative party, that is what our youth guarantee will deliver.
Danny Kruger (East Wiltshire) (Con)
It is good to hear Front-Benchers being so positive about their White Paper, much of which we are pretty familiar with. Let us look through some of the measures. The integration of employment and health support—we were doing that when we were in government. It was called WorkWell. My hon. Friend the Member for Faversham and Mid Kent (Helen Whately) led on it. What is the youth guarantee that we have been hearing about? According to the White Paper, it
“brings together a range of existing entitlements”.
It is a very familiar set of policies. The fact is that the Government’s White Paper is just a rehash of existing support, and a bit of money with no strings attached. There is, however, one thing that the last Government were doing that this Government are not: strengthening the conditionality for benefits. The Secretary of State says that she will continue the existing sanctions, but what new measures will she introduce to ensure that people who can work will work?
Liz Kendall
I am not sure where to start. If the Conservatives’ programmes were so successful, why do we have a record 2.8 million people out of work due to long-term health problems, and 1 million young people not in education, employment or training? I love the 15 WorkWell pilots, but we want to join up health, work and skills support in every corner of the country, not just a few places.
There will be a different approach for young people under our youth guarantee. There will be the opportunities people need, but also a requirement to take them up, not only for those on unemployment benefit, but for those young people who can work but are out of work due to a health condition. That is the difference a Labour Government make: there is work for those who can, and proper opportunities.
Danny Kruger
I applaud that soundbite, but we did not hear about any new measures that will be introduced, or any additional sanctions that we need. The right hon. Member talks about what the last Government were doing. We were reforming the work capability assessment. The Office for Budget Responsibility said that our reforms would have seen 400,000 fewer people on long-term sickness benefits, saving £5.4 billion over this Parliament. The Labour Government have paused that work while they hold a review. They have had 14 years. I do not know what they were doing to plan for government—not very much, it looks like. [Interruption.] They had all that time. What were they doing? I do not know where their plans are. The Chancellor is counting the savings to the welfare budget that our party would have delivered. Will the Minister commit to implementing the reforms, and if not, how will she make the savings that she is counting on?
Liz Kendall
The hon. Member is laughing at his own chutzpah. I am happy to talk about the past 14 years, but the work capability assessment is not working. It needs to be reformed or replaced. That is what we said in our manifesto, and we will bring forward our proposals in a Green Paper in the spring. That has to be part of a bigger programme to help people with long-term health conditions and disabilities into work. That is what our “Get Britain Working” White Paper does, and I am happy to discuss it with him more in future.
Steve Darling (Torbay) (LD)
I hope the Secretary of State will join me in congratulating Chris McCausland and Dianne Buswell on their victory on “Strictly” this weekend. In the light of that victory, how does she plan to make the Access to Work scheme more fit for purpose, so that it can help more people with disabilities reach their full potential?
Liz Kendall
I absolutely join in the hon. Gentleman’s comments. It was a great joy to see that victory at the weekend. We want to see Access to Work working better. We want to get the backlogs down, and for that support to be available to more people.
Labour Members believe that disabled people have the same rights as anyone else to work, socialise and take part in life. That is what we are determined to achieve, not just through the Department for Work and Pensions, but through every part of Government. The hon. Gentleman will know that we recently announced lead Ministers for disability in every Department. That shows how important we take this issue to be.
Susan Murray (Mid Dunbartonshire) (LD)
The Parliamentary Under-Secretary of State for Work and Pensions (Emma Reynolds)
Due to the Government’s steadfast commitment to the triple lock, pensioners will see an above-inflation increase of 4.1% in their state pension next year, which means that they will be up to £470 better off—and, over the course of this Parliament, over £1,900 better off.
Susan Murray
I thank the Minister for the insight. In Mid Dunbartonshire, nearly a quarter of my constituents are of pension age. Many have placed their hard-earned income into private schemes, yet despite their financial planning, they face the harsh reality that inflation is outstripping the modest yearly increase to their pension, eroding the value of their lifetime of saving. What steps will she take to prevent the erosion in value of private pensions, and to mitigate the problem of the growth in the value of pension funds not being passed on to pension holders?
Emma Reynolds
The Chancellor launched a landmark pensions review in July, which I am leading. It has two objectives: to boost returns for future pensioners, so that when they save into private pensions, they get better returns, the likes of which we see in Australia and Canada; and to boost investment in the UK economy.
Neil Duncan-Jordan (Poole) (Lab)
The poorest pensioners in our society are those who are eligible for pension credit but do not claim it, and those who are just a few pounds above the threshold and miss out on passported support. Means-testing, by its very nature, is simply not the best way to get help to those who need it most, so will the Minister reconsider the recent decision to means-test the winter fuel allowance?
Emma Reynolds
We will not reconsider that decision, because as a result of the £22 billion black hole that we inherited from the Conservative party, we have had to take tough decisions in a very tight fiscal environment. However, my hon. Friend has given me the opportunity to remind people that they have until Saturday to make a pension credit claim, which can be backdated and will passport them to winter fuel payments and other related benefits.
Chris Murray (Edinburgh East and Musselburgh) (Lab)
The Minister for Employment (Alison McGovern)
We have all been there, Mr Speaker. Businesses are crying out for staff, yet only one in six employers uses jobcentres. Our “Get Britain Working” White Paper will revolutionise employment support to give employers the workforce they need. The support will include a new jobs and career service, designed around employers’ needs. We are also launching an independent review of the role of employers in promoting healthy and inclusive workforces.
Chris Murray
Some of us are still getting our heads around our new jobs, Mr Speaker. Edinburgh is a booming economy that has all the raw materials to thrive in the years ahead—especially because we have some of the growth industries that the Government have identified as being key to the future of the economy. However, businesses in my constituency are crying out for workers with the skills that they need. What are the Government doing to ensure that the workforce has the skills that businesses need?
Alison McGovern
My hon. Friend describes exactly why we need a local tailored service: so that all employers can properly engage with jobcentres and work together to find the skilled members of staff that they need. I agree with him that Edinburgh offers so many opportunities to our young people. I know that all my DWP colleagues in Edinburgh will work with him to get business the skilled staff that they need.
Jim Allister (North Antrim) (TUV)
E-commerce is a growing part of our economy. Will the Minister spare a thought for small-scale employers in my constituency and throughout Northern Ireland, who. since Friday, have seen their supply chain clobbered by the imposition on Northern Ireland of the EU’s general product safety regulations? Because of the extra paperwork and the need to pay an agent in Northern Ireland, many suppliers in Great Britain are now refusing to sell to Northern Ireland. Will this Government ever take steps to reintegrate Northern Ireland into the internal market—
Mr Speaker
Order. We have to shorten questions a little, so that I can get others in.
Alison McGovern
I am not entirely sure that the issues the hon. and learned Gentleman raises are completely within my responsibilities. However, DWP colleagues in Northern Ireland work closely with business, and I am sure that they will continue to do so, whatever the prevailing economic circumstances.
Antonia Bance (Tipton and Wednesbury) (Lab)
The Minister for Social Security and Disability (Sir Stephen Timms)
We are committed to reviewing universal credit to ensure that it is doing the job that we need it to. We have started by announcing the fair repayment rate in the Budget, and we will keep Parliament updated.
Antonia Bance
Twenty-seven per cent of working-age people in Tipton, Wednesbury and Coseley rely on universal credit. I welcome the fair repayment rate announced in the Budget, but a major reason for benefit debt is the design flaw in universal credit, which means that claimants must wait five weeks for their first payment. Will the Minister confirm that the five-week wait will be considered in the review of universal credit?
Sir Stephen Timms
I can assure my hon. Friend that advances of up to 100% of potential universal credit entitlements are available urgently during the first assessment period of a claim, but she is right to raise concerns about the five-week wait. I commend to her the excellent report on this subject published by the Work and Pensions Committee in the last Parliament. The point she has raised is definitely one that we need to consider.
Wendy Chamberlain (North East Fife) (LD)
Some of the farmers who work so hard to put food on our tables find it difficult to put food on the table themselves, and need additional Government support. That used to happen via tax credits, but the transition to universal credit has been hugely challenging for farmers, given the seasonal nature of their work. Will the Minister meet me to hear some of their concerns, so that we can incorporate those concerns into the Government’s review?
Sir Stephen Timms
We are watching very carefully the progress of migration from tax credits to universal credit, which will be complete in the early part of next year, but I would be very happy to meet the hon. Lady and discuss some of the difficulties she is seeing.
David Taylor (Hemel Hempstead) (Lab)
The Minister for Employment (Alison McGovern)
More people in good jobs is the foundation of our approach to tackling poverty. That is why we have set out the biggest reforms to employment support in a generation, on top of extending the household support fund, introducing a fair repayment rate for universal credit, and the extensive work of the child poverty taskforce.
David Taylor
In my constituency of Hemel Hempstead, according to figures given to me by the local charity DENS, there has been a 1,000% increase in the number of people needing to use food banks over the past 10 years. Meanwhile, another institution, the Hemel Hempstead community fridge, sees queues an hour before it opens, in scenes akin to something out of Soviet Russia. Does the Minister agree that there are few more shameful examples of the last Government’s record on poverty? [Interruption.] I cannot quite hear the mutterings of Conservative Members, Mr Speaker—I think the word they were looking for was “sorry”. Will the Minister also outline further steps that we can take to reduce the need for food banks to exist at all?
Alison McGovern
The statistics my hon. Friend has read out are, I am sorry to say, consistent with those of the Trussell Trust, which distributed 61,000 emergency food parcels in 2010. Last year, the figure was 3.1 million. That is not acceptable, which is why we have committed to tripling investment in breakfast clubs to over £30 million and—as I have said—introduce our fair repayment rate for deductions from universal credit, because if a person is out of debt, they are out of danger. We are increasing the national living wage to £12.21 an hour from next April, which will boost the pay of 3 million workers. That is also why the child poverty taskforce is working very hard.
Ellie Chowns (North Herefordshire) (Green)
Benefits such as pension credit and disability living allowance are important in assisting people to stay out of poverty, but delays in processing applications push people into poverty. One constituent of mine is an 82-year-old gentleman who has spent more than 16 weeks waiting for his application to be processed, and another is the mother of a disabled child who has waited more than 18 weeks and is now being told that it will take an extra 25 weeks for a mandatory reconsideration. What steps is the Minister taking to reduce delays in processing applications for pension credit and other state support, in order to help lift households out of poverty?
Alison McGovern
I thank the hon. Lady for the question that she rightly puts to this House. We have increased the number of staff working on pension credit by over 500, and are working very quickly to deal with those backlogs and delays. As she says, we need to get through those backlogs.
Mr Lee Dillon (Newbury) (LD)
The Parliamentary Under-Secretary of State for Work and Pensions (Andrew Western)
Jobcentres work with a range of external providers to offer a wealth of outreach support. In Berkshire, this includes work coach support for customers with complex needs delivered by Reading college, outreach delivered by the Slough homelessness team and at Windsor Homeless Project locations, and employment support delivered by the probation hub in Reading. Outreach work is something that we not only strongly support, but actively encourage.
Mr Dillon
The Minister has named a number of projects in Berkshire, none of which falls within my constituency of Newbury. Would he welcome community interest companies such as Lambourn Junction hosting jobcentres in their facilities to make sure that people in rural constituencies such as mine have access to a jobcentre, rather than having to travel into the main town centre for that support?
Andrew Western
I would very much welcome such an initiative being brought forward in the hon. Member’s constituency of Newbury. He may also be pleased to know that there is the potential for a youth hub to open in Newbury, similar to that in Oxford, which was grant funded and is already in operation.
Rebecca Long Bailey (Salford) (Ind)
The Parliamentary Under-Secretary of State for Work and Pensions (Emma Reynolds)
Due to the introduction of auto-enrolment, which is at least one policy that has cross-party support—it was legislated for by the last Labour Government and was taken forward by the coalition Government—there has been a 92% increase in the number of employees saving into a workplace pension scheme since 2012, which is over 10 million people saving for a pension who were not saving previously.
Rebecca Long Bailey
The Minister will be aware that around 10% of people automatically enrolled into workplace pension schemes choose to opt out, often due to low pay and cost of living pressures, leaving them losing out not only on building up their contributions, but on the top-ups of their employers. Would the Minister consider a simple tweak and allow employer contributions, which would have been due in any event, to continue in such opt-out circumstances?
Emma Reynolds
I thank my hon. Friend for that question, which is indeed an interesting idea. It is one that was put forward recently by the Institute for Fiscal Studies, and I will consider it. In the pension schemes Bill, which we will introduce next year, low earners with multiple small pots will have those pots consolidated, so that the money works better for them and gives them a better retirement in the future.
Jim Shannon (Strangford) (DUP)
I thank the Minister very much for her answers. Both parties—the one now in opposition, and the one in government—have always encouraged people to buy pension contributions in every way they can. However, the fact is that for many people who are low earners, it is not possible to have a pension scheme and at the same time to live, given the age we are in and the cost of living. What can the Minister do to encourage people to do so in a way that does not impact on the money they have coming in?
Emma Reynolds
I thank the hon. Member for that question. A number of ideas have been put forward by think-tanks and research institutes. One such idea is a sidecar savings account, which could be used for a pension, but could also have some money set aside for a rainy day should somebody fall into debt. We are considering that. He raises a very important question, because some of those on low incomes sometimes cannot afford to put in those contributions, but there may be a way between opting out and remaining in the scheme, and we are looking at that.
Tim Farron (Westmorland and Lonsdale) (LD)
The Parliamentary Under-Secretary of State for Work and Pensions (Andrew Western)
Once people are granted refugee status, they have immediate access to DWP employment support and services. Work coaches work with refugee customers to understand their individual employment needs and provide tailored support, as appropriate, including with CV writing, interview preparedness and help securing work experience. Those who require more intensive support can be referred to DWP employment programmes or other contracted provision.
Tim Farron
The Government are seeking to clear the very unacceptable backlog—the huge backlog—of asylum applications they inherited from the previous Government. As a result, we are already beginning to see an increase in the number of newly recognised refugees, who rightly now have the right to work and to contribute here. Can the Minister say a bit more about the strategic planning and cross-departmental work that is happening on providing tailored support—he talked about tailored support, but the existing scheme of course comes to an end in June—so that refugees who have every right to be here have the ability to take a job, pay taxes and contribute here?
Andrew Western
The hon. Member is entirely correct to recognise the important role of refugees in contributing to our economy. There is a range of tailored support available with things such as language support and, as I mentioned earlier, with CV writing and interview preparedness, but there is also support with ensuring that their qualifications earned elsewhere are transferable to this country. I would of course be very happy to meet him to discuss further the support that could be put in place as we look, as he says, to clear the asylum backlogs. We are in constant communication with the Home Office and other Departments to ensure that there is a holistic approach in doing so.
Munira Wilson (Twickenham) (LD)
The Parliamentary Under-Secretary of State for Work and Pensions (Andrew Western)
The Government keep the rates of parental pay under review. Following the Secretary of State’s announcement in a written ministerial statement to Parliament on 30 October, and subject to parliamentary approval, parental pay will increase in line with the consumer prices index at the rate of 1.7% from April 2025.
Munira Wilson
At less than half the rate of a full-time national minimum wage, maternity and paternity pay is so low that most parents simply cannot live on it, and they are often forced into debt, or forced back to work sooner than they would like. A poll of fathers found that two-thirds of them would take more leave if paternity pay were higher. If we want to give families choice in how they care for their children in those precious early months, will the Minister discuss with colleagues in the Treasury and the Department for Business and Trade how we can boost rates of maternity and paternity pay?
Andrew Western
I understand the point that the hon. Lady is making, but requests for a significant uplifting of benefits come with a price tag and I heard no suggestions as to how that would be paid for. On support for parents, the Government committed in their manifesto to review parental leave to ensure that it best supports working families. Further details of that review will be announced in due course.
Alistair Strathern (Hitchin) (Lab)
Recent damning statistics highlighted that just 2% of parents made use of shared parental leave in the past year, with uptake skewed towards the highest earners. Given the importance of breaking down barriers to equal parenting for employment, will the Minister ensure that he works with the Department for Business and Trade as part of the upcoming review to ensure that enhanced parental leave is considered, including strengthening paternity leave entitlements?
Andrew Western
My hon. Friend is correct to highlight not just the importance and benefits of shared parental leave, but the disparity between those who make use of it. I will, of course, maintain dialogue with the Department for Business and Trade as we go through that review, but I would also welcome a discussion with my hon. Friend about his ambitions and ideas for how we could take that forward.
Bobby Dean (Carshalton and Wallington) (LD)
The Minister for Social Security and Disability (Sir Stephen Timms)
No assessment along the lines that the hon. Gentleman asks about has been made. Benefit rates are reviewed each year, increasing by 6.7% last April and by 1.7% from next April, in line with inflation.
Bobby Dean
I thank the Minister for his answer, but I would like to focus on the age differential in the rates. He will be aware that people under 25 receive a different rate of universal credit. The Government announced that they will try to abolish the age differential for the national living wage. If it could also be abolished for universal credit, that would be really good for young care leavers. Will the Minister look at potentially phasing out the age differential in universal credit?
Sir Stephen Timms
The hon. Gentleman makes an interesting suggestion. That is not something I am considering at the moment, but as he will have heard me say earlier, we will be reviewing universal credit over the course of the next year or so. We certainly want to support young care leavers—he will know of the recent announcement that we made about changes to carer’s allowance—and we are keeping all those matters under review.
Chris Vince (Harlow) (Lab/Co-op)
Catherine Atkinson (Derby North) (Lab)
The Secretary of State for Work and Pensions (Liz Kendall)
Our new youth guarantee will ensure that every young person is earning or learning, tackling the scandal that we inherited of almost 1 million young people not in education, employment or training. Young people in Harlow, Derby North and across the country deserve the opportunity to work, get skills and build a better life, and that is what this Labour Government will deliver.
Chris Vince
In my constituency of Harlow, lots of fantastic organisations provide transferable skills for young people, and I thank the right hon. Member for Basildon and Billericay (Mr Holden) for reminding me of the name Jason Shaves, who is an incredible champion for that kind of work. Does the Secretary of State agree that giving local areas such as Harlow the flexibility, power and funding to engage with young people in the way that best works for them will get them back into employment quicker?
Liz Kendall
I absolutely agree with my hon. Friend. That is why we are going to give new powers, responsibilities and funding to local areas to deliver our youth guarantee. They know their communities best. They know the voluntary organisations, schools, training providers and businesses, and the mental health and other support that many young people need. In Harlow, I know that that approach will be key to giving young people the opportunities that my hon. Friend wants and that they deserve.
Catherine Atkinson
Mel was out of work and homeless, but YMCA Derbyshire saw only her potential, not her disadvantage. Now, she is at Toyota and on track for a leadership role. Its working assets programme has a 70% success rate in supporting homeless young people into employment. How will the youth guarantee help the Government join up with, enhance and champion local programmes like that?
Liz Kendall
That sounds like a fantastic programme by the YMCA in my hon. Friend’s constituency. That is precisely why we need to join up with what local colleges are doing, with the support provided by local councils and with supported employment programmes run by the NHS. If we join that up and base it on local needs, her young constituent and many others like her will get the chance they need and deserve to build a better life.
Jack Rankin (Windsor) (Con)
The Minister for Social Security and Disability (Sir Stephen Timms)
We want to reform the system to do a much better job in helping people to enter and stay in work. We will publish a Green Paper next spring and we will be discussing our proposals with disabled people.
Jack Rankin
To protect those in need and to deliver for taxpayers, we need to take tough decisions. Reforming health and disability benefits will require Ministers to make difficult choices, but so far the plans rely on reducing NHS waiting lists, which the Office for Budget Responsibility has said will have hardly any effect on economic activity. Are Ministers willing to make unpopular decisions to solve this issue and, if so, when?
Sir Stephen Timms
I can assure the hon. Gentleman that we will make the right decisions, and they will be set out in our Green Paper in the spring. There is a need to reform the health and disability benefits system—there is no question about that—and we want to talk to disabled people themselves about the details, in order to make sure that we get it right.
Liam Conlon (Beckenham and Penge) (Lab)
The Secretary of State for Work and Pensions (Liz Kendall)
Disabled people and people with long-term health conditions deserve the same rights as everybody else, including the right to work. Many of the 2.8 million people out of work due to long-term sickness say that they want to work, if they can get the right help and support. That is what our “Get Britain Working” plan will deliver.
Liam Conlon
A core objective of the “Get Britain Working” White Paper is to support disabled people into employment. As the Secretary of State knows, the blue badge scheme is an important provision in enabling people to get to work, but data released this month shows a sharp rise in blue badge theft, with badges being sold on by criminals for upwards of £500 to people who use them to avoid parking charges. Will the Minister back my campaign to tackle this injustice?
Liz Kendall
Yes, I think it is disgusting that some people think it is all right to steal the blue badges that so many disabled people rely on to work, but also to socialise and to see family and friends. I know that the Minister for Future of Roads, my hon. Friend the Member for Nottingham South (Lilian Greenwood), who is responsible for this issue, is a strong supporter of the campaign by my hon. Friend the Member for Beckenham and Penge (Liam Conlon). I will contact her to stress my support and that of my entire Department.
Josh Babarinde (Eastbourne) (LD)
The “Get Britain Working” White Paper rightly says that
“people deserve the opportunity to thrive and that sports, arts and culture are crucial to achieving this goal”,
especially for those with disabilities. The Sovereign centre in Eastbourne, where I learned to swim, provides vital sports and leisure opportunities that will help serve that aim. With the future of two of its pools being considered, does the Minister agree that to best honour the aims of the White Paper, Eastbourne borough council should engage with all interested providers who may be able to protect our fun and training pools at the centre before making any final decisions on the next steps?
Mr Speaker
Order. I am not sure that was a relevant question, as well as the hon. Member shoehorned it in. Secretary of State, do you want to answer? It is up to you.
Liz Kendall
I believe that sport, as well as art and culture, can play a huge role in engaging and inspiring people, helping them on the pathway to skills, confidence and jobs. I want to see that provision enhanced in future, because we are determined to have that at the national partnership level, and it needs to happen locally, too, to get people working and earning again.
Connor Naismith (Crewe and Nantwich) (Lab)
The Secretary of State for Work and Pensions (Liz Kendall)
Our plan to get Britain working is crucial to tackling low pay and increasing living standards in every corner of the country. When only one in six people ever fully escape low pay, the Labour party believes that is not good enough, so our new jobs and careers service, backed by £55 million of additional funding next year, will kick-start our reforms to help more people get work and get on in their work so that they boost their living standards, too.
Connor Naismith
Average wages in my constituency of Crewe and Nantwich—a place with a proud industrial heritage—lag behind the regional and national averages at just £686 a week before tax. Will the Secretary of State outline how the “Get Britain Working” White Paper will support growth as well as high-skilled, well-paid jobs in my constituency, not just the biggest cities?
Liz Kendall
The Government share my hon. Friend’s determination to boost the living standards of his constituents, so the “Get Britain Working” White Paper will ensure that every local area—including in his constituency—produces its own get Britain working plan. Alongside our industrial strategy, our plan to make work pay, the national wealth fund and Skills England, that will help people to get work and progress in their careers, with good opportunities for employment right across the country.
Mr Richard Holden (Basildon and Billericay) (Con)
The Parliamentary Under-Secretary of State for Work and Pensions (Emma Reynolds)
Under the last Conservative Government, an estimated 880,000 of the poorest pensioners eligible for pension credit were not claiming it. We have launched the biggest ever pension credit awareness campaign and written to 120,000 pensioners on housing benefit, urging them to apply. As a result, claims for pension credit have more than doubled, and those who receive pension credit will also receive winter fuel payments and other related benefits.
Mr Holden
Before the last general election, the Labour party suggested that removal of the winter fuel payment would mean an extra 4,000 pensioners a year dying, freezing in poverty. How many will die under the Government’s policy this year?
Emma Reynolds
The Government remain absolutely committed to supporting low-income pensioners. We are supporting them through the household support fund, which local authorities can use to help people on the lowest incomes with their bills. The Minister for Energy Consumers, my hon. Friend the Member for Peckham (Miatta Fahnbulleh), has also raised £500 million from energy suppliers to help those most vulnerable consumers in debt. We also have the warm home discount and the warm homes plan to help those on low incomes to heat their homes.
Euan Stainbank (Falkirk) (Lab)
Under the Conservatives, billions in pension credit went unclaimed. The burden for driving up claims often lies in fantastic organisations such as Christians Against Poverty, the Falkirk and Clackmannanshire Carers Centre and Citizens Advice Falkirk and Denny, as well as the brilliant Falkirk council welfare benefits team in my constituency. What assurance can the Minister give me that beyond 21 December her Department will work tirelessly to prevent billions in benefits from being left unclaimed?
Emma Reynolds
Indeed, we have taken forward the biggest awareness campaign for claiming pension credit that has ever been seen. We are determined that those on the lowest incomes should claim pension credit and be awarded it, which will passport them to winter fuel payments and other related benefits.
Kirsty Blackman (Aberdeen North) (SNP)
The Scottish Government are bringing back the winter fuel payment because we are aware what an awful disaster this has been for the Labour Government. People are terrified to switch on their heating. Will the Minister please explain to pensioners living in poverty circumstances but not eligible for pension credit what they should do this winter? Should they just wear an extra blanket?
Emma Reynolds
The Scottish Government have been given a record settlement in the recent Budget. As the hon. Member knows, winter fuel payments and other benefits are devolved to the Scottish Government.
Rachael Maskell (York Central) (Lab/Co-op)
I thank the residents of York for donating to my thermals collection on Saturday, but I know that older people in the city of York will really struggle this winter. Will the Minister say how many people across the country have signed up to pension credit since July and what additional steps will be taken to ensure that those who miss the 21 December deadline will still be able to get support to keep warm this winter?
Emma Reynolds
Claims have more than doubled—they have increased by 145% since late July—and we are working at pace to process those claims. We have deployed an additional 500 staff to ensure that those on the lowest incomes get the pension credit that they need.
Alison Griffiths (Bognor Regis and Littlehampton) (Con)
The Secretary of State for Work and Pensions (Liz Kendall)
As a lifelong champion of family carers, dealing with the problem of carer’s allowance overpayments is a priority for me and for my right hon. Friend the Minister for Social Security and Disability. Last week we set out the next steps in our independent review led by Liz Sayce, the former chief executive of Disability Rights UK. It will report by the summer and will look at how and why overpayments were built up, the changes we can make for the future and how best to help those affected. Along with the biggest ever cash boost to the earnings threshold for carer’s allowance announced in the Budget, it shows our determination to give family carers the support they need and deserve.
Alison Griffiths
In Bognor Regis and Littlehampton more than 23,000 people have lost their winter fuel allowance—more than 90% of former claimants. Does the Secretary of State think that it is fair that someone who has paid tax all their working life will now be taxed on their state pension as well as losing their winter fuel allowance?
Liz Kendall
The hon. Lady talked about the winter fuel payment, but she failed to mention our determination to ensure that the 880,000 pensioners who do not claim pension credit, but are eligible, claim it so that they can get their winter fuel payment. The £4.9 million allocated from the household support fund to West Sussex, which covers her constituency, can be used precisely for those pensioners just above the pension credit threshold who have worked hard all their lives but need extra support with the cost of heating.
Tom Rutland (East Worthing and Shoreham) (Lab)
The Minister for Social Security and Disability (Sir Stephen Timms)
Yes, I can confirm that. We place a very high value on the contribution of family carers. As my right hon. Friend the Secretary of State said, the Budget announcement on the carer’s allowance earning threshold will help avert inadvertent overpayments, and will make an additional 60,000 carers eligible for carer’s allowance. We are determined to do everything we can.
Helen Whately (Faversham and Mid Kent) (Con)
How many people who should get the winter fuel payment will get it this winter?
Liz Kendall
We intend to ensure that everybody who is entitled to pension credit, and therefore the winter fuel payment, claims it and gets it. We have seen a 145% increase in claims—far more than was ever achieved under the last Government. If the hon. Lady was so concerned about that, perhaps she should have taken action during her party’s 14 years in government.
Helen Whately
Unfortunately, the right hon. Lady simply will not give a straight answer. She will not tell the House what she knows; she knew that the Government’s choices would push 100,000 pensioners into poverty and she did not tell the House that, either. Let us try this question instead. The Government’s own figures show that pensioners applying now will have to wait until the spring to find out whether they will get winter fuel money. What is her advice to a pensioner sitting in the cold and wondering if they can afford to turn on their heating this Christmas?
Liz Kendall
If the hon. Lady cared so much about pensioners in the cold, why did her Government leave 880,000 not claiming pension credit? Why did they first promise to bring together housing benefit and pension credit in 2011 and never deliver it? This Government are taking action—42,500 more people are receiving pension credit now than when she left government. We are determined to act; perhaps she should apologise for her failure.
Mr Tanmanjeet Singh Dhesi (Slough) (Lab)
The Parliamentary Under-Secretary of State for Work and Pensions (Emma Reynolds)
I place on record my thanks to the 160 local authorities that have worked with the Department for Work and Pensions to raise awareness of applying for pension credit, and also to the various charities around the country that have worked with us. The number of people claiming pension credit has doubled—a record number—and we are processing those claims at pace.
Steve Darling (Torbay) (LD)
A report by the National Audit Office last week highlighted how cliff edges in the care allowance system have resulted in 136,000 people owing £250 million. In the light of that, will the Minister ensure that we stop this injustice and stop the demands until a fairer system is introduced?
Sir Stephen Timms
I welcome the NAO report, which I asked for last May, when I was Chair of the Work and Pensions Committee. We are determined to address the problem of carer’s allowance overpayments. The cliff edge could be dealt with through the introduction of a taper instead of the current arrangements, as the Chancellor mentioned in her Budget speech in the autumn. If we do that, it will not happen quickly, because it will be quite a major project, but it is something that we are looking at closely.
Peter Swallow (Bracknell) (Lab)
Emma Reynolds
I thank my hon. Friend for representing the concerns of his constituent. The Department is working closely with the Pensions Regulator. We are looking to gather information on the number of schemes that provide discretionary increases on pre-1997 benefits and those that do not. At the moment, the trustees of those schemes have discretion over the decision to index those benefits.
Mr Andrew Snowden (Fylde) (Con)
The Minister for Employment (Alison McGovern)
We still have more than 800,000 vacancies in this economy, and businesses are crying out for staff. That is why, through our reform programme, we are determined that the DWP will serve business better. I look forward to working with Members across the House to make that happen.
Adam Jogee (Newcastle-under-Lyme) (Lab)
Emma Reynolds
There are unfortunately many such cases in which people are preyed on by scammers. I would be happy to meet my hon. Friend to discuss the case further.
Sir Desmond Swayne (New Forest West) (Con)
Alison McGovern
I refer the right hon. Gentleman to the OBR report that says that overall, employment will go up.
Douglas McAllister (West Dunbartonshire) (Lab)
How does the Secretary of State envision the future of jobcentres in my constituency and across Scotland, and what role will technology play in that?
The Parliamentary Under-Secretary of State for Work and Pensions (Andrew Western)
My hon. Friend is absolutely right to highlight that any reform to our jobcentres must come with digital transformation. We are currently exploring schemes such as a “Jobcentre in your pocket” app, as well as looking for ways in which jobseekers can self-serve in terms of meeting the conditions of their conditionality regime.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
Emma Reynolds
I was the first Minister for eight years to meet the WASPI campaigners to listen to their concerns. The ombudsman took six years to investigate six cases. We are working at pace on this issue. We hope to come to the House soon—if the hon. Gentleman will listen to my answer—to update him and the public on what we will do next.
Mr Richard Quigley (Isle of Wight West) (Lab)
Young people in supported housing, including in my constituency, effectively pay a marginal rate of tax of 55% on their universal credit when they start work, meaning that earnings of just £133 a week see their housing benefit tapered to nil. That means that work does not pay. Will the Minister look at the economic benefits of reducing that taper and increasing the applicable amount, ensuring that work does pay and improving housing security?
Sir Stephen Timms
My hon. Friend raises a very important point. There is a problem in the interaction between the universal credit taper rate and the housing benefit taper for people in supported and temporary accommodation. We are, at the moment, looking at options for how to tackle that quite serious work disincentive problem.
Mr Paul Kohler (Wimbledon) (LD)
Alison McGovern
The hon. Gentleman is right to raise the condition of children living in poverty in this country. That is why, as I mentioned earlier, the child poverty taskforce is doing extensive work on the issue.
Kate Osamor (Edmonton and Winchmore Hill) (Lab/Co-op)
According to the 2022 Migration Observatory report, over 200,000 children are likely to be in families with no recourse to public funds. As the 2022 Work and Pensions Committee report highlighted, those families face particularly tough circumstances without access to benefits. Will the Minister confirm whether the child poverty taskforce is engaging directly with affected families to understand the challenges they face?
Alison McGovern
The child poverty taskforce is considering all children across the UK in all aspects of our child poverty strategy. We recognise the distinct challenges of poverty faced by children in particular groups, such as migrant children, disabled children and others. We are engaging directly with families affected by poverty. We recognise that the causes of child poverty are deep rooted and we will look at all levers to make change.
Helen Maguire (Epsom and Ewell) (LD)
In Epsom and Ewell, local charities such as the Sunnybank Trust are seeing a lack of employment opportunities for people with learning disabilities. In fact, only 6.9% of people with learning disabilities are currently in paid work. What measures is the DWP taking to support employers to help individuals with learning disabilities to get into work?
Sir Stephen Timms
The hon. Member raises a very important point. She will probably be aware of the Buckland review, published before the election, which looks specifically at employment support for people with autism. The Minister for Employment and I met Sir Robert Buckland recently, and we are looking at how we can take forward the ideas he proposed in his report.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
A recently published freedom of information request indicates that AI tools used to detect DWP fraud are biased and disproportionately discriminate against people by age, disability, marital status and nationality. Obviously, that has caused considerable concern. What assurances can the Minister give that the procurement and use of such tools will be covered by strict governance standards, including tests for fairness?
Andrew Western
My hon. Friend will know that we face a significant challenge, with fraud and error costing the Department almost £10 billion a year. It is right that we look to utilise all available tools to tackle it. However, I understand her concerns, although I would remind her that the final decision on whether someone receives a welfare payment is always made by a human. That is the most robust safeguard that we can have in place—although of course it sits alongside a broader suite.
Aphra Brandreth (Chester South and Eddisbury) (Con)
My inspirational constituent, Bells Lewers, has terminal bowel cancer. When she was first undergoing treatment, she was initially turned down for personal independence payment, despite the significant impact on her ability to work and carry out basic daily activities. Has the Minister considered incorporating clinical diagnosis alongside function in eligibility assessments, and will he meet Bells to discuss the assessment process?
Sir Stephen Timms
We do keep the asylum process under review, but I would be happy to look at the details of this particular case and perhaps meet the hon. Lady and her constituent, if that would be helpful.
Sally Jameson (Doncaster Central) (Lab/Co-op)
An astonishing £35 billion has been lost to benefit fraud and errors since the pandemic. Will the Minister outline the plans and the timeline for recouping that money?
Andrew Western
My hon. Friend is right to highlight the enormous cost to the Department—upwards of £35 billion—of fraud since the pandemic. She will be pleased to know that the fraud, error and debt Bill is due to come to the House early in the new year. This Government are serious about tackling fraud; it is just a shame that we inherited the mess we did.