(1 day, 13 hours ago)
Commons ChamberRead Hansard Text Read Debate Ministerial Extracts
Andrew Pakes (Peterborough) (Lab/Co-op)
The Secretary of State for Work and Pensions (Pat McFadden)
It has been some time since we had one of these sessions, and there have been some political developments. We have a new Prime Minister in place. The shadow Secretary of State, the hon. Member for Faversham and Mid Kent (Helen Whately), has survived a reshuffle—I know what that feels like, so I welcome her back to her place—and of course, we have just welcomed my hon. Friend the Member for Holborn and St Pancras (Sagal Abdi-Wali), the new MP for her seat. I should say that if her opponent ever needs any help with employment security, we have a number of work experience and training programmes that I am happy to make available to him.
Turning to the question, youth guarantee trailblazers are a flexible, locally delivered way to help more young people into work. The early evidence is encouraging, showing more participation and getting young people work-ready. There will be a full evaluation next year. Delivering employment support more locally through mayors and local authorities is the direction of travel, and we will do more of this in the future.
Andrew Pakes
Too many young people in Peterborough are starting adult life without the skills, support or training they need to get on, so I am incredibly proud that Peterborough was chosen as one of the first pilots for the youth guarantee trailblazer. However, we do not just have high levels of people not in education, employment or training; according to our chambers of commerce, we have high levels of businesses unable to recruit the staff they need because of skills shortages. This highlights one of the big mismatches—that between young people who do not have the skills, and employers who cannot find people to train and support in developing those skills. What more can my right hon. Friend’s Department do to ensure that young people and businesses can find each other as we invest in apprenticeships?
Pat McFadden
I congratulate my hon. Friend on his tireless and constant campaigning on the issue of youth opportunity. He asks specifically about skills. From 1 August this year, we are fully funding apprenticeship training for all eligible under-25s. We have brought the National Careers Service into the Department for Work and Pensions, meaning that around 500 qualified careers advisers are now helping people of all ages to access careers support regardless of benefit status, and doing that skills matching that my hon. Friend spoke about so eloquently.
Suella Braverman (Fareham and Waterlooville) (Reform)
We have more than 1 million young people who are not in education, employment or training. This is simply a crisis, and one of the reasons for it is that businesses—particularly small and medium-sized ones—are not taking on apprentices. Will the Secretary of State take this chance to support Reform UK’s apprenticeship wage credit, which will provide direct support to small and medium-sized businesses when they take on a young apprentice?
Pat McFadden
I am grateful to the right hon. and learned Lady for her question, and I agree that more youth apprenticeship starts are desirable. She may not know this, but we are introducing a hiring incentive of £2,000 for a small business that takes on a young apprentice, and if that young person has been out of work and on universal credit for six months or more, that incentive goes up to £5,000. We are helping small businesses to do exactly what she has called for.
Brian Leishman (Alloa and Grangemouth) (Lab)
The Minister for Pensions (Torsten Bell)
We want all pensioners, including women born in the 1950s, to have the comfortable retirements they deserve. That is why we are delivering on our twin priorities for pensioners: raising the state pension, and rescuing the NHS. We are also delivering the largest ever pension credit take-up campaign, which is particularly important for low-income pensioners, a disproportionate number of whom are women.
Brian Leishman
More than 3.5 million WASPI women were affected by the change to the state pension age. Time is of the essence, because another WASPI woman dies every 13 minutes on average, without receiving fairness or justice. The Prime Minister personally assured the WASPI campaigners during the Makerfield by-election that he would meet them to discuss potential routes to redress. Can the Minister confirm what actions the Department is taking to support the Prime Minister in those discussions? Crucially, when will the meeting happen?
Torsten Bell
The Prime Minister and I opposed the 2011 acceleration of the state pension age by the coalition Government of the Liberal Democrats and the Conservatives, in particular because it gave some women as little as five years’ notice of changes to their state pension age. Those same women have faced disadvantage in the workplace and very uneven burdens of caring responsibilities. I have recently written to WASPI representatives to set out the Government’s position. With legal proceedings ongoing, further comment is not appropriate, but I continue to hear from and to speak to women affected by the accelerated increases in the state pension age.
Sir Roger Gale (Herne Bay and Sandwich) (Con)
It is several years since the ombudsman reported on this matter. As I recall, the last Government agreed to accept the recommendations of the ombudsman. To echo the point made by the hon. Member for Alloa and Grangemouth (Brian Leishman), many of these ladies will be dead before they see any money at all. When will the Government stop messing around and do something?
Torsten Bell
I thank the right hon. Member for his question; I just do not agree with the tone in which he asked it. This Government have considered the case set out by the ombudsman and provided a detailed response. I am afraid that the previous Government did nothing of the sort—they did not say they would proceed with a compensation scheme. In fact, the reason the ombudsman laid their report before Parliament, rather than to the Government, is that it was clear where the last Government were going with this.
Sarah Russell (Congleton) (Lab)
The Minister for Social Security and Disability (Sir Stephen Timms)
Parents should be able, without undue financial pressure, to spend time off work in their child’s vital early months. Our review of parental leave and pay, which is due to report early in the new year, is considering how working families can best be supported, including through statutory paternity pay.
Sarah Russell
My constituent got in touch with me after she had had an emergency caesarean section with twins. It was a traumatic experience. Her husband had to go back to work when she had been out of hospital for only a week. Does the Minister agree that this is not how we should be looking after parents in a civilised society, and that both the mother and the father in that situation would have been better served by longer periods of paid leave?
Sir Stephen Timms
I am concerned to hear about that experience. The Government recognise the vital role of fathers in supporting mothers and new-born children, particularly after difficult births, such as the one to which my hon. Friend has referred. Our parental leave and pay system is complicated. The review that is under way is looking at how paternity leave and pay and all the current entitlements are supporting working families. Across Government, families’ experiences, such as the one that she has brought to the House, are informing our future policy.
Tim Farron (Westmorland and Lonsdale) (LD)
Statutory paternity pay and paternity leave are important things for the Government to be looking at, and I support them in what they are seeking to achieve. In the investigation that the Minister is undertaking, will he look carefully at the status of those who are self-employed? One in four people in the workforce in Westmorland and Lonsdale works for themselves, including the 1,600 people who farm. It is so important that those families too are protected, is it not? How will the brief be extended to ensure that those who work for themselves, or indeed for small employers, are protected too?
Sir Stephen Timms
The hon. Gentleman is absolutely right, and I am pleased to be able to confirm to him that self-employed parents are explicitly covered in the terms of reference of the current review.
John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)
The Minister for Social Security and Disability (Sir Stephen Timms)
In March, the Office for Budget Responsibility published its official forecast, predicting that at the end of the current Parliament, in 2029-30, UK welfare spending will be about £390 billion. The OBR will update that forecast in the Budget, which will take place on Wednesday fortnight.
John Lamont
The Minister has just confirmed that the benefits bill will continue to grow. He also seems to have confirmed the Prime Minister’s position that national security
“cannot come at the expense of social security.”—[Official Report, 9 September 2026; Vol. 790, c. 1036.]
Is that correct?
Sir Stephen Timms
The hon. Member will be relieved to know that spending on working-age adults’ and children’s welfare is forecast to be 4.9% of GDP at the end of the current Parliament, as it is now. Overall welfare spending is forecast to rise by less than half as much in this Parliament as in the last, by just over 0.3 percentage points by 2030-31 compared with 0.7 percentage points in the last Parliament. This Government are putting right the problems that they inherited.
Deirdre Costigan (Ealing Southall) (Lab)
According to a recent report from the Good Growth Foundation, 50% of disability claimants would swap up to £1,000 of benefits for help such as employment support, therapy and physical aids. Does the Minister agree that giving disabled people tailored support could both reduce the welfare bill and stop those who want to work being written off by the system?
Sir Stephen Timms
I do agree with my hon. Friend, and, as she has said, we inherited a system that wrote people off. We are pleased with the early results emerging from our Connect to Work programme, which is providing exactly that kind of tailored support for disabled people and others faced with complex barriers to work. We recently published the second set of quarterly outcome statistics, and the news is very encouraging.
Joe Robertson (Isle of Wight East) (Con)
The number of children between the ages of six and 11 with attention deficit hyperactivity disorder has grown sixfold, which means that in the years ahead there will be a surge in the number of applications for personal independence payment as children become adults. Even the Secretary of State accepts that owing to the growing number of children receiving disability living allowance, most will be transferred to PIP. Does the Minister agree that it is time to end a cash payments benefit system for people with more minor conditions, and ensure that those with genuine needs receive the therapeutic support that will enable them to learn, work and contribute to the economy?
Sir Stephen Timms
The hon. Gentleman will have seen Professor Peter Fonagy’s recent report about the incidence of ADHD, autism and other conditions. He will also know that I am co-chairing a review of PIP which is looking into how we can ensure that the system meets the very real needs of many disabled people, and that the benefit is on a sustainable financial footing for the future. The report of my review will be published before the end of the year.
Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
The Minister for Employment (Andrew Western)
The Government are supporting employment in rural areas through local Get Britain Working plans, a reformed jobs and careers service with expanded digital, phone and in-person support, and increased outreach through the flexible delivery network.
Torcuil Crichton
The Minister has been to my constituency and seen it for himself, so he knows about the challenges of administering and delivering benefits in the Western Isles, or Na h-Eileanan an Iar. The process could be made simpler if the verification of identity could be done virtually in some cases rather than requiring a home visit, which, for DWP staff, could involve travelling to other islands. The Minister also knows about the challenges posed by weather and the failed ferry system that we have inherited from the SNP. Will he consider changing the one-size-fits-all system of verifying claims and identities to take account of the rurality and the insularity of constituencies such as mine?
Andrew Western
I hope that I can give my hon. Friend some welcome news. The DWP does have several different ways to carry out identity verification for customers accessing our services in rural locations, including customers who are unable to access a jobcentre. It offers verification through our digital service, over the telephone or by postal delivery. If, as my hon. Friend says, that is not happening in his locality, I can tell him that there is an excellent team working out of the jobcentre in Stornoway, whom I have met. If they, or he, will let me know what is happening, I shall be happy to look into it for him.
Priti Patel (Witham) (Con)
Rural areas could create and support more jobs if they had the right transport infrastructure. Now that the Government have cancelled the A12 widening scheme, paused the dualling of the A120 and scrapped the A127 economic corridor in Essex, what will the Minister do to lobby his colleagues across Government to help support more rural job creation in Essex?
Andrew Western
The right hon. Lady will be aware that this Government are delivering an additional £120 billion of public spending to support improved infrastructure across the country. On her question about jobs in rural locations, this Government are taking the steps needed to support people into work—take the example of the agricultural sector, where there are over 22,000 more jobs than there were when her party left office.
Perran Moon (Camborne and Redruth) (Lab)
Meur ras, Mr Speaker. The number of young people claiming unemployment benefit in my Camborne, Redruth and Hayle constituency has risen by 26% in the last year alone—far higher than the national average. Can the Minister outline what employment action the Government are taking—particularly in remote coastal areas like mine, which has seen such a dramatic increase— to deal with the issue of young people claiming unemployment benefit?
Andrew Western
My hon. Friend raises a very important issue, which affects not just his constituency but the entire country. I recognise the specific concerns that he has about his locality, but also that these challenges are faced more broadly. I am delighted that the Government have brought forward the youth jobs grant, introduced the new £2,000 incentive for small and medium-sized enterprises that hire apprentices under the age of 25, and rolled out youth hubs across our country, but if there is more that he feels we could be doing in his area, I would be very happy to discuss that with him.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
Thank you very much, Mr Speaker. I thank right hon. and hon. Members for the kind sentiments that I have received recently.
I am sure the Minister recognises that the lack of available or affordable housing is critical when it comes to rural employment. Indeed, on the west coast of my constituency—opposite the constituency of the hon. Member for Na h-Eileanan an Iar (Torcuil Crichton)—we have almost none at all. Of course, housing is devolved to the Scottish Government, but could the Minister share best practice in England and Wales with those north of the border to see if we can do something about this problem?
Andrew Western
May I, too, welcome the hon. Gentleman back to his place?
I would be very happy to ask colleagues in the Ministry of Housing, Communities and Local Government to share any best practice with their Scottish counterparts. This Government are investing £39 billion in the delivery of social and affordable homes because we recognise the issues that the hon. Gentleman sets out. The fundamental starting point for any good life is access to a good-quality, safe and secure home, and that is something we are committed to delivering.
Danny Beales (Uxbridge and South Ruislip) (Lab)
Liz Twist (Blaydon and Consett) (Lab)
Maureen Burke (Glasgow North East) (Lab)
Luke Murphy (Basingstoke) (Lab)
The Secretary of State for Work and Pensions (Pat McFadden)
We have announced an additional £2.5 billion, as part of the youth guarantee, to create up to 500,000 opportunities to earn and learn over the next few years, and we have begun to roll this out across Great Britain. The gateway to the youth guarantee is available in jobcentres. We are expanding youth hubs, we have launched the £3,000 youth jobs grant, and we are rolling out the jobs guarantee for young people who are long-term unemployed. I recently met the first beneficiaries of the jobs guarantee at Boots headquarters in Nottingham and saw the huge difference that having a job made to the young people taking part.
Danny Beales
I thank the Minister for Employment for joining me to mark the opening of the Uxbridge job hub a few weeks ago, and I am sure he will join me in thanking the college, the jobcentre, the chamber of commerce and the many others who made it a reality.
One group who still experience the biggest employment gap are young people with special educational needs. What steps are the Government taking to ensure that the job hubs, and the youth guarantee offer more broadly, are inclusive of young people with SEND and that they also see the benefits?
Pat McFadden
I thank my hon. Friend for the campaigning that he has done on this issue, and the Minister for Employment enjoyed cutting the ribbon at the Future Start youth hub a few weeks ago. My hon. Friend is absolutely right in what he says. We need to end the culture of “signed off and written off”, and we want all young people, including those with special educational needs, to benefit from the youth guarantee. That is why youth hubs work closely with our work coaches and disability employment advisers, as well as local partners. The idea is that whatever condition people have, we try to give them the opportunities that are available and help them to live the fullest life.
Liz Twist
Just last week, I had the privilege of visiting Derwentside college in my constituency to see the amazing work it does in linking to employers in a range of sectors across the region, ensuring that every qualification offered can lead to real employment opportunities across Durham and the region. From care to construction, there are real opportunities to tackle the issues for young people currently not in education, employment or training. Will the Secretary of State join me in congratulating the college on the work it does, and will he join me on a visit to see that incredible work in practice?
Pat McFadden
I am very happy to echo my hon. Friend’s congratulations to Derwentside college on all the work it is doing. With regard to a visit, I will do the best I can. I know that she is a passionate advocate for the college, and if I get an opportunity to visit, I most certainly will.
Maureen Burke
The Prime Minister hit the nail on the head when he said that too many young people have been failed by a schools system that focused too much
“on the university route, and not enough on technical education.”
It is not surprising that the number of young people on benefits has grown so significantly when the education system has failed to equip them with the skills they need for today’s jobs market. When I speak to unemployed young people in my constituency, they tell me that they are desperate to find work not just for the pay, but for a sense of purpose and the independence to shape their own future. The choice before us is clear: invest in young people’s success or create a lifetime of dependency, carrying a huge price for the taxpayer. Does the Secretary of State agree with me that we need to invest in young people’s success rather than leave them to languish on benefits?
Pat McFadden
Yes, I do agree with my hon. Friend. She is absolutely right to say that we need to invest in opportunity and success, and she has spoken admirably about her own life experiences in this House. As I have said, we are putting forward an additional £2.5 billion of investment in the youth guarantee and the growth and skills levy. We have recently announced that we are expanding the jobs guarantee to help eligible young people receiving health-related benefits. They should not be signed off and written off. Another point raised in her question is that too often in these debates, young people are attacked in a negative narrative in which they are described as “snowflakes” and “shirkers”. She is right to say that, given the chance, young people want to work, want to have a full life and do not want to spend it on benefits.
Luke Murphy
Youth hubs such as that based in Inclusion Education in Basingstoke provide fantastic opportunities for young people, including those with special educational needs and disabilities, to learn and to work. Could the Secretary of State say a bit more about how youth hubs are helping to deliver the youth guarantee so that young people can realise their potential? Having heard that the Minister for Employment opened the youth hub in Uxbridge, may I ask whether the Secretary of State or the Minister might consider a visit to Basingstoke youth hub to discuss young people’s challenges and opportunities?
Pat McFadden
When I get back from Derwentside, I will see whether a visit to Basingstoke is popular. Youth hubs are a crucial part of the youth guarantee. They bring together employment and skills, with wider support that often involves housing and health advice. They are an important feature of the Dutch system, where the NEET rate is one third of ours. We are expanding the network to over 360 locations across Great Britain, and the whole idea is to get the help that a jobcentre can provide out of the jobcentre and into the community. There are also other important parts of the youth guarantee, such as hiring bonuses, an extra 300,000 work experience places and a jobs guarantee for the long-term young unemployed.
Rebecca Smith (South West Devon) (Con)
I recently visited Portugal to observe a NATO exercise using maritime uncrewed systems, and the young man who drove our safety boat had done his apprenticeship at SeaRegs in Plymouth. However, it came to light over the recess that Skills England is consulting to axe the small commercial vessel crewmember level 3 apprenticeship. This 18-year-old did that apprenticeship for the Plymouth Cattewater harbour authority, but he would not have been able to qualify if it had been scrapped. The small enrolment numbers for this course reflect the specialist nature of the industry, not a lack of value. The apprenticeship gives young people in coastal communities such as mine a direct route into skilled jobs that support our national defence. So will the Secretary of State step in and stop this apprenticeship, and others like it that are also being consulted on, being scrapped?
Pat McFadden
I am grateful to the hon. Lady for her question. Skills England plays an important role in accrediting approved apprenticeships, looking at demand and quality, and I am sure it has heard the representations she has made. The overall direction of travel that we have given to Skills England is intended to ensure that we have more youth apprenticeship starts in future, because that is where the need is greatest and where the public expect us to be investing the growth and skills levy to create the most opportunity that can change the most lives.
Caroline Voaden (South Devon) (LD)
Last week I visited several successful marine businesses at Noss on Dart. They are struggling to find the crew needed for work boats that support the wider maritime sector. Following on from the question by my neighbour, the hon. Member for South West Devon (Rebecca Smith), with the funding for commercial vessel apprenticeships now threatened, the route for young people to enter this sector and find well-paid, year-round permanent employment in coastal communities will potentially be closed off. Will the Secretary of State commit to continue that funding? These specialised apprenticeships may not have the same take-up as nationwide apprenticeships, but they are vital to economic growth in coastal communities such as South Devon.
Pat McFadden
I am grateful to the hon. Lady for her question. As I said to the hon. Member for South West Devon (Rebecca Smith) a moment ago, Skills England will always look at the range of courses available and will always consider accreditation. I am sure it will have heard the representations that she has made.
Mark Pritchard (The Wrekin) (Con)
The Secretary of State talks about jobs hubs. May I gently say to him that the best jobs hub of all is a business that is expanding and that the best youth hub of all is a business taking on apprentices? He mentions a wide range of schemes to try to get young people back into work. In The Wrekin, youth unemployment has risen by 27.8% in the last 12 months alone. A lot of the schemes are in urban areas. What is he going to do for my young constituents who live in rural and semi-rural counties such as Shropshire?
Pat McFadden
The right hon. Gentleman is right to emphasise the importance of jobs. That is why he will be pleased to know that there are 243,000 more people in work than at this time last year. He will also be pleased to know that the employment rate in the UK is higher today than in all but one of the 14 years when his party was in power. He will be pleased a third time to know that economic inactivity is down by 367,000 since the last election.
Ann Davies (Caerfyrddin) (PC)
If we want to support young people into employment, we must address the barriers they face long before they enter the workplace. One is child poverty, which is why the Plaid Cymru Government will pilot the Cynnal payment. Will the Secretary of State confirm that the £10 a week payment for children in households receiving universal credit will be disregarded for benefit purposes?
Pat McFadden
We made a major change on this front last year, when we abolished the two-child limit. That, together with other elements in the child poverty strategy, is estimated to bring down child poverty by about half a million over the course of this Parliament. That is an important step towards children being able to live the fullest life possible. Children who are poor can also suffer from worse education results and worse mental health later in life, so this is not just an anti-poverty measure; it is a pro-opportunity measure too.
Helen Whately (Faversham and Mid Kent) (Con)
Every DWP Question Time, Labour Members dutifully line up to give the welfare Secretary a chance to make it look like he is doing something about the youth unemployment crisis—a crisis of their own making. Their jobs tax and their unemployment Act have killed 300,000 jobs, hitting young people hardest. We have had enough talk about hubs and schemes. Young people tell me they want real jobs. That is why we will halve national insurance for 21 to 24-year-olds, so it is cheaper for businesses to hire them. Under the Conservatives, there will be thousands more jobs for young people. Will the Secretary of State get the Chancellor to use his Budget to do the same?
Pat McFadden
I remind the hon. Lady that, under her Government, the number of young people not in employment, education or training went up by a quarter of a million in the two years before the last election. As I said to the right hon. Member for The Wrekin (Mark Pritchard), there are now 243,000 more people in work than at this time last year. The employment rate in the UK today is higher than in every year but one of the Conservatives’ 14 years in power. The UK had the fastest growing economy in the G7 in the first half of this year. I will tell the hon. Lady what could threaten that: a bunch of unfunded tax cuts from the Opposition. We know where that ends up—we saw the movie a few years ago—so I advise her not to repeat it.
Steve Darling (Torbay) (LD)
The Government recently announced funding for apprenticeships through areas where there are elected mayors. However, almost half of England does not have an elected mayor. Will the Secretary of State acknowledge that young people in communities such as Torbay, and across Devon and Cornwall, will feel that the Government have turned their backs on them?
Pat McFadden
The hon. Member is right to say that the devolution map in England is uneven. I urge him to wait for the White Paper later this year, when we will have more to say about that. However, we believe that locally delivered services in employment support can break down the departmental barriers that have too often dogged getting the right help to people at the right time. People are human beings, not departmental clients, and it is time we treated them as such. Delivering more services locally can help us do that.
Alex McIntyre (Gloucester) (Lab)
The Secretary of State for Work and Pensions (Pat McFadden)
Alan Milburn delivered his interim report a few months ago and will deliver his final report in a few weeks’ time. I thank Alan Milburn for his tremendous work highlighting the issue of youth inactivity. I look forward to his final report.
Alex McIntyre
Ahead of Alan Milburn’s report, in Gloucester there are over 2,500 young people not in employment, education or training. I have spoken with many of them across the last two years who want an opportunity but have been let down by the system. Something needs to change. At the end of November, I am hosting the Gloucestershire Futures summit with Gloucestershire county council. We have invited schools and colleges, local employers, healthcare providers, local government and the third sector in an effort to get everyone in the room to discuss how we can solve the problem together. I know the Secretary of State has a long list of constituencies to visit after today’s questions, but he also shares my determination to give every young person the opportunity to fulfil their potential, so will he or one of his team join us for the summit at the end of November?
Pat McFadden
I will add the summit to the list of places to go. I would dearly love to visit my hon. Friend’s constituency, and if I cannot, I will ensure that one of my colleagues does. On the point of substance that he raises, the problem of youth inactivity in the country has built up over many years, and not enough has been done about it in the past. We now have the youth guarantee, which is investing in the issue. We know that there is more that we must do, which is why we are looking forward to the final report from Alan Milburn in a few weeks’ time.
Dame Caroline Dinenage (Gosport) (Con)
When it comes to youth unemployment, it sounds like the Secretary of State has his head very firmly in the sand. Did he not hear Member after Member from across this House stand up and quote how the number of young people who are not in education, employment or training has gone up under this Government? The Secretary of State quotes back to us the national figures for people in employment overall, but that is because the population has gone up. What are the NEET figures? In Gosport, the number of young people not in education, employment or training has gone up by 23% under this Government. That is all because of the number of taxes that are being put on the businesses there to employ them, particularly the small businesses that provide the Saturday jobs and apprenticeships: hair and beauty, adult social care and care. What will Alan Milburn’s report say, and what is the Secretary of State actually going to do about it?
Pat McFadden
The truth is that it has been a problem for a long time. I repeat what I said to the shadow Secretary of State: under the Government that the hon. Lady supported, the number of NEETs went up by a quarter of a million between 2021 and 2024. She asks me what we will do, and in addition to the programmes I have announced, we recently announced a partnership with the British Retail Consortium to hire 100,000 young people not in education, employment or training over the next few years. The hon. Lady will be pleased to know that the latest Recruitment and Employment Confederation survey showed the strongest hiring sentiment in four years.
Mr Andrew Snowden (Fylde) (Con)
Thank you very much, Mr Speaker.
Labour has been talking up the Milburn report for months, and the Treasury is so pleased with the report that it has delayed it until after the Budget, which means it is not going to be good news for taxpayers or the bond market. While the Government dither and delay, we have published our plan for tough love on youth unemployment: support from day one to get back into work, and after six months, those who can work but won’t work will have their benefits cut. I am sure the Chancellor of the Exchequer would welcome our cost-cutting plan in the Budget, so can the Secretary of State explain why the Treasury does not want his plan in the Budget?
Pat McFadden
I refer the hon. Gentleman to the Chancellor’s speech at our party conference a couple of weeks ago, in which he was quite clear that we owe young people not just an income, but a future too. That is why the Government are behind the agenda I am setting out. I look forward to reading Alan Milburn’s final report in a few weeks’ time, and I remind the shadow Minister and everyone on the Opposition Benches that Alan Milburn was clear in his interim report that the problems we are talking about are deep-seated, long-term and have existed in this country for a great many years.
Dan Aldridge (Weston-super-Mare) (Lab)
The Minister for Employment (Andrew Western)
The Government are determined to help more young people to build careers in sectors such as hair and beauty by investing an additional £2.5 billion through the youth guarantee and the growth and skills levy. Whether a young person chooses hair and beauty or another sector, we want them to have the skills, training and support they need to succeed, including through the funding of apprenticeship training costs for eligible under-25s who have started their apprenticeships since August this year.
Dan Aldridge
This week is British Beauty Week, a great opportunity to celebrate the fantastic and fast-growing beauty and wellness businesses that we have in this country, especially in towns such as Weston-super-Mare, where businesses like Sacred Willow, founded by Kerry and Simon Lamerton, and Luceo Lounge, founded by Lisa de-Laune, keep our high streets alive and our economies going, and generally make people feel much better about themselves. Will the Minister give some more information about the support his Department is providing, especially for young people through the youth guarantee, to ensure that small businesses in areas like mine benefit as much as possible?
Andrew Western
I welcome my hon. Friend’s support for British Beauty Week and join him in celebrating the local beauty and wellness businesses that are helping to drive growth and create opportunities for young people, particularly the two he has highlighted in his constituency. I encourage his local businesses to look at the incentives offered by not just the jobs component of the youth guarantee, but the youth jobs grant and the £2,000 payment to small and medium-sized enterprises that hire a young apprentice, all of which can support them in giving opportunities to young people in Weston-super-Mare and beyond.
Vikki Slade (Mid Dorset and North Poole) (LD)
There has been a 30% reduction in the number of apprenticeships in the hair and beauty sector over the past five years, one reason being that the number of people employed has plummeted, with many people being forced into false self-employment due to increased costs. In addition, the number of providers working in the sector is at a critical level. My constituent Mike, who owns Mike Taylor Education with his wife Emily, told me of a young man travelling from Kent to Dorset every week to follow his level 2 barbering course, because there were no courses anywhere else. Will the Minister meet me and sector representatives to talk about how we could reverse this decline?
Andrew Western
Clearly, I would be very happy to meet the hon. Lady. That sort of distance is unfortunate, and I am sorry if that is the experience of her constituent or, indeed, their apprentice. As I say, I am very happy to meet her to discuss it further.
Clive Jones (Wokingham) (LD)
The Minister for Pensions (Torsten Bell)
The Government’s reforms provide greater flexibility for well-funded defined-benefit pension schemes to share surplus with employers and to benefit members. Scheme trustees, who must act in the interests of scheme beneficiaries, are best placed to determine the appropriate use of any surplus for their individual scheme. Trustees will agree how members can benefit, working with sponsoring employers.
Clive Jones
Is it not the case that nothing in law stops the Government requiring pre-1997 pensions to be restored before surplus goes back to employers, and that the only reason it is not happening is that the Minister has decided that it should not?
Torsten Bell
I thank the hon. Gentleman for his question; he and I have met and discussed this issue on many occasions. Around three quarters of schemes already provide some pre-1997 indexation, but the hon. Gentleman is right to point out the strength of feeling on this. I have met with many MPs and scheme members, including those in south Wales who have been affected by lack of pre-1997 indexation on their defined benefit schemes. It is separate from the changes that we have already introduced for the Pension Protection Fund’s indexation.
Trustees need to be in the driving seat. Employers will have no direct access to a scheme’s surplus. The flexibilities we have put in place through the Pension Schemes Act 2026 and the guidance being provided by the Pensions Regulator are already changing the nature of the discussion between trustees and employers, and will lead to a step change in this area.
Mr Peter Bedford (Mid Leicestershire) (Con)
It did not sound as though the Minister could commit to improving outcomes for pensioners. That is no surprise given this Government’s record: they cut the winter fuel payments, undermined incentives to save into pensions through the salary sacrifice scheme, and dragged pensions into the scope of inheritance tax. The Prime Minister’s announcement at the Labour party conference created yet more uncertainty for those in or approaching retirement. Will the Minister give a commitment to the House that there will be no further policies undermining pensioners’ prospects and damaging their retirement?
Torsten Bell
Although I listened closely to much of the Conservative party’s conference—not quite all of it, but lots of it—I am still not clear what its policy is on the triple lock or on many other things in the pensions space. I have been paying a lot of attention, and what I have learned is that the shadow Foreign Secretary calls the triple lock a Ponzi scheme and the previous shadow Chancellor calls it completely unsustainable.
The shadow Secretary of State knows she has a ridiculous position on reform of the state pension. This Government will put the state pension on a sustainable basis and address the other big challenge of ensuring an adequate private pension system. That is what the Pensions Commission will do.
Euan Stainbank (Falkirk) (Lab)
Andrew Ranger (Wrexham) (Lab)
The Minister for Employment (Andrew Western)
We are making strong progress expanding youth hubs across Great Britain, with delivery ahead of schedule, bringing the total number of youth hubs to 160. These hubs provide a single, community-based front door to joined-up employment, skills and wider support for young people. We continue to work closely with local authorities and partners to maintain momentum and support further expansion.
Euan Stainbank
In August, Falkirk became one of the first towns in Scotland to have a youth hub. Opened at the Falkirk campus of Forth Valley college—our primary local further education institute—it is visible evidence of our Labour Government’s investment in young people’s futures. Will the Minister join me on a visit to the youth hub and Forth Valley college, and will the Department re-engage with the Falkirk-based local training provider Powering Futures, whose model could deliver a preventive solution to youth unemployment but currently falls between the cracks of reserved and devolved competency?
Andrew Western
I thank my hon. Friend for his invitation and for highlighting the work of the Falkirk youth hub and its partners. My right hon. Friend the Secretary of State has met with Powering Futures and is aware of the issues that he raises. My hon. Friend has been relentless in seeking support for this organisation, and I hope that the Scottish Government will think again and consider supporting the good work of Powering Futures with funding.
Andrew Ranger
For many of our young people, the hardest step towards obtaining work is the first one: walking into a jobcentre or youth hub and asking for support. Does the Minister agree that part of the approach of youth hubs, including the new hub in Wrexham, must be to reach those young people where they are, rather than waiting for them to come through the door?
Andrew Western
My hon. Friend is right. The whole purpose of youth hubs is to take support out of traditional settings and into communities, meeting young people where they are rather than expecting them to come to us. Through partnerships with local authorities, charities, colleges and other organisations, youth hubs such as the upcoming Wrexham youth hub will help us reach young people in their local communities who might otherwise miss out on support. We will continue to encourage all youth hubs to undertake proactive outreach and work with local partners to reach young people. I have seen excellent examples of that in the hubs I have visited thus far.
Sir Ashley Fox (Bridgwater) (Con)
Over the last two years, the Government have increased the cost of employing young people with higher national insurance charges on employers and imposed the 350 pages of additional regulation contained in their “unemployment rights Act”. Does the Minister agree that the best way of reducing youth unemployment is to cut the cost of employing young people rather than an endless array of hubs, grants, schemes and guarantees?
Andrew Western
I would agree with the hon. Gentleman, but then we would both be wrong. I attended a recent parliamentary event hosted by the Resolution Foundation, chaired by the former Tory Minister Lord Willetts, and the research it had undertaken was clear that cutting taxes was not as effective in delivering opportunities to get young people into work—[Interruption.] It was very clear that the targeting of employment support was much more effective than the approach the hon. Gentleman is suggesting. The shadow Secretary of State was there; she saw that. She may not have agreed with it—maybe that was because she did not stay until the end of the event—but none the less it was very clear that the best way to support young people into work is through employment support schemes, youth hubs and the routes that we are taking.
Wera Hobhouse (Bath) (LD)
Every local area should have a youth hub—the benefits are so very clear. The Minister is promising an expansion of youth hubs, so when can we see one in Bath?
Andrew Western
I would be happy to write to the hon. Lady to confirm specific timings in individual localities. We are ahead of projected delivery at the moment, having already hit more than 160 youth hubs, but we have a target of reaching more than 300 in the coming months and years. I will set out to her in writing plans for the youth hub that will serve her local area.
Gregory Stafford (Farnham and Bordon) (Con)
The Secretary of State for Work and Pensions (Pat McFadden)
Since our last oral questions session, we have announced an agreement with the British Retail Consortium to hire 100,000 young people not in education, employment or training over the next few years; we have announced an extension of disability bus pass usage to cover peak hours; we have rolled out more of the youth guarantee; and, as has been referred to, we have announced our intention to adjust the triple lock, ensuring rising and sustainable pensions for the future and also releasing funds for a new national care service, which is a matter of huge importance to pensioners and their families.
Gregory Stafford
This morning, The Times has reported that over two thirds of those on sickness benefits are awaiting their reassessment and remain unchecked, with average waits being over two years. What is the Secretary of State’s Department doing to meet its moral duty to help those who can work back into employment and its economic duty to save the taxpayer billions of pounds, with only those who genuinely need help receiving it?
Pat McFadden
I am glad that the hon. Member has given me the opportunity to point out what we inherited—exactly what was set out in The Times this morning—which was a backlog of 2 million people awaiting reassessment. As he knows, the Tories left a system with almost no face-to-face assessments. Since then, we announced at the Budget last year a plan to tackle the backlog in work capability assessments and reassessments. The Office for Budget Responsibility has costed that activity at saving over—
Mr Speaker
Order. Secretary of State, please, I am trying to get your Back Benchers in. Obviously, you do not want to get the questions in, even if I do.
Alex Baker (Aldershot) (Lab)
The Minister for Employment (Andrew Western)
I welcome the plans for a youth hub in my hon. Friend’s constituency and thank her for the work she has done on campaigning for it. The core blueprint for youth hubs ensures that every hub provides access to employment support alongside mental health, housing skills and employer engagement, and aims to support all young people in a locality to address their barriers to work on an individual basis, including those with neurodivergent conditions.
Helen Whately (Faversham and Mid Kent) (Con)
The working-age welfare bill is set to reach £170 billion by the end of this Parliament, up £45 billion on the welfare party’s watch. All around the country, the residents of “Benefits Street” are doing better under Labour. The welfare Secretary is always across his brief, so can he tell me the benefits bill for his constituency?
Pat McFadden
The welfare budget rose twice as fast during the hon. Lady’s party’s last Parliament in power as it is during this Parliament. We are reforming the system through changes to universal credit, more personalised employment support and the youth guarantee that we have referred to a number of times during this session.
Helen Whately
I am surprised that the right hon. Gentleman did not know the answer, but I can help him. It is £400 million a year. That is why he is dragging his heels on welfare reform. The number of personal independence payment claimants in his constituency exceeds his majority, and the same can be said for 203 of his fellow Labour MPs. It is no wonder all his colleagues ask him who they can tax in order to spend more on benefits. Will this month’s Budget just be more of the same—hiking taxes on working families to pay for “Benefits Street”?
Pat McFadden
I remind the hon. Lady that the system she criticises is the one designed, created and legislated for by her Government and her party. We are changing the system through the changes in universal credit announced in April this year, through more personalised support for the people with long-term health conditions who were signed off and written off by her party, and through more intervention on youth opportunity for the young people who were neglected while the NEET numbers went through the roof on their watch.
Paul Davies (Colne Valley) (Lab)
Andrew Western
We recognise the significant impact that menopause symptoms can have on retaining women in the workforce. That is why we launched evidence-informed action plans to help employers provide effective menopause support. We have published guidance to help employers monitor their progress, and we are committed to evaluating the impact of action plans, including through a post-implementation review.
Steve Darling (Torbay) (LD)
Whether it is processing access to work claims or reassessing sickness benefits, the Department for Work and Pensions has a culture of dither and delay when processing such matters. Can the Secretary of State advise us when the Department will get a grip on this?
The Minister for Social Security and Disability (Sir Stephen Timms)
We are getting a grip. The hon. Gentleman will be pleased to know that we are recruiting 500 extra staff to process access to work applications. Those staff are being recruited and trained at the moment and as a result of that, we will eliminate the access to work backlog that we inherited from the previous Government by September next year.
Joe Powell (Kensington and Bayswater) (Lab)
Andrew Western
My hon. Friend is absolutely right to highlight the challenge of hidden NEETs. Youth hubs are open to all young people aged 16 to 24, regardless of benefit status, and we expect them to work closely with local authorities, schools, colleges and community organisations to identify and engage young people who may be missing out on support. There is a particular challenge with hidden NEETs, and I expect that we will be able to bear down on that problem through such place-based intelligence sharing.
Lisa Smart (Hazel Grove) (LD)
Sir Stephen Timms
I am happy to check that point with the team doing the work, and will drop the hon. Lady a line to confirm.
Jessica Morden (Newport East) (Lab)
Andrew Western
I can give my hon. Friend that reassurance. The Government are investing an additional £2.5 billion in the youth guarantee, which includes funding for youth hubs and the growth and skills levy by 2029, supporting almost 1 million young people and creating up to 500,000 opportunities to earn and learn. Connect to Work, which will support around 300,000 people, is intended to run until March 2030, with multi-year grant agreements to support long-term local planning and delivery.
Aphra Brandreth (Chester South and Eddisbury) (Con)
Sir Stephen Timms
We owe an enormous debt to carers right across the country who carry the kind of burden that the hon. Lady describes. We are doing some important work at the moment on carer’s allowance, which is the benefit that provides support in these circumstances, and have consulted on some ideas for change. We particularly want to make it easier for people to combine work and caring. That may well help in the situation the hon. Lady describes.
Tom Rutland (East Worthing and Shoreham) (Lab)
Young workers are facing real challenges in their living standards, particularly because their housing costs dwarf those faced by the generations that came before them. That is leading many to reduce the contributions they make to their workplace pensions, or even to forgo making them entirely, at the risk of having inadequate pensions when they retire. Will the Pensions Commission make recommendations on how to address those challenges?
The Parliamentary Secretary to the Treasury (Torsten Bell)
My hon. Friend is absolutely right to raise the challenges facing younger workers. They face exactly the same cost of living challenges as the rest of society, but often with added pressure when it comes to housing. The good news is that between 2012 and 2025, participation among employees aged 22 to 25 who are eligible for automatic enrolment increased from 28% to 85%. He is completely right that there is much more to do, and I can confirm that the Pensions Commission is exploring exactly these long-term questions.
Ben Obese-Jecty (Huntingdon) (Con)
My constituents are facing extremely large delays in getting a response from the DWP. One of my constituents has now been waiting for two months for a response with regard to his dispute with the Child Maintenance Service, despite receiving a final letter before action. Another constituent has been waiting for four months for a response to his PIP review claim. Why are we seeing such long delays, what is the Minister doing to resolve them, and why have my constituents not had a response in months?
The Parliamentary Under-Secretary of State for Work and Pensions (Lilian Greenwood)
We know that increased volumes and more complex cases have led to increased response times, and we are working hard to bring those down by deploying additional resources, strengthening oversight and improving case management. I agree that this is not acceptable. We are working to improve the situation.
Tulip Siddiq (Hampstead and Highgate) (Lab)
It took the DWP hotline 29 working days to respond to me about a constituent’s PIP arrears, and 39 working days to reply to a email about a reduction in state pension for one of my constituents. Can the Minister help me with this, please?
Lilian Greenwood
As I have said, we recognise that response times are not good enough, and I am putting extra resources in to improve them. Of course, if my hon. Friend wants to raise particular cases with me, I will look into them and ensure that she gets a speedy outcome.
John Cooper (Dumfries and Galloway) (Con)
In Scotland, benefit crime has effectively been decriminalised, and the Scottish Conservatives have raised the case of people being coached on how to fiddle the system. When I have asked the DWP about it, the reply has basically been, “Nothing to do with us, guv.” Is there not a moral imperative to do something about that issue?
Sir Stephen Timms
Yes, there is. We are looking at some of the developments in social media and at the kinds of coaching, including where people are being charged for advice that they could obtain for free and without difficulty. We are looking at all of that at the moment.
Al Carns (Birmingham Selly Oak) (Lab)
Birmingham has been piloting a jobs guarantee scheme since April. An employment roundtable that I ran in Selly Oak saw lots of young people who lack confidence in their communication skills to enable them get back into work after being on universal credit for 18 months. Will the Secretary of State commit to publishing how many pilot participants are still in work once the six months is over?
Pat McFadden
I am grateful to my hon. Friend; I enjoyed the visit to his constituency a few weeks ago to support young disabled people. He is right in what he says about long-term youth unemployment. That is why we have the jobs guarantee, and we will publish a full evaluation of its effects.
Lara Bird (Arbroath and Broughty Ferry) (SNP)
It is always very obvious when a Labour Government are in place, because the first thing a Labour Prime Minister will do is take a swing at pensioners—so it is not at all surprising that the Prime Minister is already abandoning his promises to WASPI women. How can pensioners, WASPI women and the public in general trust the DWP when the Prime Minister seems to find it so easy to say yes and make grand promises, when there are no consequences and those promises seem to have absolutely no meaning in practice?
Torsten Bell
This Government promised in our 2024 manifesto to ensure that the state pension in Scotland, England and Wales would rise every single year, and that is exactly what this Government are getting on with doing.
Sarah Smith (Hyndburn) (Lab)
I established the “Get Hyndburn Working” group, and together we are looking at how we can bring our youth hub into a town centre location and also bring health, training and education services all under one roof. Will the Minister meet me to discuss how the Government can support us to make that a reality?
Pat McFadden
We should all be behind “Get Hyndburn Working”. I am certainly behind it, and I would be happy to meet my hon. Friend.