Compulsory Jobs Guarantee
Lord Sharma Excerpts(9 years, 9 months ago)
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Stephen Timms
But long-term unemployment is higher in the hon. Gentleman’s constituency now than it was at the time of the last election. That is the legacy of the three years of almost no growth in the economy following the general election, which we now need to address. Let me say to him and to other Government Members that self-congratulation on what has happened in recent months is dangerously complacent about underlying problems in the labour market and utterly out of touch with the impact such problems have on people who are desperate to work and to earn their way out of the cost of living crisis they are facing. People are deeply concerned about the prospects for their children and the grandchildren. Those are the points we now need to address.
Alok Sharma (Reading West) (Con)
The right hon. Gentleman talks about self-congratulation, but that is not what Government Members are doing. We are recognising that policies have been put in place for businesses to create more than 2 million jobs. Why will he not congratulate the Government on their policies and businesses on creating those 2 million-plus jobs?
Stephen Timms
We were left with a legacy of a very large number of people who have been out of work for a long time. It is welcome that at long last the economy is growing and jobs are being created; the long-delayed recovery is now, finally, in place. The question is: are those who have been left out of employment by the events of the past few years going to get the opportunities that these new jobs will create? Addressing that is exactly the purpose of this afternoon’s debate and of the proposal I am commending to the House.
Stephen Timms
Very few. There is the good example of Jaguar Land Rover taking on a group of young people under the future jobs fund, and my understanding is that every single one of those young people was kept on in their job when the wage subsidy ended. The future jobs fund was largely about the charity and public sectors; the guarantee is largely about the private sector, exactly as Jobs Growth Wales has been.
Alok Sharma
The right hon. Gentleman is keen to talk about numbers, so let me give some from his own constituency. In May 2010, there were 410 jobseeker’s allowance claimants who had been unemployed for more than a year. In December 2014, the figure was 225. In May 2010, the six-month figure was 1,585, but in December 2014 it was 1,045. Will he not acknowledge that, even in his own constituency, this Government’s policies are making a difference and people are getting real jobs?
Stephen Timms
Those figures, in my constituency and in his, are far too high. A great deal more needs to be done to enable young people in particular, but long-term unemployed over-25s as well, to share in the benefit of the recovery that is, at last, under way.
Stephen Timms
My hon. Friend is right. I have spoken to many people, including those who went through the future jobs fund, who say exactly that: having the break of getting six months in a job, becoming familiar with the habits and routines of work, and putting that on their CV enabled them to thrive.
This policy is not just an immediate intervention to limit youth and long-term unemployment; it is an investment in the skills and employability of the British work force, underpinning our productivity, growth potential and fiscal sustainability into the future, but we have been clear that there will be no commitments in our manifesto that require more borrowing. Therefore, we have set out clear plans to fund the policy fairly and prudently.
In the first year, to provide for the large number of long-term claimants left by this Government’s policies, we would pay for the policy with a repeat of the successful bank bonus tax, which was levied in 2010. That could raise £2 billion. In future years, the costs would be covered by restricting pensions tax relief for the highest paid—those earning more than £150,000 a year—to 20%. The House of Commons Library has estimated that that could raise between £900 million and £1.3 billion a year. That is a fair and prudent way to fund jobs for young people and the long-term unemployed, and to fund the guarantee throughout the next Parliament.
Stephen Timms
I will not give way again.
Those measures have been opposed and rejected by Government Members, but we have seen where five years of their trickle-down philosophy has taken us—five years of protecting privileges for a few at the top while leaving the rest to fend for themselves.
Our plan is to put working people first, ensuring that those who can and should work are in work, that we make the most of their talents and that hard work is always rewarded. That is the way to secure a recovery from which everybody can benefit and to get social security spending under control and our public finances on a sustainable footing. That is the way to secure a future in which prosperity and social justice go hand in hand and ensure that the next generation can look forward to a brighter future. That is the plan our country needs. This Government will not deliver it. We can be thankful that the time is not far off when we can elect a Labour Government who will.
Stephen Pound
Madam Deputy Speaker, there are matters of greater moment before us today. The point has been made.
In all seriousness, the comments of the Secretary of State at the end of his speech were very well made and measured. He drew our attention to the single most important fact: this debate is not about cold statistics, but about real experience, real people, real lives, real hopes, real dreams and, in some cases, the dashing of those real dreams. However, when he referred to the marvellous blizzard of feel-good statistics it was almost as if Dr Pangloss had ridden out of the pages of “Candide” and tethered his horse to the Treasury Bench to tell us that this is the best of all possible worlds and that everything is well. I, like most people, respect the Secretary of State, but this is not the best of all possible worlds.
May I pray in aid, as I seldom do, the Office for National Statistics? The labour market statistics from 21 January—not last year, not 2010, but 2015—show that youth unemployment stands at 764,000, which is an increase of 30,000 on the previous quarter, and that long-term unemployment for 18 to 25-year-olds stands at 188,000.
Alok Sharma (Reading West) (Con)
Back in 2011, I had discussions with Tesco about its plans to set up a major distribution centre in my constituency. They were very successful and a couple of years later we had a new distribution centre employing more than 1,000 people. As part of its commitment to helping the long-term unemployed, Tesco ring-fenced 85 of those new jobs for those who had been long-term unemployed; about 18 months ago I went to a graduation ceremony for those who had been on the scheme. They had not only gained new skills in the workplace but received training at a local college. The age range of those graduating was from the mid-20s to the mid-50s, and the event was one of the most emotional and uplifting that I have been to during my five years as an MP. The sheer sense of achievement and pride for those graduating was palpable, and it was not because somebody had just come along and handed them a job but because they had each worked hard, had achieved and had won a job on their own merits. There are many examples of employers across my constituency who have created jobs over the past five years.
A number of my colleagues have talked about apprenticeships. They have been a huge success in Reading West in the past five years. We have had thousands of new starts. All sorts and sizes of businesses, everyone from Cisco and Microsoft to Chiltern Training and Pertemps—a huge range of organisations—have been taking advantage of help from the Government to start apprenticeships,. We talk about real jobs—these organisations have been creating real opportunities for young people. The end result of all that job creation and help for young people is a massive 60% fall in unemployment in my constituency since May 2010. Overall, unemployment is now below 2%. The right hon. Member for East Ham (Stephen Timms) talked about youth unemployment. That has fallen from 7.8% in May 2010 to 1.7% today.
Those businesses did not need any kind of compulsory guarantee from Government; they got on and created jobs. The reason why businesses have invested, putting money into research and development and infrastructure, is that they have regained the one absolutely precious commodity that one needs to succeed in business: confidence. Businesses have confidence in the British economy and they have confidence in the future. Above all, they have confidence in a Government who have cut corporation tax, national insurance and red tape, and increased the investment allowance and extended small business rate relief. All these are policies designed to create jobs. It is not Governments who create jobs; it is companies in the private sector that create jobs.
The right hon. Member for East Ham, who is no longer in his place, was not able to say what percentage of jobs under the compulsory jobs guarantee would come from the private sector. I can tell him that, according to a BBC report in March 2014, the Labour party was talking about 80% of jobs coming from the private sector. In the past few weeks, it has been bashing businesses and demonising wealth creators. Labour has made it clear that it will put up taxes and have more red tape. That will end up driving businesses away from our shores. With all due respect, I have to say that I do not think the Leader of the Opposition, or indeed very many Labour Members, understand business. That is because they have never worked in business.
Gemma Doyle (West Dunbartonshire) (Lab/Co-op)
There are a number of Labour Members who have worked in business, including me. What the hon. Gentleman said was ridiculous, and perhaps he will withdraw it.
Mr Deputy Speaker (Mr Lindsay Hoyle)
Order. May I just say that interventions are going to take time from Members who are going to speak later? That is the only worry I have, but by all means continue.
Alok Sharma
I thank the hon. Lady for intervening. I am delighted she has some experience of business. The same is not so for the Leader of the Opposition, is it?
When it comes to businesses, I think the Leader of the Opposition has actually decided—this business bashing is not an accident—that bashing businesses will win votes. He thinks that bashing big businesses will somehow compel small businesses to move towards him. I have to say that that is utter fantasy. In my constituency, many people are employed by small businesses and they will not like what the Labour party has been saying. Small businesses want to grow into large businesses. They have ambition and aspiration, but that is not what we have been hearing from the Opposition.
The Government’s policies have created the real jobs, the real prospects and the real skills that young people and those who have been long-tem unemployed need. That is what has been happening in the past five years. I will not support the Opposition motion. It is unfunded, it is unclear and it has no support in the business community. Unless the shadow Minister can tell me otherwise, I do not think there are huge numbers of businesses crying out for the compulsory jobs guarantee.
Jobs and Work
Lord Sharma Excerpts(10 years, 5 months ago)
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Mr Tobias Ellwood (Bournemouth East) (Con)
I welcome the Government’s fourth Queen’s Speech and the strategy that has been used to navigate Britain out of the choppy economic waters that we inherited, courtesy of the last Labour Government. As we have heard, the UK economy is the fastest growing economy in Europe and, indeed, in the G7. Figures published today show that employment is at record levels, though of course there is still more to be done.
I am afraid that the clock is working now and the time restrictions will prevent me from going into further detail on certain issues. I will therefore move on to my substantive point, which is about Britain’s place in the world. The Prime Minister rightly began his response to the Gracious Speech with a tribute to our armed forces and the sacrifices that have been made in Afghanistan. That subject will come up at the forthcoming NATO summit. NATO can be proud of the role that it played in removing al-Qaeda from Afghanistan and building a credible Afghan security force.
Alok Sharma (Reading West) (Con)
Britain has always been an outward-looking nation when it comes to trade and foreign affairs. Does my hon. Friend agree that we should continue with that and build on it?
Alok Sharma (Reading West) (Con)
I am delighted to speak in this debate on jobs and work. Despite all the doom and gloom from some Opposition Members, the long-term economic plan is working. I see that in my constituency, where since the general election overall unemployment is down by 47%—it is now 2.4% of the work force—youth unemployment is down by 65% and long-term unemployment is down by 24%.
What do local business owners and managers—the wealth creators in our country—think about the economic recovery and about jobs? The latest Thames valley business barometer, which will be formally published later this month—it is put together by accountants BDO and consultants C8 Consulting—could not be clearer: it has recorded a staggering swing in confidence levels in Thames valley businesses, from 31% last year to 90% now. Furthermore, 82% of businesses said turnover had increased, 86% expect it to increase further in the next six months, and 71% expect to increase their headcount over the next six months. Even on the availability of finance, 37% of businesses surveyed by the barometer said that they felt that access to finance had improved. Access to debt finance is of course important, but so is access to equity finance, especially for start-up ventures.
The Thames Valley local enterprise partnership has received funds from the Government, some of which it has allocated to a growth fund. The fund is administered by a third party, with match equity funding of between £50,000 and £150,000 available. Of course that is a good initiative, but we need to ensure that we can provide more equity funding. I would like to see the Government replicate the success of their StartUp loans scheme with a StartUp equity finance scheme, with match equity funding of up to £5,000 or £10,000, mentoring support and a fast turnaround of application decisions. The StartUp loans scheme has been allocated £150 million and has helped more than 18,000 entrepreneurs. Perhaps a StartUp equity finance scheme would have similar success.
I turn now to the small business, enterprise and employment Bill outlined in the Queen’s Speech. I welcome the Bill. There is a lot in it that will help smaller businesses. In particular, I welcome the fact that it will establish a deregulation target for each Parliament and introduce a new “appeals champion” to protect business against overreaching regulators. Small and medium-sized businesses do not want to be shackled by unnecessary red tape or to spend precious time and resources on it; they want to spend their time and resources building their business and creating employment.
As well as an appeals champion, I suggest that in future Parliaments we ought to have a Minister whose sole job is to look at deregulation across the piece. Ministers are helping to create new legislation every day, and it would be rather nice if at least one Minister spent all his or her time thinking about reducing the burden of regulation, particularly on businesses.
My final point is about naming and shaming employers who are not paying the minimum wage, and raising fines on such errant employers. I welcome what the Government are doing to expose the underpayers, but we need to be careful that reputable employers who make a genuine one-off error are not having their reputations tarnished unnecessarily. On Monday, I was contacted by HSS Hire Group, which employs almost 3,000 people across the UK and Ireland and has a successful training academy in my constituency. Only 20 of its employees are on the minimum wage; the rest are above it. In October last year, an error in the HSS computer system meant that the pay of 15 employees was not updated with the changes to the minimum wage made in that month, costing employees between 47p and £25 each and amounting to a total underpayment of £150.
According to HSS, this administrative error, which was noticed by the company itself, was rectified within a month. HSS received an acknowledgement from Her Majesty’s Revenue and Customs confirming that it was satisfied with the company’s response, and was issued with a notice of underpayment some three months after the error was first noticed. HSS has since been named and shamed. The company feels that, having proactively put right a genuine admin error, this is unfair. It has made representations to the Business Department and to HMRC. I raise this case because while it is absolutely right to expose rogue employers, we need to make sure that the internal checks and balances are working before companies with a reputation to protect are named and shamed.
In conclusion, I welcome the provisions to promote jobs and work creation in the Queen’s Speech, and I commend it to the House.
Rachel Reeves (Leeds West) (Lab)
The debate that we have called today and the amendment that we are now considering are based on the values and ideals that brought the Labour party into being. They are about securing for all people in this country the dignity of a decent day’s pay for a hard day’s work, so that people can both provide for their family and spend time with them, sharing in the wealth and prosperity that we all help to create. That is why the last Labour Government faced down those on the Conservative Benches who said that extreme low pay was a fact of life and who were happy to live in a world where there were adverts in jobcentres such as the one pointed out to me by a constituent of mine recently. It was advertising for a security guard and it read, “£1 an hour. Uniform provided. Bring your own dog.”
Labour Members were not happy with that world. We set up the Low Pay Commission and we legislated for the national minimum wage, which for the first time put a legal floor, and a rising floor, under the wages of millions of workers, particularly women, below which their wages could not fall.
Today, however, we need to learn from and build on that success. Since this Government took office we have seen the national minimum wage fall by 5% in real terms in just four years and the number of workers stuck on low pay has soared to well over five million. That is more than one in five workers, and one in four women, who are paid less than a living wage.
That is one of many symptoms of an economy that is just not working for working people today. Along with the 1.5 million people on zero-hours contracts, whom my hon. Friend the Member for Streatham (Mr Umunna) mentioned at the beginning of this debate, there are also 1.4 million people in part-time work who desperately want to work full-time; 600,000 people on temporary contracts who desperately want a permanent job; and numerous reports of a pervasive sense of insecurity, which affects not only the lowest paid but workers right up the income spectrum, including those in what were traditionally seen as middle-class or professional occupations.
We have had a number of contributions from hon. Members about the impact that this is having on their constituents. My hon. Friend the Member for Inverclyde (Mr McKenzie) spoke about real wage falls, particularly for young people, while my hon. Friend the Member for Bethnal Green and Bow (Rushanara Ali) spoke about youth unemployment and the lack of prospects for so many of her constituents. My right hon. Friend the Member for Coatbridge, Chryston and Bellshill (Mr Clarke) quoted Bevan and Beveridge in his speech, and spoke about the Government’s policies leading to extremes.
My hon. Friend the Member for North Ayrshire and Arran (Katy Clark) spoke about the living wage, but also about the insecurity that so many of her constituents face, with 21% paid less than a living wage. My hon. Friend the Member for Newcastle-under-Lyme (Paul Farrelly) spoke about how this Government’s programme was just too timid, and said that they must do much more both to tackle the abuse of zero-hours contracts and to stop this recovery being one that leaves far too many people behind. He speaks with a great track record, having done so much to campaign on rights for temporary and agency workers.
My hon. Friend the Member for Blackpool South (Mr Marsden) spoke about job insecurity, particularly in seaside towns, and the use of sanctions, which often go too far and penalise the wrong people. The hon. Member for Banff and Buchan (Dr Whiteford) spoke about the gender pay gap and how it is often women who suffer the most. My hon. Friend the Member for Wansbeck (Ian Lavery) made an impassioned speech about zero-hours contracts and the restriction of justice that so many people feel. He made an important point about the disconnect that so many ordinary people feel between them and politics and Parliament, which my right hon. Friend the Member for Doncaster North (Edward Miliband) spoke about last week. That is something we must all be aware of and address.
As well as resulting in so much indignity for so many people, the challenges we face also pile pressure on to our social security system, with taxpayers left to foot the bill for wages that do not cover the cost of living and insecure and irregular earnings making it harder for people to keep up with their rent, arrange a mortgage, save for a pension or do all the other things that so many of us take for granted. The bill paid by taxpayers for people being paid less than the living wage has been estimated at a staggering £2.4 billion a year, including £750 million in extra tax credits and £370 million in extra housing benefit. The cost to taxpayers of the number of people stuck in part-time jobs who want to work full time is now £4.6 billion, including £1.7 billion in additional housing benefit, with the cost of housing benefit for people in work rising by a staggering 66% since this Government came to office.
All in all, over this Parliament this Government are set to spend £13 billion more than they budgeted for on benefits and tax credits because too many people have been left out of work for too long and because the squeeze on wages has been so severe. Expenditure on in-work benefits and tax credits is set to go on rising in real terms over the years ahead. That is the price that we are all paying, and will continue to pay, for this Government’s failure to secure a recovery that benefits everybody.
The impact of that on people is so stark, as has been mentioned in other speeches today. My hon. Friend the Member for East Lothian (Fiona O'Donnell) spoke about her constituents feeling left behind, despite the fact that the economy is now starting to grow again. My hon. Friend the Member for Sheffield Central (Paul Blomfield) made an incredibly powerful speech about the growth of payday lenders and the fact that nobody, especially those in work, should have to rely on that sort of credit to be able to feed their family and pay the bills. My hon. Friend the Member for Harrow West (Mr Thomas) spoke about an alternative world where credit unions are used more widely and supported more and about saving through the payroll, which I think was an important contribution in the debate. My hon. Friend the Member for Walsall North (Mr Winnick) spoke about the fact that far too many people in all our constituencies are being forced to go to food banks in order to support their families.
That is putting strain on our social fabric and the functioning of our democracy, as more and more people are feeling left out and cut out. The gains of growth are going to a privileged few and many are feeling left behind. No one in this House can be happy with the turnout in the local and European election just three weeks ago. If we are to turn that around and restore people’s faith that voting can make a difference, we need to show those who are feeling sidelined and short-changed that we understand their plight and that we will take action to address their worries and problems.
We have heard powerful speeches today about the problems faced by people in low-paid and insecure work, but we have also heard powerful speeches about businesses in our communities doing great things, employing people and growing their businesses. We need to build a stronger and better balanced economy in which growth and prosperity are more fairly shared. I therefore welcomed the speech we heard from my hon. Friend the Member for West Bromwich West (Mr Bailey), the Chair of the Business, Innovation and Skills Committee, who spoke about apprenticeships. My hon. Friend the Member for Liverpool, West Derby (Stephen Twigg) spoke about not enough young people doing vocational subjects at school and college and the need to improve and reinvigorate our careers service.
My hon. Friends the Members for City of Durham (Roberta Blackman-Woods), for Glasgow North East (Mr Bain) and for Blaenau Gwent (Nick Smith) spoke about regional policy, local enterprise partnerships, the failure of the regional growth fund and the importance of creating a proper British investment bank. My right hon. Member for Warley (Mr Spellar) spoke about trade promotion, manufacturing and the need to put British business first. My hon. Friend the Member for Bristol East (Kerry McCarthy) spoke about the creative industries and their impact on our communities and on jobs.
We also heard speeches about small businesses. My hon. Friend the Member for Kilmarnock and Loudoun (Cathy Jamieson) talked about the red tape facing many small businesses and the costs that it imposes on them but also on Government. My hon. Friend the Member for Rochdale (Simon Danczuk) gave a plug to Danczuk’s Deli and spoke about the problems with business rates and the need for a British investment bank.
We also heard some powerful speeches by Government Members, of which I will mention just three. The hon. Members for Macclesfield (David Rutley), for Cleethorpes (Martin Vickers) and for Stourbridge (Margot James) spoke powerfully about businesses in their constituencies and the good that they are doing in creating jobs.
Those speeches show the difference that can be made and that Labour can make. It is time to set an ambitious five-year target for the national minimum wage so that we narrow the gap between the minimum wage and average earnings over the life of the next Parliament. That would be the effect of the amendment, which would ensure that those who take the shifts and put in the hours in some of the toughest jobs in our economy have a chance of building a decent life for themselves and their families. A Labour Government would beef up enforcement of the national minimum wage, with new powers for local authorities to investigate infractions and larger fines of £50,000 for non-payment. We would also take action to end the abuse of zero-hour contracts, and crack down on agencies that use migrant labour and discriminatory recruitment and working practices to evade and undermine minimum employment standards.
All these measures form an integral and complementary part of the wider path that my hon. Friend the Member for Streatham spoke about, which would secure increased investment in infrastructure and innovation and support the creation of good-quality, high-skilled, well-rewarded jobs and apprenticeships across the country. We need to build an economy that can succeed in the global race to the top on quality and productivity instead of trying to win a race to the bottom on wages and working conditions—sadly, that seems to be the limit of this Government’s ambitions.
We heard evasion and excuses from Government Members, in many cases going back to the arguments of the 1980s and 1990s. The hon. Member for Reading West (Alok Sharma) even suggested that we should be careful about treating employers who do not pay the national minimum wage too harshly in case they did it by mistake. Well, I do not think that is good enough.
Alok Sharma
I hope that the hon. Lady listened to my speech in full. I welcomed the fact that we should be clamping down on rogue employers but said that we also need to make sure that employers who make genuine, one-off mistakes should not necessarily be penalised for that.
Rachel Reeves
I wonder whether the hon. Gentleman is so lenient on people who over-claim benefits. I think we need to get tough on people who are not paying the minimum wage to their employees. It is against the law, it is the wrong thing to do, and it puts pressures on those employees’ families that they should not have to face.
Figures from the Office for National Statistics show that over the past year the richest 1% have increased their share of national income from 8.2% to 9.8%. The top 1% have almost 10% of our national income, while 27 million taxpayers who make up the bottom 90% have seen their share of income fall. Wages have fallen further and further behind prices, as we saw again today, and the number of working families in poverty is set to soar. Only today, the latest figures from the ONS showed nominal pay growing by just 0.7% a year at a time when inflation, as measured by the consumer prices index, was running at 1.8%.
Earlier this week, a report from the Trussell Trust highlighted an increasing number of people in work who rely on their food banks. On Monday, the Government’s own commission on child poverty reported that
“twice as many poor children now live in working homes than in workless homes”
and called for
“real action to tackle low pay, create more secure jobs and enable more people in low-paid jobs to progress in work.”
The same report says that the Government’s latest poverty strategy
“falls far short of what is needed”,
highlighting in particular the
“lack of new action on in-work poverty”,
as outlined by my hon. Friend the Member for Wansbeck. I am afraid that it is the same old story from the same old Tories: tax cuts for the rich and pay cuts for the poor.
Last month, my right hon. Friend the Member for Doncaster North and I met a mum called Rachel Palmer who is affected by some of the things we have spoken about. She works hard so that she can provide for her young son, but she struggles to make ends meet on a minimum wage job in retail. She fought back tears as she told us how hard it was. She said, “You cut all your outgoings, shop at cheaper supermarkets, make batches of food and put them in the freezer, and tour car boot sales and charity shops, but still there’s not enough money.” She said there are lots of people like her who do the right thing and go out to work but “can’t afford simple things.” She said, “You have to choose: do you give your child a nutritious meal, or do you let your standards drop?”
No one should have to make those sorts of choices for themselves or their children. Rachel Palmer is doing the best she can for herself and her young son, and we in this House need to do better for her and her family and millions more families in her position.
This Government have made it clear that they are content with the status quo. Labour Members are determined to aim higher. If the Government will not do more to help those who are struggling to find work and those who are working all the hours they can to provide for themselves and their families but are still struggling, the next Labour Government will. For millions of hard-working families up and down the country, that change cannot come soon enough. I urge this House to support our amendment.
Job Insecurity
Lord Sharma Excerpts(10 years, 9 months ago)
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Alok Sharma (Reading West) (Con)
This Opposition day debate is no more than a fig leaf covering the fact that the Labour party has absolutely no policies to offer. It is still a blank piece of paper when it comes to policies. I find it amazing that every time we hear from Labour Members, they always give the impression that they have some sort of monopoly on compassion. Is that the same compassion that meant that unemployment and youth unemployment were higher in 2010 than in 1997? Is it the same compassion that meant that Labour missed all its child poverty targets, that the gap between rich and poor grew wider, and that left us with a record budget deficit for which we have still had no apology whatsoever?
The way to improve job security and tackle the cost of living is to grow the economy and get business confidence going, which leads to more jobs and rising prosperity. That is exactly what the Government are doing by cutting taxes, getting rid of unnecessary red tape, investing in our young people and infrastructure, and welcoming foreign inward investment.
Let me say a little about Reading, the town that I represent and where I grew up, because I am incredibly proud that it is an economic powerhouse not just in the Thames valley but in the country as a whole. What have the Government been doing for young people in Reading? They have been investing some £4 million in the last year in the pupil premium, providing 3,000 new apprenticeships, investing millions more in new school places, and bringing youth unemployment down to 225 in December 2013, compared with 635 when we came into government. The key is getting students ready for the workplace and, like many of my colleagues, I have run careers fares. At the last one, 1,200 students came along to talk to 60 companies. I run employability workshops with local employers, which are the sort of thing we ought to be doing to ensure that our young people feel there is a way forward.
Let me read a few comments that I received from people who attended that employability workshop. Navjit Gill said:
“The interview and networking skills session was really useful. I learned a lot about what to do in interviews.”
Elijah Seville-Williams said:
“The workshop taught me about interview techniques which will prepare me for getting a job later.”
That is what we should be doing, as Members of Parliament.
Many employers in my constituency are creating many jobs—small companies as well as larger ones. Tesco has just set up a new distribution centre and I was pleased to be part of supporting that. There are almost 1,200 new jobs, but also 85 jobs for the long-term unemployed. I went to a graduation ceremony last year for people who had not had a job for a long time but had finally found employment through that scheme. It was an incredibly emotional graduation. People were there, with their grandchildren and parents, from across the social spectrum—real people whose lives were being turned around. The reason why companies such as Tesco are confident about creating those jobs is that they have been given that confidence as a result of this Government’s policies.
Business confidence is up in the Thames valley. The Thames Valley Business Barometer published a few weeks ago showed that eight out of 10 businesses are more confident in the economy, 50% reported an increase in the number of employees, while about two thirds forecast a rise in profitability in 2014 that will mean they can employ more people.
Finally, one thing the Leader of the Opposition has managed to do brilliantly, even though he is not running the country, is destroy value in the private sector. Look at what he said about splitting up banks. As soon as he made that statement, £1 billion was wiped off the share price of RBS and Lloyds. That affects not City fat cats or bankers—or whoever the Opposition are currently bashing—but the pension money that is invested on behalf of my hard-working constituents who pay their taxes and invest in their pensions, only to find that the Leader of the Opposition destroys the value of that pension. That is not good enough.
If the Opposition want to know what happens if taxes are increased and entrepreneurs are hit, they should look at what is happening in socialist France, where growth is projected to be a third of what it will be in the UK in 2014. If the Opposition understood anything about jobs, the economy and what is necessary to create security and prosperity, they would vote against their own motion this evening. I urge everyone to reject the motion.
Disability Benefits and Social Care
Lord Sharma Excerpts(12 years, 5 months ago)
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Alok Sharma (Reading West) (Con)
The right hon. Gentleman is talking about the cuts; perhaps he will tell us how he would reform the budget. I believe that the Government’s reforms are very sensible. Will he also tell us how many Remploy factories were shut down while Labour was in power?
Mr Byrne
I invite the hon. Gentleman to intervene on me again when I talk about Remploy in more detail—[Interruption.] No, Remploy forms an important part of our motion, and it is right that we should have an informed debate on the matter. I assure the hon. Gentleman that I will let him have his say at that stage.
We believe that disability living allowance needs reform, and that an independent assessment is needed. We also believe, however, that the assessment should be designed first, and that the savings should be calculated afterwards. This Government have set an arbitrary, top-down financial cut, and they are now scrambling around trying to figure out what kind of assessment will deliver that cut. So little thought has gone into this that disabled people now face being tested for employment and support allowance, DLA and social care, as well as for a raft of other benefits. The testing alone will cost the taxpayer £710 million.
Surely we should be thinking harder about this. Surely we should be trying to determine what is the right assessment for DLA and ESA—which are different benefits—and asking how we can bring them together in a way that would be more convenient for disabled people and that would help them to secure the support that they need to live an independent life. Such a reform would save money. Indeed, when I was at the Treasury, my civil servants costed it and determined that it would save £350 million by 2015.
To this bleak picture we must, I am afraid, add more. Cuts to social care and to housing benefit will make the situation worse, £1 billion has now been cut from local council budgets for social care since this Government took office, and Ministers are still dragging their feet over long-term reform. Meanwhile, 1 million unpaid carers have given up work or reduced their hours, and four in 10 have fallen into debt, thanks to a system that does not work and is set to get worse.
Pensions Bill [Lords]
Lord Sharma Excerpts(13 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Gregg McClymont
The Minister is of course right. I believe that since the Turner report, longevity predictions have risen by 6.5% for men and 5.5% for women. There is no doubt that the issue is complex—no one is denying that—and there may well be a case for going further faster, but the burden of my argument involves the half a million women who must wait for up to 18 months. Our view is that that is a disproportionate burden, imposed without fair and due notice.
Gregg McClymont
I should like to make a little more progress first. I shall be happy to give way after that.
In 2005, in the days when the Conservative party was trying desperately to shift the perception that it had not changed, the present Prime Minister said:
“If you put eight Conservative men round a table and ask them to discuss what should be done about pensions, you'd get some good answers… but what you are less likely to get is a powerful insight into the massive unfairness relating to women's pensions.”
Alok Sharma
I am grateful to the hon. Gentleman for acknowledging that the Government have moved some way on the transitional arrangements, but may I ask him a question that I asked his predecessor, the hon. Member for Leeds West (Rachel Reeves), in Committee? How does he expect to fund the changes that he proposes?
Gregg McClymont
Is the hon. Gentleman aware that the savings that we are discussing have absolutely nothing to do with the deficit? They will accrue from 2016 onwards.
Alok Sharma
What the hon. Gentleman has said is interesting, given that when the Labour party was last in power, it did not really bother about saving for tomorrow. This is what his predecessor said when the point was raised in Committee:
“this is outside the period of the comprehensive spending review and the budget deficit reduction plan.”—[Official Report, Pensions Public Bill Committee, 5 July 2011; c. 8.]
As the hon. Gentleman knows, we are not going to suddenly stop spending and raising money after the budget deficit has gone. If we keep making unfunded pension commitments, that will add to the deficit and the debt in the future.
Gregg McClymont
That was not so much an intervention as a speech. The fact remains that the difference between the Government’s proposals and ours is £10 billion over 10 years. That is £1 billion a year. Is the hon. Gentleman really saying that a saving of that kind cannot be found in a more sophisticated way, without placing an unfair and disproportionate burden on those women? I do not agree, and nor does any other Opposition Member.
The Prime Minister was right when he suggested that if you put eight Conservative men around a table you would get some interesting answers on pensions, but you would not get the right answer. The Prime Minister was right then, and the Government are wrong now. The Minister’s amendments are welcome, and I am sure that he would personally like to go further, but he does not sit at the Cabinet table, although perhaps pensions Ministers should be in the Cabinet. This concession thus remains too limited. Some 500,000 women will still have to wait up to 18 months longer before reaching state pension age.
Turning to a point the Minister made earlier, this is not an easy issue, and there are great challenges, including that of longevity. As people live longer, the state pension age needs to rise to ensure a decent state pension for all. Labour set in train the Turner consensus: the state pension to rise in line with earnings; the retirement age to rise to 68 by 2046; and private pensions to be opt-out rather than opt-in. Labour also maintained the timetable for equalisation set out in the Pensions Act 1995.
Members on the Government Benches ask why we did not implement that, but Labour made great strides on pensions. Some 1 million pensioners were lifted out of poverty between 1997 and 2010. That is a real achievement. The poorest pensioners were lifted out of poverty. No pensioner lives in absolute poverty any longer. I must also point out that we had to do that because the previous Conservative Government left the pension system, and particularly the poorest pensioners, in a very difficult situation.
Gregg McClymont
My right hon. Friend again makes a telling point. The Liberal Democrats signed a pledge on tuition fees which they immediately went into government and trashed, yet they want the Labour party to tell them what the spending plans of a future Labour Government would be five years down the line. As my right hon. Friend says, that is pure cheek.
Gregg McClymont
My hon. Friend is right. She represents a constituency where many women will be affected, particularly low-paid women. The proposed change has a socio-economic dimension of which I am sure the Minister is aware.
The amendment would make a real difference to the lives of the women affected. It is designed to secure a limited reform, targeted at a specific group whom the Government are not treating fairly, and it would give rise to costs representing just over 1%—one 100th—of the annual pensions budget.
The Chancellor has previously said that
“we are not going to balance the budget on the backs of the poorest and the most disadvantaged,”
but the costs of this Tory-led Government’s acceleration of the state pension age equalisation timetable targets a group with limited resources.
Alok Sharma
I thank the hon. Gentleman for giving way. He is making a passionate point, and he talks about social justice and fairness, but all those on whose behalf he speaks up will ask, “If the Labour party ever get back into power, will they enact these changes?” It is a fair question for everyone to ask, and it is fair that he gives us an answer today.
Gregg McClymont
After the hon. Gentleman’s previous intervention, he did not listen to the answer; given that intervention, he did not listen to the answer I gave the hon. Member for East Dunbartonshire. He just does not seem to get it.
Jenny Willott
I completely accept that political decisions are a matter of priorities and choices—all hon. Members understand that, because we are all involved in political debates and decisions. As I have said, in an ideal world, I would like the cap to be reduced. However, given the financial circumstances, the Government’s proposal is a compromise that I can accept. I understand that some will be negatively affected, but we have made significant progress. Half a million women and half a million men will benefit from the proposals, which I accept as a positive compromise.
Alok Sharma
My hon. Friend makes the point that we are not in an ideal world. A large part of the reason why we are not in the world that we would like to be in is that the previous Labour Government left us with a record deficit. Labour Members are now talking about another £10 billion. Does she agree that it is ludicrous for them to talk about unfunded commitments, and that they should instead apologise for the mess that they left the country in?
Jenny Willott
We need to focus on what is realistic and affordable. The Bill will affect people’s lives, and we need to ensure that the state pension is affordable and sustainable long into the future. I want to receive the state pension that I have paid into when I come to retire, and I am sure all hon. Members and people out there in the country would want the same thing.
I welcome the fact that Labour Front Benchers are now more positive toward to today’s proposals, and that they are prepared to accept that the Government have moved to the significant benefit of a large number of women, even if a realistic approach is somewhat lacking in their proposed amendments.
Pensions Bill [Lords]
Lord Sharma Excerpts(13 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Mr Duncan Smith
As I have made clear and will make clear later, the parameters of the Bill are clear and it is my intention to stand by those parameters. The ages will therefore equalise in 2018 and rise together to 66 by 2020. Of course, I am always happy to discuss these issues with colleagues from either side of the House, including those in the coalition. However, I make it absolutely clear that our plan is to press ahead with the Bill as it stands. The ages will therefore rise together to 66 by 2020.
Alok Sharma (Reading West) (Con)
Does my right hon. Friend not think that the criticisms from the Opposition are rather rich? In September 2004, the then Secretary of State for Work and Pensions, the right hon. Member for Kingston upon Hull West and Hessle (Alan Johnson), told the TUC:
“This Government will not raise the state pension age”,
yet Labour’s Pensions Commission reported in 2005 that the pension age should go up, and in the Pensions Act 2007 the Labour party legislated to increase it for men and women.
Youth Unemployment
Lord Sharma Excerpts(13 years, 9 months ago)
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Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)
I beg to move,
That this House believes that the Government was wrong to cancel the Future Jobs Fund that would have created 200,000 jobs for young people; further believes that the Government’s economic policies have slowed economic growth, raised youth unemployment and created the highest graduate unemployment for over a decade; further believes that urgent action is now required to stop a generation of young people being lost to worklessness; and calls on the Government to commission an independent assessment of the Future Jobs Fund to report to Parliament before the Government’s Work Programme is implemented and to evaluate whether a guarantee and requirement of work incorporated into the Programme would bring down youth unemployment in the short and longer term and limit steep rises in welfare payments.
I am glad that we have been able to force the Government to come to the House to debate the employment figures—or, rather, the unemployment figures—published this morning, because those figures will worry families, young and old, up and down the country. The headlines from this morning’s numbers are bad enough—five quarters after the recession ended, unemployment is not going down but up; employment is not rising but falling—but the details are, I am afraid, even worse. Private sector employment is flat, while the number of public sector jobs is falling fast. It is becoming clear that the private sector is not creating jobs fast enough to absorb the redundancies that we know are coming down the line. There are now more women on the claimant count than at any time since 1996.
The consequences for young people are perhaps most serious of all. One in five of our young people is now out of work; the number of unemployed has risen again; we now confront youth unemployment of almost a million—the highest figure on record. That figure is a wake-up call to this Government to get their act together. The question we want the House to debate today is quite simply, what should the Government do next?
As if we needed it, this morning’s figures are, if anything, fresh evidence of the need for a plan B on economic growth. We have rehearsed the debate in the House plenty of times over the past year, and I do not plan to do so again this afternoon. Suffice it to say that the Government are cutting spending too far and too fast. The recession having been over for a year, we would expect to see unemployment now falling fast, and yet it is not. Longer dole queues make the deficit not easier to pay down, but harder. The result is that working families end up paying the price.
Alok Sharma (Reading West) (Con)
The right hon. Gentleman was part of a Government who presided over a record rise in youth unemployment. As his Government’s policies clearly did not work over 13 years, should he not, instead of carping from the sidelines, get behind the policies of the coalition Government, who are offering a fresh start to young people in this country?