Skills and Post-16 Education Bill [HL]

Debate between Baroness Greengross and Baroness Bennett of Manor Castle

Committee stage
Wednesday 21st July 2021 Lords Chamber

[Baroness Greengross (CB) [V]]

My Lords, I support the intentions of these three amendments. In essence, they would allow people on universal credit to engage in study without being financially disadvantaged.

The current situation creates a perverse disincentive, whereby those wishing to upskill and gain qualifications that may make them more employable find themselves financially worse off as they no longer receive universal credit payments. Allowing people to study and gain new skills improves their chances of getting off benefits and into employment. Whatever short-term savings the Government make by not paying benefits to people who enrol in training courses, they are lost if the system incentivises people to stay on universal credit rather than participating in education.

One understands completely the desire to limit benefit numbers and, further, to encourage those who can work while studying to do so. However, this needs to be carefully balanced with the need to encourage upskilling at a time when our workforce is changing rapidly—and will continue to do so, in my view.

This is an area that the Department for Work and Pensions and the Department for Education need to work together to solve. Can the Government outline what work has been done to date by both departments on this important policy area? What steps will they take to ensure that universal credit policy is not inadvertently discouraging people from participating in crucial skills training?

[Baroness Bennett of Manor Castle (GP) [V]]

My Lords, it is a great pleasure to follow the noble Baroness, Lady Greengross. This group of amendments has already been outlined clearly by the right reverend Prelate the Bishop of Durham. To sum up his contribution, he asked how people could better use their time while unemployed than by upskilling. The noble Lord, Lord Addington, said that it would be an absurdity not to encourage the unemployed to improve their skills.

On day one of our debates, we talked a great deal about the need, in our climate emergency and nature crisis, to increase our skills. There is simply so much that we need. People who are unemployed are obviously at a potential point where we can start to fill some of those gaps.

The noble Baroness, Lady Janke, made an important point: that unemployed people are of all ages, from those just leaving school to those in their 70s and beyond who still need, or want, to work. They often have commitments, for example to children, to rent, to a mortgage or to supporting older relatives. We cannot assume that they are just a unit of labour that can be shifted around at will.

What we have seen is decades of wretched economic change in many parts of the country, which has only been amplified by Covid. It is worth looking at a study from the Institute for Employment Studies, published in June. It attempts to explain the current conundrum where we have a recruitment crisis yet in parts of the country there are as many as 10 jobseekers for each vacancy. According to the study, the average number of people across the country claiming unemployment benefit and competing for each vacancy is 2.2, and almost 100 local authorities have five jobseekers going for each available role.

People have to be able to make choices in their own interests and in the interests of the country. Leaving people trapped, applying—pointlessly, they know—for scores and scores of jobs that they know they are not going to get is profoundly dispiriting and damaging. We need to give people the option of finding another path forward in life instead of being trapped in that situation.