Policy-making: Future Generations

Baroness Stedman-Scott Excerpts

Tuesday 1st October 2019 Lords Chamber

[Lord Laming (CB)]

In the absence of my noble friend Lord Bird, who cannot be here, I ask the Question in his name on the Order Paper.

[The Parliamentary Under-Secretary of State, Department for Work and Pensions (Baroness Stedman-Scott) (Con)]

My Lords, accounting for the interests of future generations is a core consideration within the Government’s policy-making. The Government require that all programmes, projects and policies demonstrate the costs, benefits and risks associated with the intervention over its whole lifetime, in line with the government Green Book. This includes the impact on future generations. Where the possible effects of an intervention being examined as part of an appraisal are long term and involve very substantial or irreversible wealth transfers between generations, The Green Book sets out the analysis that is required to estimate the long-term impact of the intervention.

[Lord Laming]

My Lords, I am very grateful to the Minister, who has vast experience in this area. But I ask whether the Government recognise that the budgetary cuts year on year on year have resulted in a marked reduction in family support and preventive services, especially for young people. Does she accept that there is a great deal of catching up to be done, which must involve the contribution of every government department, as is happening in Wales? How will the Government ensure that every department plays a part in this?

[Baroness Stedman-Scott]

I would be foolish to say that we have not got some catching up to do, but I assure all noble Lords that we wish to work hard to achieve this. In terms of cross-government working, I have been in the department only a short while, and I have met with people in other government departments to talk about things that we can do together to make the impact better. The principle is well understood, and I assure all noble Lords that we are completely committed to making sure that the resources we have are deployed well for the benefit of all generations.

[Baroness Sherlock (Lab)]

My Lords, the Minister referred to The Green Book as being the means by which the Government decide how to adjudicate between the interests of different generations. But The Green Book, which is a Treasury document, sets out the tool for analysing or comparing policy objectives using things like net present social value or social time preference rates; you can work out how to judge those transfers. Will the Government publish the results of those analyses in the impact assessment along with everything else? More importantly, the young people I saw in Durham on the climate strike were convinced that we are not prioritising their interests. What tools can the Government use to assess damage done to the climate and to the planet—although, of course, there is no planet against which we can compare it?

[Baroness Stedman-Scott]

Well, there is an exam question! On the question of publishing the impact assessment, I will go back and ask my boss. Do not think that that is a cop-out; I do not actually know. I will ask my boss and then write to the noble Baroness, and everybody will receive a copy of his response through the Library.

On climate change, I think that we have done really well to be the first country to legislate for long-term climate targets. Between 1990 and 2017 we reduced emissions by 42%, so we are serious about this. I hope that the efforts of young people in this respect will help them realise that they are having a great impact on the activities of the Government to make that happen.

[Lord Tyler (LD)]

My Lords, does the Minister accept that this Question has accountability to this and future generations at its core? Is there anybody in No. 10 who has any respect for our constitution and parliamentary democracy, let alone has made any assessment of the importance of our history in this respect? My ancestor, Jonathan Trelawny, was one of the seven bishops who defied James II’s royal prerogative and then precipitated the Glorious Revolution of 1688. Does the noble Baroness accept that the Executive are answerable and accountable to Parliament, not the other way around? Has that not been the central, core constitutional principle for 330 years? As this is such a minority Government—

[Lord Tyler]

As this is a minority Government and the Prime Minister represents only a tiny fraction of that minority, surely the task he refers to is representing what Parliament is saying, rather than what he wants to do.

[Baroness Stedman-Scott]

The phrase “something vexes thee” comes to mind. The noble Lord is trying to get me into the territory of another subject that I do not want to get into today; I want to stick to what we are discussing. But I do not think there is any doubt that everybody understands about accountability. I do not think I can add anything, and speak on behalf of No. 10, other than to say that I am convinced that they understand that.

[Lord Forsyth of Drumlean (Con)]

My Lords, we have all heard about the bank of mum and dad, but in considering the future of social care policy is my noble friend aware that we will rapidly move to the bank of son and daughter? When can we expect the Government to produce a response to the committee of this House’s report on social care, or indeed the long-promised Green Paper?

[Baroness Stedman-Scott]

I understand about the bank of mum and dad—and about the bank of auntie, from which deposits are drawn on a regular basis. I understand the point my noble friend is making; it is a very important issue that impacts greatly on those who need social care now. Of course, coming future generations will want to know how this is all going to be done. I do not know about the timing of the documents, but I will try to find out and write to my noble friend.

[Lord Berkeley of Knighton (CB)]

My Lords, when the Government are criticised over the lack of music in schools and on syllabuses, they point to the success of the music hubs. I salute that success, but these hubs are now financially at risk, with future funding not confirmed even for next year. Will the Minister confirm that funding will continue, and increase to cover inflation and increased costs, thus preventing the legs being cut from under music education in this country and, indeed, the Government’s own flagship?

[Baroness Stedman-Scott]

I thank the noble Lord for his question. I do not want to seem flippant, but I do have not have my chequebook with me today, so I do not think I can help him there. Again, this is something I will need to find out about, but the point he raises about the importance of music is well understood.

Pensions

Baroness Stedman-Scott Excerpts

Wednesday 13th December 2017 Lords Chamber

[Baroness Bakewell (Lab)]

My Lords, I congratulate the noble Baroness, Lady Scott, on raising this issue, and all the women who are attending the debate—and by that I imply a criticism of all the men who have decided to stay away.

One day they will make a film about this issue. It will be a British film, made on a small budget and inspired by a sense of outrage that such an unfair treatment of British women could have persisted into the 2010s. It will join a fine tradition of films which have put on record the past struggles women have had to be heard. Recent ones include the 2010 film “Made in Dagenham” and the 2015 film “Suffragette”—both subjects that the establishment of the day hoped would go away once the fuss died down. But it did not, and the protests of the women finally won out.

The WASPI women are in that tradition. Indeed, their many branches wear the suffragette colours with pride. They persist in protesting the unfair treatment that women born in the 1950s have been given by the Government’s pensions policy, as expressed with increasing severity in the Pensions Acts of 1995 and 2011. The film of their story will detail how, in trying honourably to remedy one inequality—bringing women’s and men’s retirement ages into harmony—the Government of the day perpetrated another, subjecting 2.6 million women to unexpected delays to their pension dates, with too little warning, and throwing many of them into genuine hardship.

The film will show, with perhaps only slight exaggeration, bumbling officials—I suggest Jim Broadbent or Hugh Bonneville—overwhelmed with detail about changing demographics and passing on conflicting advice to the Ministers concerned. A lead role in the film will be the Minister of State at the Department for Work and Pensions, Steve Webb, who will be shown as well-meaning but confused—a part for Hugh Grant, I think. Steve Webb was the longest-serving Minister at the DWP and effected important and successful changes, such as the triple lock on pensions that benefited many and continues to do so, and the automatic enrolment by businesses of their workers into pension schemes—all fine reforms by a man whose word we could surely trust.

That being so, Steve Webb will have written his own script for the film in June 2015, after he had left office and lost his parliamentary seat. He told the Institute for Government:

“There was one very early decision that we took about state pension ages, which we would have done differently if we’d been properly briefed, and we weren’t … we’d put an announcement out … and we just hadn’t thought through what we were doing … we had to make a difficult decision … and the implications of what we were doing suddenly, about two or three months later, it became clear that they were very different from what we thought … so that’s a decision that we got wrong”.


Those are the Minister’s own words. Incidentally, Steve Webb also spoke of the fine support he usually had from his civil servants—“very good people”, he called them—but not on this occasion.

The film will show Steve Webb going, cap in hand, to David Cameron, leader of the coalition Government in which he served, and asking for some money back from the savings that his department had made. He needed this money to soften the blow but came up against George Osborne and the steely men of the Treasury—male judgments being passed on women’s lives. He got only a third of the £3 billion he asked for and thus was the crisis launched.

Like any good film, this one will fill in the background: the genuine poverty that WASPI women are suffering because they were not given time to plan. We will see piles of brown envelopes stacked up, not delivered or left unopened at the wrong addresses. I have had arguments made to me that the news of the changes was in fact dispatched to the women concerned. Perhaps the film will show us the many ways the post can go astray and publicity campaigns be overlooked. We will see women who were facing retirement at 60 suddenly trying to extend their employment and being refused, trying at the jobcentre and suffering the humiliation which at their age is deeply distressing for them.

I can imagine the story being told of one such character—let us say she will be played by Julie Walters. She left school at 15, has worked all her life since, paying the contributions expected of her from her meagre wages, and now she is bewildered that the world is denying her the support she had always been led to believe was hers by right. We can imagine the brutal cross-examination at the jobcentre—Simon Russell Beale in a cameo role, I think—and the requirement to seek out employment before she becomes eligible for any benefit to ease her poverty.

We now live in a time that is finely tuned to the lives of women and how, simply because of their gender, their experiences of life are different from those of men in so many ways—equal pay, sexual harassment. We are increasingly conscious that simply because you are a woman you should not be singled out for particular treatment—of whatever kind. There is a groundswell of popular feeling that this should not be so. The WASPI women were born long before the equal pay legislation and well before the Equality Act. They have lived their lives under the disadvantages that were once the lot of all women. The pensions legislation perpetuates that disadvantage—no adequate notice, no time to prepare and no adequate transitional arrangements to ease any hardship. The various suggestions that have been made for transitional arrangements do not meet their needs. They now ask to meet the department to discuss and resolve this continuing and shameful situation.

Only last month there was a majority of 288 votes to none in the other place for the Motion calling on the Government,

“to improve transitional arrangements for women born on or after 6 April 1951 who have been adversely affected by the acceleration of the increase to the state pension age”.—[Official Report, Commons, 29/11/17; col. 366.]

The film poster might well read: “They were old. They were women. They were condemned to be poor”. I appeal to the Minister to make sure that this does not happen.

[Baroness Stedman-Scott (Con)]

My Lords, I respectfully remind noble Lords that this is a timed debate and the noble Baroness, Lady Altmann, is going to speak in the gap, so we need to take 30 seconds off the other speakers. If noble Lords could please stick to the time, that would be helpful.

Poverty

Baroness Stedman-Scott Excerpts

Thursday 14th July 2016 Lords Chamber

[Baroness Stedman-Scott (Con)]

My Lords, I draw your attention to my entry in the register of interests.

I am pleased to be able to take part in this debate, on which I congratulate the noble Lord, Lord Bird. His call to action is welcome and refreshing, and his track record on this subject speaks for itself, because this is about a hand up, rather than a handout. I also pay tribute to the noble Baroness, Lady Sharp, who will make her valedictory speech later. Her passion and commitment to education—as we have already heard, education could have a major impact on the causes of poverty—have been unrelenting, and we thank her for that.

I must add my congratulations to our Prime Minister, Theresa May, with whom I have worked in the past on social justice issues. My first-hand experience tells me that her commitment to tackling the root causes of poverty in the most effective way possible has a long history, and I hope it will result in a good destiny for those we are trying to help.

This is the nub of the issue. Many on the left and the right of politics were taken aback when the Joseph Rowntree Foundation found that the Labour Government’s child poverty strategy—albeit that they had the very best of intentions—had started to run into trouble as early as 2004-05. The key turning point was well before the recession, when poverty, unemployment and property repossessions all started to rise. That child poverty strategy, based very largely on income transfers, had in place measures and targets which enabled the Government to monitor their progress. It was through reporting on their own measures and targets that it became objectively clear that a new approach was needed.

This Government are in the process of bringing about the radical change needed to tackle poverty effectively. I would be very interested to hear about progress to achieve this from the Minister. It will come as no surprise to anybody in this House that I fervently believe that one of the best routes out of poverty is to have a job which pays a decent living. We also need to embed in the education system and its curriculum the fact that we want to prepare our young people for work. We need to teach young people to learn and to earn a living—and the earlier we start this, the better, because prevention is better and more cost effective than a cure.

I was thinking about two aspects of this change process in particular. First, I am a passionate believer in this Government’s shift of focus to life chances and regret that I was unable to speak in the very good debate on this subject led by my noble friend Lord Farmer in May of this year. I believe that the much-anticipated life chances strategy was to be unveiled straight after the referendum result. Of course, the Government have had one or two even more pressing priorities since then. Can my noble friend the Minister give us some indication of when we can expect to hear about this vital aspect of their agenda, as mentioned in the Queen’s Speech and, if I understand correctly, in the outgoing Prime Minister’s last Cabinet meeting?

Secondly, and related to this, the Welfare Reform and Work Act introduced new measures on educational attainment and employment so that progress, or indeed regress, could be tracked. Income-based measures have also been retained but targets were dropped because they cannot be guaranteed to drive effective action to improve life chances. I am of course summing up hours of expert debate in this Chamber, so I hope that noble Lords will bear with my somewhat crude synopsis.

It is vital that the impacts of government and other policy and wider socioeconomic developments can be accurately discerned through measurement. However, we cannot go from simple income measures to equally simple educational and employment measures and expect to gain a sufficiently rich picture of the actual state of the lives of the very many people who are struggling with the effects of poverty in this country today. We need to develop—and continue to develop—the best indicators in these broad areas as well as in issues such as family breakdown, lack of skills, drug and alcohol addiction, poor mental health and personal indebtedness. That is a long and certainly not exhaustive list of what is increasingly referred to as social metrics.

My noble friend Lady Stroud recently set up a Social Metrics Commission with the intention of having something that, as she said,

“incentivised the right behaviours for government, incentivised the right behaviours for people in disadvantaged backgrounds, and genuinely tracked a group of vulnerable people, that we were concerned about, and who without any other form of external intervention, were not going to move”.

I believe her aim is that the commission, which is wholly independent of government, should come up with an authoritative set of indicators which will act as challenges to policymakers as to where they should focus. Can the Minister inform the House of his view on the importance of developing such a set of metrics? Will this help to drive the paradigm shift which is surely needed, if the welcome words of our new Prime Minister are to translate into the necessary action to transform our society?

There are some factors influencing poverty which we cannot measure but which, when they are missing, certainly have an impact on the poverty bottom line. I talk about financial poverty, but in my experience there are other poverties: there is a poverty of aspiration, where people just believe aspiration is for everyone else and not for them; there is a poverty of inspiration, and we have a responsibility to inspire people to believe that life can be better and that they can do it; and there is a poverty of determination—why should I bother? We should and must bother to make sure that we identify the causes of poverty and do something about it, so that people can really aspire to a better life.

Poverty Programmes: Audit

Baroness Stedman-Scott Excerpts

Wednesday 4th May 2016 Lords Chamber

[Lord Freud]

The key thing in tackling poverty is life chances—in the end, transforming people’s lives—not income transfers. To the extent that the extra support helps children in their early years and in their education, it will be of great value.

[Baroness Stedman-Scott (Con)]

My Lords, now that universal credit is in every jobcentre in the country, how is it helping the poverty agenda?

[Lord Freud]

I am really pleased to confirm that universal credit is now a national programme right across the country. We have real evidence that it achieves its aims: 13% are more likely to be in work at the nine-month point than if they were on JSA. It is already a good benefit by international comparisons. Many more of those in work are looking to do more hours, and many more are looking to increase their earnings than would be the case if they were on JSA.

Under-occupancy Charge

Baroness Stedman-Scott Excerpts

Thursday 28th January 2016 Lords Chamber

[Lord Freud]

Yes, that is precisely the point. As far as we can tell, one reason that the Court of Appeal took this decision was to send the cases to join another set of cases that the Supreme Court will look at in March. The Supreme Court will, therefore, be able to take a view and reach a judgment across the piece on these issues and will do so relatively rapidly. So this is really by way of an interim legal position before we have something more definitive.

[Baroness Stedman-Scott (Con)]

Can the Minister tell us how many cases the Government have won in relation to this policy?

[Lord Freud]

So far, we have had 10 cases in the High Court and we have won them all. We have just lost these last two in the Court of Appeal but we have won the five joined appeals in the Court of Appeal and those are the ones that are now going to the Supreme Court. So, until this last judgment, the legal system has accepted that the way that we ameliorate these hard cases using the discretionary housing payment is an appropriate way of providing the protections that I think all of us in this Chamber want to make sure are there.

Employment: Job Creation

Baroness Stedman-Scott Excerpts

Wednesday 16th December 2015 Lords Chamber

Asked by

[Baroness Stedman-Scott]

To ask Her Majesty’s Government how many jobs have been created in the European Union compared to the United Kingdom in the past year.

[The Minister of State, Department for Work and Pensions (Lord Freud) (Con)]

My Lords, over 2014, the UK saw the largest employment growth of any EU country. The UK continues to perform strongly, and over the past year, employment rose a further 350,000. This has gone alongside a welcome improvement in the rest of the EU, which saw an annual employment rise of 1.8 million.

[Baroness Stedman-Scott (Con)]

I thank the Minister for his response; I think that we will all be encouraged and pleased with the increase of employment levels across Europe. Can he tell us whether the recovery in employment rates across Europe will reduce inward EU migration into the UK?

[Lord Freud]

I think that it is a valuable development —to see improvement in the EU—because we have seen quite a large increase recently in the employment of EU nationals in the UK. Over the past year, for instance, it was 155,000, compared with 30,000 the previous year. So we would expect to see some of the pressure reduced, whereby people are pulled in because we have the jobs, as the jobs start to grow in the rest of the EU.

Welfare Reform and Work Bill

Baroness Stedman-Scott Excerpts

Tuesday 17th November 2015 Lords Chamber

[Baroness Stedman-Scott (Con)]

I congratulate my noble friend Lady Stroud, whom I have known and worked with for some time, on her maiden speech. We worked at the CSJ on Breakdown Britain and Breakthrough Britain, and I compliment her on identifying not just problems but the solutions that make a real difference to the lives of people. She is committed, knowledgeable and incisive regarding the issues and the solutions we need to put in place. This House will be the richer for her contribution and involvement. From all my dealings with her, the one thing I would say is that she is very good at challenging herself and her colleagues—and, I hope, the whole House—to do that which is best for those who need us most.

I support the principles behind this welfare Bill. While I am sure that it will have been quoted many times, I fully support the objective of doing all we can to move our country and the individuals in it from a low-wage, high-tax and high-welfare society to a higher-wage, lower-tax, lower-welfare economy. This principle will ensure that work always pays more than a life on benefits and that support is focused on the most vulnerable in a way that they need. We must not miss the point that the system must be fair, as my noble friend Lord Blencathra explained, to all those who have put in and those who receive the help they need. I do not mean being fair to one group at the expense of another; I mean basic fairness.

We heard about China tonight. I am thankful that we live in a democracy that allows everybody in this House to stand up and say exactly how they see the situation. People listen, and some people’s views may well be changed, but we need to make sure we work together to get the best of this Bill for those who need it most.

I will focus on apprenticeships. Clause 2 introduces a duty to report annually on the progress being made towards the Government’s ambitious target of 3 million apprenticeships being started in England during this Parliament. That figure is ambitious, but we have to be ambitious for the people we want to take part in apprenticeships. However, our ambitions must not stop at the quantity of apprenticeships; we must also consider their quality.

It is encouraging to know that in development are more than 140 Trailblazer groups, involving more than 1,300 employers and 187 published approved apprenticeship standards. Of these, more than 60 are higher and degree apprenticeships, and more than 160 are new, approved English apprenticeship standards. Provisional data show that during the last Parliament, there were 2.3 million apprenticeship starts, of which more than 600,000—26%—were taken by 16 to 18 year-olds. We need to build capacity for more 16 to 18 year-olds in approved apprenticeships.

For me, apprenticeships have three benefits: for the participants, for the employers and for the economy. I will talk about the participants. Apprenticeships are part of the journey of people who want and need to make a successful transition from education to employment. I have spoken many times in this House about the need to take young people on a journey and support them. Apprenticeships introduce young people in particular to the world of work. They do not just produce work experience but, most important, they provide real experience of the world of work and give young people the necessary skills.

Research by London Economics shows that the lifetime benefits associated with apprenticeships at Levels 2 and 3 are significant: between £48,000 and £74,000 for Level 2, and between £77,000 and £117,000 for Level 3. Higher apprentices can earn up to £150,000 more, on average, over their lifetime than those with just vocational qualifications. I am a great believer in evaluating programmes. In 2014 an apprenticeship evaluation showed that 89% of apprentices were satisfied with their apprenticeship; 85% said that their ability to do the job had improved; and 83% said that their career prospects had improved. Apprenticeships are good for apprentices. Nine out of 10 of all apprenticeship completers—88%—are in either full or part-time employment, seven out of 10 with the same employer.

Secondly, apprenticeships are good for employers. According to the 2014 apprenticeship evaluation, 82% of employers were satisfied with the programme, while 70% reported that apprenticeships had improved the quality of their product or service. That is an excellent basis on which to build to ensure that quality as well as quantity is maintained. I fully accept that larger employers have the capacity and infrastructure to accommodate and support apprenticeships. I am pleased at the number of SMEs that are giving such opportunities, but sometimes they do not have the capacity and infrastructure to do as well as they want. Are we doing enough to support SMEs to make sure that they play their full role and give young people the opportunities that they should? I would also like to encourage the whole public sector to open their minds more to providing apprenticeship roles.

Thirdly, the economy as a whole benefits from apprenticeships, as people are upskilled and make a good transition from education to employment and understand how they can play their full role in the business. That helps our economy to continue to grow.

In summary, we have a welfare Bill that aims to ensure that we do better for people. I am sure we will have a big debate about the rights and wrongs of that, but let us not only have the debate but find some really good solutions, so that many who start their journey can, with our support, complete it and reach a good destination. Apprenticeships are a key, fundamental part of that journey, and quality is important. None of these things will happen unless employers, particularly SMEs, are able to deliver good quality apprenticeships and, as a result, a good economy.

I look forward to the continuing debate and, with some trepidation, to the continuing challenge. But I hope that the hearts of every one of us will beat in concert, and at the end of the day we will do the right thing for the people whom we in this House are here to serve.

Young Offenders: Employment and Training

Baroness Stedman-Scott Excerpts

Wednesday 17th October 2012 Lords Chamber

[Baroness Stedman-Scott]

My Lords, the subject of this debate is critical to the young people of our country who find themselves being released from custody. I, too, congratulate the noble Baroness, Lady Healy, on securing this debate. My heart beats in concert with her on this, because it is a very important issue. I must declare that I am CEO of Tomorrow’s People. I hope that the work we are doing with young people gives me some insight into how we need to support them when leaving custody; and, even more importantly, supporting them before they get there in the first place.

I am conscious of the work done by others in this field. There is the National Grid, Blue Sky and the Prince’s Trust to name but a few. The statistics of National Grid have been well voiced this evening, so I will not go over them. Blue Sky develops social enterprises for people to work in. It operates contracts and, therefore, is trading. Its concept is “not for profit” but it would call itself a “not for loss” organisation. Certainly, it makes sure that it pays its way in providing invaluable support to young people. The Prince’s Trust, which is well known to all of us, helps young people to start their own businesses.

My experience of these young people is that they are clever and talented. They are just waiting for someone to help them realise their talent and—perhaps I am old-fashioned—to love them so that they can blossom. A great deal is being done to help people make an effective transition from custody but, as the founder of the Salvation Army, William Booth, said when his son was waxing lyrical about the wonderful work that the Salvation Army was doing:

“Bramwell, that and better will do”.

We may be doing good things, but there are more and better things that we can do.

In preparation for my contribution, I read the Local Government Association’s paper on the resettlement of offenders, which lists well the key elements that young people need to make an effective transition from custody. I know that the debate today is focused on finding employment and training on release but other critical things need to be in place if young people are to get the best from any development opportunity. Indeed, when we see what they are, we start to appreciate why things do and do not work.

Those important components include accommodation and long-term mentoring. Let us not work with them for just a few moments; we must stick with them for a year or even longer. We should ensure that they have an acceptable attained level in at least literacy, numeracy and general education. They should also be given some personal development and vocational training. At the heart of the key elements is that these young people are prepared for the world of work and that they are given work experience. Much has been said about work experience and how, sometimes, people are abused but it gives an opportunity for young people to go to an employer and show what they are able to do in the working environment. Most importantly, all these things need to be packaged so that they can get and keep a job.

Recently, I have spoken to a number of young people who are sofa surfing. They go from one house to another sleeping on the sofa. From one day to the next, they never know where they are going to stay. If they do not have a sustainable and stable, in every sense, roof over their head, all the training, employment and support that they are given can be lost because they are worrying about other things.

Long-term personalised mentoring and support is not a commodity business. I regret that we cannot scale it up, solve the problem, stack them high and sell them cheap. It will not work. This should be an individualised and one-to-one practice. The young person in front of you and looking for help needs to be the most important person in the world to you on that day.

One thing that I have learnt at Tomorrow’s People is that it is not the time to walk away when someone gets a job and makes a positive step in their journey. We need to stay with them in order to get the sustainability rates that we want. It is hard enough to get a job if you are well educated, come from a loving home and have everything, as has already been said. If we do not prepare these young people well for the world of work and do not spend as much time with the employer as we do with the young person, we will never effect the integration.

For employers to take on these young people is a big risk, on top of their worries about profits and things like that. We have to give them as much support as we can. Let me give one practical example. We were asked by a very large company to recruit, integrate and induct 12 of the most challenging cases in its community into its workforce. The young people were all assigned a job.

One young girl turned up for work on Monday, Tuesday, Wednesday and Thursday, and everyone was really happy with her. On Friday, she did not show up, so a member of staff drove to her house and knocked on the door. The girl came down in her PJs. She was asked, “Why aren’t you at work?”. She said, “I never went to school on a Friday and no one ever bothered to chase me”. The girl was told to get dressed and get to work. The second week, it happened again, but on the third week she turned up on Monday, Tuesday, Wednesday, Thursday and Friday. The whole thing could have fallen apart for the sake of two car journeys. It is not rocket science, it is not sophistication, it is very practical.

I come to the most difficult part of what I have to say and I hope that the Minister is sitting down and happy. All of this needs money and there is not a lot of that about, is there? I am not making any judgments about that, but I know that there are people, employers and people who care about our society, who are prepared to invest in this area of work through the medium of social impact bonds and social finance. I want the Minister, please, to spend some time seeing whether we can accelerate our social investment activity. Patience is not a virtue I have managed to cultivate and I think that I am going to give up trying, because we need to go faster and the one thing that is holding us up is the commissioning side, from Government. Please do not take that as a judgment: we just need to get better at it.

Young people’s history in this field is well documented and well versed; everyone knows what they have done wrong and I would like us to spend time giving them a destiny and forgetting their history.

Welfare Reform Bill

Baroness Stedman-Scott Excerpts

Tuesday 13th September 2011 Lords Chamber

[Baroness Stedman-Scott]

My Lords, I begin by declaring an interest as CEO of the employment charity Tomorrow’s People which aims to help people get and keep a job and to help them to focus on their destiny rather than their history. I hope that in relation to universal credit this Bill will help people to get extra focus on their destiny. In addition, before I joined your Lordships' House, I worked on the reports, Breakdown Britain, Breakthrough Britain and Economic Dependency, all of which were undertaken in conjunction with the Centre for Social Justice.

In my experience of working with unemployed people, they want to work. As the noble Baroness, Lady Hollis, said, they do not need to be whipped. They want to be independent and to make the choices in their lives that they see those in work making. The difficulty comes when trying to make the transition from welfare to work when the system in place does not generate sufficient incentives to work. I draw noble Lords’ attention to a conversation I had with a young couple a few weeks ago. They had a child. The mother of the child had a part-time job working 19 hours a week. She wanted more hours because she wanted to be able to do more for her family. She managed to get another job which meant an increase to 29 hours a week, and she took the increased hours at the weekend so that childcare could be managed. You would think that it was something to celebrate. In front of me, her partner said, “Well, if you didn’t work, we wouldn’t have to pay the rent”. This is what we need the new system to stop. The principle of the universal credit is most welcome. It will simplify the current system, and I hope that the introduction of the new single taper, which will withdraw support as earnings rise rather than stop them altogether, will make the statement that work must pay a reality. At the moment, the withdrawal of benefits when somebody gets a job is all or nothing, resulting in people asking, “Why should I bother?”. This, I hope, changes things greatly.

However, I urge the Government to make sure that the changes which will affect unemployed people under the universal credit are communicated effectively and professionally. We must turn every stone to make sure that they are fully conversant with the flexibilities and opportunities that are presented to them, and help and support them through their journey back to work. It would be a travesty if we failed to do this. It is critical that all front-line staff, either from the DWP or indeed the various providers that interface with unemployed people on a daily basis, are well trained and that there is no opportunity for confusion or lack of clarity on these significant technical and cultural changes.

The introduction of the universal credit is long overdue, but I fear that the question we have not asked is: how are we going to support our unemployed people in the most effective way during their period of economic inactivity at the same time as introducing these changes? This is not a question for the Bill but it is something we must give thought to. If the jobs are not there, and the magic wand of the Minister cannot create them, what are we going to do to make life better for people during this period?

Like many of your Lordships, I have received several briefings on this Bill. They raise some understandable concerns and I would just like to mention one: childcare. One of the greatest obstacles faced by people looking to return to the labour market is that of affordable, quality childcare. The provision of childcare is not covered in this Bill but it will seriously affect the ability of people to take a job if it is not in place.

I greatly welcome the principles behind this Bill but it involves major changes that will need to be carefully worked out. I thank the Minister for the consideration that he has given in the briefings to the feedback we have given him. My father had the politically incorrect job of furrier—he made fur coats. He said the advice his first boss gave him, whether he was making an expensive mink coat or one of less expensive skin, was always, “Measure twice and cut once”. With all the proposed changes that this Bill brings to welfare reform, we would all do well to adhere to this advice.