Jobseeker's Allowance (Work for your Benefit Pilot Scheme) Regulations

Lord Grayling Excerpts

Friday 19th November 2010 Written Statements

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

On 21 June 2010 we notified bidders that we would not be proceeding with the Work for Your Benefit pilot scheme.

The Jobseeker’s Allowance (Work for your Benefit Pilot Scheme) Regulations 2010 (S.I. 2010/1222) were approved in draft by each House of Parliament in March 2010 and were made on 7 April 2010. They are due to come into force on 22 November 2010, and then to lapse on 21 November 2013. These regulations allow the Secretary of State to select claimants in pilot areas for participation in the scheme if they meet specified conditions. They also provide for the loss or reduction of benefit if persons selected fail to participate without good cause.

As a result of this decision, no jobseeker’s allowance claimants will be selected for participation in the scheme.

As part of the wider reforms to welfare that this Government are undertaking, I will in due course be announcing further details of the support we will be offering to improve the job chances of long-term unemployed people.

Employment, Social Policy, Health and Consumer Affairs Council

Lord Grayling Excerpts

Thursday 28th October 2010 Written Statements

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

The Employment, Social Policy, Health and Consumer Affairs Council was held on 21 October 2010 in Luxembourg. Andy Lebrecht, UK Deputy Permanent Representative to the EU, represented the United Kingdom.

The main item of the agenda was a policy debate on the employment and social inclusion aspects of Europe 2020, the new European agenda for the next 10 years. The presidency set out the mechanics of the new EU2020 governance arrangements stating that the joint employment report should be the main vehicle for submitting messages to the spring European Council and the subsequent country-specific recommendations to the summer European Council. The UK supported the proposed governance arrangements, noting that the joint employment report should focus on robust evidence of what works. The UK outlined the key features of the spending review in this area—welfare reform and helping people into work. The UK would now consider the issue of “bottlenecks” and reform priorities in the EU context.

The Social Protection Committee Opinion on Social Protection and Social Inclusion in the Europe 2020 strategy was adopted. The presidency invited member states to comment on their own input to the social dimension of Europe 2020, particularly through national poverty targets and the national reform programmes. The Commission stressed that real consideration of the social dimension of Europe 2020 was essential if the strategy were to be a success, and urged member states to finalise their national targets. The UK explained that an approach to the national target had not yet been confirmed. The UK showed support for effective use of the open method of co-ordination and stressed that excessive new reporting burdens should be avoided.

The Council adopted the employment guidelines. The UK abstained in order to respect the UK parliamentary scrutiny position.

The Commission presented its recent initiative, Youth on the Move. This proposes to encourage worker mobility, improve education quality, training systems and support to young job seekers and entrepreneurs. The Commission also set out their intention for a new Roma communication next April. This would set out a framework for National Roma Integration, in which member states would be encouraged to develop strategies to deal with their Roma populations. On the Pensions Green Paper, the Commission stressed that the issue of demographic change would remain to be tackled even after the economic crisis had passed and that pension reform would consequently need to remain high on the agenda.

The presidency reported on conferences on poverty, child poverty, pensions and green jobs and also informed delegates about preparations for the next tripartite social summit.

Work Capability Assessments

Lord Grayling Excerpts

Wednesday 27th October 2010 Westminster Hall

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

I shall do my best to answer the questions asked by the hon. Member for North East Derbyshire (Natascha Engel).

I start by saying that there is a huge amount of agreement between us. Let us be clear: the proposals are not an exercise in money-saving. I have said time and again that they are about saving lives, not money. Yes, we will save money if we reduce the number of people who are welfare-dependent, but the starting point surely must be to try to help people make a better lot of their lives. That, effectively, is where the proposals came from.

If we look back to the last Parliament, there was—and, I believe, still is—cross-party consensus on the need to make the changes. The original proposal to assess current incapacity benefit claimants came in the Green Paper that I launched in 2008. James Purnell, who was Secretary of State shortly after that, took up the proposal for the migration and put in place many of the mechanics that were needed.

Given the hon. Lady’s comments, I believe that there is still cross-party consensus on the need to do something about the issue. Frankly, I regret that the assessment was not done years ago, because it is not right for anybody to be left on benefits, doing nothing, year after year without us seeking to find them a way back into work and helping them to make a better lot of their lives.

The hon. Lady is also right to say that we inherited the work capability assessment; it was set up by the previous Government, and was initially meant to operate with the employment and support allowance system for new claimants. It was designed by the previous Government and they put it in place, but it was not completely right; there were things that were wrong with it and needed to change.

One of the first things that I did after taking office this summer was make a number of changes to the work capability assessment—changes that were recommended by the previous Government following work that they did in their last few months in office. I looked at the changes and felt that they were sensible. They included: simplifying the language in the work capability assessment; making greater provision for people awaiting, or in between, courses of chemotherapy; making the higher rate of employment and support allowance available to more people with particular communication and mental health problems; and taking into account how people have adapted to a disability.

My view was that that was not enough, and I share the hon. Lady’s concern. It is not in my interests or the interests of the Government to get this wrong. I do not want to do down people who should not be trying to get back into work. I want to help those who have the potential to work, and to ensure that the work capability assessment is as effective as possible. There is no hidden motivation. I am not saying that we should make the test as tough as possible so that we can get more people off benefits and into work, thus saving money. I can categorically assure the hon. Lady that that is not the case.

There is no such thing as a perfect system, but we are working as hard as we can to make the system as effective as possible. Let me tell the hon. Lady some of the things that I have done to ensure that it is. Since the election, we have commissioned a further review of the work capability assessment. It is being carried out by a leading occupational health specialist, Professor Harrington of Birmingham university. We have assembled an advisory group to work with him, which includes Paul Farmer, the chief executive of Mind. I particularly wanted him to be on the review, because mental health is a big issue. Getting the facts right on mental health is essential. I do not want to say that people with mental health problems should not be able to work. Equally, I want to find the right dividing line to ensure that we do not do the wrong thing by people with mental health problems who would have genuine difficulty in working.

[Jeremy Lefroy (Stafford) (Con)]

I want to emphasise the importance of the assessment of mental health problems. A constituent of mine told me that he could have sat down and cried to prove that he had mental health problems. He did not and, as a result, he was categorised as having no mental health problems. That was despite the fact that his general practitioner had categorically said that he did.

[Chris Grayling]

I have told the mental health charities that I am happy to hear their proposals on how we can change the wording of the assessment to strengthen the way in which we deal with people with mental health problems. I am happy to look at such proposals and incorporate any sensible changes. I said to Professor Harrington and his team that I want them to bring forward recommendations on how to improve things and to knock off any rough edges so that we can make the system as fair as possible.

The majority of people—it is far from all—who are on incapacity benefit with mental health problems have issues with long-term chronic depression. We have a straightforward choice. We can either leave them at home for the rest of their lives—the hon. Lady mentioned that many people end up just retiring rather than ever moving off benefit—or we can try to do the right thing and help them back into work. I passionately believe that the second is the better option. In a moment, I will address the hon. Lady’s concerns about personalisation, because I agree with her on that.

What I am saying applies across the piste: we are either saying that we will leave these people passively on benefits for the rest of their lives, or saying that we will do something to help them turn their lives around. It may be that going back to work will involve them doing something different from what they were doing before. If, for example, they were doing a manual job and they had an orthopaedic problem, they may have to do something different, and that may be a huge wrench that damages their self-confidence. The hon. Lady was right to say that many people who are on long-term benefits have lost networks and self-confidence. I do not buy into the headlines that say, “They are all scroungers.” Hon. Members will not find me using such language.

The biggest issue is about detachment from the workplace. Some people who have been in work previously and who have become utterly detached start to lack confidence; they do not know what to do or how to go about getting work. Sometimes, people have grown up in an environment in which worklessness has been the norm, and they do not have the knowledge to be able to take the first steps into the workplace. Helping them not only with the assessment but over the hurdle of getting back into work is a huge challenge, and that is what our work programme is all about.

Let me touch on one or two of the other areas that the hon. Lady raised in relation to the assessment. Atos has no financial incentive to get more people through the assessment and back into work, nor would I countenance it having one. It is Jobcentre Plus that takes the decision and not Atos, and Atos does not design the test. The recommendations that we get from Professor Harrington’s review—as long as they are sensible, and I am confident that they will be—will inform our decision making about how the test should be shaped.

[George Hollingbery]

My constituent, Gary Dennis, was recently diagnosed with motor neurone disease. He went to his work capability assessment and passed with flying colours—he got zero out of 13. I understand the Minister’s reluctance to categorise any disease as one that should not be assessed through the WCA, because everyone needs the dignity of work if they can have it. None the less, there are diseases, such as motor neurone disease, that have particularly aggressive pathways. There is a case for emergency reassessment. Within six weeks of Mr Dennis’s work capability assessment, he was completely incapable of work. Will the Minister consider such cases?

[Chris Grayling]

I am grateful to my hon. Friend for giving me prior notice of his concerns. One of the things that I am happy to consider—I have said that we will carry on reviewing this process as we go forward—is some kind of emergency brake for people who suffer an immediate and very sharp deterioration in their condition. We should be able to reflect that, and I will ask officials to consider how we deal with such a situation. The goal is to do the right thing by people. What I do not want to do is say of any condition, “Nobody with that condition can ever work.” I do not want to give people an automatic path into the support group because where we can, and where circumstances enable us to do so, we should be trying to help people into work. Clearly, when things change rapidly, we need to see whether there is a way in which to address that.

[Duncan Hames (Chippenham) (LD)]

I am glad that the Minister says that Atos does not have an incentive to fail people. We have heard so much about the cases in which Atos has failed and in which people have successfully appealed against its assessment. Surely there should be some penalty for the service provider, because the system, and the appeals that errors cause, are a great waste of taxpayer’s money.

[Chris Grayling]

We cannot simply regard this as a question of errors by the assessors. The hon. Member for North East Derbyshire mentioned the issue of the number of medical professionals available. A more diverse range of medical professionals is being used, including those with expertise in mental health and orthopaedics; it is not simply doctors who are being used. One problem with using GPs is that we are putting them in a difficult position, because they are in danger of compromising their long-term relationship with a patient if they say, “Actually, you can go back to work.” We are very reluctant to go down the GP route. I am confident that having a mix of professionals will help us to deliver what the hon. Lady has asked for.

Getting the appeal numbers down is about getting the system right. I have asked Professor Harrington to consider how we can improve the system to reduce the likelihood of appeals. Appeals will never disappear, because some people will not want to accept what has happened. What we can do is seek to make the system as good and as effective as possible.

Let me touch briefly on the work programme and the support. The hon. Lady made a valid point about the need to provide personalised support. The work programme is designed to offer providers the freedom to tailor a programme to the individual, and not simply implement a programme designed in Whitehall. One of the reasons why programmes went wrong over the past 10 years was that they were too centrally directed. Officials would say, “You will do this. You will have five interviews and a period of work experience.” I want to trust the professionals, particularly those from the smaller, voluntary sector groups who probably work with some of the harder-to-help claimants, and give them the freedom to decide what works, rather than having to follow what Whitehall dictates.

[Natascha Engel]

We have only two minutes left, and I am really desperate to get an answer to the tribunal service question. I accept that we have lots of areas of agreement, but not, I think, when it comes to the tribunal service. This is not about the fact that some people will not accept that they are fit to work. Some 40% of people who appeal are successful. That means that they are told that they are fit to work, appeal, and are then told that they are not fit to work. That is a very serious number of people. What is the Minister doing to ensure that the tribunal system is up to the massive spike in numbers that it will receive?

[Chris Grayling]

First and foremost, I am trying to ensure that the cases do not get to the tribunal in the first place by making the assessment as effective and as accurate as possible. We also have officials working closely with the tribunal service to address that issue. We are running a number of pilots within Jobcentre Plus to look at ways in which we can improve the process and work more effectively with people who have been passed as fit for work to reduce the number of cases that will ever go to appeal. I am happy to share more of that with the hon. Lady as the weeks go on.

Let me touch on the last two points that the hon. Lady made. She asked where the jobs will come from. Some 280,000 new private sector jobs have been created in this country in the past three months, and the number of people claiming benefits has barely changed. That cannot be right, and it has to change. The private sector can create opportunities. Our job is to ensure that claimants are ready for them. As for the loss of £25 a week, sickness benefit should be for people who are sick. If there are two people sitting side by side in the Jobcentre, both of whom are deemed fit for work, it is not right if one of them is better off than the other. That is why we are clear that the proposals are a sensible step to take. At the end of the day, I want a system that treats people fairly and decently, and also helps them back into work. I do not believe that anybody is better off at home on benefits, doing nothing.

Oral Answers to Questions

Lord Grayling Excerpts

Monday 18th October 2010 Commons Chamber

[Julian Smith (Skipton and Ripon) (Con)]

3. What progress his Department has made towards the launch of its Work programme providing personalised assistance to those out of work.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

I am pleased to inform the House that the contracting process for the Work programme is going well. We have had more than 100 expressions of interest from would-be prime contractors. We will announce those who will be on the framework in late November and we will then move on to the next stage of contracting. All is on track to launch the Work programme in the first part of next year.

[Elizabeth Truss]

Is the Minister aware of the work of the Keystone Development Trust in Thetford, particularly the social enterprises it runs such as the green bikes scheme, which helps local people to get into work and gain practical skills? It is setting up a pilot that is due to be launched in November. Is the Minister willing to come and see the pilot in action?

[Chris Grayling]

I am delighted to hear about the work that is being done in my hon. Friend’s constituency, and when I am next in Norfolk I shall be delighted to find out more about the work being done there. Her comments underline the very important role that the voluntary sector and social enterprises play in getting people back to work. That is why we stipulated that prime contractors for the Work programme must demonstrate an ability to forge a team of specialist organisations, including social enterprises and voluntary sector bodies, that have the expertise that we need—either on a localised, geographic basis or in dealing with specific groups with a particular need—to ensure that we get people back into work. It will be a requirement of the Work programme that they have a place at the table.

[Julian Smith (Skipton and Ripon) (Con)]

May I urge my right hon. Friend to select a number of providers who have strong roots in rural communities both in advising clients and in networking among the rural labour market?

[Chris Grayling]

I absolutely assure my hon. Friend that that will be a factor. As we select organisations to fill different geographic parts of the Work programme, bidders’ ability to demonstrate a knowledge, awareness and understanding of the geography they will be dealing with will certainly be a factor for us. In substantially rural areas, it is essential that organisations have the expertise to deal with the particular challenges of the rural economy and not simply with those found in towns and cities.

[Geraint Davies (Swansea West) (Lab/Co-op)]

Does the Minister agree that the best personalised assistance that could be offered to a couple with six children who are facing the £500 benefit cap would be to advise them to split into two single-parent families of three children? As a family, they already consume £500 in benefits plus £250 in housing benefit, but as two separate units they would get £250 each in benefits plus £250 in housing, thereby costing the Exchequer £1,000, using two houses and being a split-up family.

[Chris Grayling]

I hope that the hon. Gentleman will recognise how important it is that work pays in our society and how frustrated working people are that it is possible for a family to receive, when the tax equivalent is taken into account, an income comparable to £35,000 a year in benefits. If we are to send the message that work pays, we have to limit the amount that the state supports people when they are outside work.

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

The Minister will be aware of the pilot scheme operating in Aberdeen and Aberdeenshire. In this extremely rural area, people are being asked to travel significant distances to appointments and the availability of suitable public transport is very limited. Will he consider taking appointments to the rural communities where people are rather than asking them to travel long distances to jobcentres?

[Chris Grayling]

One reason we are doing the two pathfinder projects is to understand precisely the issues and challenges that we will face when we roll out the programme nationwide next year. I am very happy to consider any of the lessons that have been learned from the experience in Aberdeen and Aberdeenshire to see whether we can do things better. In the mean time, we have provided additional funding to the two towns and cities involved in the first programmes—Burnley and Aberdeen—so that local needs that arise during the process can be met.

[Mr David Ruffley (Bury St Edmunds) (Con)]

I applaud the payment by results model: it has worked in America and Australia, and it will work here. May I draw my right hon. Friend’s attention to the Department for Work and Pensions website of 19 July, where he makes the point that results have to be delivered before any payment is made? Lots of small charities that I have spoken to up and down the country say that that will mean that they simply do not bid for contracts, even if they are part of a consortium with a big corporate player. What will my right hon. Friend do to design a system to protect the interests of the smaller charities that are so important for the big society?

[Chris Grayling]

May I say what a great pleasure it is to have a question from my hon. Friend, and to see him in his place?

We are doing everything we can to ensure that the systems in place are suitable to ensure we have a mix of organisations. We have launched a specific new code of conduct for prime contractors—the Merlin standard—that is designed to ensure that they look after the commercial interests of smaller organisations on the framework, or that are working with framework providers. It is essential that we have a proper mix of organisations involved in the Work programme and we will take all the steps we can to ensure that that is the case.

[Stephen Timms (East Ham) (Lab)]

A great deal will hang on the Work programme. We all remember the damage in our constituencies when unemployment reached 3 million before, and we remember which party was in government at the time. The warning last week from PricewaterhouseCoopers that 500,000 private sector jobs, as well as 500,000 public sector jobs, are under threat makes clear the danger ahead. The Minister will know of the fear of the small providers we have been talking about—social enterprises, rural organisations, community groups and faith groups—that they will be included in bids for marketing purposes, but dropped once the contract is awarded. How will contracting address that danger?

[Chris Grayling]

I welcome the right hon. Gentleman to his position. I look forward to working with him, as well as debating the issues, over the months ahead.

PricewaterhouseCoopers’ chief economist said he expected the private sector to be able to take up the slack from changes in the public sector. On smaller providers, the Merlin standard is designed to achieve precisely what he aims for. Under the terms of the Merlin standard, a prime contractor who wins a contract off the back of an attractive-looking consortium of organisations but dumps them all the next day can lose its contract. We shall be assiduous in ensuring that the interests of smaller subcontractors are protected, particularly those with the specialist needs we absolutely need for the Work programme. That is what the Merlin standard is designed to achieve.

[Rehman Chishti (Gillingham and Rainham) (Con)]

2. What recent assessment he has made of the adequacy of services provided to jobseekers by Jobcentre Plus.

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[Tony Baldry (Banbury) (Con)]

4. What support his Department plans to make available to people on incapacity benefit to enable them to take up employment.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

We will make the Work programme available to incapacity benefit claimants who are moved back into the jobseeker stream. They will be eligible for support through the Work programme. We will pay an enhanced price to those providers who work with people coming off incapacity benefit to make sure that they get the tailored support they need.

[Tony Baldry]

I am grateful to my right hon. Friend for that reply. Will he make sure that Jobcentre Plus, work clubs, and disability organisations can ensure that no matter where people are—whether they are on incapacity benefit or in Remploy factories that are making losses—they know where they can access support and get the skills training that they need to get back into the world of work?

[Chris Grayling]

My hon. Friend is absolutely right. One of the central goals of our work over the next 12 to 18 months is to start a process of ensuring that far more people with long-term health problems and disabilities have the opportunity to get into the workplace. We will take whatever steps are necessary, primarily through Jobcentre Plus, to ensure that those people are handled effectively, and are steered to the right support through the Work programme. The aim is to achieve a goal that we all want, which is to allow as many of them as possible to find jobs.

[David Cairns (Inverclyde) (Lab)]

The Minister is aware that a map of where incapacity benefit is most taken up would look like a map of Britain’s industrial heritage. In former shipbuilding constituencies such as mine, people do genuinely have long-term incapacity, which is associated with the work that they did. He will agree, of course, that that does not mean that they cannot work ever again. Is he absolutely fixed on what the question actually asks? It asks what support the Government can give to help people on incapacity benefit to move to work. I would like to hear him outline that support, rather than talking about the stick of benefit cuts.

[Chris Grayling]

The hon. Gentleman is absolutely right. I am sure that he would agree that one of the great failings of the past 13 years has been the fact that we have consistently had 2.5 million people on incapacity benefit, and the previous Government did absolutely nothing to help them to get back into work, which is a terrible tragedy and a huge waste. We intend to change that. The Work programme will deliver tailored, specialised support for those people—support that is relevant to them, and designed not in Whitehall but by the people working with them on the front line. We intend to make a difference to those people in a way that the previous Government did not.

[Gordon Birtwistle (Burnley) (LD)]

May I report that the pilot scheme in Burnley has now started? We have managed to get the local jobcentre involved with a local recruitment company, Vedas Recruitment and Training. The scheme seems to have started well; my only concern is that funding may run out before we complete it. Will the Minister guarantee that funding will carry on for a short period afterwards, if necessary?

[Chris Grayling]

I thank my hon. Friend and all those in Burnley, including those in the local authority and other local agencies, who have come together to help make the first stage of the migration from incapacity benefit a reality. I assure him that it is my belief that the money that we have supplied to Burley should be sufficient to see us through to the point when the Work programme starts next year. If there are issues, I will be very happy to talk again, and we will see what can be done about them.

[Mr Jim Cunningham (Coventry South) (Lab)]

5. What plans he has to amend the eligibility criteria for winter fuel allowance; and if he will make a statement.

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[Mike Crockart (Edinburgh West) (LD)]

9. What steps his Department is taking to improve the quality and accuracy of the work capability assessment.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

We believe that the work capability assessment is effective at identifying a person’s functional capability for work and work-related activity, and very much more so than its predecessor, the personal capability assessment. However, I am clear that we must get this right, particularly with the large-scale migration beginning next year. On taking office we implemented some of the recommendations of a review carried out under the previous Administration. I have commissioned a new review under the chairmanship of Professor Malcolm Harrington of Birmingham university, with input from some of the leading figures among the mental health charities, to try to make sure that we get this right—that we deal with any rough edges that there may be in the system before the migration next year.

[Stephen Mosley]

There are a number of conditions—for instance, MS—where the health of an individual may vary daily. What consideration has the Minister incorporated in the work capability assessment to ensure that the fluctuations in someone’s daily health do not affect their entitlement?

[Chris Grayling]

My hon. Friend is right. This is the central issue that we have to get right. It is one of the reasons I asked Professor Harrington to include Paul Farmer, the chief executive of Mind, in his review, and why I invited mental health charities to make practical suggestions about changing the work capability assessment to identify precisely the issues that my hon. Friend has highlighted. I want to get this right. It is in no one’s interest that people should be given a steer in the direction of work if that should not happen to them. I want to look after those who genuinely need ongoing support. We will do everything we can to get this right.

[Mike Crockart]

Many of my constituents complain that too much weight was placed on one chat with one individual on a particular day, as my hon. Friend the Member for City of Chester (Stephen Mosley) stated. That might be a good day for their condition, and the chat with that one individual may not provide a long-term in-depth knowledge of the claimant’s work capability. What help can the Minister give to assure my constituents that proper weight will be placed on the opinions of the claimant’s full medical team?

[Chris Grayling]

As I say, we must get this right. I have sat through a work capability assessment, so I understand exactly the issues that people are raising. I have looked carefully at the structure of it and have invited people with expertise to take part in the process. We will do everything we can to get it right. What I will not do is condemn people with mental health challenges to a life on benefits, with little opportunity of getting into employment. That would be the wrong thing to do for them. They deserve better and they will get it from this Government.

[Mr Frank Roy (Motherwell and Wishaw) (Lab)]

The Minister will remember one of his ministerial colleagues describing the Conservative party as the “nasty party”. Given the obvious demonising of unfortunate people who need welfare benefit, should he not just stand up, give it to us straight and say, “Be afraid, be very afraid, the nasty party is back”?

[Chris Grayling]

That is precisely the kind of negative politicking that I hope we will not have from the Opposition over the next few months. I believe, and I think that most Members believe, that people with long-term health problems are better off being helped back into the workplace, if possible. They are better off than they would be if they spent a lifetime on benefits, and that is what all the charities that work with them also say to us. I want to do the right thing by those people, and I hope that Members on both sides of the House will unite behind a programme designed to deliver that.

[Sheila Gilmore (Edinburgh East) (Lab)]

Contrary to the Minister’s earlier assertion that our Government did nothing to deal with incapacity benefit, I must say that that is clearly not the case, because all of us will have heard our constituents’ experience of the work capability test. The hon. Member for Edinburgh West (Mike Crockart) mentioned some of the problems, and one issue that some of my constituents have raised is that written reports from their doctors or other people are not taken into account at all; the assessment is based simply on the test carried out by the company in question. Will the Minister agree to allow written documentation as part of the test?

[Chris Grayling]

The hon. Lady is not right, because written evidence can already be submitted to an inquiry. The decision maker in Jobcentre Plus will look at written matters as well, and that is right and proper. I have also asked those taking responsibility for the test to ensure that we maximise the discretion that is available to all the professionals involved, so that we get the assessment right. It is of course proper that we do so, but although the previous Government introduced the assessment for new claimants they left the 2.5 million people on incapacity benefit untouched. That was a mistake, and I hope that we can all work together to put it right.

[Mr Marcus Jones (Nuneaton) (Con)]

7. What steps he is taking to increase the proportion of benefit fraud detected.

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[Jim McGovern (Dundee West) (Lab)]

11. What recent assessment his Department has made of the effects on levels of benefit dependency of wage levels.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

We have not yet made an assessment of the direct impact of wage levels on benefit dependency, but we firmly believe that work must pay. Within the current system, we have the anomaly that some individuals can keep as little as 4p in an extra pound earned if they move up the income scale, and a small number of individuals receive more than £26,000 a year in benefits—a substantial amount when compared to the incomes of most working households. That cannot be right, and that is why we are bringing forward radical welfare reform proposals to ensure that work pays.

[Jim McGovern]

I thank the Minister for his response. I hope that he agrees that the national minimum wage gave a massive lift to many working people throughout the UK, and it is now time to move on and progress to a decent living wage. When wages are low, it is no surprise that benefits are often worth more than work. In my view, that is not a problem for benefits, but whatever the problem I hope he agrees that the solution is a fair day’s pay for a fair day’s work.

[Chris Grayling]

Clearly, as an Administration we would like employers to move people up the income scale, and for there to be wealth in the country to enable our businesses to do that. Of course, they have big challenges to overcome after the past few years and all the economic problems that were created under the previous Government, but I share the hon. Gentleman’s aspiration. I would like people to move up the income scale, but above all else, we want to ensure that, in all circumstances, work pays. That is why we are introducing the universal credit and the changes that we are making. There should never be a point at which somebody says, “It’s not worth my while going back to work.”

[Mr Aidan Burley (Cannock Chase) (Con)]

12. What programmes his Department operates to deliver equality for disabled people.

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[James Morris (Halesowen and Rowley Regis) (Con)]

17. What steps his Department is taking to increase the quality and accuracy of the work capability assessment.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

As I indicated in my earlier remarks, I hope that the Harrington review will enable us to make the work capability assessment as appropriate as possible for the months ahead and the start of the migration from incapacity benefit to employment and support allowance. However, we will continue to review the work capability assessment on an ongoing basis, and if any opportunities arise to improve it, we will take advantage of them.

[James Morris]

I have been approached in my constituency by many carers of people with severe mental health difficulties who have expressed concern about the work capability assessment. Does the Minister agree that we need to see how it can be adapted and refined to meet the requirements of severely mentally ill people?

[Chris Grayling]

I absolutely agree with my hon. Friend. That is why I have said to leading mental health charities that I actively seek their input on how we can improve, in particular, the wording of the different elements of the assessment. Equally, however, I stand by my view that, where we can, it is better to help people with mental health challenges into work than to leave them on benefits long term, doing nothing.

[Karl Turner (Kingston upon Hull East) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[Graham Evans (Weaver Vale) (Con)]

T3. Building business will create employment opportunities in my constituency of Weaver Vale. What support will the Government provide to help unemployed people into self-employment?

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

I am delighted to tell my hon. Friend that we are looking to expand the support available to people in parts of the country that are particularly affected by unemployment and that have a small local private sector economy. We will provide enhanced support from early next year, including through more money than is currently on offer to help the self-employed and—this is particularly important—through mentoring for small businesses, to ensure that people have practical advice and guidance so that they not only set up small businesses, but those businesses survive, grow and flourish.

[Mr William Bain (Glasgow North East) (Lab)]

T5. Will the Secretary of State join me in recognising the great contribution that the 54 supported employment Remploy factories make to our country? Even at this late hour, will he agree to lobby the Treasury on their behalf? It would be entirely unfair and unacceptable for 3,000 of the most vulnerable disabled workers to be handed their P45s by the Chancellor on Wednesday.

--- Later in debate ---

[Julian Smith (Skipton and Ripon) (Con)]

T8. A constituent with bowel cancer has been found fit for work, despite having his colostomy bag changed 16 times a day. He is now going through appeal. How will my right hon. Friend ensure that those who are genuinely and obviously not fit for work are dealt with more humanely?

[Chris Grayling]

The point about cancer patients is a particularly apposite one. One thing I was astonished to discover on taking office was that we still had tough return-to-work requirements for those going through chemotherapy. Anybody who knows someone who has been through that knows it is a time when people cannot possibly return to work. We have sought to change that and we will make a number of other changes through the Harrington review. As I said earlier, our goal is, above all, to get this right. I do not want to do the wrong thing by those people who need support; I do want to do the right thing by the people with the potential to get back into work and make a better lot of their lives.

[Mr Ian Davidson (Glasgow South West) (Lab/Co-op)]

Does the Minister agree that we want to minimise the number of people claiming mortgage interest payments by keeping them in work? Does he agree that the best way of keeping my constituents in work is to ensure that the aircraft carrier goes ahead?

--- Later in debate ---

[Toby Perkins (Chesterfield) (Lab)]

I welcome what the Minister of State, the right hon. Member for Epsom and Ewell (Chris Grayling), said previously about looking into the work capability assessment. I met a delegation from Chesterfield and north Derbyshire on Thursday, although they were due to have a meeting with him. One in the group was told that she was fit to work four days before a cancer operation, while another who had a plaster cast the whole length of his arm was told that he was fit to work. Unfortunately, the Minister cancelled his appointment to see them on the day before they came down to London. Will he commit to seeing them? If he really wants to learn about the work capability assessment, he should meet some of the people who have been affected by it.

[Chris Grayling]

I did not cancel any appointment, and I had a meeting with the TUC official who organised the rally on that day. What I cannot do is get into discussion of every individual case. My goal remains to do the right thing by those people who are on incapacity benefit in the long term. We need to modify and refine the work capability assessment based on the best information available to us. What we face today is what we inherited from the previous Government. What I am doing right now is trying to improve it so that it is as foolproof as possible when we come to the national roll-out next spring. I will do my best to get that right and I hope there will be cross-party support for doing so.

[Harriett Baldwin (West Worcestershire) (Con)]

T10. The auditors of the Department have not signed off the accounts for many years. Will the Secretary of State’s announcement today keep the auditors happier in future?

--- Later in debate ---

[Bill Esterson (Sefton Central) (Lab)]

Many people in Sefton who work in the private sector rely for their livelihoods on customers who work in the public sector. What action will the Minister take to ensure that as a result of the comprehensive spending review, there is adequate provision in jobcentres around the country for both private and public sector workers?

[Chris Grayling]

Where we have issues in the labour market, whether public or private sector, we have a rapid response team within Jobcentre Plus that is available and able to provide advice to those who have lost their jobs. If the hon. Gentleman had read the letter that appeared in this morning’s media from some of our leading business people, whose businesses have a presence all around the country—we are also advised of this by the Office for Budget Responsibility—he would know that the private sector, in the right environment, with the deficit dealt with, can more than make up for any job losses that result of our dealing with the deficit, which we inherited from the previous Government.

[Several hon. Members]

rose—

The Employment, Social Policy, Health and Consumer Affairs Council

Lord Grayling Excerpts

Thursday 14th October 2010 Written Statements

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

The Employment, Social Policy, Health and Consumer Affairs Council will be held on 21 October 2010 in Luxembourg. Andy Lebrecht, UK deputy permanent representative to the EU, will represent the United Kingdom.

The main item on the agenda will be Europe 2020, including two separate discussions on the employment and social dimensions. On employment governance, Council will adopt conclusions and hold an orientation debate. The UK will stress that what the December Council finally endorses for assessment and monitoring must adhere to the relevant treaty basis. On social protection, Council will adopt the Social Protection Committee opinion and hold another orientation debate, in which the UK will stress the need to respect subsidiarity and focus on the outcomes of poverty reduction through exchange of experience, rather than the Commission monitoring the situation in member states.

The Commission will provide information on the employment aspects of its flagship initiative, Youth on the Move. The UK welcomes the focus on supporting young people’s access to the job market through better education, training and mobility.

The Council will adopt the employment guidelines which were politically endorsed by the June European Council (JEC) before the European Parliament (EP) consultation required by the treaty ended. In response to the EP report, the presidency only proposed amendments to the recitals so the JEC agreement stands. Council will also adopt the Employment Committee opinion on active and positive transitions. The opinion is about making work pay and has focused on a life-cycle approach covering movement either from unemployment to employment or between jobs, giving more attention than previously to activation, skills and flexible working.

The Belgian presidency will provide information on the preparation for the Tripartite Social Summit, which will discuss how to encourage more jobs as we come out of the recession.

Under any other business, there will be information from the Commission on the Green Paper on pensions and the presidency will provide an update on the work being done at European level to promote the inclusion of the Roma. There will also be information on various conferences including the round table on poverty and the conference on child poverty and child wellbeing.

Youth Employment (Wirral)

Lord Grayling Excerpts

Tuesday 14th September 2010 Commons Chamber

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

I congratulate the hon. Member for Wirral South (Alison McGovern) on securing her first Adjournment debate on a subject that is a matter of concern across the House. I share her concerns about Wirral and Merseyside. In the previous Parliament I was the shadow Minister with responsibility for building knowledge, understanding and ties between my party and the people, businesses and communities of Merseyside, and I also spent time in Wirral supporting my hon. Friend the Member for Wirral West (Esther McVey).

The hon. Lady mentioned the 1980s, but it is not what happened 30 years ago that defines the present moment. What defines the present moment is the failed inheritance from the previous Government. They had 13 years of unprecedented economic growth, and they spent billions of pounds on welfare programmes, but the number of people on out-of-work benefits—in Merseyside and elsewhere—remained stubbornly high. They failed to get people off benefits and into work. That failure matters now, when we are dealing with the cyclical impact of a recession, because we have to deal not only with those who have lost their jobs as a result of the recession and those who are entering the jobs market for the first time, but a huge block of people who have been on benefits for year after year. It makes the challenge that we face—of getting as many of our citizens into work as possible—much bigger than it should have been.

The hon. Lady is right to say that Wirral, and Merseyside as a whole, have suffered from the recession. In Wirral the Swiss food company Givaudan has closed, with the loss of 150 jobs, and jobs have been lost in other parts of Merseyside, leading to real pressures on the community, as in other parts of the country. We have to create an economic environment in which businesses can grow, develop and create sustainable jobs for the future, and I am confident about Merseyside in that respect.

If people spend a lot of time in Liverpool and around Merseyside, they quickly recognise what a wealth of enterprise, ideas and knowledge there is in and around the region that can be harnessed very effectively to create the opportunities of the future. There is a really dynamic spirit coming out of the universities in Liverpool. I have seen some great young businesses in the area, and I am confident that we can create the right environment there—an environment in which we charge less for employers who take on their first few employees; in which we cut the national insurance they pay; in which businesses pay less in corporation tax; in which we seek to reduce the burden of regulation; in which there are fewer health and safety regulations that cost small businesses; and in which we try to simplify the environment for businesses to work in.

In that kind of environment people will say, “Yes, I can do it. I can start a business. I can start to create jobs.” That way we can start to deal with the big problem that the hon. Lady rightly pointed out with unemployed young people. Last year there were 5,500 unemployed 16 to 24-year-olds in the Wirral—an unemployment rate that has stayed stubbornly high—but that is not simply down to the current recession. The level of young people not in employment, education or training has remained stubbornly high throughout the past 13 years, and is higher now than it was in 1997. We really have to change that.

The hon. Lady referred to the future jobs fund. Many of the employment programmes we inherited from the previous Government were not effective. I understand the motivation for the future jobs fund, but we found it to be a scheme that cost a substantial amount of money and generated temporary jobs in and around the public sector, but did not create the kind of long-term opportunities for young people that would give them skills to last a career. Frankly, we felt that we could do better. However, she is wrong to say that we simply came in and scrapped the future jobs fund. We did not. Future jobs fund jobs are still being created today. However, we have said that we will phase out the scheme and put in place a number of measures next year, including the introduction of our single Work programme, about which I will talk more in a moment.

My hon. Friend the Member for Wirral West is right about the Government’s decision to deliver 50,000 extra apprenticeships. An apprenticeship is a much better way of giving somebody long-term skill opportunities than putting them into a temporary placement as the future jobs fund would.

[Mrs Mary Glindon (North Tyneside) (Lab)]

The Secretary of State is talking about apprenticeships, which are fantastic for the young people who have the confidence and ability to engage with them. However, the future jobs fund helped some young people who were nowhere near ready to be apprentices and who needed that extra lift. Without that, a whole layer of young people will be put on the scrap heap. That is the difference. What he is talking about is fantastic, but he has to consider what the future jobs fund did to help young people whose situation did not allow them to take up an apprenticeship—people who were not apprenticeship-ready.

[Chris Grayling]

Let us be clear: the hon. Lady is absolutely right to say that we are dealing with very real issues for young people, and one certainly finds that in and around Merseyside. I have spent a lot of time with voluntary sector groups working with young people who have some pretty difficult circumstances in their lives. The reality is that many people from those difficult backgrounds emerge from school and struggle to enter the workplace, having not developed skills in school and having fallen behind for a variety of reasons. We have to get to grips with that.

That is one reason why this Administration are pressing ahead with the pupil premium. Hon. Members will know that often young people fall behind during early years development, at the age of one, two and three, and then get to school already behind their peers, never catch up and end up leaving school without basic levels of literacy and numeracy. That is one reason why we are putting the pupil premium into some of our most challenged schools—so that we can try to help some of those young people to catch up.

The hon. Member for North Tyneside (Mrs Glindon) is right to say that we have to do more preparatory work for young people to get into the work place, and that will be one of the key aims of the single Work programme. On the one hand, we are looking to build skills, which the apprenticeships programme is certainly designed to help achieve. However, the Work programme is the most important part of what we are trying to do. It will be introduced next year and will take over from existing programmes, some of which—such as pathways to work, which was highlighted by the Public Accounts Committee this week— have not worked, and others of which, such as the future jobs fund, we judged were not delivering value for money, given the high cost and the nature of the employment provided.

I am keen to see the creation of an environment in which we have specialist organisations working with people of all ages—including young people, who have precisely the kind of challenges to which the hon. Lady referred—by helping them to move into the workplace, build up their confidence, develop an understanding of what they need to get into work, establish work placements for the first time, build up work experience and make the jump into the workplace. That is the nature of the single Work programme.

[Alison McGovern]

Can the Minister say specifically how that differs from the new deal for young people? It sounds like revisionism to me—as though no good was ever done before—whereas in fact the figures in Wirral show that we have half as many unemployed people now as we did in the previous recession, which is the proper comparison. It would therefore be helpful if the Minister could say how his programme will differ from the excellent new deal.

[Chris Grayling]

The big problem that we had with the new deals was that they were effectively programmes designed in Whitehall. The standard new deal format was 13 weeks in a classroom, with relatively little financial focus on outcomes or whether people got into work at the end. It was very much about the Government paying for placements. The placements happened, but as for the outcomes of the different new deals—yes, they got some people into work, but the number who stayed in work was disappointingly low. One of the big differences with the Work programme is that it will not simply be about getting people into work, but will be about sustaining them in employment.

In particular, where young people come from the kind of difficult background that the hon. Member for North Tyneside described, the programme will not be about just getting them through the first days of work; it will be about helping them to stay there and overcome some of the hurdles that they face in the workplace, including some of the cultural aspects of working life that they do not expect. Having mentors sitting alongside them in the workplace is an extremely important part of what we are seeking to do.

I am expecting to have specialist providers serving the Wirral and Merseyside whose job it will be to work with unemployed young people, as well as those of other ages, not only helping them to find those first opportunities to gain work experience, develop interview skills and understand how to put together a CV, but going out and working with employers, match-making young people with the opportunities that are out there. As the hon. Lady will know, there are quite a large number of vacancies out there, but often a jobseeker will not know how to go about finding those opportunities. The skills brought by professional providers working with people with the potential to get into work, so that we match them with the right opportunities, are fundamental.

We should set that against our plans for the skills system. We are currently consulting on how the further education and skills system can be developed to respond effectively to the skills gaps that we need to address. We want to give training providers greater freedom to target provision to meet local needs, alongside giving colleges and other providers greater local autonomy to say, “This is what we need in our area,” ensuring greater provision of apprenticeships and putting in place the Work programme, which will be both local and national. The programme will be a national scheme, but the responsibility for delivery in each area will be devolved to a provider in a local community who will be specifically mandated to work with organisations in the voluntary sector and organisations such as Wirral council.

Indeed, I very much want to see local authorities participating locally in the work that is done, working with the providers and sometimes doing the work themselves. What we will end up with is local partnerships collaborating to match individuals with employment opportunities and to overcome the hurdles that often exist between the two. Although we face tough and straitened times—I will be absolutely frank and say that, as an Administration, we will not be able to do all the things that we would like to do—we need to make that investment in skills development and deliver those apprenticeships.

[Esther McVey]

As my right hon. Friend would like to see that work, let me invite him, as a good friend of Merseyside, to come up to Wirral and see our apprenticeship scheme in action.

[Chris Grayling]

I would be very happy to do that at some point. I am always happy to revisit Merseyside. There are some great people there, and it is a great community. Liverpool is a magnificent city. I know that my hon. Friend the Member for Wirral West and the hon. Member for Wirral South represent important constituencies that are also nice places to live in and to represent, and I would be delighted to come and see some of the work being done there at some point.

I share the aspiration of the hon. Member for Wirral South to ensure that as many young people as possible can find work, although there will undoubtedly be times when she and her colleagues disagree with me and my colleagues about the means that we are using to try to achieve that. We certainly face tough and challenging times financially, and that will make it more difficult to do all the things that we would like to do. At the end of the day, however, we all share that aspiration. I do not want to see large numbers of people whose lives are wasting away while they are stranded at home on benefits, doing nothing.

We need to make changes to the welfare state to improve the incentives to work. We also need to give people an extra push, particularly when they have been out of the workplace for a long time or have never worked. Such people can build up problems with their confidence, and they are often uncertain about how to get into the workplace and how to go about getting a job. We have to help them to overcome that. We all want the same thing. I want to see as many people as possible of all ages, but particularly young people, in work in thriving businesses in an enterprise culture that we have created, in which businesses are growing and developing, and emerging from our universities, and in which companies are coming into the UK to invest and create jobs. If we can create that dynamic business environment, provide investment in skills and deliver really effective back-to-work support for those who are struggling to get work, we shall be able to achieve the goals that the hon. Lady rightly sets for her constituents and for those of all right hon. and hon. Members across the House.

Question put and agreed to.

Oral Answers to Questions

Lord Grayling Excerpts

Monday 19th July 2010 Commons Chamber

[Tony Baldry (Banbury) (Con)]

2. When he expects the first work clubs to be operational.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

My hon. Friend has been slightly modest with this question, because through his constituency he has been one of the pioneers of work clubs in the UK. We are looking at his experience, and we plan to announce our intention shortly to provide additional support, so that work clubs can be developed throughout the country in areas affected by unemployment.

[Tony Baldry]

I thank my right hon. Friend for those kind comments. Does he agree that one benefit of work clubs and job clubs is that the whole community is able help those who are out of work, while they are out of work, to get back into the world of work as speedily as possible? May I give him an undertaking that we in Banbury and Bicester stand ready to support any third sector, voluntary or other group—anywhere in the country, but particularly in the inner cities—that is trying to set up work clubs or job clubs?

[Chris Grayling]

My hon. Friend’s offer will be extremely welcome throughout the country. There are a small number of other clubs in operation, but we want to see that number expand significantly. Although there is a clear role for central Government in providing support through the Work programme to get people back into work, we also want to see communities and individuals engaged in helping others who are struggling to find work, and we will do everything we can, as we unroll our plans over the next few weeks and months, to ensure that those opportunities exist.

[Chris Leslie (Nottingham East) (Lab/Co-op)]

All Members want to see as much effort as possible to help people off benefits and into work, but how much has the right hon. Gentleman estimated it will cost to cover the predicted 100,000 extra people who will be out of work because of the Budget delivered by his right hon. Friend the Chancellor of the Exchequer?

[Chris Grayling]

The hon. Gentleman has clearly not adequately studied the small print of all the forecasts. The reality is that by the end of this Parliament we expect to have more people in employment—significant increases in employment as a result of our approach to dealing with the deficit. The previous Government left us with a completely unaffordable deficit; they left this Government and this country in deep financial difficulties. What we had from them was a culture of irresponsibility. We will put this country back on the rails.

[Mr Speaker]

I call Yvette Cooper. I had thought that the right hon. Lady wanted to come in on this question.

--- Later in debate ---

[Andrea Leadsom (South Northamptonshire) (Con)]

In my constituency we have two job clubs. Does my right hon. Friend agree that one of the biggest problems facing people looking for work is that, when they look for fairly low-paid work, they find that they are better off staying on unemployment benefit? That is a real problem.

[Chris Grayling]

My hon. Friend is right, and it is clearly an absurd situation when work does not pay. We have to make changes, and my right hon. Friend the Secretary of State is leading an effort to address that problem. In this country we have to ensure that work pays, and that we do everything possible to help people off benefit dependency and back into the workplace.

[John Robertson (Glasgow North West) (Lab)]

3. What assessment he has made of the likely effect on pensioners of his proposed changes to the welfare system.

--- Later in debate ---

[George Eustice (Camborne and Redruth) (Con)]

4. What discussions he has had with the Industrial Injuries Advisory Council on industrial injuries linked to the mining industry.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

Ministers have had no discussions with the IIAC about industrial injuries linked to the mining industry. However, my colleague Lord Freud is planning to meet the IIAC chairman and the council shortly to discuss their work.

[George Eustice]

In 2008 a report by the IIAC concluded that activities linked to the mining industry, such as kneeling under heavy loads, doubled the risk of suffering osteoarthritis of the knee. The activities described in the report apply as much to tin miners as to coal miners, but because the report made no specific reference to tin mining, former tin miners in Cornwall are being denied compensation. Will the Minister review the scope of that report to ensure that tin miners are treated fairly?

[Chris Grayling]

My hon. Friend makes an important point. I have visited his constituency and know what an important part the mining industry has played in his local economy over the years. We all very much hope that it will have the opportunity to do so again in future. I am very sympathetic to the points that he makes. I can give him an undertaking that I will discuss the matter with Lord Freud, and we will certainly make representations on his behalf to the IIAC to see whether the issue of the tin mining industry and those who have worked in it can be addressed again.

[John Mann (Bassetlaw) (Lab)]

I am delighted to hear that the Minister is sympathetic to the mining industry and miners across the country. Can he give a guarantee that there will be no cuts whatever in the industrial injuries compensation that the Government provide to those in coal mining, tin mining and every other type of mining over the next five years?

[Chris Grayling]

It is the goal of this Administration to protect the most vulnerable in our society, and if people have significant issues in their lives we will do everything we can to protect them. Of course, we are facing a massive economic headache left to us by the previous Government. I expect to hear Opposition Members say, “Protect, protect, protect,” to us on many occasions over the coming months, but it would not be such a challenge to do so if they had not left such an enormous mess for us to deal with.

[Dr Sarah Wollaston (Totnes) (Con)]

5. What steps he is taking to reduce the level of youth unemployment.

--- Later in debate ---

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

The future jobs fund is directed at young working-age people. It continues to provide work placements, and all existing contractual commitments are being honoured. Next year we will introduce our Work programme. This will offer integrated employment support to young people, regardless of the benefit that they claim. The programme will help them move into sustained employment rather than temporary jobs. The Government believe that that will have positive impact on child poverty, and indeed all kinds of poverty, in future. However, the recent changes made by the Chancellor in the Budget will have no overall measurable impact on child poverty in the next two years.

[Jim McGovern]

I hope that the Minister will agree that a decent living wage is the best way, and the most efficient means, of combating poverty. The previous Government certainly knew and understood that, and supported and helped many people back into work, not only to their benefit but to the benefit of their families and communities. Will the Minister consider the implications of unemployment for poverty? Will the Government reconsider their proposal to scrap the future jobs fund?

[Chris Grayling]

What the hon. Gentleman does not understand is that the future jobs fund does not guarantee a sustainable future job. I agree with him about getting people off welfare and into work. Nobody will rise out of poverty by remaining on welfare. We want to change things and to get people back into work, but we want to get people into sustainable work. That is why we announced 50,000 additional apprenticeships, and why the Work programme will be geared to getting people into long-term sustainable employment. We will do people no favours by creating artificial short-term schemes that cost a lot of money which, thanks to the previous Government, we can no longer afford.

[Mr James Clappison (Hertsmere) (Con)]

Is my right hon. Friend aware that child poverty can also be tackled by helping people on low incomes to get into work or, if they are in work, to earn more? There was talk of a living wage under the previous Government. I am no professor of maths, but is he aware that analysis of materials published by his Department shows that a single mother with two children under 11 who earns £250 a week suffers an effective tax rate of 90% as a result of benefit withdrawal and tax changes? Is not that a broken, complicated and perverse system?

[Chris Grayling]

My hon. Friend is absolutely right. We inherited from the previous Government a system in which there are tangible disincentives to move back into work. When people do the right thing and move back into work, they often face penal rates at which they lose the money they are earning, either through loss of benefits or through increased taxation. That must change if we are to create a genuine incentive for people to do the right thing and return to the workplace.

[Helen Goodman (Bishop Auckland) (Lab)]

The Government have already cut the future jobs fund, child tax credits and housing benefit, which will increase child poverty in two or three years’ time. Will the Minister tell us whether, in addition to that, his right hon. Friend the Secretary of State has proposed means-testing child benefit?

[Chris Grayling]

I have no intention of taking any lessons from the previous Government on child poverty—[Hon. Members: “Answer the question.”] The Labour party promised to halve child poverty by 2010, but missed that target by 1 million children. Its failure on child poverty was lamentable. By contrast, this Government will take steps over the next few years to reduce child poverty and to ensure that we do the right thing by the people in this country who are at the bottom end of the income scale.

[Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)]

8. What estimate he has made of the number of jobs in Kilmarnock and Loudoun constituency supported by the future jobs fund.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

We do not collect data on a constituency-only basis, so I cannot help the hon. Lady with a detailed response to her question.

[Cathy Jamieson]

As the Minister seems to have no idea about the number of young people on future jobs fund projects at the moment, perhaps he will consider coming to my constituency and speaking face to face to those young people who feel that those jobs have been downgraded by this Government’s attitude to them as unsustainable. Will he ensure that each one of those young people is in a sustainable job within the next 24 months?

[Chris Grayling]

I just do not think that Labour Members understand. If someone is given a six-month job under the tag of the future jobs fund, the word “future” does not apply. It is things like apprenticeships that are genuinely about the future and about creating sustainable employment. That is why this Government announced 50,000 extra apprenticeships. That is why the work programme will focus on long-term opportunities. The tragedy of the future jobs fund is that it is precisely not a future jobs fund: it is a six-month work placement, at substantial cost to the taxpayer, at the end of which—in almost all cases—there is no job. That is a tragedy, but the fund was all about the engineering of figures under the previous Government—unlike the long-term strategy under this Government.

[Nadhim Zahawi (Stratford-on-Avon) (Con)]

9. What steps he is taking to assist disabled people to work.

--- Later in debate ---

[Julian Smith (Skipton and Ripon) (Con)]

13. What recent representations he has received on his Department's proposed new Work programme.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

We have had a large number of representations from organisations interested in and interested to participate in the Work programme. My colleagues and I have also had a series of meetings with interested parties among the provider community and the financial community.

[Julian Smith]

Will my right hon. Friend pay tribute to the Skipton and Ripon enterprise initiative led by Alan Halsall, chairman of Silver Cross Prams in my constituency, which has built a network of established business owners who are voluntarily giving their time to provide advice to anyone who wants to set up a business?

[Chris Grayling]

I will indeed pay tribute to my hon. Friend’s constituent. As well as Government action to address the problems, we should capture the valuable experience of communities and individuals in building businesses, and use it positively to help those who are out of work. We particularly want more individuals to move off benefits into self-employment. I have no doubt that my hon. Friend’s constituent and—I hope—others around the country will be able to make a big difference to these people as they seek to build their businesses in the years ahead.

[Ann Clwyd (Cynon Valley) (Lab)]

Has the right hon. Gentleman had representations from the academic behind the new benefit system, who said that

“ministers should postpone plans to move 2.5 million incapacity benefit claimants on to the new employment and support allowance… until serious errors have been rectified… To go ahead with these problems is not just ridiculous. It is, in fact, scary”?

That was said by Paul Gregg, Professor of Economics at the university of Bristol.

[Chris Grayling]

If one looks at what the last Government first set up with the work capability assessment, I have some sympathy with that view, and I have changed some of these things. The last Government actually expected people on chemotherapy to be judged fit for work. We moved quickly to change that, and we have also set up a review of the work capability assessment, which will report by the end of the year. I have made sure that there is a voice on that from groups that have deep and detailed knowledge of the area. For example, we have the head of Mind acting as an adviser to the review. That is how we will get it right; we will do all we can to do so.

[Anas Sarwar (Glasgow Central) (Lab)]

14. What plans he has for the future of the carer’s allowance scheme.

--- Later in debate ---

[Hywel Williams (Arfon) (PC)]

16. What recent representations he has received from Citizens Advice on the employment and support allowance work capability assessment; and if he will make a statement.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

I have read carefully the report on the issue by Citizens Advice. I have had meetings with its national leadership, and have also visited local volunteers to discuss the issues with them.

[Hywel Williams]

The evidence from Citizens Advice on Labour’s work capability assessment is clear and damning. It states that

“people are being inappropriately subjected”

to the assessment, that it

“is not an effective measure of fitness for work”,

and that it is

“producing inappropriate outcomes.”

The perception among my constituents, however, is that the Government are responding by making the test even stiffer. Can the Minister assure me that he is taking that evidence seriously?

[Chris Grayling]

Absolutely. I was profoundly concerned to discover some of the things that the last Government had done. That is why we are taking steps to address some of the problems, such as the fact that people undergoing chemotherapy have been expected to go to work, which is one of the examples of actions that were completely wrong. We have also commissioned a review by a leading professor, backed up by senior figures with relevant experience of matters such as mental health. We will seek to ensure that the work capability assessment, while being right, fair and proper in the system as a whole, is judged as effectively as possible so that it does not treat unfairly people in genuine need.

[Duncan Hames (Chippenham) (LD)]

I welcome the Minister’s review of the work capability assessment, which is long overdue. Two thirds of sufferers from Parkinson’s disease have been deemed fit for work. Such people suffer from a long-term, complex, debilitating but also fluctuating condition. What assurances can the Minister give that his review will ensure that future assessments are not so crude as to brand them benefit cheats?

[Chris Grayling]

I assure the hon. Gentleman that there is no way on earth that we would seek to brand people in that position benefit cheats. Our job is to find the right dividing line. When it is practical to do so, we should help people with disabilities into work. There is general agreement among all the groups who work with them that that is the positive and the right thing to do. However, we must also ensure that people who are genuinely not capable of working receive unconditional support, and all the care that we can possibly provide. That is where we will seek to draw the line.

[Mr Graham Allen (Nottingham North) (Lab)]

17. What recent discussions he has had with the Chancellor of the Exchequer on the development of early intervention policies.

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[Mark Lancaster (Milton Keynes North) (Con)]

T2. Last week I met a constituent who had been on incapacity benefit for many years. Apart from the initial medical examination, he had not received an examination in nine years. Does the Secretary of State share my concern about a system that seems to let people down so badly?

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

My hon. Friend is absolutely right. There are 2.2 million people on incapacity benefit and an additional 400,000 on employment and support allowance, and under the previous Government a very large number of them heard absolutely nothing from the state; they were simply left to rot on benefits. I think that is wrong. Many of those people could benefit enormously if we helped them back into the workplace. That will be a central goal of the Work programme. My one regret is that the Labour party did not do that years ago.

[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)]

May I ask the Secretary of State particularly about the overall impact of the welfare changes announced in the Budget and since then, because he will know that, for instance, the value of carer’s allowance is being cut by about £135 a year over the next few years, which particularly hits women, and that the value of attendance allowance is being cut by about £185 a year over the next few years, again particularly hitting women? Has his Department done any assessment of the overall impact of the £11 billion of welfare cuts on women—yes or no?

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[Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)]

T3. Given the brief opportunity afforded by Lord Young for others to input into his review of health and safety legislation, what comfort can the Minister give my constituents that its motivation is a serious effort to ensure that the right protection is in place to prevent disasters such as the one that occurred in the constituency of my hon. Friend the Member for Glasgow North (Ann McKechin), at Stockline, rather than another excuse to trot out the usual litany of myth and distortion for the gratification of the Daily Mail?

[Chris Grayling]

The hon. Gentleman has to understand that any Administration must find a balance. If we regulate too much, there will be fewer jobs; at the same time, if we do not regulate enough, employees will be exposed to danger. We have to find the right balance between those two, and I do not believe that over the past 13 years the previous Government did that. They over-regulated, drove companies overseas and cost jobs. We will endeavour to ensure that we restore a degree of common sense, not simply to health and safety regulation but to the regulatory burden imposed on business right across government.

[David T. C. Davies (Monmouth) (Con)]

T5. People applying for jobs in areas that require Criminal Records Bureau checks often have to wait weeks or months for those checks to come through, and during that time they are ineligible to claim jobseeker’s allowance. Will the Minister look sympathetically at these rules, which have the unintended consequence of sometimes discriminating against British nationals?

[Chris Grayling]

My hon. Friend makes a very important point. There are a number of areas we have inherited from the previous Government in which there is an almighty mess to sweep up. I give him my commitment that I will look at the issue he has raised and discuss it with colleagues at the Home Office to see whether we can find a better way of streamlining the system, so that problems such as the one he has outlined do not occur.

[Mary Creagh (Wakefield) (Lab)]

The Minister said that the disability living allowance budget will be cut by more than £1 billion by 2014. Can she tell the House which groups of disabled people are likely to see their benefits cut?

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[Joan Walley (Stoke-on-Trent North) (Lab)]

Given the vital role that Jobcentre Plus staff play in getting people back to work and given that about 13,500 of them are on fixed-term contracts, some of which are due to end in November, can the Minister give the House an assurance that talks are taking place to extend or make permanent job contracts?

[Chris Grayling]

The previous Government recruited staff on a short-term basis—on short-term contracts—precisely because they were brought in to deal with a time when unemployment was rising. Unemployment is, fortunately, now falling. Inevitably, some of those contracts will come to an end and it will not be possible to keep those staff on. I very much hope that those who have built up good experience in Jobcentre Plus will be able to find alternative employment, given the fact that the employment services sector is growing and that the Work programme is lying ahead.

[Jane Ellison (Battersea) (Con)]

I very much welcome the comments made by my right hon. Friend a moment ago about housing benefit. There are particularly difficult problems in London, where housing benefit has contributed to some enormous discrepancies in rent. May I ask him to take a particular interest in the problem in the capital, where the poverty trap is one of the greatest in the UK?

EU Employment and Social Policy Ministers Meeting

Lord Grayling Excerpts

Monday 19th July 2010 Written Statements

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

The informal meeting of Employment and Social Policy Ministers took place on 8 to 9 July 2010 in Brussels, Belgium. I represented the United Kingdom.

The priority for this informal meeting was the new Europe 2020 strategy, focusing on the main objectives, as well as the implementation of the new strategy. Ministers were given the opportunity to highlight the importance of the social dimension and employment in EU 2020, through four workshop sessions focusing on employment on the first day and social affairs on the second.

The presidency underlined the importance of both competitiveness and social cohesion in the European employment strategy within Europe 2020. Its ambition was for the Employment and Social Policy Council (EPSCO) to have greater influence. This would require changing working practices and methods but would provide Europe with a greater ability to co-ordinate and steer European economies. Most member states agreed on the need for a closer relationship between EPSCO and Economic and Financial Affairs Council (ECOFIN). For the UK, I agreed on the need for a close relationship between EPSCO and ECOFIN but stated that this could be achieved through greater co-ordination, and need not require changes to formal mechanisms. I also underlined that job creation would not be possible without a thriving business sector.

There were discussions on how the EU could help member states deal with the consequences of ageing on the labour market. The Commission emphasised the need for policies which allowed older people to stay active on the labour market for longer. Member states agreed that demographic change was a real challenge and that action was needed in response. Several also highlighted that the increased demand for care services could provide job opportunities in many member states.

Member states were also invited to consider how European Union level policies could foster green jobs and prepare the labour market to tackle climate change. The Commission commented that there had been some debate on what green jobs actually were and that this term still held slightly different meanings in different member states. Those who intervened agreed that action on tackling climate change presented job opportunities, but that all relevant stakeholders, the Commission and sectoral Councils needed to work together in order to make any real progress.

On pensions and social inclusion in the context of an economic crisis, member states were asked to consider a common EU framework for adequate minimum incomes. This was met with opposition from many member states. For the UK, I agreed that while minimum income policies should be considered, this had to be at national and not European level.

The presidency invited ideas on how the Social Protection Committee (SPC) and the Open Method of Co-ordination (OMC), (the sharing of best practices), could help to design and implement guidance for the framework of pension schemes in the future. The Commission introduced their recently published Green Paper on pensions, which considered how best to ensure sustainable, adequate and safe pension schemes across the European Union. This was met with mixed views from some member states including the UK who all argued that the case for strengthened European level pension policy co-ordination was weak but that improved indicators, reporting and information sharing could be helpful.

There were discussions on how, within Europe 2020, the OMC could be reinforced and the role of EPSCO strengthened. Many member states stressed that Social Affairs Ministers would need to ensure that EPSCO continued to play a role in discussions. Some commented that an increased focus on budgetary issues risked forcing out the debate on social protection and social inclusion.

Jobs and the Unemployed

Lord Grayling Excerpts

Wednesday 7th July 2010 Commons Chamber

[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)]

I beg to move,

That this House notes with grave concern that the emergency budget will increase unemployment; calls on the Government to publish the HM Treasury analysis of jobs that will be lost in the public and private sector; condemns the Government’s decision to axe the Future Jobs Fund, the Youth Guarantee and the Jobseeker’s Guarantee, scrapping hundreds of thousands of jobs and training places for the unemployed; further notes that the Government is cutting employment support to help people into jobs at a time when growth is still fragile; regrets that the role of the voluntary sector in helping people into work is at risk; further notes that the current claimant count is half the level it was in the 1980s and 1990s as a result of the support and investment the previous Government provided for jobs and getting people back to work; further notes the cost to communities and the economy of long-term unemployment; and condemns the Government’s decision to abolish regional development agencies with potentially damaging consequences for regional economies at a time when the recovery is not yet assured.

Mr Speaker, you said in response to the points of order that Secretaries of State are busy, but that it is very important that Ministers are accountable to the House. At 11.45 this morning, I took a call from the Secretary of State for Work and Pensions, who is not in the House today. He rang to tell me that he would not be here today and that he would not answer the debate because he is speaking to civil servants. Instead of giving a speech to Parliament, he has gone to speak to a London conference for civil servants. He has decided that he cannot rearrange making that speech, despite the fact that he is speaking at a three-day conference organised by the same civil servants who work for and answer to Ministers and advise them on the importance of answering to the House. So the Secretary of State for Work and Pensions has chosen to turn his back on Parliament and the debate. A debate in Parliament on support for jobs and the unemployed is clearly not important enough for him.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

Will the right hon. Lady confirm to the House that, during no fewer than three of the last six Opposition day debates held under the previous Government earlier this year, the Secretary of State in the previous Labour Government failed to appear in the House?

[Yvette Cooper]

The right hon. Gentleman will know that, on many occasions, the then Opposition did not put up their shadow Cabinet Minister to open the debates. He will also know that Members have given reasons for not attending. I was ready to take the call from the Secretary of State, had he told me that he had a family emergency, a health problem or a European event to attend. The Minister has an engagement in Brussels, and I understand that he will therefore not be here for the close of the debate. I completely understand that; of course, he must fulfil his international responsibilities. Of course, we recognise such responsibilities, but to choose to attend a three-day conference for the very hour at which the Secretary of State should be present in the House to discuss support for jobs and the unemployed is a dereliction of his duty not only to the House, but to the unemployed he should be trying to help.

We think that this is an important subject. That is why we have chosen it for our third Opposition day debate. This month, many young people will leave school, college or university, and they are looking for their first jobs. It is not an easy time to look for work. We have just come through the worst global recession for many generations, and across Britain as in many other countries, many people have been hit by job losses and unemployment as a result.

Next week, the June unemployment figures will be published. The House will know that the International Labour Organisation unemployment figure currently stands at 2.47 million, more than 500,000 less than many experts predicted when the recession and financial crisis started and more than 500,000 less, too, than in the 1980s and 1990s recessions. The claimant count is 4.6%—less than half the 10% that it reached in the ’80s and ’90s recessions and almost 750,000 less than expected in last year’s Budget, thus saving us £15 billion over the next few years.

Of course, those figures are too high, families are still struggling and we need to bring down unemployment, but it is worth understanding why unemployment has been kept lower during this recession, because it reflects the work that businesses and employees have done to protect jobs. People have been working fewer hours, often cushioned by tax credits—a cushion that Government Members now want to take away. To help to save jobs, businesses have cut other costs. The fact that unemployment has been kept lower reflects the extra support for the economy—the VAT cut, the public sector construction contracts, the car scrappage scheme and the maintenance of public spending and public sector jobs through the recession—all opposed by the Conservative and Liberal Democrat parties. It reflects, too, the extra help to get people back to work faster than in previous recessions—the youth guarantee, the extra education training places, the stronger jobseekers’ regime run by Jobcentre Plus—all support that the new Government now want to take away.

I pay tribute to the work that Jobcentre Plus did during the recession to help as many people as possible to get back to work much faster than in previous recessions, but this is a dangerous time. Too many people, especially young people, are still struggling to find work. If we look at the lessons from history, we see that this is the time when the labour market is at its most fragile. This is the time, just as the economy is coming out of recession, when there is most risk of people getting stuck in long-term unemployment. If we look at what happened in the 1990s, we see that it was a long time before unemployment started to come down after the recession finished. Youth unemployment rose for 18 months after the recession finished. If we look at what happened in the 1980s, we see that unemployment rose for years after the recession finished. Youth unemployment rose for four years after the recession finished.

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[Yvette Cooper]

My hon. Friend is right. This is happening now to young people throughout the country. One of the young women I talked to yesterday also told me about a job with the London Wildlife Trust. It had asked her if she would be interested in working for it through the future jobs fund, and when she contacted them to say yes, it said, “Sorry, too late. The programme is closed.”

Ministers try to claim that there are no cuts in these jobs. The Secretary of State said:

“we are not cutting any jobs at all. We are saying that we will stop the part of the programme relating to jobs that were not contracted for.”—[Official Report, 14 June 2010; Vol. 511, c. 584.]

According to the Secretary of State, if the contract has not been signed, it has not really been cut. He says that these were only notional jobs. The trouble is that he has not cut notional money. He has cut real money—£290 million this year, and hundreds of millions of pounds in future years. That money would have funded 90,000 future jobs fund jobs for 90,000 people—real people who will struggle longer on the dole as a result.

[Chris Grayling]

Before the election, the previous Administration were planning public spending cuts of £50 billion. Where did the right hon. Lady expect to make those cuts in the Department that she was then heading?

[Yvette Cooper]

We were clear that the best way to cut welfare spending was to get more people into work. The very fact of getting people into jobs was cutting £15 billion from welfare bills over the next few years. That is substantially more of an impact than the right hon. Gentleman could possibly have by cheese-paring bits from employment programmes that end up putting more people on the dole and pushing up the bills for unemployment. That, in the end, is the right hon. Gentleman’s problem.

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[Yvette Cooper]

I am interested that the hon. Lady is concerned that people are not getting enough support and believes that they should have more help. I wonder why on earth, then, she has voted for a Budget that cuts £11 billion from benefit support for those on the lowest incomes in the country. What she is arguing for are cuts in Government and taxpayer support, and for people simply to depend on charities instead. That would be a return to the Victorian approach of the workhouse and the pre-Beveridge, pre-welfare state approach of not supporting families across the country, which would be deeply unfair. There may not be the type of charity that she happens to have in her constituency in every constituency and working with every jobcentre in the country. We in the Labour party believe that we should support people, which is why we have not proposed cutting benefits by uprating them only by the level of the consumer prices index, which will take £5.8 billion out of the value of benefits for some of the lowest-income people in this country.

[Chris Grayling]

Can the right hon. Lady confirm to the House that before the election, she did not at any stage give serious consideration to increasing benefits in line with CPI? Can she make it clear once and for all—did she consider that or did she not?

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[The Minister of State, Department for Work and Pensions (Chris Grayling)]

I beg to move an amendment, to leave out from “House” to the end of the Question and add:

“welcomes the emergency budget which will tackle the unprecedented legacy of debt over the next five years by reducing borrowing from a projected £149 billion this year to just £20 billion in 2015- 16; notes the Office for Budget Responsibility’s projection that unemployment will fall in every year of this Parliament as a result of the Government’s policies to stimulate private sector employment by reversing the damaging increase planned for employer national insurance contributions, introducing a £1 billion Regional Growth Fund, reducing the corporation and small profits tax rates and increasing the Enterprise Finance Guarantee, resulting in the creation of a projected two million new private sector jobs by 2015-16; further welcomes moves to implement a single work programme that will provide personalised support to help people move into sustained employment, to introduce a £1,000 increase in income tax personal allowances which will incentivise work, to reform the benefits system to ensure that work pays and to provide 50,000 new apprenticeships and 10,000 new university places for young people, thus stimulating growth, delivering jobs and creating a fairer society for all.”

May I start by passing on the apologies of my right hon. Friend the Secretary of State to the House? Despite what the right hon. Member for Normanton, Pontefract and Castleford (Yvette Cooper) said, he has an important job to do in helping to lead our public sector out of the mess in which the previous Government left it, and he has an important leadership role with the people who will help him to do that. I am sorry that the right hon. Lady is disappointed to be debating against me this afternoon. I am rather pleased, frankly, to be debating against her and I was impressed by her lively form. I somehow think that the wrong member of her household is running a Labour leadership campaign.

Listening to the right hon. Lady, one would think that the past decade had been one of economic triumph and effective employment policies, and that the previous Government had left behind a golden legacy of wise and effective policies. Well, they did not. What they left behind was an economic hangover that we will all be dealing with for years to come, and I am not referring just to the huge deficits or the huge planned spending cuts that Labour had lined up. Indeed, one would think from listening to her this afternoon that the previous Government had no plans to cut spending. Actually, the opposite was the case. What they did not do was give us any detail whatever on where that money was going to be saved.

If we look back over the previous 13 years, the story is a pretty sorry one, with 400,000 more unemployed people today than when Labour came to power in 1997, a higher level of young people not in education or employment, and a lower proportion of people in work. Over that period, Labour spent billions of pounds on projects to try to get people back into work. They spent billions through the recession on supported programmes, but things have actually got worse. What we on the Government Benches know is that long-term sustainable jobs are created by the private sector, not by Government schemes.

Even when jobs were being created over that decade, Labour completely failed in its mission of trying to get people into work. Large numbers of people managed to come into the UK from overseas and find jobs, yet through the years of Labour Government, we consistently had some 5 million people stranded on out-of-work benefits. Many of them could have worked and many of them should have worked, but under Labour it just never happened. So much for “Things can only get better”.

[Mr Graham Stuart (Beverley and Holderness) (Con)]

A particularly poisonous legacy of the previous Government and their economic failure was the plight of young people. We now have 1 million young people who are NEET—not in employment, education or training—but even before the credit crunch came, there were as many people NEET at the end of that period of economic growth—albeit unsustainable growth, as we now find—as there were when Labour came to power. The previous Government let down young people, scarring them for life. We now have 1 million young people unemployed because of Labour, yet we have had no apology. What we need is this Government to sort out the mess that the previous Government left behind.

[Chris Grayling]

My hon. Friend is absolutely right, and I would ask the House this question. Why would we take Labour Members seriously on youth unemployment when they had such a terrible record on youth unemployment over 13 years in government? What we saw from Labour in office was at best incompetence, at worst a wilful disregard for taxpayers’ money, and a failure to understand how to create long-term sustainable jobs in the economy.

[Mr Wayne David (Caerphilly) (Lab)]

Has the right hon. Gentleman made any estimate of how unemployment will increase because of his Government’s policies?

[Chris Grayling]

We have taken a decision—and rightly so—to push out of Government the job of economic forecasting. That is the purpose of the Office for Budget Responsibility. Its analysis, independent of Government, is that unemployment will fall and employment will rise as a result of the decisions that we have taken in the Budget. That is the direction in which we should be heading.

Those in the previous Government cannot simply blame the recession for this mess. Despite 10 years in power, even before the global banking crisis started, more than 15% of our children—1.75 million children—lived in households where no one worked. We have one of the worst rates of workless households in the EU. I am therefore delighted to take on the right hon. Member for Normanton, Pontefract and Castleford on employment today, and to remind the House and this country what a terrible record the previous Government had in their 13 years in office.

There were fewer jobs in manufacturing. We have heard a lot of talk today about the 1980s, but let us be clear: the big drop in manufacturing employment in this country and the big slump in the proportion of the economy taken up by manufacturing took place under the Labour Government, between 1997 and 2010. Labour should be ashamed of the previous Government’s calamitous record on supporting manufacturing business in this country and creating a regulatory environment that drove so many firms out of business and overseas. The previous Government constantly missed their targets on apprenticeships. We heard again and again of how they were going to deliver hundreds of thousands of apprenticeships, but they never hit their targets. They spent massive amounts on employment programmes—designed in Whitehall but ineffective in practice—and they left the biggest deficit in our peacetime history. After all those promises about ending boom and bust, Labour finished with the longest recession in the western world.

[Toby Perkins]

The right hon. Gentleman mentioned that some programmes were ineffective. One of the programmes that he has cut is the future jobs fund. I tabled a written question about that for his Department, but it was completely unable to tell me how many jobs had been created in my constituency. As the Department obviously does not know whether the future jobs fund was successful or not—it is too early—and as it is unable to provide any evidence that it was not, why does the right hon. Gentleman not just admit that cutting the scheme was a decision made for ideological reasons rather than because it was not working?

[Chris Grayling]

What we sent to the hon. Gentleman in the written answer was the details of the future jobs fund placements in his area. We have to be careful with taxpayers’ money, and it would therefore not have been prudent to collect data down to constituency level. However, the information is there for him to see, and when he looks at those data, he will see that the success of the future jobs fund in creating jobs has been consistently below target all the way through.

Let me lay to rest one myth today. We have not stopped the future jobs fund. Tens of thousands of additional places will be created over the next few months under the future jobs fund. We have said, however, that we need to take tough decisions in the light of the mess left behind by the previous Government. Also, by next spring, we will be bringing on stream the Work programme, which we believe will provide long-term support for those who are looking to get back into work. I shall say a bit more about that in a moment.

[Mr Heald]

Does my right hon. Friend agree that the overall picture of Labour’s employment schemes shows that they helped into work the people with the highest levels of skill, and people aged between 25 and 49, and that a vast population was simply left behind that could not compete with the people who were coming into this country and taking the jobs that were on offer?

[Chris Grayling]

My hon. Friend makes an important point. What we learned from the new deals was that people were simply cycled round and round. They went through the system again and again because they were not placed in sustainable employment. That is one of the problems with Labour’s approach.

Let me tackle the issue of the future jobs fund head on, because we have heard a lot today about Labour’s flagship scheme. Around 100,000 future jobs fund jobs are still being created under the current scheme, costing up to £6,500 each. As the right hon. Lady said, most of them are in the public and voluntary sector. I could be wrong, but my idea of sustainable employment is not a six-month work placement in the public and voluntary sector. It is about getting people into long-term roles in the private sector, which can provide a long-term career for them. That is why our emphasis has been on creating apprenticeships, and 50,000 new apprenticeships have been created in a very early move by this Government.

[Mr David Lammy (Tottenham) (Lab)]

Is it not insulting to people who work in the voluntary and public sector to imply in this House that those are not real jobs? Would the right hon. Gentleman like to withdraw that last statement?

[Chris Grayling]

That is not what I said. The right hon. Gentleman clearly was not listening. A six-month work placement in the public and voluntary sector with no guarantee of a job offer at the end of it, and no certainty that the role will involve the kind of skills development that an apprenticeship would offer, is a poor relation compared with the programme of apprenticeships launched under this Government.

[Mr Lammy]

I know that the right hon. Gentleman is an educated man. He has said that the country is in a recession. Is it not axiomatic that, in recession, private companies tend not to invest in employment? The purpose of the future jobs fund was precisely to create employment in the public sector, because the Government had leverage over the public sector.

[Chris Grayling]

But the way that we will create long-term jobs for the future will be to revitalise and energise our private sector. The reality is that the Labour party went into the general election campaign promising to increase the tax on employment and to make it more expensive for the private sector to employ people. How can the right hon. Gentleman think that that is a route to long-term sustainable growth and opportunity for employment in this country?

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

May I ask the right hon. Gentleman whether there will be a job guarantee with the 50,000 placements that will be arranged under the apprenticeship programme? Also, where is the logic in making people wait so long? There are still many unemployed people in my constituency. After someone has been unemployed for six months, the private sector will treat them as long-term unemployed. How can it be right to leave people waiting until next spring before giving them something to work on?

[Chris Grayling]

I know that the hon. Lady is a new Member, and she might not be aware of the changes made by the previous Government. One of the things they did was to extend the period that people had to wait before they could receive support on employment programmes. In the case of young people between the ages of 16 and 25, the period was extended from six months to 12 months. I agree with her that things need to happen sooner, and one of the things we will do in the Work programme is to give that support sooner.

The coalition Government are committed to supporting people in sustainable employment, providing opportunities that will provide skills, open doors and help people to stay in work. Our goal is not to get people off the unemployment register temporarily, but to work with them to achieve a goal of lasting employment. That means plotting a different course. The same tired old policies will not work. For too long, economic growth in Britain has been unbalanced, driven by the accumulation of unsustainable debt and a bulging public sector. We have been forced to deal with the largest public spending deficit in peacetime history, and the crisis in the eurozone has shown that the consequences of not acting are severe.

[Yvette Cooper]

I have heard what the Minister is saying, but how does he account for the fact that, in 2012-13 and 2013-14, employment will be 110,000 lower as a result of his Budget than it would otherwise have been, according to the assessment of the Office for Budget Responsibility? If there are fewer jobs in the economy, how on earth does he think young people are going to get more of them?

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[Chris Grayling]

If the right hon. Lady looks at the figures, she will see that the OBR is forecasting an increase in employment of 1.5 million jobs in the wake of the Budget over the next few years. My goal, and the goal of this Administration, should be to ensure that as many of those jobs as possible go to people who are on benefits, many of whom have been on benefits long term. The big mistake of the past decade when jobs were being created was that that simply did not happen.

[Yvette Cooper]

Again, I ask the right hon. Gentleman to confirm the OBR’s forecast that, as a result of this Budget, employment will be lower. Before the Budget, it forecast 29.47 million jobs in the economy for 2012-13; after the Budget, it forecast 29.36 million jobs for the same year. Will he confirm that the consequence of his Budget will be to cut the number of jobs in the economy?

[Chris Grayling]

The right hon. Lady has continued to operate on the basis that the public sector could somehow remain as it was, and that we could carry on spending the same amounts of money. She does not seem to understand the consequences of carrying on with the same level of deficit. They would include higher costs for business and higher interest rates. We can see the consequences in the eurozone of not getting to grips with the deficit. We are interested in creating long-term, sustainable employment, which is why we want to deliver schemes and support that will encourage the private sector to grow and develop. That will not happen if we maintain a deficit, however.

[Yvette Cooper]

But will the Minister confirm that the reason for the lower number of jobs forecast for 2012-13 is that the private sector will have been hit by the consequences of his Budget?

[Chris Grayling]

Last week, the right hon. Lady was criticising us for theoretically planning job reductions in the public sector. She cannot have it both ways. We cannot have an increase in employment, a fall in unemployment and a fall in public sector employment without the private sector beginning to take people on again. This might be a point of difference between us, and I can accept that, but I believe that, over the next 10 years, we shall need a successful, flourishing private sector that can create sustainable jobs. I am sorry that the Labour party appears to be reverting to type in believing that the public sector can somehow carry it all. This is a point of difference between us, but I believe that we will not create opportunities for those young people unless we have proper, sustainable private sector employment.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

Will the right hon. Gentleman give way?

[Chris Grayling]

If the hon. Lady will forgive me, I would like to make some progress.

We will introduce radical reform and follow policies that will encourage growth and development in the private sector. We will also radically reform welfare, with a real focus on helping people to find sustainable work. We will reform the benefits system so that work pays. We will tackle endemic worklessness and the intergenerational cycles of disadvantage that it creates. We will halt the tragic waste of human potential that exists when people are out of work. When I listen to Labour Members talking about unemployment, I simply remember their record over the past 10 years, and those 5 million people who have consistently been on benefits.

Next year, we will launch the Work programme to provide a coherent package of support for people who are out of work, regardless of the barriers that they face or the benefits that they claim. We will end the programme complexity that we have seen over the past decade, and replace all the paraphernalia of programmes with a single, integrated package of support. It will not be a one-size-fits-all scheme, however, because we have had too many such schemes from Whitehall. We will trust the professionals on the ground who deliver back-to-work support to find the right way of delivering that support to individuals. We will look to investors in the private, public and voluntary sectors to provide the support, and we will judge the organisations that participate on their success rate.

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

Of course I want whatever new scheme the Minister comes up with to succeed, but does he share my concern about the possibility that the private contractors whom he wants to employ will charge more for their services because the changes the Government have made in the Budget will result in fewer jobs in the economy than there would otherwise have been?

[Chris Grayling]

That is not my concern. My concern is to ensure that, if the OBR forecasts are correct and we see employment growth amounting to 1.5 million more jobs in the next few years, we do not make the same mistake in government as the hon. Gentleman’s party did and fail to get people off benefits and into work to take those jobs. I do not want to see a steady and unchanging level of millions and millions of people on out-of-work benefits over the course of a decade while jobs are created around them, effectively operating outside our mainstream society. That must change. I want opportunity for those people. I want to see them back in employment. I am sure the hon. Gentleman shares that goal, but what we aim to do is make it happen this time around.

[Miss Begg]

I am sure the Minister is well aware that the increase in the number of people claiming incapacity benefit is a result of mental health problems. He may also know that, in response to most surveys, 60% of employers say that they would not employ someone who has had a mental health problem. How will the Government solve that conundrum?

[Chris Grayling]

The hon. Lady has made an important point, which I am sure her Committee will want to address. In fact, I was going to refer to the work capability assessment. These are important issues, and we clearly face a big challenge. There are 2.2 million people on old-style incapacity benefit, and we must do all we can to help as many of them as possible to return to work. Of course, not all of those people will be able to work and many will need to continue to receive unconditional support throughout their lives; but every organisation I have ever worked with, come across or talked to that works with people with disabilities and long-term sickness problems would like to see more of them back at work. We all believe that work will help those people, and I am determined that this part of the Work programme will make a huge difference to them.

[Toby Perkins]

rose—

[Chris Grayling]

I will give way once more, but then I really must make some progress.

[Toby Perkins]

I am grateful to the Minister, who has raised the important issue of people on incapacity benefit and the large number of people with mental health problems. Given his belief that the solution to those problems lies in the private sector, is he aware of many private sector employers who are rushing to employ people with a history of mental health problems or with a serious history of incapacity problems?

[Chris Grayling]

The key to supporting people with mental health problems and other disability issues is winning the confidence of employers, and the role that can be played by providers—whether in the private or the voluntary sector—in forging relationships with employers. I believe that as that relationship strengthens, as people start to obtain work placements and as employers start to work with some of those who have been on incapacity benefit, employers will become more ready and willing to provide extra opportunities.

I have no doubt that many businesses in this country want to do the right thing. I believe that, in general, members of our society recognise that we cannot go on with the same number of people stranded on incapacity benefit. I am confident that if we get the programme right and deliver effective back-to-work support for those people, the opportunities will be there and will grow as time goes by. I know there is consensus across the House on this proposal. We came up with it originally, and the previous Government adopted it. Now we are taking it forward, and we will work hard to refine the work capability assessment to ensure that we get it right. I look forward to working with the Select Committee and the hon. Member for Aberdeen South (Miss Begg) to achieve that. It is fundamentally important that we actually make a difference to those people, about a quarter of whom have claimed incapacity benefit for more than 12 years. That has had a devastating impact on the people themselves, and it is a burden we have had to carry as a society. We must do all we can to help as many as possible of those people to make something better of their lives.

All that, of course, is in addition to the support that will continue to be provided by Jobcentre Plus. I agree with the right hon. Member for Normanton, Pontefract and Castleford that its staff do a first-rate job, which in recent years they have done under great pressure. I am glad that that work is recognised on both sides of the House.

Our package of reforms is not just about getting people into a job, and it is not just about saving money; it is all about helping people to make more of their lives. We have heard so much from the Labour party in recent weeks about its policies and how they would have made all the difference, but I do not buy that; I do not think they are right. What we inherited from Labour was a series of commitments it could not afford and a series of plans that involved short-term solutions to its political problems, rather than long-term solutions for the individuals concerned and for our country. We need a fresh approach, which is why we believe so strongly in focusing on apprenticeships rather than the future jobs fund.

Apprenticeships provide an opportunity to learn new skills that are actually valued by employers. They give people a chance to learn a trade and to embark on a career, while also improving productivity and developing a talent pool. A Labour Member mentioned skills. I happen to believe that a well-run apprenticeship is a much better way of giving someone a platform for life. That is why we are spending £150 million on a programme involving 50,000 apprenticeships that can make a difference.

[Rushanara Ali]

rose—

[Chris Grayling]

I will give way once more, but then I must wind up my speech so that others have a chance to speak.

[Rushanara Ali]

May I ask once again whether there will be a job guarantee for those 50,000 apprentices? My question was not answered when I asked it earlier, and it is the kind of question to which my constituents want an answer. There is no point in people joining those programmes if there is no opportunity for them to get jobs when the programmes end.

[Chris Grayling]

We intend to continue the young person’s guarantee until the launch of the Work programme. However, there is no guarantee of a job at the end of any programme. The programmes are intended to create opportunities for employment. None of the last Government’s programmes involved a guarantee of a job at the end. The best we can do is to ensure that people are as work-ready as possible, and then try to provide an environment in which jobs are being created for which people can apply.

[Alison McGovern (Wirral South) (Lab)]

rose—

[Chris Grayling]

I said last time that I would give way only once more, but I will give way to the hon. Lady because I have not done so before. Then I must make progress and wind up my speech.

[Alison McGovern]

I am grateful to the Minister. It is fantastic that in my part of Wirral we saw a tenfold increase in the number of apprenticeships between 1997 and 2008. Does the Minister agree that the best thing we can do with apprenticeships—we all agree they are vitally important—is not to try to rewrite history or cut our way out of the recession, but to try to build business confidence so that investment in apprenticeships continues in my constituency and others?

[Chris Grayling]

One of the disappointing things about the last Administration was that we kept hearing the then Prime Minister make promises about numbers of apprenticeships. Year after year, we looked at how many had actually been delivered, and saw that they never hit the target. I hope we will not make the same mistake, and I believe that the 50,000 apprenticeships we have announced will make a difference to a large number people who will take them up as part of the Skills for the Future programme.

[Mary Creagh (Wakefield) (Lab)]

Will the Minister give way?

[Chris Grayling]

No; I am going to wind up my speech now.

I want to end by making a point about the overall context of our proposals. We are trying to create an environment in which business can grow, develop and flourish. The Budget was about that as well. The Chancellor announced measures to stimulate growth, including a reduction in the main rate of corporation tax and the rate of corporation tax for smaller companies, a reduction in the main and special rates of capital allowances, an increase in the enterprise finance guarantee, the creation of a growth capital fund, and the regional support with which we intend to help private sector employers to grow and develop in our regional areas. We also stopped the Labour jobs tax. All those measures are designed to create an environment in which small, medium-sized and larger businesses can grow, develop and create jobs in the next few years, and they have all been welcomed by business groups.

[Yvette Cooper]

Will the Minister give way?

[Chris Grayling]

Oh, go on.

[Yvette Cooper]

I thank the Minister for his generosity in allowing me to intervene again. He referred to support for the private sector and for private sector growth. Will he confirm that according to the OBR’s own assessment, in 2012-13 private sector employment will be 260,000 lower than it would have been under Labour’s Budget?

[Chris Grayling]

When will the right hon. Lady recognise that the Labour Budget was not affordable? It was taking the country down a path we could not afford. We have seen in the eurozone what happens if nations try to do things they cannot afford. Labour Members keep going on as if nothing had happened—as if all would somehow have been swimmingly good if they had returned to office, and all the problems would have been sorted out—but it is not like that. Labour Members are living in a fantasy land, but the reality is that business groups welcome what we have done.

Richard Lambert, director-general of the CBI, has said:

“There was clear recognition of the role that business needs to play in getting the economy back into shape, and generating the jobs and wealth needed to sustain economic recovery.”

The British Chambers of Commerce has said:

“The government’s decisive moves to cut the deficit will have positive effects on business and investor confidence. Even more importantly, the Chancellor's message that Britain is open for business will be welcomed by companies the length and breadth of the country, and across the globe."

That is what we need to do to create the environment in which Britain is a good place to do business again, and in which jobs are being created.

It has been interesting to listen to Labour today. To be honest, it has been like a Westminster version of “Life on Mars”. Suddenly we are back to the old Labour rhetoric of the past. They seem to believe that what we need is big Government to create jobs, and if we spend just a bit more all will be well. That is nonsense. We know that we need flourishing businesses if we are to create jobs for the future. We know that we need the right skills and technologies for the future. We also know that we need to ensure that everyone in our society has the chance to find the right opportunity for themselves. We heard some of those messages from new Labour in its heyday, but they were never followed through. We are all paying the price now. This Administration will not make the same mistakes that Labour made.

--- Later in debate ---

[Mary Creagh]

I thank my hon. Friend for that intervention. He truly is a renaissance man, and I hope that many of the young people whom we met who got their entry-level work through the future jobs fund end up sitting on these green Benches. I hope that they can make the same incredible progress and journey that he has made in his life.

I turn now to the Work programme set out by the Minister of State, Department for Work and Pensions, the right hon. Member for Epsom and Ewell (Chris Grayling). I have a great deal of concern about it. In a speech on 27 May, the Secretary of State spoke about

“a single scheme that will offer targeted, personalised help for those who need it most, sooner rather than later”.

If it is a matter of sooner rather than later, why are we waiting until next year for it to come in? I suppose that that has to do with the fact that the Government want to set up what I presume is a national contract with large-scale training providers. I tried to intervene about this earlier, because the Government are asking those providers to bear the risk of training people even though their contract payments will depend on outcomes.

That raises a series of questions. First, at a time when deflation, very low growth or even a double-dip recession are all possible, why does the Minister think that the private sector will turn to the banks for loans to cover this training given that, as we heard earlier, the banks are averse to risk and not very good at lending? Output-related funding is currently calculated on the basis that it takes six or nine months to get a person into work and then 13 weeks to ensure that he or she has lasted in that job. Why does he think that organisations in the private sector such as Capita or BT will line up to take on the massive risk involved in training people and employing them, when there is such a huge amount of uncertainty?

I have another question for the Minister, and I will give way to him if he can answer. How does he think voluntary sector organisations such as Nacro—the National Association for the Care and Resettlement of Offenders—will be able to do this? Such organisations have specialist programmes working with the most difficult, hard to reach and disadvantaged people—prisoners, young offenders and ex-offenders. They have the benefit of being present in and running training courses in prison and are then able to offer some sort of continuity when the offender leaves. I am also thinking of providers such as Rathbone training, an organisation that I had the privilege of serving as a trustee for seven years. These are small-scale organisations—Rathbone’s turnover when I left it in 2005 was £40 million. Why does he think that they will go to the bank—or their trustees would say that they should go to the bank—and borrow up to £20 million at a time, with a personal guarantee of the trustees, who are jointly and severally liable, who are for a programme when it is not clear that they will get the rewards from it?

[Chris Grayling]

I am happy to intervene briefly to confirm two quick points for the hon. Lady. The first is that, as she will recognise, this is an established marketplace that has grown. What we are talking about, in particular, is scale as a result of the incapacity benefit migration. We are pushing the envelope further than it has been pushed before, but established principles are involved. She is right about protecting voluntary sector organisations. I would be making another speech if I explained the full detail of how to do that, but I can assure her that I regard those organisations as important as she does.

[Mary Creagh]

I am relieved to hear that, but I am afraid that that was not an answer and I am unable to wait for another speech from the right hon. Gentleman to hear these plans emerge. Let us consider the position of an organisation 90% of whose budget depends on public sector contracts. Organisations are planning next year’s budget now. They will be signing off budgets that need to be ready in February and the finance directors will be making those budgets ready in October, November and December. How will such an organisation make plans for 90% of its funding—that could be £35 million, or £37 million at 2005 prices—without knowing what the system and financing mechanism will be for voluntary sector bodies? If the right hon. Gentleman is to grant the voluntary sector privilege, will he not be in danger of doing something about which we have heard a lot—will he not be risking crowding out the private sector? I shall leave those thoughts hanging in the air.

Rathbone training works with teenagers who have had chaotic homes lives and who have encountered poverty and unemployment. Many of them have failed at school and many have had babies early in their lives. Rathbone carried out a survey of those young people, asking them which profession they would like to pursue. Everyone in the Chamber will probably be relieved to hear that only a handful wanted to be footballers, pop stars or WAGs. Instead, the majority of Rathbone trainees preferred more everyday jobs such as car mechanic or office worker. That was summed up by a 17-year-old lad from Newcastle, who said:

“I’m happy at the moment training to be a bricklayer.”

I just hope that he has a job to go to in the construction industry when he finishes his bricklayer training. On the current prognosis, I am sceptical about that happening.

I am concerned about the incapacity benefit reforms and the assertion that such a one-size-fits-all approach will be better. Why will it be better than programmes run by people in the public sector? I am not so sure that it will be. I am concerned that we are going around in a circle—we are going back to the 1980s, as my right hon. Friend the shadow Secretary of State said, and back to the 1930s. We are going into the failed Thatcherite schemes of the 1980s—a youth training scheme mark 2. In the current plans, however, there is no enterprise investment scheme—and that did exist in the 1980s. We have heard a lot about the need for a vibrant and flourishing small business sector, but these reforms contain nothing, as yet, that allows would-be entrepreneurs in constituencies such as Wakefield and Normanton, Pontefract and Castleford, as well as those in Liverpool, to set up their own businesses. I hope that the Minister, who is no longer in his place, will examine that.

The Work Programme

Lord Grayling Excerpts

Tuesday 29th June 2010 Written Statements

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

Today the Government begin the first stage of their reform to deliver a 21st century welfare system.

The coalition Government are committed to fighting poverty, supporting the most vulnerable and helping people break the cycle of benefit dependency that has blighted some communities.

We want to establish a system of employment support that treats people with the dignity they deserve.

As announced in the coalition agreement we will radically simplify the back-to- work system by ending the complexity of the previous decade and replacing current schemes with a new Work programme.

The Work programme will provide a coherent package of support for people out of work, regardless of the barriers they face or the benefits they claim.

The Government will look to investors from the private, public and voluntary sectors to provide this support.

This week we will be releasing an advert setting out the parameters of a commercial framework and encouraging private, public and voluntary sector organisations to bid to be part of it.

Once in the framework organisations will compete to supply employment support.

The framework arrangement means we will be able to contract for employment support in a faster, flexible and more efficient way than the current system allows.

It also means Government can be more responsive to economic conditions and local need, which will enable us to let larger, longer contracts, encouraging greater investment and creating the circumstances for a proper rate of return for investors and meaningful social return for the taxpayer.

The Work programme will also provide help for the thousands on incapacity benefits who are able to work.

There are 2.6 million people claiming incapacity benefits.

The Government are committed to providing unconditional support for very sick and disabled people within that group.

But there are people claiming incapacity benefits that can work, and want to work, with our help they will be able to.

In the autumn, starting in Burnley and Aberdeen, we will ask incapacity benefit claimants to attend a work capability assessment. The rest of the country will follow, with reviews taking place when the normal benefit review is due.

The work capability assessment is designed to measure whether someone is able to work. It also allows us to recognise those who need additional support and ensure they get unconditional help.

To this end, we will take forward recommendations to treat people waiting for or between courses of chemotherapy in the same way as those already receiving it.

We will also extend the criteria for people with severe disability due to mental health conditions, meaning fewer very sick people will be asked to attend an assessment.

We will also establish an independent review as required by the Welfare Reform Act 2007, a concession forced on the previous Government jointly by the Liberal Democrats and Conservatives.

The coalition amendment established an independent review, which Professor Malcolm Harrington has agreed to lead, to scrutinise the assessment process. This will ensure people are treated fairly and assessments are transparent. The report will be completed by the end of the year.

These reforms are not just about getting people who are able to work into a job.

These reforms are the first steps towards tackling one of the key drivers of poverty and breaking the intergenerational cycle of worklessness and disadvantage.

Today the coalition Government take a firm but fair hold of the welfare system. This approach will bring about transformational change in the benefits system, helping people leave benefits and work towards a better quality of life for themselves and their families.

We have produced a guide to the framework and copies are available in the Vote Office and the Printed Paper Office.