Oral Answers to Questions
Lord Grayling Excerpts(14 years, 5 months ago)
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Mr David Hanson (Delyn) (Lab)
3. What steps he is taking to promote employment opportunities in Wales.
The Minister of State, Department for Work and Pensions (Chris Grayling)
Business and the economy are, as the right hon. Gentleman knows, devolved matters. However, Jobcentre Plus in Wales is notified of thousands of vacancies each month. Jobcentre Plus advisers ensure that jobseekers know of all sources of vacancies, and that is included in the review of jobseekers’ job search activity every two weeks. That focus on jobs will also be a key part of the support offered to people who are migrating from incapacity benefit to the employment and support allowance. Jobcentres in Wales also regularly hold jobs fairs to highlight employment and training opportunities.
Mr Hanson
Could the right hon. Gentleman tell the House how he thinks cutting £320 million from the future jobs fund will assist job creation in Wales, and will he give me a guarantee today that the almost 10,000 jobs that have been agreed under the future jobs fund, from Rhyl to Rhondda, will not be cut by his Government?
Chris Grayling
What the right hon. Gentleman needs to understand is that Wales and every other part of the United Kingdom need sustainable employment, and that is why we needed to stop the jobs tax that the last Government were planning to introduce. That is also why we need to provide incentives for small employers—those employing fewer than 10 people—to take on people by giving them a discount on their national insurance contributions. Those are measures that can and will make a difference.
Harriett Baldwin (West Worcestershire) (Con)
Many of my constituents have Welsh connections—[Interruption.] It is true. What would the Minister say to a constituent of mine who is physically very fit, but who has mental illness? How will we help people with mental illness back into work?
Chris Grayling
That is particularly relevant to the situation in Wales, where there are substantial numbers of people claiming incapacity benefit or employment and support allowance, as there are in other parts of the country, such as in my hon. Friend’s constituency. We need to ensure that we provide the best possible support, so that we give those people an opportunity to move into work. That is what we will do from later this year, when we begin work on migrating people from incapacity benefit to the employment and support allowance. I am confident that we can give many of those people an opportunity to get back into the workplace and make more of their lives.
Hywel Williams (Arfon) (PC)
Can the Minister assure me that the Government are doing their utmost to protect existing jobs in small companies, for example by encouraging Departments not to take peremptory action on, say, unpaid tax or regulation matters?
Chris Grayling
The hon. Gentleman is absolutely right: it is necessary for us to support employment in the private sector, particularly among small employers; that is why I made particular reference to our plans regarding national insurance contributions for small employers. I know, because we in the Department for Work and Pensions have already looked, that we have a good record on paying small employers, and I hope that my colleagues across Government will do everything that they can to support those small businesses, as they will provide the jobs of the future. It is not Government schemes that will create wealth and employment in future, but real business people, building real businesses.
Philip Davies (Shipley) (Con)
4. What plans he has for the future of the Child Maintenance and Enforcement Commission.
Jon Trickett (Hemsworth) (Lab)
11. What steps he plans to take to reduce levels of youth unemployment.
The Minister of State, Department for Work and Pensions (Chris Grayling)
Youth unemployment is unacceptably high. We will introduce the new single Work programme in the first half of 2011, which will offer young people targeted, personalised help. That will be delivered through the best of private and voluntary sector providers. We will ensure that young people continue to have access to employment support prior to the implementation of the Work programme.
Jon Trickett
I thank the Minister for that reply. The Tories are the party of mass unemployment; they had left thousands of young people in long-term unemployment in the mining areas and elsewhere in this country when they were turfed out of office in ’97. Will the Minister confirm last week’s authoritative report that said that the fiscal strategy that the coalition is adopting will lead to there being another half a million people—many of them young people—in the dole queues for at least the rest of this Parliament?
Chris Grayling
The hon. Gentleman ought to remember that the level of youth unemployment today is higher than it was in 1997, when the Labour party took office. He should also remember that year after year, despite all the last Government’s promises about apprenticeships, which could have provided long-term, sustainable opportunities for young people, the Labour Government consistently missed their targets and promises for apprenticeships. We will take no lessons from Labour about youth unemployment.
Richard Graham (Gloucester) (Con)
When the Minister is looking at the issues involved in providing more jobs for the young unemployed, will he consider the impact of the Pension Protection Fund, particularly on long-standing manufacturing companies, which may be inhibited from providing new apprenticeships by their future commitments to the PPF?
Chris Grayling
My hon. Friend makes an important point. The Minister of State, my hon. Friend the Member for Thornbury and Yate (Steve Webb), will be considering that. It is important to provide the right balance between protecting the pensions of those whose pension provision for old age may be at risk and ensuring that we do not drive businesses out of business as a result. We will be looking at this carefully and attempting to find the right balance.
Mr Frank Field (Birkenhead) (Lab)
Does the Minister accept that the future jobs fund offered real opportunities for the young people who were drowning in the prospects of employers’ refusal to give them work while at the same time it provided the Government with their only genuine test of whether somebody really wanted to work? Why, therefore, is it being cut when no other Government programme will achieve both those objectives?
Chris Grayling
The right hon. Gentleman knows that what his constituents and other people on Merseyside really need is sustainable, long-term opportunities. The future jobs fund will continue to offer tens of thousands of opportunities over the next few months, but what the young people of Merseyside really need is apprenticeships that can take them into proper long-term opportunities. That is what this Government will provide.
Jim Sheridan (Paisley and Renfrewshire North) (Lab)
12. How much funding he expects to allocate to programmes for the young unemployed in 2010-11.
The Minister of State, Department for Work and Pensions (Chris Grayling)
We have allocated more than £600 million for programmes to support unemployed young people back to work. That includes the cost of specific employment support programmes targeted at young people and the support provided through the flexible new deal.
Jim Sheridan
I thank the Minister for that response. According to a recent survey by the Federation of Small Businesses, 95% of businesses are unaware of the wage contributions that are on offer to train apprentices. Indeed, 69% of apprentices work in workplaces where there are 30 or fewer employees. The same research has revealed that even more apprenticeships could be created if the system were simplified or modified.
Chris Grayling
I am all in favour of systems being as simple as possible. One of the things that I aim to ensure will happen when we introduce the single Work programme is that providers build links with local employers and explain to employers the support and opportunities that exist. We need to ensure that we maximise the employment opportunities that are out there for people without work, whether young or older.
Miss Anne Begg (Aberdeen South) (Lab)
The Secretary of State made great play of the idea that the best way to get people into work and off benefits is to make work pay. What will the coalition Government do to achieve that—cut benefits or increase in-work support?
Chris Grayling
First, I congratulate the hon. Lady on her election to the position of Chair of the Work and Pensions Committee. My colleagues and I look forward to meeting her and her Committee in the weeks ahead.
The most important thing that we can do is to deliver first-class back-to-work support to help some of the people who have been stranded on benefits for long periods and often do not have a clear sense of what they need to do to get back into the workplace. That will be a key focus for us in trying to ensure that those people get back into work. In addition, my right hon. Friend the Secretary of State is examining the benefits system and how we remove some of the disincentives within it that sometimes make it financially disadvantageous for people to get back into work, which cannot be right.
Tom Blenkinsop (Middlesbrough South and East Cleveland) (Lab)
13. What representations he has received on his plans for the future jobs fund; and if he will make a statement.
The Minister of State, Department for Work and Pensions (Chris Grayling)
I have so far received virtually no direct representations on our plans for the future jobs fund.
Tom Blenkinsop
I thank the Minister for his response. The future jobs fund affirms the right to work, and it has done that for young people in Middlesbrough South and East Cleveland. Does he share the view of previous Tory Governments that there is a natural level of unemployment?
Chris Grayling
Our job is to get as many young people, indeed people of all ages, as possible back into government—[Interruption.] I mean back into employment. Well, our manifesto did say that we wanted everyone to be part of the task of trying to make things work. We need to get every young person we possibly can back into the workplace, and we need to get as many people as possible off benefits and into the workplace. That will be the purpose of the single Work programme, our apprenticeships plans and of the reductions that we are going to make in taxation on small business employers; and it is the reason we are not going ahead with the Labour party’s job tax, which would have damaged employment in the hon. Gentleman’s area and other parts of the country. Those differences of approach are what the country really needs.
Duncan Hames (Chippenham) (LD)
Is the Minister aware that many employees in future jobs fund placements, especially part-time workers on the minimum wage, took home less each month than their placement cost the fund? In future, will he ask for fairer partnerships with employers that provide better value for money for the taxpayer?
Chris Grayling
I can confirm that we will look for better value for money for the taxpayer and the maximum possible effectiveness in getting people into work; not work that lasts just six months, but work that gets them into sustainable, long-term careers that can make a difference to them—not the sort of short-term scheme that characterised the previous Government’s last few months.
Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)
The Office for Budget Responsibility has found that unemployment would have fallen under Labour’s plans. The Chartered Institute of Personnel and Development survey in April also said that unemployment was close to its peak. However, the Minister will know that it has recently revised its forecast and, as a result of the change in policies by the new Conservative-Liberal Government, it predicts that public sector jobs will be cut by 750,000 and unemployment will increase to nearly 3 million. Does the Minister think that it is talking nonsense or does he agree that his proposals for cuts will hit jobs hard?
Chris Grayling
I am afraid that Labour Front Benchers remain in fantasy land about the current financial position. They left a huge debt overhang for the country that will do long-term, lasting damage to every single person in the country if it is not addressed. They themselves had prepared plans for big public spending cuts, but they are now pretending that they never planned those cuts. They should look at the books and in the mirror and ask themselves why the country is in the current financial mess. It is their fault.
Chris Skidmore (Kingswood) (Con)
14. What his policy is on the provision of support for people who are unable to work as a result of disability.
Mr Andrew Love (Edmonton) (Lab/Co-op)
T5. At a time when unemployment is forecast to increase to 3 million, this so-called coalition Government have decided to cut 100,000 jobs from the future jobs fund, but will not replace them until next summer. Is that just another example of unemployment being a price worth paying for this Government?
The Minister of State, Department for Work and Pensions (Chris Grayling)
I am afraid that the hon. Gentleman has not been listening. There will be tens of thousands of new jobs created under the future jobs fund in the months ahead. However, we have changed the priorities, because we believe that long-term, sustainable employment is better supported by a programme of extra apprenticeships than by a short-term job creation measure of the kind envisaged by the previous Government.
Richard Harrington (Watford) (Con)
T4. Given the shocking number of young unemployed people in my constituency and in the country as a whole, I welcome the proposals for mentoring schemes, whereby young people spend time with the self-employed and other business people. Will those schemes be introduced quickly and efficiently, because they will be very important?
Chris Grayling
I agree with my hon. Friend. The use of mentoring, both to encourage young people into the workplace and to create a sense of belief in their ability to build their own businesses, will be central parts of the Work programme. We are working on the details as rapidly as we can, and I can give him an assurance that mentoring will be a central part of the way in which the Work programme works.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
T9. The cuts to the future jobs fund are causing real concern in my constituency. From listening to Ministers this afternoon, I understand that the expectation is that these job losses will be replaced by a growing private sector. Can the Minister share with me the detailed analysis that the Government have undertaken that shows that these jobs will be created, when they will be created and that they will be created in the north-east?
Natascha Engel (North East Derbyshire) (Lab)
I know that this will surprise everyone, but I want to return to the future jobs fund and the answer that the Minister of State, the right hon. Member for Epsom and Ewell (Chris Grayling) gave earlier about not having received any representations on it. Has he at least made the effort to consult, for example, some of the voluntary and charitable sector organisations that represent young people and support them into work on the effect that cutting the future jobs fund will have on their work? If so, what have they said to him?
Chris Grayling
Yes, we have indeed spoken to those organisations, which will continue to create thousands of new jobs under the future jobs fund during the remainder of this year. However, there is general agreement, particularly among those who have been working with us on the Work programme, that we need apprenticeships, lower employment costs and sustainable long-term jobs in the private sector, not in the public sector—too many of the future jobs fund jobs are in the public sector. We need to create sustainable, long-term employment opportunities for young people and older people on benefits in this country.
Robert Halfon (Harlow) (Con)
Is the Minister aware of early-day motion 159, which is about jobcentres and foodbanks? Is he also aware that charities in my constituency, such as the excellent Harlow foodbank, have been stopped by Jobcentre Plus from giving out food vouchers to the unemployed because of regulations introduced by the previous Government? Does he agree that that is an example of Labour bureaucracy hurting the poor most, and will he take steps to reverse this policy as soon as possible?
Liz Kendall (Leicester West) (Lab)
Will the Minister say what help to get off benefits and into work will be available for young people between the future jobs fund ending, which he said would happen in a couple of months, and the Government’s new single Work programme, which he said would not be available until March 2011?
Chris Grayling
We will be maintaining all the existing programmes, and in particular the flexible new deal, right up until the start of the Work programme next year. The flexible new deal is by far the largest programme that the previous Government put in place to support young people and older people into employment. It is important to ensure that we maintain continuity of support right up to the point when the Work programme is ready to be launched.
Sajid Javid (Bromsgrove) (Con)
The Minister will know that spending on welfare doubled under the previous Administration, yet the number of those living in poverty increased. Does he agree that what the previous Administration succeeded in doing was to create the most expensive poverty in history?
Clive Efford (Eltham) (Lab)
Will the Secretary of State give a guarantee that every job that is found through any Government-backed scheme to move someone from benefits into work will be paid at or above the national minimum wage?
Chris Grayling
Self-evidently, if the providers who work for us under the Work programme are successful in getting someone into work, we will reward them on the basis that they provide post-employment mentoring and stay with the person to ensure that they stay in work—
Chris Grayling
Of course, by law, they will have to pay the national minimum wage. That is the requirement for any employer in this country; it is not going to change.
Mr Gerry Sutcliffe (Bradford South) (Lab)
One of the successes of the future jobs fund has been in the area of sports. I heard the Minister say earlier that he would stop future contracts, but full-time jobs in sport have been found at the end of the period, and I hope that he will look again at that decision.
Chris Grayling
Absolutely; I also expect sport to take advantage of some of the apprenticeship opportunities. There will be tens of thousands of further opportunities under the future jobs fund, as well as additional apprenticeships and further opportunities provided through the Work programme. We intend to do everything we can to ensure that, when this Government leave office, youth unemployment is lower than it is today—unlike the record of the Labour party in its 13 years in government.
Tackling Poverty in the UK
Lord Grayling Excerpts(14 years, 5 months ago)
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The Minister of State, Department for Work and Pensions (Chris Grayling)
I beg to move,
That this House has considered the matter of tackling poverty in the UK.
Helping people in the UK to escape poverty is one of the key challenges for the new Government and something that we are passionate about achieving. Although this Administration face one of the biggest financial challenges in our peacetime history, we are determined that we will not act in a way that leaves behind some of the poorest and most vulnerable in our society. Before Labour Members contribute to this afternoon’s debate, I hope that they will think back to their 13 years in power in times when they felt able to spend money freely, and remind themselves just how little progress was made with so much money.
Within days of taking office we saw the release of official poverty statistics, and what a bleak picture of progress they painted: 18% of people in the UK today live below the official poverty line, defined as a typical family, comprising a couple with two children under 14, having an income before housing costs of less than £342 a week. Official research has shown the number of children who live in families where even the most basic needs cannot be met. Of children in households with incomes in the bottom 20%, more than half live in families who cannot afford to replace worn-out furniture or broken electrical goods, and about two thirds cannot afford to make a saving of £10 a month. Of course, families under pressure to meet their daily needs are likely to see making provision for their retirement as a relatively low priority, which adds further to poverty down the line.
We believe that the last Government went wrong because they simply did not understand the nature of the poverty problem in this country. With one or two notable exceptions—I shall return to the right hon. Member for Birkenhead (Mr Field) later in my speech—they seemed to believe that Whitehall knew best: they always talked about poverty simply in terms of money and seldom demonstrated a clear understanding of the far deeper problems that can leave so many people struggling. Behind the facts and figures—beyond the statistics and the measures of material deprivation—lie incredibly complex and challenging issues.
Poverty is not just about income. Family breakdown, a lack of experience of work and education in the home, a lack of experience of parenting in the home—all contribute to a climate of poverty. Some children are brought up without even a single stable family home or in households that are ridden with the challenges of addiction. All of that shapes someone’s chances of getting on or not getting on in life.
Bob Russell (Colchester) (LD)
A debate on child poverty, which I introduced, was held yesterday in Westminster Hall. Will the Minister confirm that, according to Barnardo’s, at the conclusion of 13 years of Labour Government the number of children living in poverty totalled 3.9 million?
Chris Grayling
The hon. Gentleman makes his point very well and I commend him for the work that he has done to highlight the subject. One of the most disappointing things about the last Administration is that, despite talking as much as they did about child poverty, they missed their 2010 target. In their later years in office, child poverty was rising, and not simply as a result of the recession.
The reality is that being in poverty shapes those children’s lives and too often ends the lives of too many people. On average, people living in the poorest neighbourhoods in England will die seven years earlier than those living in wealthier neighbourhoods. Health inequalities today are worse than they were in the 1970s and the gap in educational attainment between children from rich and poor backgrounds remains persistently great.
Mark Tami (Alyn and Deeside) (Lab)
Does the Minister agree that one form of poverty that is little mentioned is poverty of aspiration for young people who come from very deprived backgrounds? They do not see further or higher education as something that is for them. That is why it is important that we continue to put money into education: if we do not, that gap will worsen.
Chris Grayling
The hon. Gentleman is right. What he says about higher education is one reason why I am proud that the present Administration will provide more university places this year than were planned by the previous Administration. He makes a valid point. I remember the hon. Member for Nottingham North (Mr Allen) saying in the House some years ago that in his constituency, a person was seen to be weird if he or she stayed on in education past the age of 16. That underlines the challenge in communities where there is too little experience of educational achievement. I absolutely agree with the hon. Member for Alyn and Deeside (Mark Tami): there is a need to break down the barriers and to raise aspirations.
Kate Green (Stretford and Urmston) (Lab)
Does the Minister agree that evidence also shows that children from the poorest families are unable to make the most of their education? At as early as 22 months, children from poorer backgrounds are doing less well than children from better-off backgrounds and that gap continues to widen as they go through the school system. Does he agree that efforts to address both educational attainment and aspiration and family incomes need to go hand in hand if children are to make the most of their schooling?
Chris Grayling
The hon. Lady has extremely extensive experience of these matters and she is absolutely right. We remain firmly of the view that early intervention is important. I mentioned parenting skills earlier; when talking about these matters, I always pay tribute to the charity Home-Start. Enabling people who have good parenting experience to mentor those who do not makes a valuable contribution to helping young people who grow up in more challenging environments to do better than they might otherwise have done. That is hugely important because we have massive divides within communities, between people living side by side.
Here in Westminster, for example, we have the largest difference in life expectancy of any London local authority. In areas such as Knightsbridge and Belgravia, people can expect to live into their mid-80s, but just up the road in Queens Park life expectancy is just over 70—a gap of nearly 15 years. For every two minutes on the tube between Knightsbridge and Queens Park, the life expectancy of the communities through which one travels drops by a year.
Ms Karen Buck (Westminster North) (Lab)
As a resident of Queens Park, this is an opportune moment to seek to intervene.
On the issue of health inequalities, poverty has to be understood as a relative as well as an absolute issue. Before the right hon. Gentleman goes too far in dismissing everything that the Labour Government were doing, does he agree with the Institute for Fiscal Studies, which said:
“Tax and benefit measures implemented by Labour since 1997 have increased the incomes of poorer households and reduced those of richer ones, largely halting the rapid rise in income inequality that we saw under the Conservatives”?
What measures that the Conservatives took—or failed to take—in those years will he now say will not be reintroduced if we are to make further progress?
Chris Grayling
Of course, we have not been in office since 1997. One of the tragedies of the past 13 years is seeing the amount of money spent leading to so little in the way of results. The point made by the hon. Member for Alyn and Deeside about poverty of aspiration is a crucial one. I shall come on to discuss worklessness, but a lack of experience of work or educational achievement in a household, and other factors, can make such a difference. The divides are enormous. If one goes to a city such as Liverpool, one only has to walk for 20 minutes from one of the smartest, newest shopping centres in the country to streets where almost no one is working. Worklessness is central to the challenges faced by many of our communities.
Mark Tami
What are the right hon. Gentleman’s views on the comments made earlier by the Under-Secretary of State for Communities and Local Government, the hon. Member for Bromley and Chislehurst (Robert Neill), who said that local authority cuts will fall hardest on the poorest areas?
Chris Grayling
We have to look at this in a far more three-dimensional way. It is about changing educational achievement, which is why we have said that it is important to focus on a pupil premium for the most deprived areas. It is also why we have said that it is important to ensure, as the economy recovers and as the employment market picks up, that we do not make the mistakes of the past 10 years. Too many of the jobs that were created went to people coming into the country from overseas, as the right hon. Member for Birkenhead has identified on more than one occasion. We have to make sure that we break down the culture of worklessness and educational failure, which is as essential to dealing with poverty as any other factor.
Ms Buck
I thank the right hon. Gentleman for giving way again. To approach the question that I asked earlier from a different angle, the IFS confirmed that Labour’s measures had largely halted the rise in income inequality, which increased dramatically under the Conservative Government. Does he accept that the measures that he has to put in place must not repeat the errors and mistakes, with deep roots in unemployment and social breakdown, that characterised the Conservative years and led to rising income inequality and poverty?
Chris Grayling
We should always seek to learn from the past. We will seek not to make the mistakes of the past 10 years, when billions of pounds were spend on employment programmes that failed to break down the culture of worklessness in many of our communities.
Dr Andrew Murrison (South West Wiltshire) (Con)
My right hon. Friend is speaking very well about the inequalities between rich and poor, mainly in an urban context. Does he agree that nowhere is that difference more stark than in rural locations? Despite their rhetoric on rural-proofing over 13 years, the Opposition did absolutely nothing to narrow that divide. Will he provide an assurance sought by my constituents, and confirm that the plight of the poor in rural locations—they tend to be among the poorest in our society—will be addressed during our coalition Government?
Chris Grayling
My hon. Friend makes a powerful point. As we prepare the Work programme, I shall seek to ensure that it includes scope for the voluntary sector organisations that specialise in local communities and individual groups in our society that can make a difference. Groups that best understand rural areas can make the biggest difference to ensure that we help people in rural communities into prosperous and successful working lives, and not leave them stranded on benefits. I certainly give my hon. Friend that assurance.
We have a moral duty, even in difficult times, to do what we can to break down the cycle of deprivation that affects many of those communities. My right hon. Friend the Secretary of State for Work and Pensions and his team have committed years to identifying the challenges that face those deprived communities and how to solve them. We have demonstrated a willingness to look at ideas across the political spectrum. I am delighted that we can take advantage of the expertise of the right hon. Member for Birkenhead in his review. He is highly regarded in all parts of the House for the knowledge and insights that he has built up, and we look forward to seeing his conclusions, particularly on how we measure poverty and capture a more accurate understanding of it in all its forms. That work enables us to understand more clearly how to develop solutions for the problems that we face.
I hope that we can maintain dialogue with Members such as the hon. Member for Nottingham North, who is a leading thinker on how to use early intervention to tackle deprivation. He has worked closely with my right hon. Friend who is now the Secretary of State for Work and Pensions, and we believe that this is an issue that should capture expertise wherever it lies. In addition, we have established for the first time a cross-departmental Cabinet Committee under the chairmanship of my right hon. Friend to ensure that we join up all the thinking and work that we do on social justice across government.
All of that will require radical reforms. It is about stimulating economic growth by moving more people into work; providing more effective routes into truly sustainable jobs; establishing clearer links between work and reward; and helping people to make responsible choices and save for their retirement. And ultimately, in these straitened times, we must ensure that we are using the money available to the best possible effect, both for those individuals and the taxpayer.
Kate Green
I agree strongly with the Secretary of State that leading people to, and enabling them to sustain, well-paid jobs is an important route out of poverty, but with only about 0.5 million vacancies—and, as his Government have said, about 5 million on inactive and unemployment benefits—can he confirm that an adequate safety net for people who cannot be in paid work will be sustained, and in particular, that there will be no freezing or cutting of benefits on which families who are out of work rely?
Chris Grayling
I am not going to announce the Budget today, but it will remain a Government commitment to provide a security or safety net for people who find themselves in difficulties. That safety net must not be a place in which people simply live their lives. No one benefits from sitting at home on benefits doing nothing, whether it is people with incapacities, people with disabilities or lone parents. There is general agreement—between ourselves, and between representative groups outside—that if we can help people into work it gives them a more fulfilling life, and it provides a job for their families. We regard breaking down the culture of worklessness as a huge priority.
The hon. Lady is right about the economic situation, but we must not make the mistake that has been made over the past 10 years. The previous Government presided over a situation in which jobs that were created tended to go not to people who were stranded on benefits in this country but to people moving here from overseas. That must not happen in the coming decade.
Richard Graham (Gloucester) (Con)
Further to the Secretary of State’s comments on the balance between work and benefits, will he take into consideration a letter from a constituent that I received this morning? She is a single mother trying to support her children, but she pointed out she was not eligible for a grant for a uniform for one of them because she works.
“Why”,
she writes,
“should I be penalised for not claiming benefits, for going out to work to try and better myself when I am in fact worse off. I am in two minds to give up my job so that I can get more perks.”
I urge the Secretary of State, in reshaping policy, to take into consideration people such as my constituent who are trying to do the right thing but who find that people on benefits are better off.
Chris Grayling
My hon. Friend is right. We have to make sure that people benefit financially from going back to work. We will do everything that we can as an Administration to ensure that people who do the right thing genuinely benefit from doing so, and that no one is incentivised to say, “There’s no point in getting a job. I’ll stay at home.” That does not do them, or any of us, any good whatsoever.
We are talking not just about individuals but about whole families: two or three generations of the same family who not only do not work but have never worked. That is not simply the result of a lack of opportunity. In many of our most deprived and challenged communities, the culture of dependency and the sense of exclusion from mainstream society has resulted in a sense of hopelessness and poverty of ambition, as the hon. Member for Alyn and Deeside said, which we have to break down. We will do everything that we can to meet that challenge.
I want to set out five key areas that are central to helping people to escape from that poverty trap. First, all the evidence shows that early-years experiences are crucial in determining life chances. A stable home life can make a huge difference to the health and well-being of our children. Family breakdown has been linked to mental health problems, addiction and educational failure, and there is no doubt that the impact of families on life chances seems to be more pronounced in the UK than in neighbouring areas. The earning potential of a child in the UK is more closely related to that of their parents than it is in countries such as the United States, Germany or France. The rate of family breakdown is much higher in the UK than in other major countries, and we have one of the highest proportions of single-parent families in the OECD and the highest rate of teen pregnancies in the EU.
The reality of the links to poverty is clear: 34% of children in families with just one parent in their home were in poverty in 2008-09—a much higher proportion than the national average, which is 22%—and we know that a family with just one parent is twice as likely to have an income in the bottom 20% as families where there are two parents. We want to create a system that supports families, creates a stable environment for children and improves social mobility. That is why we will work to strengthen families by investing in effective early-years provision, including expanding the availability and accessibility of health visitors, so that all parents have access to expert support and advice in the crucial early days of a child’s life. We will recognise marriage in the tax system, and, as soon as we can we will tackle the couple penalty in tax credits. We will encourage shared parenting from the earliest stages of pregnancy, including the promotion of a system of flexible parental leave. We want to restore aspiration, allowing parents to hope for their children and children to dream for themselves. Education plays a central role in that, and it is the second key area that we wish to address.
Education is vital. We know that people with five or more GCSEs at grades A to C earn more than those without, and they are around 3% more likely to be in work. But we also know that of the 75,000 children who receive free school meals every year, almost half do not get a single grade C at GCSE—more than a thousand classrooms of children each year let down by the system. We have some of the most disadvantaged children in the UK. Of the 6,000 children leaving care every year, only 400 are in higher education by the age of 19. Children in care should be a particular priority for us. Every child should have access to good quality education. Too many of the poorest children are stuck in chaotic classrooms in bad schools, so we will give teachers more power over discipline, bring in a pupil premium and provide extra funding for the poorest children so that they go to the best schools, not the worst.
But we are concerned not only about preventing the next generation falling into a cycle of poverty and worklessness. We also have to deal with the challenges that are there right now. So the third area that we will address is the problem of worklessness and welfare dependency. Each week, if one includes tax credits and child benefits, 12 million working-age households receive benefits at a cost of around £85 billion a year. About 5 million people claim out-of-work benefits, and around half of those have spent at least half of the last 10 years on some form of benefit. We know that many of those on out-of-work benefits cannot work for reasons of health, but many with the right help could get back into work.
At its worst, the current system divides people and assigns support based on the type of benefit claimed rather than need. It fails to recognise people who need extra help and it refuses up-front support, allowing people to become so entrenched in the benefit system that they cannot see a way out. Many Members who represent some of the most challenged communities and talk to those people know that we must help them to break out of the environment in which they live, raising their aspirations and showing them that there is a better way forward.
During the last 10 years, an array of programmes was set up by the last Government. They believed that the answer was to create top-down, closely designed programmes, which they imposed on the system. That did not work, so we will do something different. When we introduce our single work programme next year, it will create an environment in which the support that we offer will be tailored to the needs of individuals, not designed in Whitehall by Ministers and officials. Everyone who can work should get the help and advice that they need to get a job and move into sustainable work. That will be our focus and those who deliver that support will be paid on the basis of the success that they have in delivering that support and getting people into work.
Britain is a nation of opportunity. It must be a nation of opportunity. As we tackle the deficit and get the economy back on its feet—I keep returning to this point—we must ensure that the jobs that are created in the next few years go to those who are in the most need, who can get off benefits and make more of their lives. We cannot make the same mistakes all over again. That is what our welfare reforms are all about.
I want to talk briefly about another group—those on incapacity benefits. More than 2 million people claim incapacity benefits, nearly half of whom have been out of work for the last 12 years. They, in particular, need fresh opportunities. Not all will be able to work, but very many can work, and very many would be much better off in work. All of those who work with people with incapacities and disabilities say that if we can get them into mainstream employment, return them to a normal working life, it will do them a power of good, improving their quality of life and making a real difference to them. That can and will be a big priority for us.
As we design the work programme, we will ensure that we have a system and a structure in place that encourages the people who deliver that programme to provide the specialised, tailored support that we need to steer those people who have been on incapacity benefit for so long down a better path and get them into employment. In particular, we recognise that the most disabled, those who have the biggest challenge in their life, will need additional help and support to get into work. My hon. Friend the Under-Secretary of State for Work and Pensions, the hon. Member for Basingstoke (Maria Miller), will no doubt be talking later about some of the ways in which we hope to deliver the best possible support to those people.
Kate Green
Many disabled people would welcome the opportunity to be in paid employment. What efforts are being made not just to concentrate on supporting them to find suitable work, but to work with employers to ensure that they respond to the particular needs of disabled people in the workplace?
Chris Grayling
That is an important point. We must encourage and work with employers, and we should start at home. Whitehall and Government Departments and agencies should be at the forefront of finding the best ways to provide opportunities for people with disabilities, and that will be a priority for my hon. Friend the Under-Secretary. If we do not lead from the front, no one else will, and that is something that we certainly want to see happen.
Miss Anne Begg (Aberdeen South) (Lab)
How will the Minister encourage employers to employ people with mental health problems when the stigma is so great? We have had recent examples of discrimination against people who have disclosed mental health problems.
Chris Grayling
First, I congratulate the hon. Lady on her election to the Chair of the Select Committee on Work and Pensions. My colleagues and I look forward to being grilled by her in the months ahead, but I hope that we will have a constructive relationship. I hope that we can listen openly to the ideas that come from her Committee and that we can work together to make a difference on some of these issues.
I very much agree with the hon. Lady on mental health issues. One thing that I hope will come through the Work programme, where we have established providers with specialist skills working with employers and people who have had mental health challenges in their lives, is that we will have the kind of partnership that will break some of these barriers down. Once a provider starts to work with a group of employers, starts to bring good people to them, and that works well, more doors will be opened. The hon. Lady makes an important point; more than 2 million people are on incapacity benefit and many have supplemental health problems, and they must be looked after in the Work programme and we must ensure that it delivers opportunities for them.
John Cryer (Leyton and Wanstead) (Lab)
Can the Minister explain what the future holds for Remploy?
Chris Grayling
Remploy does some very good work. We have been in office only three weeks, so there is still a lot of work to be done, but we recognise the importance of Remploy. In particular, I pay tribute to Remploy for doing some of the work that the hon. Member for Aberdeen South (Miss Begg) would like to see, such as getting people who have various forms of disability routinely into workplaces alongside members of society as a whole. That is particularly important. I want to see as many people as possible with either mental health problems or physical disabilities in workplaces as a matter of routine, and Remploy’s work in getting more people into work has been extremely valuable.
May I also welcome you to your Chair, Mr Deputy Speaker? This may or may not be your first session, but it is a great pleasure to see you in the Chair today. If you will forgive me, I shall move on quickly and make way, because many Members want to make their maiden speeches.
On pensioner poverty, we are concerned to see that older people enjoy dignity and security in their old age, and that means ensuring that those in work are able to put money aside for their future. We have far too many pensioners living in poverty today, about 1.8 million people, so we need a system that works for our pensioners. We need a fair, decent and simple system that is supported by a vibrant private pensions landscape, too.
As a first step in doing the right thing for our pensioners, we will from April next year restore the earnings link with the basic state pension, and there will be a triple guarantee that pensions will be raised by the higher of earnings, prices or 2.5%. That is a big step forward for state pension provision, and I am very proud to be part of an Administration who intend to deliver that change.
We will also do everything that we can to ease the burden on pension funds, to encourage companies to offer high-quality pensions to their employees and to stop drowning pension funds in the red tape that has been symptomatic of the past 13 years of government. We also need to put people back in control of achieving their retirement aspirations, instead of being reliant purely on the state, and that involves creating the savings culture that my right hon. Friend the Chancellor of the Exchequer has talked about.
We need to address another area—debt, the single biggest challenge facing the UK. This week we have talked extensively about the national challenge that we face, but we should not forget the challenges that individual families face with debt. People in lower-income families are the most vulnerable; they have nothing to fall back on in an emergency; and the debt that they have to take on is twice as expensive as that for most other people because of the risk that they are perceived to represent. Debt creates tensions in families, it can be a disincentive to work and it leads to worry and stress-related illnesses. We will consider ways of alleviating some of the credit and debt challenges that our poorest communities face. That is essential if we are to deal with some of the issues in those communities, and we hope to bring forward thoughts and ideas in due course.
Drug and alcohol misuse and addiction is closely linked to some of the biggest challenges that we face, whether they are social challenges, educational failure, family breakdown, or even crime. Problematic drug and alcohol users are frequently unable to hold down a job or form relationships that do not revolve around their habit, and such addiction can ruin lives and destroy families, often leaving little room for anything else. Poverty and deprivation are a cause and effect of addiction, born out of the fact that 80% of problem drug users are in receipt of benefits, often for many years, with little realistic prospect of finding employment. Addiction in the home can do huge damage to children too, so as we design the work programme’s detail, we will also be mindful of how we address the deep-rooted problems of addiction in our welfare state and our most deprived communities.
The past decade has been a wasted opportunity for this country. Promise after promise was not kept; hopes and expectations were dashed; and the jobs that were created went to people entering the country from overseas, not those on benefits. The reality is that billions and billions of pounds were spent to relatively little effect. We are determined to ensure that our most deprived communities are not left behind as they were over that decade. We will strive to get people back into work as the economy recovers; we will strive to improve the chances of those people getting a good education; we will work to strengthen families; we will work to break down the barriers between our richest and poorest communities; and we will work to raise the aspirations in those communities.
This is a Government who believe in opportunity, and we will work tirelessly to deliver it for all our citizens.
Helen Goodman
I certainly do; my hon. Friend anticipates one of the points that I was going to make.
As I was saying, the omens are not good, and I fear that the rhetoric is not matched by the reality. Only this morning, the independent Chartered Institute of Personnel and Development forecast a rise in unemployment to almost 3 million as public sector workers, mainly women and the low-paid, are thrown on to the dole. In fact, it is difficult to see exactly what the strategy of Her Majesty’s Government is. So far, the two coalition partners can agree on getting rid of the child trust fund and the future jobs fund, but what will be the effect of those cuts? The child trust fund was the first serious attempt to tackle intergenerational poverty by enabling low-income families to build up assets for their children. As the Minister said, it is vital to encourage a culture of savings, and it was designed to do precisely that, but it is going to go.
The coalition Government were also able to agree to cut the future jobs fund, despite the fact that before the election both coalition parties said they would continue it. That means that 80,000 young people will lose their chances of work this year, and perhaps 150,000 next year. The whole reason why we introduced the fund was that we saw the scarring effects of youth unemployment in the 1980s and ’90s. Because we took measures over the past 18 months during the recession, long-term youth unemployment is now one tenth of the level that it was then. However, the coalition parties have clearly learned nothing and care less. One must ask oneself why that is, so let us examine where the cuts in the future jobs fund will fall most heavily—the west midlands, the north-west, Wales and Scotland. The future jobs fund is about real jobs.
Chris Grayling
May I point out to the hon. Lady how proud I am to have many new colleagues on our Benches from the west midlands, the north-west, Wales and so on? Will she confirm to the House that a couple of weeks ago, this Administration announced tens of thousands of new apprenticeships, which are likely to have a much longer-lasting impact on securing proper careers for the future for young people?
Helen Goodman
Of course Members from the coalition parties could be elected in those areas, given that they did not say before the election that they would cut the future jobs fund. They promised that they would continue it, and now they have cut it. That is the problem. I suspect that the Government’s real agenda is to make young people do the same work that they were doing under the future jobs fund, but whereas everybody was paid at least the minimum wage through that fund, under the schemes that the Minister and the Government are proposing they will have to live on benefits. What will that do for poverty levels, and where does it leave the Liberal Democrats’ commitment to raise the minimum wage for people under the age of 24?
It is ironic that the one thing the partners in the coalition really cannot agree about is the role of the family. The Tories want to reintroduce the married couples allowance, but that is one of the few matters on which the coalition agreement allows the Liberal Democrats to abstain. Who will benefit from it? Not the widow, the abandoned mother or the woman who has left her husband because of domestic violence. The Liberal Democrats should have the courage of their convictions, and they should vote against it. It is a wholly regressive and retrograde step. As the Deputy Prime Minister said during the election campaign, it is
“a throwback to the Edwardian era”
and “patronising drivel”.
The Secretary of State, who unfortunately is no longer in his place, revealed on 27 May that he was still looking to the Treasury for an extra £3 billion to reform the benefits system. The coalition agreement states that
“initial investment delivers later savings through lower benefit expenditure…based upon the DEL/AME switch”—
the departmental expenditure limits/annually managed expenditure switch. That is obviously based on the work of the Centre for Social Justice, which we examined in some detail when we took evidence on the Child Poverty Bill. The Secretary of State even seemed to be laying his job on the line later on 27 May when he said that he had not taken the job to be a “cheeseparer”, and stated:
“If somebody tells me I have to do something different then I won’t be here any longer.”
I suspect that the Chancellor of the Exchequer may be telling him to do something different right now, because he says that tackling the deficit is the priority. If Ministers in the Department for Work and Pensions can persuade the Treasury that the extra £3 billion is the goose that will lay the golden egg, we shall be extremely surprised.
A further complication in trying to tease out the Government’s strategy is that No. 10 has appointed my right hon. Friend the Member for Birkenhead (Mr Field). We have not yet seen his terms of reference—I do not know whether they are to think the unthinkable—but there seems to be something strangely familiar about the situation. Last Saturday The Guardian said that he was going to look again at the definition of poverty. That really would be unthinkable. What is the point of it?
Employment, Social Policy, Health and Consumer Affairs Council
Lord Grayling Excerpts(14 years, 5 months ago)
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The Minister of State, Department for Work and Pensions (Chris Grayling)
The Employment, Social Policy, Health and Consumer Affairs Council was held on 7 June 2010 in Luxembourg. I 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 ten years; and in particular, the employment guidelines and social inclusion target. The general approach on employment guidelines was agreed, but I abstained for the UK, explaining that a final Government position had not yet been reached. The poverty target and three indicators of material deprivation, jobless households and relative income were also agreed. I intervened to state that the UK was content for the poverty target to be forwarded to the June European Council but emphasised that a final view on EU2020 as a whole had not yet been taken, and tabled a minute statement to this effect.
Political agreement was reached on a proposal for a Council regulation extending the provisions of Regulation (EC) No 883/2004 and Regulation (EC) No [...] to nationals of third countries who are not already covered by these provisions solely on the ground of their nationality. The UK is not opted in to this regulation.
The Council also reached political agreement on a proposal for a Council decision on the position to be taken by the Community within the Association Councils established by the agreements with Algeria, Morocco, Tunisia, Croatia, the Former Yugoslav Republic of Macedonia and Israel. The UK is not opted in to these agreements. I intervened to state that the text of the decisions went beyond what had originally been agreed, and stressed that social security is principally a national competence rather than an EU competence.
Four sets of Council conclusions (on adequate pensions and social inclusion; new skills for new jobs; advancing Roma inclusion; and active ageing) and a Council resolution on a new European disability framework were adopted.
There was a progress report on the proposal for a Council directive on implementing the principle of equal treatment (anti-discrimination) between persons irrespective of religion or belief, disability, age or sexual orientation.
Under any other business, there was information from the presidency on the equal treatment between men and women engaged in an activity in a self-employed capacity. The Italians also raised, as an information point, their ideas on simplifying the delivery rules of the European social fund (ESF), to be discussed fully at a conference later this month. Finally, there was information on conferences held under Spanish presidency and a presentation from the incoming Belgian presidency.
Work Programme
Lord Grayling Excerpts(14 years, 5 months ago)
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The Minister of State, Department for Work and Pensions (Chris Grayling)
The Government have previously announced their plans for radical reforms of the welfare to work system and the implementation of the Work Programme. The Work Programme will be a single integrated package of support providing personalised help for everyone who finds themselves out of work regardless of the benefit they claim.
This will give providers longer to work with individuals and greater freedom to decide the appropriate support for them. We will also offer stronger incentives for providers to work with the harder to help, paying providers out of the additional benefits they realise as a result of placing people into work.
We are determined to move quickly and are aiming to have the Work Programme in place nationally by the summer of 2011.
Until the Work Programme is implemented, we will ensure support is in place. Where necessary, we will seek to extend current arrangements to ensure that there is no gap in provision and people can continue to receive help and support to get back into work.
Once the Work Programme is implemented it will supersede much of the complicated raft of national programmes currently on offer and these will be phased out. The support currently provided by programmes such as the Flexible New Deal will be folded into the Work Programme as soon as possible.
We are committed to supporting severely disabled people and are currently reviewing the best way of doing this.
The Government have today written to relevant providers and will be beginning one to one discussions with them to discuss what this means for them. We believe that the Work Programme will offer significant new opportunities for contractors from the private and voluntary sectors to deliver truly flexible and personalised support, building appropriate partnerships to do so. We recognise the crucial role that the voluntary sector in particular has to play in tackling worklessness, and our plans reflect this.
We will be publishing further details as the design and implementation of the Work Programme progresses.
Employment, Social Policy, Health and Consumer Affairs Council
Lord Grayling Excerpts(14 years, 5 months ago)
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The Minister of State, Department for Work and Pensions (Chris Grayling)
The Employment, Social Policy, Health and Consumer Affairs Council will be held on 7 June 2010 in Luxembourg. I shall represent the United Kingdom.
The main item of the agenda will be a policy debate on the employment and social inclusion aspects of Europe 2020, the new European agenda for the next 10 years; and in particular, the employment guidelines and social inclusion target. Her Majesty’s Government are still considering the proposals for a Europe 2020 strategy but there are some significant reservations about the implications of the proposals, including the balance of competence between member states and the European Union. On that basis I currently propose to agree to the target but to maintain a reserve on the guidelines.
The presidency will seek political agreement on a proposal for a Council regulation extending the provisions of Regulation (EC) No 883/2004 and Regulation (EC) No [...] to nationals of third countries who are not already covered by these provisions solely on the ground of their nationality. The UK is not opted in to this regulation and I do not propose to intervene.
The presidency also will seek political agreement on a proposal for a Council decision on the position to be taken by the Community within the Association Councils established by the agreements with Algeria, Morocco, Tunisia, Croatia, the Former Yugoslav Republic of Macedonia and Israel. The UK is not opted in to these decisions which cover social security provisions with the six countries. We have significant concerns that the proposal goes beyond the original provisions and extends social security coverage in a way we find unacceptable. I intend to make a brief intervention at the Council which reiterates the UK concerns.
The presidency also will seek four sets of Council conclusions—on adequate pensions and social inclusion; new skills for new jobs; advancing Roma inclusion; and active ageing—and a Council resolution on a new European disability framework for adoption. I am prepared to accept these, on the basis that they are all non-binding and therefore not contentious.
There will be a progress report on the proposal for a Council directive on implementing the principle of equal treatment—anti-discrimination—between persons irrespective of religion or belief, disability, age or sexual orientation.
Under any other business, there will be information from the presidency on the equal treatment between men and women engaged in an activity in a self-employed capacity. The Italians will raise also, as an information point, their ideas on simplifying the delivery rules of the European social fund (ESF). There also will be information on conferences held under the Spanish presidency and a presentation by the incoming Belgian presidency.