Oral Answers to Questions

Lord Grayling Excerpts

Monday 24th October 2011 Commons Chamber

[Dame Anne Begg (Aberdeen South) (Lab)]

4. If he will publish monthly information on the number of people successfully placed in jobs by Work programme contractors and the cost per job outcome.

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

We are working to guidelines set by the UK Statistics Authority to ensure we publish statistics that meet high-quality standards at the earliest opportunity. Statistics on referrals and attachments to the Work programme will be published from spring 2012 and job outcome data from autumn 2012. We will also publish the average cost per job outcome for claimants who have been on the programme for 24 months as part of our transparency indicators.

[Dame Anne Begg]

I have to say that I am very, very disappointed with that reply. I cannot understand why it will be more than 12 months before the Government produce statistics on job outcomes and the cost per job. After eight months of the future jobs fund, we had the statistics on job outcomes for the first four months of the scheme. I cannot see why the Government should take any longer than that. What do they have to hide?

[Chris Grayling]

I have the utmost respect for the hon. Lady, but she needs to look again at how the Work programme works. We are not making an outcome payment to providers for six months. That is a really good deal for the taxpayer, because before providers can receive payment, they must ensure not simply that that have got somebody into work for a week to boost statistics, but that they keep them in work for a sustained period. The Government cannot produce robust statistics under the guidance produced by the UK Statistics Authority if we try to do so earlier.

[Charlie Elphicke (Dover) (Con)]

Is not the key point about the Work programme that payment by results and packages tailored to individual needs are likely to make the cost per successful job outcome lower, and the number of jobs achieved higher?

[Chris Grayling]

My hon. Friend is absolutely right. The whole point of the Work programme is real investment in the long-term unemployed. Providers will take the requisite time to get them into work, but the Government will pay the bill only when people are successfully in long-term employment. That is a much better deal than under previous schemes from the previous Government. He is right that the Work programme is a much better deal for the taxpayer.

[Stephen Timms (East Ham) (Lab)]

The Minister for the Cabinet Office and Paymaster General says that openness and transparency on public services data will be a

“core part of every bit of government business”,

so why not this bit of Government business? Why is the Minister not only refusing to publish performance data but banning Work programme providers from publishing their own data, as many did under the new deal and would like to do now? He is threatening to withdraw their contracts if they publish that data. What is he trying to hide, and will he at least lift that ban?

[Chris Grayling]

The right hon. Gentleman clearly was not listening to the answer I gave a moment ago, but he would also do well to remember that his Government set up the current rules on national statistics. He would surely want statistics to be published properly and in an appropriate time frame, under the guidance of the UK Statistics Authority. I do not believe in giving information out haphazardly. Let us do it properly, according to the guidance and process he set up when he was in government.

--- Later in debate ---

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

7. When he plans to bring forward new work capability assessment descriptors for mental health and fluctuating conditions.

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

We have received suggested descriptors for mental, cognitive and intellectual function from Professor Harrington’s working group. Given that they represent a substantial departure from how the current assessment works, we are considering what impact they will have and will come forward with proposals soon. We have not yet received any recommendations from Professor Harrington’s separate working group on fluctuating conditions.

[Mrs Glindon]

In July the Minister received recommendations for changes to the mental health descriptors from Mind, the National Autistic Society and Mencap, and although he says that the Government will be bringing forward proposals shortly, will he specify when those changes will be implemented?

[Chris Grayling]

The challenge facing us is that the recommendations will involve a complete change of the work capability assessment, not simply for mental health issues, but for physical issues, and is therefore a multi-year project. We are considering whether we can incorporate elements of the recommendations into the current approach much more quickly. I am concerned to ensure that we do the right thing by people with mental health conditions, and I want to ensure that we take any sensible steps as quickly as possible.

[Tony Baldry (Banbury) (Con)]

Will my right hon. Friend confirm that our approach should focus on what can be done to help people back into the world of work and on helping them with what they can do, rather than on any scintilla of a suggestion of people being punished for what they cannot do?

[Chris Grayling]

My hon. Friend is absolutely right. This is a crucial point. We are not trying to do people down, but looking to help those with the potential to make more of their lives to do so. The assessment is all about working out who has the potential to get back into the workplace, and through the Work programme, we can deliver the specialist support that they need to do so.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

This morning I met members of Headway East London concerned about the impact of this situation on people who are looking for work but feel that they are being penalised when they find it and then cannot cope with it. They talked about the chaos of the benefits system. When will the Minister be coming forward with these proposals and reassuring my constituents that they will be in a better position?

[Chris Grayling]

We are taking significant steps to sort out the problems to which the hon. Lady refers. The introduction of the universal credit in 2013 will completely transform how our benefits system works. It will be much easier for people with disabilities to move back into work step by step—initially, perhaps, by doing a few hours’ work and then by entering part-time and then full-time employment. It will transform their prospects.

[Jenny Willott (Cardiff Central) (LD)]

Given Atos Healthcare’s past performance, no one has faith in the ability of the current work capability assessment or Atos fairly to assess fluctuating conditions in particular. Will the Minister work with Atos to ensure that the new descriptors are implemented as soon as possible and that Atos staff receive additional training to improve their performance and restore the faith of claimants and the general public in the assessment process?

[Chris Grayling]

I will have to wait and see what the recommendations are, but as a result of Professor Harrington’s first report, it is now decision makers in Jobcentre Plus who take the decision about an individual. I have told charitable groups representing people with a variety of conditions that the door is open to them to brief, train and discuss with those decision makers the issues facing such people so that they are as well informed as possible.

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

Last week I met representatives of the Royal National Institute of Blind People, who expressed concerns about the descriptors attached to vision. Will the Minister meet the RNIB and other representatives of blind and partially sighted people to address those concerns so that we have vision descriptors that are fit for purpose?

[Chris Grayling]

I have regular meetings with groups representing not just blind people, but those with various disabilities, and I will continue to do so. The object of the exercise is to help those who are blind or visually impaired back into work. Surely it is much better to find them a place in the workplace than leave them on benefits for the rest of their lives.

[Bill Esterson (Sefton Central) (Lab)]

8. What assessment he has made of the factors underlying recent trends in the level of unemployment.

--- Later in debate ---

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

11. What assessment he has made of progress towards implementation of the recommendations of the Harrington review of the work capability assessment.

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

We took steps earlier this year to ensure that all the recommendations in Professor Harrington’s first report were implemented in time for the start of the national migration from incapacity benefit. I expect to receive Professor Harrington’s second report, telling us how well he thinks we are doing on that front, shortly.

[Tom Greatrex]

Given the Minister’s earlier comments, I am sure that he is well aware of the progressive and incurable nature of Parkinson’s disease. A constituent of mine with Parkinson’s has been called for his third work capability assessment, despite appealing the previous two incorrect decisions by Atos and the decision makers. Will the Minister undertake to meet me and Parkinson’s UK, so that he can understand better how in practice the work capability assessment, rather than helping people who can work, too often hounds those who will not get better?

[Chris Grayling]

The hon. Gentleman has to understand that one of the great failings of our welfare state over the past decade has been that we have left people on the sidelines year after year without checking to see what their condition is or what the potential alternatives are. I am very happy to meet Parkinson’s UK and the hon. Gentleman. I well understand the challenges that the disease presents for those who are unfortunate enough to suffer from it, but we cannot simply go back to a situation in which we leave people year after year without even checking what their condition is.

[Priti Patel (Witham) (Con)]

12. What assessment he has made of the potential effects on the payment of benefits of the reasoned opinion from the European Commission on the UK’s right to reside test.

[Henry Smith (Crawley) (Con)]

19. What assessment he has made of the potential effects on the payment of benefits of the reasoned opinion from the European Commission on the UK’s right to reside test.

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

We accept our responsibility in supporting EU citizens who work here and pay their tax and national insurance, but it is clearly completely unacceptable that we should be asked to open our welfare system to people who have never worked in or contributed to the United Kingdom and who have no intention of doing so. We are considering all the details of the Commission’s reasoned opinion, but we are absolutely committed to ensuring that the UK retains control of its welfare policies.

[Priti Patel]

I thank my right hon. Friend for his robust remarks. What steps is he taking to ensure that the UK is not burdened further by benefit tourism?

[Chris Grayling]

The best way for us to get the message across to the Commission about the need for change is to demonstrate that this is not a matter for the UK alone. I am therefore forging partnerships with my counterparts in other member states, most of whom have the same concerns. We have to make the Commission recognise that this kind of land grab of an area that should be a national competence is unacceptable. It has all kinds of political connotations, and the Commission must change its view.

[Henry Smith]

I thank my right hon. Friend for his previous answer. Can he tell us what steps his Department will be taking to monitor foreign nationals who are receiving UK benefits?

[Chris Grayling]

I can indeed. One of the things that surprised me most on taking office was the fact that the previous Administration had made no attempt whatever to identify how many people from overseas were receiving benefits. We are now doing that work. We aim to publish the results in the next few weeks, and we will aim to learn lessons from what we find.

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

14. What recent discussions he has had with organisations representing disabled people about the face-to-face assessment process for personal independence payments.

--- Later in debate ---

[Ann Coffey (Stockport) (Lab)]

15. What recent assessment he has made of the level of unemployment.

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

The latest figures published by the Office for National Statistics show 2.6 million unemployed, on the International Labour Organisation measure—a rate of 8.1% of the labour force.

[Ann Coffey]

The latest unemployment figures show that 35% of all jobseeker’s allowance claimants in Stockport are from the most disadvantaged area in my constituency. Unemployed people from disadvantaged areas are likely to remain unemployed for longer, so what steps will the Minister take to ensure that disadvantage does not become further embedded in our community?

[Chris Grayling]

The structure of the Work programme will mean that, for the first time, we will be paying a higher rate for the help provided to those who come from more challenged backgrounds, in order to encourage providers to make an investment in helping them. That will be an important part of getting them back into the workplace. Under the previous Government’s schemes, there was one flat rate for everyone, but our pricing structure reflects the real need to focus on people who are struggling in life.

[Amber Rudd (Hastings and Rye) (Con)]

Does my right hon. Friend agree that one of the ways to reduce unemployment is to make sure that people set up new businesses? Does he agree that the new enterprise allowance, which we in Hastings and Rye welcome, should also be directed at both disadvantaged people and young people, to make sure that the widest possible number of people are able to set up in business?

[Chris Grayling]

I agree, and it is very much my hope that the new enterprise allowance will generate a significant boost to new enterprise, small businesses and self-employment in this country. In the way that it is structured, it is aimed at those who have been out of work for more than six months, so I hope it will deliver exactly what my hon. Friend hopes for, which is to support people who have potential but who face the greatest challenges in getting back into the workplace.

[Lilian Greenwood (Nottingham South) (Lab)]

Young and disabled people are more likely to rely on public transport to get to work, yet the right hon. Gentleman’s Government’s policies are leading to cuts in bus services and unaffordable fare rises. How is that helping to get unemployment down?

[Chris Grayling]

When I listen to Labour Members bemoan the cutbacks, I am always astonished that they seem to fail to understand that it is down to the mismanagement of the previous Government that we are having to take these difficult decisions—and we are having to take many such decisions. They should be looking in the mirror in the morning and saying, “Whose fault is this really?”

[Ann McKechin (Glasgow North) (Lab)]

17. What discussions he has had with the Scottish Government on the replacement of the social fund.

--- Later in debate ---

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

The Department for Work and Pensions reviews work loads and staffing regularly to ensure that there is capacity to pay benefits and help people find work. On average, the DWP aims to clear jobseeker’s allowance claims within 10 days. It is currently clearing them in 9.6 days, nearly five days faster than five years ago.

[Katy Clark]

I thank the Minister for that answer. Twenty-two jobcentres and 17 benefit processing centres are due to close. While I understand that the Government are saying that they are going to try to avoid compulsory redundancies, there is no doubt that staff will be forced out of their jobs. Overall, the unemployment figures are reaching 3 million. In my constituency, the claimant count went up by 10% in the year to September. Surely we are going to see a worse service provided to claimants. Will the Minister undertake to provide regular performance statistics to this House?

[Chris Grayling]

What the hon. Lady does not understand is that we inherited a network of half-empty buildings. I am sure she would agree that it makes no sense to fund, for example, two or three jobcentres within a mile of each other in a city centre. Rather than cutting back—the hon. Member for Nottingham South (Lilian Greenwood) mentioned bus services—I would like to protect the services that we can possibly protect, and making our network of jobcentres and benefit delivery centres operate more efficiently and effectively seems a very good way of trying to ensure that we protect front-line services.

[Heidi Alexander (Lewisham East) (Lab)]

20. What estimate he has made of the potential number of tenants who could accrue rent arrears as a result of implementation of his proposals to restrict housing benefit for social tenants in accordance with household size.

--- Later in debate ---

[Gemma Doyle (West Dunbartonshire) (Lab/Co-op)]

21. What the average length of time was for an appeal in respect of a decision on a claim for employment and support allowance in the latest period for which figures are available.

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

In the current year, the average actual clearance time between the Department’s receiving an appeal and its being lodged with Her Majesty’s Courts and Tribunals Service was 35.2 days. That, of course, includes the time allowed for individuals to produce new evidence about their circumstances. The average time taken from receipt of an appeal at HMCTS to the date of the first appeal hearing was 23.2 weeks. That information covers 1 April to 31 August 2011, the latest period for which figures are available.

[Gemma Doyle]

I thank the Minister for his detailed answer. Will he take this opportunity to refute press reports that he will cut the ESA of people who appeal against assessment decisions, especially in the light of the information that 40% of cases are being won on appeal?

[Chris Grayling]

What I expect to see as a result of the changes following Professor Harrington’s review in the summer is a significant reduction in the number of cases that go to appeal when the Department’s initial review and the reconsideration are upheld. In order to ease pressure on individuals, we have tried to ensure that there is a proper reconsideration service in Jobcentre Plus, so that they can produce new evidence at that stage and need not use the Courts Service at all.

[Mark Lazarowicz (Edinburgh North and Leith) (Lab/Co-op)]

Will the Minister look into the delays and difficulties experienced by visually impaired claimants who are being transferred from incapacity benefit to the ESA? I have no time to go into the details of this case today, but after more than four months a constituent of mine is still unable to submit a claim because of a lack of support and assistance, and she is not the only person in those circumstances. Will the Minister look into the difficulties experienced by this very vulnerable group?

[Chris Grayling]

It is difficult for me to comment on an individual case, but we certainly do not want to see people in difficulties. If the hon. Gentleman will write to me with details of the case, we will look into it for him.

[Tony Lloyd (Manchester Central) (Lab)]

22. What estimate he has made of the potential effect on the number of women leaving work of his planned reduction in refundable child care costs.

--- Later in debate ---

[Bob Russell (Colchester) (LD)]

T4. Further to the Atos question asked earlier by my hon. Friend the Member for Cardiff Central (Jenny Willott), does the Secretary of State agree that the company is not fit for purpose, that it treats many claimants in an unacceptable way, and that, frankly, it is time that its contract was terminated?

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

My hon. Friend needs to understand that Atos is simply a subcontractor to the Department for Work and Pensions. It does not take decisions about individuals. It simply operates to a template, which was mostly established under the previous Government. Of course we must be sensitive, but Atos and our other subcontractors are as careful as possible about the job that they do. Ultimately however, it is the Department itself that sets the policy and implements the processes, and that must take responsibility for the outcomes.

[Ian Austin (Dudley North) (Lab)]

Given the Secretary of State’s complaints about the free movement of European labour and his leadership of the Maastricht rebels in the ’90s, may I ask why he will not be demonstrating some conviction and consistency this evening? Why is he putting his position and his party before his principles, and his career before his country, in the debate on Europe this evening?

[Naomi Long (Belfast East) (Alliance)]

Given the relatively small employment market in Northern Ireland, does the Secretary of State believe, based on his discussions with Northern Ireland Ministers, that enough jobs can be created for those leaving employment for the Work programme financial model to be effective in Northern Ireland?

[Chris Grayling]

As the hon. Lady rightly says, all these issues are devolved to Northern Ireland. We have regular contact with the Northern Ireland Administration, and my colleague, Lord Freud, has regular meetings with them on behalf of the Department. We all, of course, want to see growth and employment in every part of the United Kingdom, including Northern Ireland, and to see all our welfare-to-work policies, both devolved and otherwise, bear fruit.

--- Later in debate ---

[Mr Stephen Hepburn (Jarrow) (Lab)]

If Harrington does bring forward improvements to the work capability test, will the Minister give a commitment to review all those past cases seen and commissioned under Atos, where bad mistakes may have been made?

[Chris Grayling]

Of course, every claimant who goes through the work capability assessment has the right of appeal. I simply say to the hon. Gentleman that when Professor Harrington carried out his first assessment last year he said to me clearly that although he had recommended improvements, we could and should go ahead with the national incapacity benefit migration. I have accepted his recommendations.

[Priti Patel (Witham) (Con)]

T10. Ministers will be aware of the difficulties that young people face in finding employment, and the challenges are naturally greater for those with disabilities. Will the Minister provide an update on Government plans to help young disabled people to get back into work, following the recent Sayce review?

[Fiona O'Donnell (East Lothian) (Lab)]

T3. The Secretary of State seemed surprised that we do not share his love of statistics. I wonder whether it was he who briefed the Prime Minister last week, leading to the Prime Minister claiming at Prime Minister’s questions“that 500,000 people have jobs who did not have one at the time of the election.”—[Official Report, 19 October 2011; Vol. 533, c. 893.] The Prime Minister was not at his most eloquent last week. However, according to official figures, between April to June 2010 and the most recent figures—June to August 2011—employment is up by just 87,000. We do not like the Secretary of State’s statistics when they are wrong. Does this not prove that the Government do not have a plan for tackling unemployment?

[Chris Grayling]

The hon. Lady is missing something out. One of the most regular refrains from the Opposition over the past few months has been that, as we have had to make necessary changes in the public sector as a result of the financial mess they left behind, the private sector would not be able to take up the slack. The truth is that although we have had a bad quarter for unemployment, we have seen more than 500,000 extra jobs in the private sector since the election and more jobs created in the private sector over the past year than have been lost in the public sector.

[Mr Edward Timpson (Crewe and Nantwich) (Con)]

Under new housing benefit rules, foster carers who claim housing benefit will be penalised for having bedrooms occupied by foster children because they will be deemed as “under-occupied”. At a time when we need more foster carers, not fewer, what are the Government doing to address that anomaly?

[Natascha Engel (North East Derbyshire) (Lab)]

T5. A record number of employment and support allowance claimants are wrongly assessed as fit for work. They cannot claim ESA while they await their appeal hearings, yet appeals are taking anything up to 15 months to be heard. What is the Minister doing to make the system better and, more importantly, quicker?

[Chris Grayling]

The hon. Lady needs to remember that the system we inherited from the previous Government caused the problems to which she is referring. We made changes after the Harrington review last year that were all in place earlier this summer for the start of the national incapacity benefit migration. We have yet to see the statistical outcome of that, but I am confident that we will see a fall in the number of successful appeals as a result of our decision to implement the Harrington recommendations in full.

[Brandon Lewis (Great Yarmouth) (Con)]

For auto-enrolment to have the maximum impact, it is important that seasonal short-term employees have an equal opportunity to be part of it. Will the Minister outline what incentives the Government are putting in place to encourage take-up by short-term and seasonal employees?

--- Later in debate ---

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

Is the Secretary of State aware that it is proving impossible for MPs to make telephone inquiries to Work programme providers, outsource providers and work capability assessment providers?

[Chris Grayling]

We are extremely keen to see close relationships between local Members of Parliament and Work programme providers. If there is any issue in making that happen, we will happily act as middlemen to make sure the doors are opened.

[Ann McKechin (Glasgow North) (Lab)]

T8. As the Minister will be aware, there are approximately 2,000 local government employees in Scotland who administer housing benefit. He said in a recent parliamentary answer to me that those people are in his thinking in relation to the introduction of universal credit. Can he give any reassurance to the House that those people’s jobs will be protected and will be considered as part of the new system?

Provider Work Programme Information Sessions

Lord Grayling Excerpts

Friday 21st October 2011 Written Statements

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

From 24 October 2011 employment and support allowance claimants eligible to volunteer for the Work programme will be referred to a Work programme information session. These claimants include those in the work-related activity group, with a work capability assessment prognosis greater than six months. Other claimants eligible to volunteer for the Work programme who are not subject to work-related activity can opt to attend an information session, such as those in the Support group.

This change seeks to make claimants aware of the opportunities on offer from Work programme providers. It also gives providers greater ability to reach individual claimants who may not be aware of the support they can access, and helps providers to manage their resources more effectively.

We will introduce these information sessions on a phased basis, beginning on 24 October 2011 in the east midlands (contract package area 2), with national coverage by the end of November 2011.

We are not prescribing how the sessions should be carried out but providers will have to give the Government clear details about their marketing plans for information sessions (for example, timings, individual or group sessions, and group sizes.)



Additionally, these information sessions will encourage partnership working between Jobcentre Plus and providers at a local-level.

We want claimants to engage with their provider on a voluntary basis. In exceptional circumstances, where a claimant refuses to engage without good reason, the personal adviser can require them to attend an information session.

When a claimant decides to volunteer for the Work programme, they will be participating in it for up to two years, so providers have a real chance to address the serious disadvantages some of our claimants face in the labour market.

When claimants have attended their information session they will follow up with their Jobcentre Plus personal adviser to agree next steps.

(3 October 2011)

Lord Grayling Excerpts

Monday 10th October 2011 Written Statements

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

The Employment, Social Policy, Health and Consumer Affairs Council met on 3 October 2011 in Luxembourg. Andy Lebrecht, UK deputy permanent representative to the European Union, represented the UK.

The first item on the agenda was a policy debate on the future shape of the European social fund (ESF) and its role in the implementation of the Europe 2020 strategy. The Commission confirmed that it would publish its draft regulation on the ESF in 2014-2020 later in the week. The presidency stressed that it was vital to strengthen the role of the ESF in cohesion policy. Member states agreed that the ESF should contribute in helping to achieve Europe 2020 targets and that ESF should be more efficient and targeted at the most disadvantaged. For the UK, Andy Lebrecht intervened to stress the need to focus EU resources on the less developed member states, to improve value for money, and that ESF should add value to national investment in employment and skills. The UK also raised concerns about the effectiveness and added value of the European globalisation fund.

The second item on the agenda was a report from the presidency on preparations for the tripartite social summit which will take place on 17 October 2011.

The Council also adopted Council conclusions on the role of voluntary work in social policy and managing demographic changes.

Under any other business, a debate on the EU Aid for the Needy scheme took place. France and Slovenia had circulated a joint paper asking Employment Ministers to lobby their agriculture counterparts to agree a short-term continuation of the programme, which would allow food to be sourced from the open market as well as from increasingly limited intervention stocks, and to introduce an element of co-financing. The Commission reiterated its support for the scheme and indicated that it would table a revised proposal with a dual cohesion and agriculture legal base, reverting to 100% EU funding. A number of member states expressed support for the scheme and the Commission’s efforts to find a solution. The UK, along with Germany, the Netherlands and Sweden stressed that measures such as these should be delivered at national level. A Europe wide scheme raised competence issues and was not as effective as national measures. The presidency noted the positions in Council and would send a note on the discussions to the Agriculture Council.

The other items under any other business were reports on Polish presidency conferences and the EPSCO informal which took place in July. The presidency also reported on preparations for the first annual convention of the European platform against poverty and social exclusion which takes place in October. The French reported back on the G20 labour and employment Ministers which took place in Paris and the Germans reported back on the meeting of an informal ministerial group on employment and social policy which took place in Potsdam.

Welfare Reform Bill (Employment and Support Allowance)

Lord Grayling Excerpts

Wednesday 7th September 2011 Written Statements

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

As part of his spending review announcement, the Chancellor set out his proposal to introduce a time limit of one year for those claiming contributory employment and support allowance who are in the work-related activity group. The change will, subject to the passage of the enabling legislation, apply from April 2012. For those in the work-related activity group who have already received a year or more contributory employment and support allowance as at April 2012, entitlement will cease immediately.

In order to avoid delay in implementing this policy the Department for Work and Pensions has obtained approval for an advance from the Contingencies Fund of £2,705,000 to allow for the development of IT, ensure those potentially impacted by the time limit in April 2012 are notified of the change and to deliver the operational support that will be required before Royal Assent of the enabling legislation. Parliamentary approval for resources of £2,705,000 for this new service will be sought in a supplementary estimate for the Department of Work and Pensions. Pending that approval, urgent expenditure estimated at £2,705,000 will be met by repayable cash advances from the Contingencies Fund.

Oral Answers to Questions

Lord Grayling Excerpts

Monday 18th July 2011 Commons Chamber

[Jeremy Lefroy (Stafford) (Con)]

5. What recent progress he has made on delivering the Work programme.

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

The Department for Work and Pensions completed the launch of the Work programme by the end of June and it is now operational in all parts of the country. I have now visited a number of the providers and their centres and I am pleased to see the progress they are making.

[Karl MᶜCartney]

I welcome the Government’s measures to help unemployed people in my Lincoln constituency, but what assurances can my right hon. Friend give me that the Work programme will provide my constituents with sustainable, meaningful and long-term employment?

[Chris Grayling]

There are two things about the Work programme that will help my hon. Friend and his constituents. First, the providers are free to deliver whatever solution works for the individuals—a crucial difference to past programmes—and, secondly, they are rewarded not simply for getting people into work but for sustaining them in work for periods that can be as long as two years and three months. I hope that will deal with the challenges in the labour market in my hon. Friend’s constituency.

[Jeremy Lefroy]

On Friday, we welcomed the Minister to the Stafford jobs fair and the Shaw Trust in the Stafford constituency. How extensive is the role he foresees for the voluntary sector in providing the Work programme?

[Chris Grayling]

The voluntary sector has a crucial role to play in two ways. First, we have a wide range of voluntary sector organisations contractually involved in the Work programme, delivering support to the long-term unemployed. I also believe that a local community activity such as the excellent jobs fair that my hon. Friend organised in his constituency, together with Stafford Works, is an ideal example of how Work programme providers and the local community can work together to deliver real back-to-work support for the unemployed.

[Dame Anne Begg (Aberdeen South) (Lab)]

Early indications would suggest that the numbers being referred to the Work programme are much higher than many of the providers expected under the contracts they signed. What guarantee does the Minister have that people will not sit on the Work programme without any intervention for some time until the providers gear up to have the staff to deal with the numbers they face?

[Chris Grayling]

The hon. Lady is absolutely right. It is a marked contrast to the start of the flexible new deal under the previous Government when providers went for weeks and weeks without people being referred. I am very encouraged by the start of the Work programme and by the response of providers, which are contractually obliged to provide minimum levels of support to people who are referred. As far as I can see, that is precisely what is happening: support is starting and is working well. There are courses, support and learning taking place up and down the country.

[Mr Frank Field (Birkenhead) (Lab)]

Should we hold out much hope for the Government’s Work programme if the Government are not successful in meeting their immigration target?

[Chris Grayling]

The right hon. Gentleman has raised the issue of migrant labour on many occasions. It is a challenge for Work programme providers to make sure they can deliver a work-ready work force to potential employers in areas such as his constituency to take advantage of the excellent opportunities that exist in companies such as the Contact Company, for example, which I visited recently. I strongly believe that if providers get local workers ready for the work force, they will be taken up eagerly by local employers.

[Robert Halfon (Harlow) (Con)]

Does my right hon. Friend agree that one of the best ways of getting people back into work is through apprenticeships? Will he ensure that the Work programme is linked carefully into the Government’s apprenticeships scheme?

[Chris Grayling]

I absolutely agree. One of the most important steps the Government have taken has been significantly to increase the number of apprenticeships available, particularly for young people. It is absolutely clear under the Work programme agreement that a successful placement in an apprenticeship counts as a job outcome under the Work programme. I hope that will mean there is a clear link between the two.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

Steve Kerr of the London Voluntary Service Council has questioned whether the Work programme

“will succeed…or simply make matters worse through sidelining the voluntary sector.”

What action is the Minister taking so that the voluntary sector does not continue to feel sidelined through the Work programme?

[Chris Grayling]

The hon. Lady is absolutely wrong. The voluntary sector is not being sidelined. On Friday in Stafford I visited the Shaw Trust—a major voluntary sector organisation that is already delivering support to people under the Work programme. There are many other organisations such as Groundwork delivering support right across the spectrum and there is specialist help available from some of the specialist groups. The Work programme has been designed to attract best practice, of which there is much in the voluntary sector. That is why it is such an important part of the Work programme.

[Stuart Andrew (Pudsey) (Con)]

6. What recent steps he has taken to increase employment opportunities for disabled people.

--- Later in debate ---

[Duncan Hames (Chippenham) (LD)]

9. What plans he has to issue guidance to prospective applicants on the evidence required from them to receive employment and support allowance.

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

ESA claims are normally made by phone. A statement is then sent to the claimant setting out any additional evidence necessary to support the claim. If claims are made using a clerical form, notes are provided about evidence that may be required. There are no current plans to issue further guidance, but this is constantly kept under review.

[Duncan Hames]

I thank the Minister for that answer and am pleased to know that this is under review. Answers to my written parliamentary questions show that in Chippenham nearly half of all unsuccessful applicants who appeal win their cases at tribunal, in some cases by presenting evidence that they did not know they were to produce when they first made their application. Does the Minister recognise that these successful appeals are a costly process that do not represent value for money for the taxpayer and cause unnecessary heartache and hardship for the people concerned?

[Chris Grayling]

I absolutely agree with my hon. Friend and want to see fewer cases going to appeal. This is one reason why we have stepped up the reconsideration process in Jobcentre Plus, so after the initial decision is made we actively seek out further evidence, if such evidence exists, and use it to reconsider our decision. I hope and expect to see the number of successful appeals reduce significantly as a result.

[Ms Karen Buck (Westminster North) (Lab)]

Local Jobcentre Plus officials have advised me that there is already a significant delay in the work capability assessment test in my local area because the assessments are taking around twice as long as was originally predicted. Can the Minister reassure the House that this is not the situation across the whole country and that there is no backlog in the work capability assessments, with all that that would imply for claimants and for the service?

[Chris Grayling]

We have remained on schedule to start the process for individuals. It is not the case that assessments are taking twice as long. There is an early element of bedding in for the personalised statement, as was recommended by Professor Harrington, but we are not aware of any long-term factors that would change the timetable for the whole reconsideration process.

[Mike Crockart (Edinburgh West) (LD)]

10. What assessment he has made of the effectiveness of user groups in assisting people with disabilities to obtain work through the Work Programme.

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

I regard the role of specialist organisations and specialist user groups as extremely important for the delivery of the Work programme. They, above all others involved, will be able to provide the specialist support that individuals with particularly serious challenges in their lives face in trying to get into the workplace.

[Mike Crockart]

I thank the Minister for his answer. However, given that only 230 disabled people secured work through residential training colleges last year, at an average cost of £78,000 per person, will the Secretary of State commit to implementing the recommendations as set out in last week’s Sayce review on allowing such colleges to develop as centres of excellence and to adapt their provision to operate directly in provider markets—for instance, as subcontractors in the Work programme?

[Chris Grayling]

We are considering the Sayce recommendations and have not yet formally responded about our decisions on whether to adopt most of them. However, my hon. Friend makes a sensible point. I have visited the Queen Elizabeth Foundation for Disabled People near my constituency in Surrey, where I said to people that I would encourage them to look to see whether they can enter the Work programme to provide specialist support as subcontractors. I hope that all the colleges will consider taking such an approach.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

11. Whether key suppliers to his Department are required to consult him on any planned relocation of jobs abroad.

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

Let me start by saying that we will not offshore any DWP jobs. I share the hon. Lady’s concerns regarding work being done offshore by suppliers. Many of the Department’s subcontractors began using some offshore staff under the previous Government. The Department is exploring how future offshoring can be minimised and whether jobs currently offshored could potentially be moved back to the UK in future.

[Chi Onwurah]

I welcome the Minister’s reply. As he no doubt knows, the north-east has some of the highest unemployment rates in the country. Hewlett Packard’s decision to offshore jobs in Newcastle supplying his Department with IT will not help matters. Santander recently announced that it is bringing all its call centres back to the UK following pressure from customers. As Hewlett Packard’s customer, what concrete steps is the Minister taking to achieve the same result?

[Chris Grayling]

I have already had a meeting with Hewlett Packard to discuss the issue, and I expect to have another such meeting shortly. The hon. Lady refers to call centres. All the Department’s call centres are sited in the UK. We have the biggest virtual contact centre in Europe, and it is very good, I believe; I applaud the professionalism of the staff who work in it. I would expect to see many similar offshore centres return to the UK in future, because, in my view, British-based staff are the best contact centre staff.

[Jessica Morden (Newport East) (Lab)]

12. When he plans to publish proposals for supporting childcare through universal credit.

--- Later in debate ---

[Brandon Lewis (Great Yarmouth) (Con)]

16. What steps he is taking to support young people into work.

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

We are doing three things to help young people into work. Our work experience scheme will provide an opportunity for up to 100,000 young people to get their first taste of the workplace over the next two years. We have launched tens of thousands of new apprenticeships that are designed to build a career for young people. Through the Work programme, we are providing specialist back-to-work support for those who are struggling to get into work, the longer-term unemployed and those who come from the most challenging backgrounds.

[Brandon Lewis]

In an area like Great Yarmouth, which has above average unemployment and in some cases third generation unemployment, those projects are hugely important in getting young people back into work. To help promote the opportunities for businesses, will the Minister outline how many people have undertaken and will undertake work experience this year?

[Chris Grayling]

The latest figures show that at the end of the first quarter, give or take, about 10,000 young people had so far benefited from our work experience scheme. Employers have so far committed to provide about 35,000 places. I am very optimistic that the scheme will deliver real opportunities for young people, some of whom have started to get into work through the placements.

[Julie Hilling (Bolton West) (Lab)]

Unemployment in the ’80s and ’90s was devastating for young people and gave us a generation with no jobs, no hope and no future. Has the Minister evaluated how much long periods of unemployment for a young person cost the UK economy?

[Chris Grayling]

There is no doubt that long periods of unemployment for young people are damaging both economically and to them personally. The hon. Lady will therefore welcome the fact that youth unemployment is lower today than it was at the time of the general election. I hope and believe that the specialist support that we are providing through the Work programme, the placements that we are providing through our work experience scheme and the extra apprenticeships for young people will make further inroads into that total.

[Jason McCartney (Colne Valley) (Con)]

I had the pleasure of visiting a small engineering business in Meltham a week ago. It has a big contract for making the suspension for the Ocelot Land Rover, and it is going to employ an extra 50 people over the coming 12 months. Can we learn lessons from the previous Government, who left power with 250,000 more young people unemployed, so that we can ensure that as private companies expand and take on workers, they give real emphasis to employing young people?

[Chris Grayling]

My hon. Friend is absolutely right, and that is why the extra apprenticeships that we have launched are so important. His experience is the same as that of my hon. Friend the Member for Stafford (Jeremy Lefroy)—who is no longer in his place—at whose jobs fair several leading engineering companies were looking for young people. If we deliver the apprenticeship opportunities, the private sector is out there ready to create the jobs for young people.

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

With people living longer and being employed in jobs longer, with people coming in from outside this country and taking up the cheap labour jobs, and with there being no law in effect that means that anyone taking up an apprenticeship has to be below a certain age, what is the right hon. Gentleman going to do in the years ahead to ensure that young people get employed?

[Chris Grayling]

The hon. Gentleman is, of course, describing some of the failings of the previous Government. What we have to do is ensure that we have a work-ready, well-trained work force of all ages, ready to take advantage of the opportunities that arise, when they arise. We can do that through more apprenticeships, through the specialist support in the Work programme, and through work experience placements that give young people their first taste of the workplace. I am delighted to say that youth unemployment is lower today than it was when his party left office.

[Gavin Barwell (Croydon Central) (Con)]

17. How many people have entered employment as a result of the Work programme.

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

The Work programme was launched last month and has long-term goals. Sustained jobs, not quick fixes, are what will change people’s prospects, particularly for those who are long-term unemployed. That is what the Work programme will pay for. The Department expects to release statistics on referrals to the Work programme from spring 2012, and on job outcomes lasting three or six months from autumn 2012.

[Gavin Barwell]

During the last recess I spent several days in my local Jobcentre Plus office and saw for myself the contribution that a number of small voluntary organisations are making to getting unemployed people back into work in my constituency. Can my right hon. Friend assure me that, as part of the Work programme, there will still be a role for such small local voluntary organisations?

[Chris Grayling]

I absolutely can give my hon. Friend that assurance. There are about 500 organisations from the voluntary sector involved, large and small, ranging from the Prince’s Trust and similar-sized organisations through to local projects such as a walled garden project in Yorkshire. There is space for any organisation that delivers excellence in getting people back to work, and those that are really good at doing it have every reason to become involved in a payment by results approach.

[Hywel Williams (Arfon) (PC)]

What steps are the Government taking to respond to the local variability in job opportunities, so that people are not penalised in the benefits system merely because jobs are not available in their area?

[Chris Grayling]

One of the things that we expect the Work programme providers to do is match individuals to vacancies. Even in Wales, as we know from the debate that the hon. Gentleman and I had last week, there are a significant number of vacancies. There has been private sector growth in the past few months, and unemployment has fallen. We have to ensure, through the work of Jobcentre Plus and the Work programme providers, that people on benefits take advantage of opportunities when they arise.

[Richard Harrington (Watford) (Con)]

Several Members have mentioned jobs fairs in their constituencies. We had one in Watford two weeks ago, to which 5,000 people came and at which more than 600 jobs and apprenticeships were on offer. As we speak, three weeks later, 50 jobs and 30 apprenticeships have been offered, predominantly to young people. As the fair was organised with Jobcentre Plus and seems to be a formula that helps, at no cost whatever to the taxpayer, is the Minister prepared to circulate the idea to other Jobcentre Plus offices and assist in organising such events?

[Chris Grayling]

Absolutely, and I pay tribute to my hon. Friend for his work. There have been a series of successful jobs fairs in Enfield North, in Stafford, in Reading East and now in his constituency. I would say to Members on both sides of the House that they are a really good way of bringing together local employers, local unemployed people and others who can help them, and Jobcentre Plus and the Department will help any Member of Parliament who seeks to get such a fair up and running.

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

18. Whether he plans to review his proposal to extend the personal independence payment qualifying period from three to six months.

--- Later in debate ---

[Bill Esterson (Sefton Central) (Lab)]

20. What estimate he has made of the number of people diagnosed with cancer who are in the work-related activity group of employment and support allowance and have claimed it for over one year.

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

In November 2010, the latest month for which we have figures available, there were 1,730 people receiving employment and support allowance for over one year in the work-related activity group where the primary condition was recorded as neoplasms—that is, people diagnosed with cancer.

[Bill Esterson]

Many cancer patients receive treatment for more than a year, and face losing their employment and support allowance while still receiving treatment. How many people receive cancer treatment for more than a year, and would therefore lose ESA under the Government’s plans?

[Chris Grayling]

Under the changes that we have introduced, more people suffering from cancer will be in the support group receiving ongoing unconditional support than was the case under the previous Government. The changes that we have made to contributory ESA are a direct consequence of the previous Government’s financial mismanagement. We have had to take some tough decisions on budgets, and this is one of them. We have formed the view that if people have other financial means available we cannot continue to pay them ESA indefinitely. That is a natural consequence of the failings of the hon. Gentleman’s party, not a choice we would have wished to have to make.

[George Hollingbery (Meon Valley) (Con)]

Will the Minister reconfirm his commitment to examine whether people on oral chemotherapies should automatically be placed in the support group, rather than in the work-related activity group as they currently are?

[Chris Grayling]

I am pleased to tell my hon. Friend that we have now received proposals from Macmillan Cancer Relief and Professor Harrington that contain some valuable suggestions and ideas. We have not finished our consideration, but we hope to make an announcement shortly.

[Caroline Nokes (Romsey and Southampton North) (Con)]

21. What steps he is taking to prevent disagreements between parents in their dealings with the Child Support Agency.

--- Later in debate ---

[Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)]

On 11 July the Minister of State, Department for Work and Pensions, the right hon. Member for Epsom and Ewell (Chris Grayling), confirmed that his Secretary of State had seen analysis by the Department for Communities and Local Government suggesting that his benefit cap could make 40,000 people homeless, and actually cost more than it saved. I do not mind who answers this question, but will someone please confirm whether the Minister himself also saw that analysis?

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

No.

[Mr Byrne]

This was a piece of analysis with enormous implications for the way in which the policy was implemented. This piece of work was so important that it was sent to the Prime Minister, the Chancellor of the Exchequer, the Deputy Prime Minister, the Chief Secretary to the Treasury and the Secretary of State. What was it that was so important about that analysis that it was not given to the Minister actually putting the legislation through this House? Will he now ensure that the analysis is produced before the House of Lords reaches the relevant debate?

--- Later in debate ---

[Yvonne Fovargue (Makerfield) (Lab)]

T4. In 2010-11 there was an increase in incapacity benefit and employment and support allowance appeals of 167% on 2008-09 figures, and 50% of incapacity benefit appeals were decided in favour of the appellant. What steps is the Minister taking to ensure that independent welfare benefit advice is available equally across the country, so that the figures do not reduce simply because claimants have no access to advice?

[Chris Grayling]

I hope that the figures will reduce because the quality of decision making within Jobcentre Plus improves as a result of the recommendations made to us by Professor Malcolm Harrington. As the hon. Lady will be aware, we have strengthened the reconsideration process and are telephoning rather than writing to claimants, particularly to ensure that we get better medical evidence. I do not want cases going to appeal; I want them resolved properly, satisfactorily and accurately within Jobcentre Plus.

--- Later in debate ---

[Mr Rob Wilson (Reading East) (Con)]

T5. In April I held a successful jobs fair in Reading, with nearly 2,000 people in attendance and 40 companies offering 1,500 jobs. I will be repeating it in September. What specific improvements in the service offered to them will my unemployed constituents get from the Work programme?

[Chris Grayling]

I congratulate my hon. Friend on being another author of a successful jobs fair project. The Work programme will offer the long-term unemployed in his constituency, including those from the most challenged backgrounds, much more tailored and specialised support, as well as infill training and other support, which will enable them to get into work on a scale and of a quality not seen before. Not only that, but they will be supported to stay in work too.

--- Later in debate ---

[Amber Rudd (Hastings and Rye) (Con)]

I recently led a competition in Hastings to find a young entrepreneur to set up in business, and was amazed and delighted at the quality of the young applicants. Can the Minister assure me that the new enterprise allowance providers will also focus on young people who might not consider themselves to be entrepreneurs, but who often have the energy, commitment and ideas to set up in business?

[Chris Grayling]

I congratulate my hon. Friend on the support that she has been providing to young entrepreneurs in her constituency. It is not simply the new enterprise allowance that will provide support for young people on benefits to set up businesses; many of the Work programme providers are also introducing specialist support, including one that is setting up a microfinance fund for new entrepreneurs. Self-employment is an important route out of unemployment, and we will continue to do what we can to support it.

[Naomi Long (Belfast East) (Alliance)]

Over the last 15 months I have been dealing with a constituent who has raised a complaint against the Child Support Agency about a flawed calculation that it made of payments due. Can the Minister say what the Government will do to address both the opaqueness of the CSA’s processes for dealing with such complaints and the length of time that they take?

[Jake Berry (Rossendale and Darwen) (Con)]

Unlike prisoners, those detained under the Mental Health Act 1983, including Ian Brady and Peter Sutcliffe, are entitled to receive incapacity benefit. Will the Minister tell the House what the Government intend to do about that?

[Chris Grayling]

I agree with my hon. Friend that that is an anomaly. It is also something that the Department is reviewing as we speak, and we will give more details in due course.

[Mrs Madeleine Moon (Bridgend) (Lab)]

Incapacity benefit reassessments have been causing great distress, and even suicides, among those with mental health problems. Some 95% of those polled said that they did not believe that they could trust the assessment to take their mental health condition into account. What changes will be made to ensure that people with mental health problems will have them taken into account in the work capacity assessment?

[Chris Grayling]

As the hon. Lady will be aware, that was one of the key questions that we put to Professor Malcolm Harrington last year. As a result of his recommendations we have introduced a number of mental and cognitive champions among the providers in the assessment network. We are also considering a range of further recommendations from mental health charities, and we have instructed our decision makers to take careful account of evidence of mental health problems when reaching their decisions.

[Robert Flello (Stoke-on-Trent South) (Lab)]

North Staffs Remploy in my constituency is so successful that it has had to put on an additional shift to meet demand. Indeed, if it were not for the layers of senior management drawing funds out of Remploy like some leech, it would be very profitable indeed. Will the Minister look carefully again at the Sayce report, and at what happens during the consultation, so as to ensure that my constituents who use Remploy, and who say that it is definitely fit for the 21st century, can continue working for it?

Jobcentre Plus Annual Report and Accounts 2010-11

Lord Grayling Excerpts

Monday 18th July 2011 Written Statements

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

I am pleased to announce that the Jobcentre Plus annual report and accounts for 2010-11 will be laid before Parliament and published electronically on the DWP website later today at:

http://www.dwp.gov.uk/about%2Ddwp/customer%2Ddelivery/jobcentre%2Dplus/publications%2Djobcentre%2Dplus/.

The annual report section provides a summary of Jobcentre Plus’s performance against the business priorities and targets in the 2010-11 published business plan along with structural reform priorities.

The accounts provide a summary of Jobcentre Plus’s administrative and employment programme expenditure for 2010-11.

Work Capability Assessment

Lord Grayling Excerpts

Thursday 14th July 2011 Written Statements

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

Today the Government will publish a call for evidence as part of Professor Malcolm Harrington’s second independent review of the Work Capability Assessment (WCA).

In November 2010 we published Professor Harrington’s first review, which was the first of five annual independent reviews of the WCA. Professor Harrington concluded that the WCA was not broken but made a number of recommendations to improve its fairness and effectiveness. We fully endorsed his review and have implemented the vast majority of its recommendations, with all the recommendations relating to IB reassessment already in place.

We reappointed Professor Harrington to undertake the second year review of the WCA and this call for evidence will be one of several methods used to gather information to support the review and inform its recommendations. The call for evidence is particularly interested in views and evidence about:

The implementation of Professor Harrington’s year 1 recommendations and the impact they are having;

What, if any, further work is required in future reviews; and

The face-to-face assessment.

The call for evidence runs until 16 September 2011.

Professor Harrington will make his final recommendations to the Secretary of State for Work and Pensions by the end of the year.

A copy of the call for evidence will be placed in the Libraries of both Houses and will be available on the Department’s website.

http://www.dwp.gov.uk/policy/welfare-reform/employment-and-support/wca-independent-review.

Informal Employment and Social Policy, Health and Consumer Affairs Council

Lord Grayling Excerpts

Thursday 14th July 2011 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 7-8 July 2011 in Sopot, Poland. The Under-Secretary of State for Business, Innovation and Skills, my hon. Friend the Member for Kingston and Surbiton (Mr Davey), who is responsible for employment relations, consumer and postal affairs, represented the United Kingdom.

The theme for this informal meeting was active labour market policies and reconciliation of work and family life. On the first day of the meeting, the presidency invited views on how to increase the effectiveness of pro-active employment policies through greater competition. The Commission stressed the need to improve further the efficiency of public employment services. For the United Kingdom, my hon. Friend, delivered a keynote speech explaining how, in the UK, we are using competition to help reduce the numbers of people on-out-of work benefits. He highlighted that the recently introduced Work programme aimed to help those furthest from the labour market, including providing support for people moving off incapacity benefit and those coming from the most challenging backgrounds. This support would be provided by specialist private and voluntary sector providers, rewarded on a payment-by-results approach. The funding for this programme would come from savings generated as well as from the European Social Fund.

On the second day, there were three simultaneous workshops aimed at sharing national experiences covering: reconciliation of work and family life; raising the retirement age; and solidarity between generations. The United Kingdom chose to participate in the workshop discussing reconciliation of work and family life. My hon. Friend, described the success of the right to request flexible working and how the Government plan to extend this to all employees. He further described how the United Kingdom Government are consulting on changes to its parental leave system to make it more flexible by allowing greater sharing of leave between partners and for leave to be taken in blocks rather than a continuous period. Other member states described their own domestic priorities. In conclusion, the presidency once again underlined the value of sharing experiences and stated that its family ministerial conference on 21 October would build on these discussions by focusing on reconciliation of work and family life issues including the pregnant workers directive.

Worklessness (Wales)

Lord Grayling Excerpts

Wednesday 13th July 2011 Westminster Hall

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

I congratulate the hon. Member for Arfon (Hywel Williams) on securing the debate. I will have to respond to him relatively briefly because I think I have only nine minutes in which to speak.

The hon. Gentleman made his points extensively and thoughtfully, but I do not recognise the degree of bleakness in the picture that he portrays. I recognise that unemployment remains a major challenge for us around the country—it is one of the most difficult parts of our inheritance. I accept that a number of areas of Wales, like a number of areas of England, Scotland and Northern Ireland, are affected by deep-rooted problems of worklessness. However, Wales has been one of the brighter spots in the labour market in recent times.

The hon. Gentleman talked about the private sector. In Wales in the past 12 months, the truth is that 31,000 net new jobs have been created. In reality, that represents a higher number of jobs in the private sector because the figure also takes into account job losses in the public sector. In the past year, Wales has proved that it is possible to grow private sector employment. Unemployment in Wales has fallen by 16,000. He asked where the jobs would come from. The truth is that in Jobcentre Plus in the past three months, nearly 48,000 vacancies have been taken in across Wales.

The total number of people on jobseeker’s allowance in Wales as a whole is 71,600. While I recognise that we have a challenge, and I particularly accept that we have a challenge in individual areas of Wales, the picture is not as bleak as the hon. Gentleman suggests. I certainly do not think that it is as bleak as is portrayed by the Sheffield Hallam research, which argues that, in the valleys alone, 70,000 more jobs would be needed. As the total JSA count for the whole of Wales is 71,000, I would have to say that its view is on the pessimistic side.

The hon. Gentleman is absolutely right—my hon. Friend the Member for Aberconwy (Guto Bebb) is also right—to say that we really need to support the growth of self-employment in Wales. A central part of the task of encouraging and fostering economic and employment growth in Wales is supporting the self-employed. That is why I am committed to the success of the new enterprise allowance in Wales, which will help people off benefits and into self-employment, and it is why I hope that the new Administration in Cardiff will make self-employment a particular focus of its work with business.

If I was replying to a debate about an English region, I would be setting out a number of other areas in which the Government are taking steps to try and deal with the unemployment and worklessness challenge, including through apprenticeships, which are an essential part of our strategy. Particularly for the young unemployed, apprenticeships are a much more cost-effective way of delivering support and opportunity than the extremely expensive future jobs fund, which provided six-month placements in public and voluntary sector organisations at a time when the best job opportunities were arising in the private sector. The cost of that scheme was three to four times more than even the new deal for young people under the previous Government. The scheme was not affordable and did not deliver clearly improved results on either value or outcomes in comparison with other schemes. Investment in apprenticeships delivers a much better alternative, so I hope that the new Administration in Cardiff will pursue that route.

It is also important that the new Administration in Cardiff do a good job on economic development. If we were talking about another part of the UK, I would be talking to the hon. Gentleman about the importance of the regional growth fund to invest in manufacturing, and research and development facilities, in those areas of the country that have lower levels of private sector employment and bigger employment challenges. Again, I hope that the new Administration in Cardiff will take the lead set by the coalition Government in Westminster to set up a similar mechanism to the regional growth fund to invest in precisely the kind of opportunities that he rightly says that Wales needs.

We are taking clear steps to try and deal with the issue of worklessness in Wales. Alongside the introduction of the new enterprise allowance, that is being done through two particular schemes. The first is our work experience scheme, which is designed to address the challenge that young people face to get a first foothold in the workplace. All too often, they face the challenge of not having the experience to get a job, and not being able to get such experience without a job. One thing I learned quickly on becoming a Minister was that the previous Government’s rules said that if people did more than two weeks’ work experience, they lost their benefits. That was crazy. We have now changed that rule and it is possible to do up to eight weeks on benefits while doing work experience.

In addition, we have turned the whole system on its head and are now actively looking for work experience opportunities for young people across England, Scotland and Wales in an approach that will give young people an opportunity to gain initial experience in the workplace and show potential employers what they can do. I hope that that will prove to be a route into apprenticeships. Again, I hope that the Government in Cardiff will work with us to ensure that there is a clear link between the work experience opportunities for which we are looking through Jobcentre Plus, those first few weeks in the workplace, and an opportunity for those young people to move into an apprenticeship.

The other part of our strategy to help the long-term unemployed is the Work programme, which is now operating throughout the whole country. In Wales, we have two providers: Working Links and Rehab Group. Rehab Group is one of our two part-voluntary sector prime contractor groups. Alongside those two prime contractors, there is a network of different organisations around Wales helping to provide specialist support for the long-term unemployed. What makes the Work programme different is that it is all about delivering much more personalised and tailored support to the long-term unemployed and those who are moving off incapacity benefit.

I would take another issue with the Sheffield Hallam report. As a result of the changes we are making to incapacity benefit, no one will lose benefits except those who are currently in receipt of contributory employment and support allowance, which will be time-limited, and those who have other financial means. If people do not have an alternative form of support, they are not suddenly going to be cast on to the streets, but that is a point about which the report gives a slightly misleading impression.

I describe the Work programme as a giant employment dating service. It is about matching individuals to the right job opportunity, and a job opportunity in which they are likely to stay. It is important to the providers that they deliver because we do not pay them unless they get people into sustained long-term employment. They cannot earn their full fees for a conventional jobseeker for 18 months after that person has entered work, so if someone ends up in the wrong job and is likely to drop out, the provider will inevitably lose out financially. The providers therefore have every incentive to ensure that they match individuals to the right job opportunity in which they have the best chance of staying.

The Work programme will deliver a much better support than has previously been the case. It unleashes best practice. It will succeed the most if it delivers what works the best. There are no diktats from Whitehall—no instructions about how to do this—because it is all about delivering what works for individuals. I am confident that the Work programme will take back-to-work support to a new level and help many of those people who are trapped in pockets of long-term unemployment in Wales to find and move into opportunities that arise.

I am confident that we will see economic growth across the country. The independent Office for Budget Responsibility is forecasting significant growth in private sector employment in the next few years, and that has already been happening in Wales. The key is to ensure—this was not happening under the schemes that we inherited from the previous Government—that those who are trapped on JSA and other benefits have, when possible, the opportunity to take advantage of vacancies when they arrive. Our reforms are all about making work pay, supporting people into work and trying to create an environment across the UK in which business can flourish, grow and develop. In Wales, with the additional contributions that I hope will come from Cardiff to work with us on economic development and creating opportunities for business to grow and develop, I hope that that will provide a solution to the very real challenges of worklessness in Wales that the hon. Gentleman rightly identified.

Question put and agreed to.

Youth Unemployment (Mitcham and Morden)

Lord Grayling Excerpts

Wednesday 13th July 2011 Westminster Hall

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

It is a pleasure to serve under your chairmanship again, Mr Gray. It has been a frequent occurrence in recent times. I congratulate the hon. Member for Mitcham and Morden (Siobhain McDonagh) on securing this debate.

I will divide my remarks into two halves. First, I congratulate the hon. Lady on a project that is very big society, and exactly the kind of thing local MPs should be doing. She is right to describe our ability to open doors in constituencies, to secure involvement in community projects and to go places other individuals and groups perhaps cannot go. She has clearly done that in her constituency and I praise her for it. I will talk a bit more about that in a moment.

Much of the rest of what the hon. Lady said was complete hokum. She is rewriting history and misrepresenting some of the realities of our work. None the less, I praise her for her sincerity in calling this debate and for the work she is doing; it is absolutely right. I am delighted that Jobcentre Plus is working well with her, but that is no accident. It has specific instructions to do just that. In particular, she talks about the issue of two weeks versus eight. Under the previous Government, a jobseeker lost their benefits if they did work experience for more than two weeks. It was a crazy situation.

One of the first things I received on becoming a Minister was an e-mail from the mother of a young woman who said that her daughter had arranged a month’s work experience for herself with a local firm, but the Jobcentre Plus office had told her that if she did it she would lose her benefits. That is clearly a crazy situation, and one that we moved quickly to change. A jobseeker can now do work experience for up to eight weeks while on benefits. If they are moving from that eight weeks into employment or an apprenticeship, that programme can be extended to 12 weeks. Therefore, it is down to the policies of this Government that the hon. Lady can deliver her scheme. Under the previous Government, that would not have been the case. Those young people would have lost their benefits after two weeks.

[Siobhain McDonagh]

My scheme came about because the future jobs fund had been scrapped. The future jobs fund, for me, was the way forward. I was looking for an alternative and I came up with this idea; it does not replace the future jobs fund.

[Chris Grayling]

I will come back to that in a moment. The hon. Lady is right to say that it does not replace the future jobs fund; it is part of a package very different from what we had before. My point is that it would have been impossible for her to put together a scheme under the rules that operated under the previous Government. Her scheme is worth while and valuable and I commend her for it.

Let me give some context to the youth unemployment challenge. Youth unemployment today is lower than it was at the general election. The picture of youth unemployment has been building up over a decade. One of the myths is that it is a problem simply linked to recession. If we look at the trends in youth unemployment, we see that it began to rise in 2003 and the problem became more and more significant as the years went by. It was becoming a problem through good times as well as bad.

[Siobhain McDonagh]

Since the general election, youth unemployment in my constituency has risen, not fallen. The problems are greater now than they were before the general election.

--- Later in debate ---

[Chris Grayling]

The hon. Lady is right to say that; there are now 95 more young people on jobseeker’s allowance in her constituency than at the time of the general election. I accept that point and I accept that she has challenges in her constituency, but I am making a more general point. A number of her colleagues have said—although she has not—that they see youth unemployment as a crisis of the current Government. I am simply making the point that, happily, youth unemployment today is lower—not by a lot, but it is still lower—than at the time of the general election. It is a big challenge for us to bring youth unemployment down, and I regard it as a big problem that we must address, deal with and solve.

Of course, there are different challenges within the overall headline figure of 895,000 young unemployed people that the hon. Lady referred to. Some 300,000 are actually in full-time education, and they show up in the unemployment figures simply because they are looking for a part-time job. The actual figure for young people who are not in education or employment is around 650,000 at the moment. That figure is much too high, but the reality is that within it is a core of young people who represent a real challenge, and I suspect that among them are the young people in the hon. Lady’s constituency whom she described. To me, that core represents one of our biggest employment challenges.

The approach we have taken to tackling youth unemployment has three dimensions. I will walk the hon. Lady through them, step by step. To begin with, however, let me address head-on the issue of the future jobs fund. The future jobs fund was an extremely expensive scheme that provided work placement opportunities in the public and voluntary sectors, not in the private sector. It had virtually no private sector involvement at all. All of the jobs created in this country in the last 12 months—all of the increase in employment—have come in the private sector. The future jobs fund is some three or four times more expensive per job outcome than even the new deal for young people under the previous Government. So, the future jobs fund was an extremely expensive scheme that steered young people towards what I believe is the wrong part of the economy in terms of building experience. We took a view very early on that it was not the right solution for the future. The key step that we have taken to replace the future jobs fund is not work experience; it is a dramatic increase in the number of apprenticeships. That is the first part of our three-legged response to the youth unemployment challenge.

During the past 12 months, we have increased the number of apprenticeships available by the best part of 100,000. We introduced an extra 50,000 apprenticeships in the first year, we announced an additional 25,000 apprenticeships to follow, and we topped that up still further in this spring’s Budget with an extra block of 20,000 apprenticeships that specifically target young unemployed people. We think that increased numbers of apprenticeships are a better option than the future jobs fund. We have looked at the nature of the challenge in the labour market, and we believe that finding young people opportunities in private sector businesses over an extended period—an apprenticeship lasts one, two or three years—and where there is an ongoing training opportunity alongside that apprenticeship, provides a better foundation for a lasting career than a short-term placement of the kind that the future jobs fund offered. Of course, the future jobs fund was also massively more expensive than apprenticeships.

We have taken that decision. I know that Opposition Members do not agree with it, but it is a clear strategy that says, “We think apprenticeships are better than the placements the future jobs fund offered, and they are also much more affordable, given the very straitened financial circumstances we inherited.”

I am very pleased that my colleagues in the Department for Business, Innovation and Skills have been as successful as they have in securing employer participation in the apprenticeship programme, and that they have met their goals for getting employers to provide apprenticeship places, which did not happen under the previous Government. Apprenticeships are a really powerful tool that will make a big difference in the years ahead.

Alongside that approach, we are dealing with what I have described as shorter-term youth unemployment. The reality is that the vast majority of young people who are unemployed move off JSA within nine months; there is a pretty steady off-flow and after nine months there is a much smaller core of young people who are struggling to get into employment. First and foremost, I want to see that shorter-term group move into employment more quickly, because even a few months without employment is too long in my view. So we designed the work experience scheme to provide a bridge for young people who did not have previous experience in the labour market or the workplace, to get them into the workplace and give them an extended period of working opportunity of up to eight weeks. The hon. Lady and I are absolutely of like mind about the need to give people an extended opportunity in the workplace and a chance to demonstrate to employers what they can do, so that hopefully—at least in some cases—those employers can offer them jobs. That has certainly happened in many parts of the country.

The hon. Lady is not right about the nature of the rules for the work experience scheme. The scheme is voluntary. The “bureaucracy” that she described is on one sheet of A4 paper. It simply involves signing a piece of paper that says, “I will treat this person responsibly, in the way that I treat my own employees”. That is important, because we do not want excessive bureaucracy. I have been through those forms personally and I can assure her that that is the case.

There will be contact between a Jobcentre Plus employment team member and the employer because that is what the team member is there to do. We have tasked Jobcentre Plus staff not only with changing the rules about the number of weeks someone can do work experience without losing benefits, but with finding work experience opportunities. That is why I am really pleased that the Jobcentre Plus staff in Mitcham and Morden are working in partnership with the hon. Lady. I expect and want our Jobcentre Plus staff to continue to provide her with every support they can provide, because having an engaged local MP working with local employers to increase the number of work experience opportunities is hugely valuable. I commend her for the work she is doing, and I hope it continues and that the Jobcentre Plus staff will be there to work with her to help ensure that the work experience scheme is happening.

Around the country, Jobcentre Plus staff are looking for opportunities. There are now some 35,000 committed work experience places for young people, and thousands of young people are in work experience placements as we speak. Many have succeeded in going into apprenticeships or full-time employment, and I hope that the number doing so will increase as the months go by. We hope to build the work experience scheme over the next two years, so that we provide 100,000 places to deliver the kind of benefits the hon. Lady has rightly described today.

Then, there is the third leg of our stool. The hon. Lady rightly mentioned the challenges that some young people face. There are many young people who have grown up in difficult circumstances and have been on benefits for a long time, and for whom getting into the workplace is a bigger challenge than for other young people. Perhaps they also lack the right qualifications, motivation and experience, and the knowledge of how to get into the workplace. That is where the work programme comes in. It is designed to deliver much more specialised, personalised and tailored support than has been provided in the past.

Young people who do not have significant issues in their lives will enter the work programme after nine months, which is sooner than under the previous, and much less substantial, new deal programmes. However, young people with particular challenges will enter the work programme after three months and will receive personalised support to help them identify the right opportunities: providers who will secure placements for them, work trials, work experience, training courses and other things that will better equip them to enter the workplace.

Of course, the great benefit of the work programme is that we do not seek to design it from the centre. The hon. Lady talked about bureaucracy earlier, but the whole point about the work programme is that bureaucracy is not there. We are saying to the providers, “You do what you think is best. You develop the right programmes to support these young people and others into the workplace. We’ll pay you when you’re successful.” In each area up and down the country, there are teams of specialists led by prime contractors, including organisations that have real expertise in working with young people, such as the Prince’s Trust.

[Siobhain McDonagh]

From my experience of my own constituency and of London as a whole, those contracts are so large that many of the small local organisations, such as the Commonside Community Development Trust, have been unable to get involved in the work programme, and yet they have the experience on the ground. What can the Minister do to ensure that those small local organisations get a look-in with that programme?

[Chris Grayling]

Of course, the whole structure of the work programme is designed to reward excellence. Any organisation that is really good at its job of getting people into work will find a willing entrée with the providers. A whole mix of organisations is involved—from the largest voluntary sector organisations, such as the Prince’s Trust, through to a walled garden project in Yorkshire. We have a whole mix of different organisations providing the support. What matters is what works and that we have solutions that deliver real options for young people, getting those who are unemployed—particularly the long-term unemployed—into the workplace. For me, that is the challenge.

I accept the hon. Lady’s analysis: that we have a problem, in that many young people are stranded and struggling and need to be given a helping hand into the workplace. I hope and believe that the mix of programmes we have put in place—increased numbers of apprenticeships and the work experience scheme, helped by big society projects such as hers, and the intense support provided through the work programme—will start to make a difference, and in a way that I must say is much more affordable to Government than the future jobs fund was. In addition, those programmes will steer young people to where the jobs really are: in the private sector businesses that represent our employment hope for the future.

I believe that that is the right approach. The hon. Lady and I share a commitment to tackling the problem of youth unemployment. We may not agree on all the solutions, but she should know that the Government are committed to solving that problem.