Youth Unemployment (Walsall)

Lord Grayling Excerpts

Tuesday 12th July 2011 Commons Chamber

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

We meet again, Mr Speaker, although not quite as late as the last occasion on which we debated youth unemployment in the Chamber.

I congratulate the hon. Member for Walsall North (Mr Winnick) on securing the debate, and also on the measured way in which he addressed what I regard as a very serious issue. We have had quite a few debates about it, and I must say that his approach was commendable in comparison with that of some Members to whom I have listened.

I share the hon. Gentleman’s concern about the issue, and about the future of young people in his constituency. Let me tell him about the measures that we are taking to address the problem. It is a long-standing problem, not simply a problem of the recession years. During the past decade, from 2003-04 until the present day, there has been a steady increase in youth unemployment in this country—even during what have been relatively prosperous times economically—although the national figures for the last two months show a significant drop, which is of course welcome.

The hon. Gentleman was right to focus on the number of young people in his constituency who receive jobseeker’s allowance. All too often people focus on the number of unemployed people according to the International Labour Organisation measure, which includes a substantial number of full-time students and somewhat distorts the true picture. As the hon. Gentleman will know, in his constituency there has been a small increase—small in comparison with the previous position—in the number of unemployed young people receiving JSA over the last 12 months, but there was a much bigger and fairly steady increase over the previous decade.

There is indeed a problem that we must address, and to which we must deliver solutions. One of those solutions involves stimulating economic growth in what are still challenging times economically. We are particularly concerned about regions where there have been significant economic changes, where there is a smaller private sector than we might wish and higher public sector employment than in other areas, and where there is a particular labour market challenge. The regional growth fund—we announced the first tranche of RGF projects recently, and will announce further projects in due course—is designed to stimulate and support manufacturing, research and related areas of business in parts of the country where we need to build up and strengthen the manufacturing base, the research base and the skills base.

I would argue—I suspect this might be a point of difference between the hon. Gentleman and me—that the measures we are taking to address the deficit, challenging though they may be, are a necessary part of creating a stable economic environment where businesses will grow and invest and create jobs. Over the past 12 months there has been good growth in private sector employment in the UK. About 500,000 new private sector jobs, the majority of them full-time, have been created over that period, but it remains a concern that, despite that, there has been very little change in the numbers on jobseeker’s allowance. That is certainly the experience for young people in the hon. Gentleman’s constituency.

Job opportunities have been created, therefore, but we are not seeing people move into those jobs, so what do we do about that? There are three particular steps that we are taking. The hon. Gentleman asked when some of the measures we have proposed will be put into action, and my answer is that they are in place now. They are relatively new—they are in the early stages—but they are there, and we are working hard now to address some of the concerns that the hon. Gentleman raised.

Let me now describe those three key parts—they are not the only parts—of our strategy. The first issue is how we might provide support for the shorter-term unemployed young people, to get them into the workplace. The vast majority of young people who sign on to JSA are in work within a few months. Of those who have been out of work for nine months, only a small proportion of those who signed on on day one are still out of work. For that first group who get into work in the shorter term, we want to accelerate the process and make sure they move into work without spending those first few months on JSA looking for work.

Crucially, that is where our work experience scheme comes into play. It has its origins in an e-mail I received from the mother of a teenage girl shortly after I was appointed to my post last year. She said her daughter had just sorted out a month’s work experience for herself, and that it was clearly the right thing for her to do, but that she had been told by the jobcentre that if she did that work she would lose her benefits. That is clearly a mad situation, and we swiftly moved to address it. What we have done is turn that on its head, by saying that it is a good thing for young people to do work experience, as it gives them a first taste of the workplace and a period of time to prove to a potential employer that they have skills that that employer might wish to retain, and so we are now allowing young people to do up to eight weeks of work experience while continuing to claim JSA.

Furthermore, our Jobcentre Plus employer relations teams around the country are actively looking for work experience opportunities for young people. At the last count, we had about 35,000 committed placements over the next year. We have already placed many thousands of young people into work experience opportunities, and we are starting to see some of them move into employment as a result of that, some staying with those who provided the work experience. It will take time for the programme to build right across all the young people who could potentially benefit from it, but I am very keen about this, particularly this summer when another generation of school and college leavers will be coming into the labour market. Our team in Jobcentre Plus will be working hard to give those young people a rapid opportunity to gain real work experience, and not for one week or two weeks, but for an extended period with the hope that in many cases the employer who takes them on will take a look at that young person and say, “Actually, they’re rather good. I’d like to be able to keep them, and we’ll offer them a position.” That has certainly been our experience so far; that is what has been happening in a number of cases. Even if there is not a job opportunity for the young person, we hope that that couple of months of experience—and, I hope, a positive reference from the employer—will give them a leg-up in applying for a further vacancy.

The second part of the equation is also crucial to our strategy to help young people. It is the big increase in the number of apprenticeships. We took a decision very early on, because we think apprenticeships are a better path to help young people down than some of the schemes we inherited from the previous Government. I know that there has been great debate about the future jobs fund, but our view is that a big increase in the number of apprenticeships, with almost 100,000 extra over the past year, is a better way of providing long-term opportunities. This is not simply about the training that people gain as apprentices; the skills they gain in the workplace over an extended period lasting one, two or three years are much more likely to give a young person the foundation for a long-term career. The increase in the number of apprenticeships that we have seen over the past few months will be sustained over the course of this Parliament. These apprenticeships will be available to the young people leaving school and college this summer, and it is very much my hope that many young people who go through those two months of work experience will then be able to stay on as apprentices. I am absolutely of the view that the increased number of apprenticeships is a crucial part of dealing with the issues in the hon. Gentleman’s constituency, which he rightly raises.

[Mr Winnick]

I am listening carefully to what the Minister is saying, but it does not alter the fact that the number of apprenticeships in my constituency remains very small compared with elsewhere. I am still wondering how extensive the concentration will be on the areas—this is not just about my constituency, by any means—where the level of unemployment is so high among young people.

[Chris Grayling]

This is very much about us collectively, by which I mean the hon. Gentleman, as a Member of Parliament, and Ministers in overseeing Jobcentre Plus and in our work to try to engage employers in the work experience scheme. One of our key goals has to be to encourage employers to get involved in the apprenticeship scheme and take on apprentices. I think that taking on a good apprentice is a very good way for the employer to add skills at a relatively low cost to their organisation, and we can all play a part in helping that to happen. I give him an absolute commitment that we in the Department for Work and Pensions, in partnership with the Minister for Further Education, Skills and Lifelong Learning in the Department for Business, Innovation and Skills, will work extremely hard to engage employers, including in the hon. Gentleman’s area. I know that his area contains some very good employers and some employers who have recruited from overseas in the past. I would much rather see them recruiting local apprentices, developing them and giving them opportunities. We are very happy to work with him to do anything we can to help engage and involve employers in his constituency. If he is not already in discussion with the employer outreach team in Jobcentre Plus in his area, I would be happy to arrange for such discussions to take place.

The third and newest piece of our jigsaw puzzle to deal with this problem is the introduction of the Work programme, which began in mid-June in the hon. Gentleman’s area. We have a good team of providers in the Birmingham area, who will have centres all around the west midlands—there will be centres in Walsall, Wolverhampton and Birmingham. I strongly believe that the Work programme provides the additional piece that is needed to deal with longer-term youth unemployment and, in particular, to help those who have come from the most challenged backgrounds. I have no doubt that some of the jobseeker’s allowance claimants in his constituency, to whom he refers, are young people who have come out of some of the most challenging backgrounds, and who have left school early without proper skills development and without qualifications. They may well have come from workless households, where they have not had experience of a parent going out to work in the morning. They represent one of the biggest challenges we face in the labour market. Helping them, motivating them and guiding them towards an entry into the labour market is an extremely important challenge for us, and I see it as a central part of what the Work programme providers are there to do.

The Work programme is very clearly intended to be a revolution in the way in which we deliver welfare to work, and I have been visiting providers today in the east midlands to talk about what they are doing. That revolution is most clearly to be found in two things. The first is the freedoms we are giving private, voluntary and public sector organisations involved in the Work programme and working together in teams to decide what works best, to adapt to change and to pursue best practice but, above all, to find the best way of helping people to move into the workplace and stay there. The second crucial part of this revolution is the fact that the scheme is based on payment by results. For the first three years of seven-year contracts, the providers will get a small up-front payment and after that no up-front payment at all; the next money they see will come when someone has been in work for six months. They will have a real incentive to find the best practice and particularly to match individuals to the right vacancy to help them stay in work over a sustained period.

[Mr Winnick]

I asked the Minister when we were likely to return to the situation we faced in 2004. In my remarks, I have tried to avoid controversy so far as it is possible for me to do so, but he will know that I disagree with the Government’s overall economic policy as I think it is deepening the economic downturn. Having said that—I very much mean it, too, as I think the present economic policy is far too severe—may I ask when my part of the world is likely to see the same sort of situation with youth unemployment, if not adult unemployment, as we did in 2004?

[Chris Grayling]

I would love to get a crystal ball out for the hon. Gentleman, but sadly I am not an economic forecaster and I would not want to try to make such an estimate. The official forecasts from the Office for Budget Responsibility, however, expect an increase in employment over the next four years, even after we take into account job losses in the public sector, of just under 1 million positions. Over the past 12 months, private sector employment around the country has increased by about 500,000.

Our key goal should be to ensure that young people in the hon. Gentleman’s constituency and their counterparts elsewhere who are on jobseeker’s allowance and who are struggling to get into work get all the help they need to take advantage of those jobs as they are created. The OBR will continue to publish forecasts and it is our intention to pursue a growth agenda that fosters and encourages business growth and the creation of jobs. I hope that as the OBR reflects circumstances and the impact of our policies, we will get closer to being able to give him an answer, but I fear that I cannot do that tonight.

I will say, however, that the increase the hon. Gentleman has seen is not simply down to the recession. It is a longer-term trend and problem. Employers are reluctant to take young people straight from school, college and university and sometimes it is easier to recruit from overseas. Our job, as well as that of the teams delivering the work experience opportunities, those delivering apprenticeship opportunities and those working extremely hard on the Work programme, is to ensure that those young people take advantage and get into the vacancies as and when they arise. That will give a generation of young people a genuine opportunity to move into work.

I do not want to see a large number of young people stranded on benefits for years and years and I share the hon. Gentleman’s aspiration to tackle the youth unemployment problem. I am happy to continue to work with him to discuss the issues in his constituency and to encourage our Jobcentre Plus teams to work with him to address those problems. I give him a commitment that youth unemployment in his constituency, and around the country, is a priority for us and we will do everything we can to ease it. We believe it should be at the very top of the Government’s agenda and it will continue to be there until we have cracked it.

Question put and agreed to.

Support for Very Long-term Claimants

Lord Grayling Excerpts

Thursday 7th July 2011 Written Statements

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

The Government are committed to delivering a radical overhaul of the welfare system to ensure that the benefits and tax credits systems is fairer and simpler and is more able to combat worklessness and poverty.

We are also making good progress to deliver on our commitment to reform the package of employment support which will ensure that benefit claimants have access to effective and high-quality support and that we deliver programmes which offer the taxpayer better value for money and also help move more people into work.

Work is well under way to introduce universal credit from 2013 and we have also recently launched the Work programme, the biggest single payment-by-results employment programme the United Kingdom has ever seen.

To ensure that we continue to build on these achievements, my Department will be exploring what further support could be used to help those claimants who have been claiming jobseeker’s allowance for long periods of time and who have been unable to find employment.

To help us gain a better understanding of what type of support could be most effective, we intend to run a small-scale trial to test whether with an increased level of support and opportunities to gain work experience, claimants have greater success in finding and staying in employment.

The trial will commence later this year across four Jobcentre Plus districts (Derbyshire; Lincolnshire, Rutland and Nottinghamshire; East Anglia; and Leicestershire and Northamptonshire) and will run for approximately nine months.

The evaluation of these trials, coupled with evidence from other programmes, will enable us to develop a better understanding of how best we can support the very long-term unemployed in the future.

The Work Programme

Lord Grayling Excerpts

Monday 4th July 2011 Written Statements

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

I am delighted to announce that the Work programme is now fully operational across Great Britain. The Government’s vision of a high-quality, personalised employment programme for those benefit claimants who need more intensive support is now a reality. Many individuals are already actively engaged and receiving the support they need to find work.

Last week I visited our providers in the north-west and was impressed by their commitment and drive to deliver. I will be visiting all Work programme providers through the course of the year. I look forward to seeing the real differences to people’s lives they are achieving and how the investment we are making will have long-term impacts to achieve sustained job outcomes.

As you know we are giving providers more freedom than ever before to work with those that have become long-term unemployed or who are at risk of becoming so. By having longer contracts and allowing providers to work with customers for two years, providers have the space and time to work innovatively and creatively to really make a difference. The flagship payment by results funding model sends the message that we want hard outcomes, and by paying more for those who face greater challenges we are saying to providers that we will reward them for hard work.

I am confident we have given the Work programme every chance of making a real difference to long-term worklessness. We expect to see substantial indications of the success of the programme from spring 2013.

Employment (Livingston)

Lord Grayling Excerpts

Tuesday 28th June 2011 Commons Chamber

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

The hon. Member for Livingston (Graeme Morrice) has, as he rightly said, drawn the short straw this evening, and I am sure that he would have chosen a slightly earlier hour to debate what are certainly important issues. However, I think that, quite appositely, we have finished this evening with a bit of a fairy story, because much of what the hon. Gentleman said was, although well-meaning I am sure, complete nonsense. Let me explain why. Having listened to his remarks for the past few minutes, one would not believe that youth unemployment today is actually 25,000 lower than it was at the general election, that the number of young people on jobseeker’s allowance in his constituency has fallen since the general election or that the trends in the labour market have seen an increase in employment in Scotland. One would not believe that across the country as a whole there are 500,000 more people in employment than there were a year ago and that, very gratifyingly at what are difficult times for the public sector, the private sector is creating jobs at a rate that is significantly faster than the loss of jobs in the public sector. I simply do not recognise the bleak picture that he portrays.

I fully accept that with the challenging youth unemployment in the hon. Gentleman’s constituency and across the country we still have a lot of work to do. That remains a big problem and a big challenge for us. Of course, the figures are somewhat distorted by the bizarre situation that the overall headline youth unemployment figure includes almost 300,000 young people who are in full-time education and who happen to be looking for a part-time job alongside their studies. I do not classify those people as unemployed and I do not think that most reasonable people would. However, the reality is that we still have more than 600,000 young people across the country—many in his constituency, some in mine and some in the constituencies of all hon. Members—who are struggling to get into work in what remains a challenging labour market. I accept that there is a job to be done. The progress that has been made is a welcome step in the right direction, but it is only a small step on a long journey to tackling a real problem.

I disagree with the hon. Gentleman’s comments about the future jobs fund. I know that Labour Members believe strongly that that policy was a significant strategy for dealing with youth unemployment, but I disagree. I do not deny that a number of young people benefited from what were six-month placements—it is important to get the jargon right. “Future jobs fund” was not an honest and accurate title for the programme. They are not jobs, but six-month placements almost entirely in the public, voluntary and community sectors. Because of rules relating to European state aid, it was not possible in almost all cases to provide jobs in the private sector. At a time when it is the private sector that is creating job opportunities, that was a big flaw in the future jobs fund.

The other big flaw was cost: it was massively expensive. It cost four times as much to achieve a job outcome as did the Labour party’s own new deal for young people. It was a hugely expensive programme that did not deliver results significantly out of line with previous programmes at a cost that was comparable to previous programmes. At a time when the Government were dealing with a massive deficit—a huge challenge—we had to take some hard decisions, and those hard decisions were about value for money. Early on, we took a straightforward decision that I stand by to this day and which I believe was absolutely the right one: to focus our attention on apprenticeships. I accept that in Scotland, in the hon. Gentleman’s constituency, responsibility for apprenticeships has been devolved to the Scottish Administration. I admired his bravery in referring to the Labour party’s plans prior to the Scottish parliamentary elections, because I am not sure that they were entirely welcomed by the electorate north of the border.

[Graeme Morrice]

It is probably true to say that the Scottish Labour party was not quite successful in last month’s Scottish parliamentary elections, but that was not because of our policies on jobs, employment, or apprenticeships; most people recognised that those were our top priority. There were other reasons why we did not quite win. I do not think that it was because of our position on getting young people back into employment.

[Chris Grayling]

Of course the hon. Gentleman knows more about Scottish political affairs than I do. Looking at the issues from south of the border, I simply observe that it is quite clear that the Labour manifesto for those elections did not capture the attention of those north of the border in the way that he and his colleagues might have wished it to. However, it is certainly the policy of the Administration in Edinburgh to pursue an apprenticeship route. It is very much the view of the Government that apprenticeships offer a much better option for young people. They offer a pathway to much longer-term skill building, and to a real job that can last a number of years. We all hope that in most cases it will carry on beyond the apprenticeship period and become long-term employment—in an organisation in the private sector, in most cases, where there is a real chance of growth and opportunity. Sadly, right now, for reasons that we all know and understand, the same growth and opportunity is not shared in the public sector.

That was a very conscious decision, and I was pleased when, earlier this week, my colleague the Minister for Further Education, Skills and Lifelong Learning, in the Department for Business, Innovation and Skills, published figures on the Government’s progress on apprenticeships and set out a quite remarkable increase in the take-up of apprenticeships over the past 12 months. When we add to that the additional apprenticeship places that were announced by the Chancellor of the Exchequer in the Budget, we find that the package of apprenticeships that we are offering, together with the package of apprenticeships that will be set up in Scotland and Wales, will offer young people across the United Kingdom a better option than the future jobs fund.

[Graeme Morrice]

I am grateful to the Minister for allowing me to intervene a second time. Certainly, I would welcome any increase in the number of apprenticeships for young people. Of course, the Government are building on the strengths of the modern apprenticeship scheme introduced by the Labour Government in this place and the Labour Administration in the Scottish Parliament. What does the Minister say in response to my comments about the criticisms made of the Government’s Work programme by a series of people, including Baroness Stedman-Scott, who was particularly critical of the scheme?

[Chris Grayling]

I shall go on to talk about the Work programme in a moment, but first let me touch briefly on one other important part of our strategy: the work experience scheme that is being organised through Jobcentre Plus. We believe that one of the key barriers to employment for young people is that age-old problem—they cannot get a job unless they have experience, but they cannot get the experience unless they have a job. We discovered very soon after taking office that under the previous Government, any young person who did a period of work experience would lose their benefits. We have changed that; young people can now do up to eight weeks’ work experience while continuing to claim jobseeker’s allowance. That allows them to get into a company, demonstrate their potential, and get to know the employer and vice versa. We believe that in many cases that will be a bridge into an apprenticeship or full-time employment.

There are already many thousands of young people going into work experience placements under a scheme that we launched about three months ago. We have commitments from employers to tens of thousands of placements over the next 12 months. We believe that that scheme can be a simple, quick vehicle that opens up opportunities for apprenticeships and other employment for young people, and allows them effectively to demonstrate to an employer what they can do, and break down that initial barrier. An employer may say, “Actually, I like this young person; they are doing something for my organisation, and they can make a difference.” That is the second part of our strategy.

As the hon. Member for Livingston rightly said, for those who have been unemployed for a longer period, or who come from a more challenged background, we have the Work programme. I am afraid that I simply do not recognise the pessimistic view that he portrays of the programme.

It is undoubtedly the case that there are some issues for voluntary sector organisations in the negotiations with prime contractors, sorting out the best possible deals for themselves. I have been very clear, and I am very clear again tonight on the record, that as far as I am concerned we have recruited a good team led by prime contractors and backed up by teams of organisations—specialist, community, voluntary sector, smaller private sector and public sector, such as local colleges—to deliver the Work programme across the country. We expect those teams to remain intact.

I have no doubt that there will be some to-ings and fro-ings in the negotiations between prime contractors and subcontractors over the next few weeks, but it will not be acceptable for prime contractors to treat their subcontractors as what has been called “bid candy” and to drop them. Any prime contractor that does that can expect to lose its contract. So I do not recognise that there is a deep-rooted problem. Yes, of course there are some to-ings and fro-ings in negotiations; that always happens in a big contractual changeover.

The hon. Gentleman talked about a lack of referrals to the Work programme. I can tell him that already many tens of thousands of people are on the Work programme and are starting to receive support from the providers. One of the bits of feedback that we are getting from providers is how pleased they are that we have delivered the volumes that we promised at the time we promised, in stark contrast to the flexible new deal programme under the previous Government, which was a disaster when it started. The people who were promised to providers did not materialise. Providers found that they did not have the people they had expected. That is not happening under the Work programme. The feedback that we are getting is that providers are pleased with the volumes of people who are waiting for support.

This is the most ambitious back-to-work support programme that this country has ever seen. In terms of numbers, it is bigger than any previous programme. I do not accept any figures that say otherwise. It is available to every single person who is claiming employment and support allowance, and it is available to every single person on jobseeker’s allowance who crosses the threshold of 12 months for an adult jobseeker, nine months for a young person, and three months for somebody who comes from a challenged background. Every single one of the people in those categories has access to the Work programme on a scale that has not been seen before in a previous programme.

This radical new approach—payment by results—says to provider organisations large and small, from big multinational companies down to small community projects, all working as a team, “You deliver the support that will work best for the people you are helping, get them back into the workplace, help them stay in work for a period of time that can be as long as two years and three months, and we will pay you on the basis of your success.” I am confident that that will unleash best practice around the industry. These organisations can succeed only if they are excellent at what they do.

The voluntary sector organisations that have real skills have a first-rate opportunity because if they are the best at helping these people into work, they will succeed in the Work programme because their skills will be very much in demand. We have in total 500 voluntary sector organisations across the country which have all signed up to the Work programme. As part of the tendering process, they have signed pieces of paper to say that they are happy with what is on the table. They will now deliver support and expertise to the prime contractors to help the long-term unemployed get back into the workplace in the hon. Gentleman’s constituency, in my constituency and in the constituency of every hon. Member throughout the country.

As of this Thursday, every single part of the country will have been covered by the Work programme on time, as planned. The contracting process has taken place in a very short time by public standards and in many parts of the country is already starting to help people into work. The package of support includes the work experience scheme, our real focus on expanding the number of apprenticeships, the intensive personalised support through the Work programme, and a greater devolution of flexibility and responsibility to the front line in Jobcentre Plus to tailor support in areas where those individual staff are working to the realities of those areas. To be able to look at a constituency like the hon. Gentleman’s and say, “For the shorter-term jobseekers who have not yet accessed the Work programme, what are the extra things we need to do in our area to help our own client base—

Prescribed Diseases

Lord Grayling Excerpts

Monday 27th June 2011 Written Statements

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

My noble Friend, the Under-Secretary of State, responsible for welfare reform, Lord Freud of Eastry, has made the following statement.

The Social Security (Industrial Injuries) (Prescribed Diseases) Amendment Regulations 2011 have today been laid before Parliament. The regulations implement, from 18 July 2011, the recommendations set out in the Industrial Injuries Advisory Council’s reports:

“Bronchiolitis Obliterans and Food Flavouring Agents”, Cm 7439, published in July 2008; and

“Chromium and sino-nasal cancer”, Cm 7740, published in December 2009.

The recommendations made in the report(s) were to add the following two diseases to the schedule of diseases prescribed under the industrial injuries disablement benefit scheme:

Bronchiolitis obliterans, and

Chromium and sino-nasal cancer.

These regulations implement those recommendations.

This means that people suffering from bronchiolitis obliterans can claim industrial injuries disablement benefit if their work involved the production of diacetyl, or the manufacture of food flavourings containing diacetyl, or the manufacture of food flavoured by diacetyl.

Those suffering from chromium and sino-nasal cancer can claim industrial injuries disablement benefit if they had worked in hexavelent chrome plating or the manufacture of inorganic chromates.

Employment, Social Policy, Health and Consumer Affairs Council: 17 June 2011

Lord Grayling Excerpts

Thursday 23rd June 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 17 June 2011 in Luxembourg. I represented the United Kingdom.

In the first discussion on country specific recommendations (CSRs), the Commission recalled that its annual growth survey had shown that recovery was under way, but it was uneven and could be reversed. Without fundamental reforms, any progress remained on shaky ground. The CSRs were an integral part of the Europe 2020 strategy and gave an in-depth analysis of the reforms needed in each member state. They were a tool for improving economic reform without infringing on member state sovereignty. For the UK, I highlighted the difficulties linked to the time frame and process and stressed that this should be improved in future years. I also put down a parliamentary scrutiny reserve. The presidency noted that a general approach could be adopted, and recalled reserves from some member states.

The second discussion focused on demographic change and effective family policies. A number of member states intervened, stressing the importance of providing support for parents in the workplace to ensure they could reconcile work and family life, for example through flexible working opportunities, prevention of gender stereotyping, and proper enforcement of equal treatment legislation. The Commission also thought that this should be a priority issue.

There were three progress reports. On the pregnant workers directive, the Commission acknowledged it would be difficult for member states to accept the European Parliament amendments and proposed going forward on the basis of a “passerelle” clause. There was very little support for this and I along with some other member states warned against progressing towards a common position. On the co-ordination of social security systems, I tabled a minute statement together with 12 other member states, on the relationship between the social security co-ordination regulation and the free movement directive. This stressed the importance of achieving a clear and coherent understanding of the relationship between the two at the European level, and suggested that amendments to the current legislative framework could be needed to achieve this. On the equal treatment directive, the presidency reported progress on its examination of the proposal based on a questionnaire focusing on national legislation.

Three sets of Council conclusions were adopted. These were on promoting youth employment to achieve the Europe 2020 objectives, reconciling work and family life in the context of demographic change, and tackling child poverty and promoting child well-being.

Under any other business, the Hungarian presidency reported on conferences they have hosted and provided information on social and employment related aspects of the legal migration directives. The Commission reported on the United Nations convention on the rights of people with disabilities and also presented a new proposal amending the existing electromagnetic fields directive. The Cypriot delegation provided information on the forum on the future of democracy. The French delegation introduced their G20 priorities for social and employment. The incoming Polish presidency presented their presidency priorities.

Youth Unemployment

Lord Grayling Excerpts

Wednesday 22nd June 2011 Westminster Hall

[Steve McCabe]

I feel quite strongly that, so far, what we have seen from the Government is the cancellation of initiatives. I hope that during this debate we might hear something about a fresh initiative. However, I personally think that the wrong time to withdraw support is when we are in the depths of a recession and youth unemployment is rising. That is patently wrong.

I am not alone in expressing my concern about youth unemployment. The CBI has recently voiced its concerns about the rising trend of youth unemployment, a trend that it fears. There are about 31,000 more young people chasing work now than there were last summer. Youth unemployment is hovering around the 1 million mark. That means that one in five of our young people are without work, which is an awful lot of talent and potential for any country to write off.

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

I am grateful to the hon. Gentleman for giving way. I hope he will forgive me for intervening so early in the debate, but I want to ask him to place on the record something that I think is material to the overall headlines, if not to the issue of youth unemployment itself, which we all agree is very serious. Will he accept that of the number of young people who are unemployed—a number that went close to 1 million and then came back down again—277,000 are full-time students who are looking for a part-time job alongside their studies? Those students are not “unemployed” as we would understand that word in its conventional sense.

[Steve McCabe]

I have acknowledged that students are part of the figures that we are discussing, and I am happy to accept that point. I will say a little more about both students and those who are not in education, employment or training later. However, I am happy to accept the Minister’s point that there are some students in the youth unemployment figures. Of course that is true.

In Birmingham, the youth unemployment figure is now about 13,000, which is quite a high figure for that city. OECD data show that Britain compares poorly with its competitors in terms of youth unemployment initiatives. NEETs are also part of that problem. That predicament not only has an effect on young people themselves, but is bad for the country, adding to the Government’s borrowing at the very time when they are concerned to reduce it. Over time, we will pay the price of this lack of activity. It has been estimated that the young people themselves suffer a long-term wage scar, earning between 8% and 15% less during their working lives than they might have done. The CBI tells us that youth unemployment costs the country about £3.6 billion per year, which is not a sum of money to be trifled with. A failure to provide initiatives or opportunities can lead to some young people disengaging completely, which clearly has a long-term impact on their employability. Persistently high unemployment, especially among younger and less skilled workers, leads to the problem that the Minister is now trying to grapple with. That problem involves people who are out of the labour market for so long that their potential to rejoin it reduces with each passing month, which explains, at least in part, some of the long-term benefit problems that he is attempting to deal with.

--- Later in debate ---

[Chris Grayling]

The actual number in the last figures was 895,000, which is lower than at the general election.

[Stephen Timms]

Those were not the Office for National Statistics figures. The figure, as I read the release, was 935,000, which is 31,000 more than last summer.

Of course, it is no surprise that unemployment rose sharply in the downturn. However, a year ago, with the youth jobs guarantee and the future jobs fund in place, youth unemployment was starting to fall steadily, including in the constituency of my hon. Friend the Member for Kingston upon Hull East (Karl Turner). As we have heard, one of the new Government’s first acts was to scrap that successful programme, and we can see now some of the damage that has resulted. The rise in unemployment means the benefits bill is going up by more than £12 billion. As we have heard, that comes at a time when other Government decisions, such as scrapping education maintenance allowance and removing Connexions, are making it harder for young people who are starting out.

As my hon. Friend the Member for Birmingham, Selly Oak said in opening the debate, the Labour party is arguing for a second, one-off £2 billion tax on bankers’ bonuses. Of that, £600 million should be used to help create 90,000 more jobs for young people at this crucial time, when those jobs are so badly needed. The remainder of the funding should be used to build more affordable homes—that, in itself, would probably create about 20,000 jobs for young people—and to support small businesses by increasing the regional growth fund. Later this month, we shall seek to legislate for that proposal through an amendment to the Finance Bill.

Last year, the bankers’ bonus tax brought in £3.5 billion. By comparison, the current Government’s bank levy will yield less than £2 billion in the current financial year. It is estimated—conservatively, I think—that a repeat of the bonus tax could bring in an additional £2 billion this year. That funding could be put to extremely good use.

As my hon. Friend said, youth unemployment in the 1980s continued to rise for four years after the recession was over. We need to act now to avoid another lost generation of young people. A fair tax on bank bonuses can help to get young people off the dole and into work. It would be hypothecated, and people would see where the money was coming from, what it would do and where it was going.

Official figures show that between October 2009 and January 2011 there were, as I said in an intervention, 91,890 starts in future jobs fund vacancies. The hon. Member for Harlow (Robert Halfon) made some telling and important points, but his case was rather undermined by his suggestion that only 5,000 people started on the future jobs fund, which is not correct; it was well over 90,000, and the programme would have been well on track to achieve the 150,000 target had it been allowed to continue for the full two years for which it was planned.

A strikingly large proportion of those who started on the future jobs fund went on to other jobs when their placement ended. The crucial point, however, is that having a proper job for six months at an early stage potentially transforms a young person’s future career and life chances. That is why that intervention was so important and effective. More than 10,000 of the 90,000 were in the region of my hon. Friend the Member for Birmingham, Selly Oak—in the west midlands.

Of course the new youth jobs fund would be different. It would be linked with other schemes and with employers, to ensure that real jobs came out of it. No doubt lessons would need to be learned from the experience with the future jobs fund, and I agree about the importance of linking with apprenticeships; but the principle that substantial effort and investment are needed to safeguard the current generation of young people should be agreed across the House. The Government need to take that seriously, not just addressing the incentives for work, but taking responsibility also for there being jobs for young people to do.

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

I too congratulate the hon. Member for Birmingham, Selly Oak (Steve McCabe) on securing the debate. I want to set out, as several hon. Members have requested, the details of the Government’s strategy to deal with youth unemployment, but I should start by giving a little context to the problem we now have.

Let me be clear, first, that the shadow Minister is plain wrong and a month out of date: the latest unemployment figures, published in the past month, show that the total number of young people who are unemployed in this country, according to the International Labour Organisation measure, is 895,000. That is 35,000 lower than at the general election. Let us put that in context. We have heard a lot of rhetoric and comments in the debate about the record of the previous and present Governments, but we should be clear that youth unemployment—happily, and long may this continue—has fallen since the general election.

[Stephen Timms]

The Minister made a case in an earlier intervention for perhaps taking some people out of that figure, because they are full-time students looking for part-time jobs. Is he suggesting also that the number of full-time students with part-time jobs should be taken out of the employment count?

[Chris Grayling]

I have issues generally with the way some of the ILO’s data are collected. Perhaps the right hon. Gentleman or some of his colleagues would like to request another debate, and we can consider the question at length. What pleased me most fundamentally about the last set of figures was that the drop occurred not in the group of those in full-time education, looking for a part-time job, but in the group of those not in full-time education or employment. That is a welcome development.

There is a big challenge for us.

[Steve McCabe]

I do not want the debate to get bogged down in the question of figures, but I am not quite sure I understood that last point. I thought that the Office for National Statistics said that 61,000 of the 88,000 drop was accounted for by students becoming economically inactive because they are in full-time study. It is not true in that case to say that the bulk of the drop could be attributed to non-students. The reverse would be true.

--- Later in debate ---

[Chris Grayling]

There is a headline number of 895,000, less 277,000, so there has been a figure for the past few months of six hundred and something thousand young people who have been unemployed but are not in full-time studies. It is in that group that the falls of the past few months have happened. That is welcome; but it is only a small step in the right direction. We accept absolutely that there is a big challenge. It has been arising for much of the past decade. It began not even in the recession but in 2003-04. I think that the previous Government did not do enough to recognise that trend—the hon. Member for Cardiff Central (Jenny Willott) was right. We inherited from that Government a collection of inadequate and expensive schemes, as well as a monumental financial deficit. That led to our having to take some pretty difficult decisions, which we might rather not have taken; we had to, given the scale of the financial mess left behind.

We have put in place in the past 12 months a strategy that I believe will start to make a difference. It is of paramount importance that we should focus on the hardest-to-help in the group. The numbers show that about 80,000 young people have been on jobseeker’s allowance for more than six months and that there is a core of 300,000 young people who have been out of work for more than six months, according to the ILO measure. Happily, the majority of young people who go on to jobseeker’s allowance move off pretty quickly. That is good; it is a temporary phase and they move into employment. Many who are not in education, employment or training are only in that group as a temporary phase between school and college, or a similar situation. However, a core of young people are struggling to get into the workplace, and they are, should be and will be a priority for the Government.

[Mr Iain Wright]

Does the Minister think that the ending of face-to-face careers guidance will have an impact on youth unemployment?

[Chris Grayling]

Of course, we are not ending face-to-face careers guidance. Under the plans that we have put forward it is, first, for head teachers to look after careers advice for school-age pupils. However, for those over 18 we shall provide a face-to-face option through the all-age careers service. We are working carefully to ensure that Jobcentre Plus and the all-age careers service will work extremely closely together, to ensure that not only do we deal with job search requirements, but we steer young people towards that advice, which of course will also be available online. That is the right approach, and the work being done in the Department for Business, Innovation and Skills is important on that front.

There are three key elements to our strategy. The first, as the hon. Member for Cardiff Central mentioned, is work experience, to try to tackle the age-old problem that someone without experience cannot get a job, but they cannot get the experience unless they get a job. Earlier this year we launched our work experience scheme. Our target is to provide work experience placements for 50,000 young people per year over the next two years.

On top of that we are launching work academies later this year, to provide additional combined training and experience placements. We are looking to provide a very large number of young people with opportunities to take first steps in the workplace. Jobcentre Plus is engaging employers throughout the country. There is a national effort to get bigger employers involved, and already several thousand young people have gone through the work experience placements. Many of those have now moved on into jobs and apprenticeships. That is the first essential part of our strategy, and we have commitments from employers for tens of thousands of work experience places, which I hope can provide an extra leg up into the workplace for some of those who are shorter-term unemployed—some of those entering the labour market after school and college, and wanting to take their first steps in the workplace.

The second key part of our strategy is apprenticeships. I pay particular tribute to my hon. Friend the Member for Harlow (Robert Halfon) for the work that he has done. He has been a great champion of apprenticeships, and the initiative that he is launching—the apprentice card—is valuable. He should take great pride in what he has achieved with that. Since the general election we have announced tens of thousands of new apprenticeships. The hon. Member for Birmingham, Selly Oak raised the question, and I can tell him that employers have taken up those extra places. We are meeting our goal of filling those apprenticeship places; long may that continue. It is an important part of building a long-term career opportunity for young people—not the six-month placements of the future jobs fund, which cost four times as much per job outcome as even the not terribly successful new deal for young people. Apprenticeships are a path to provide career skills for a lifetime and a long-term job in the private sector, where jobs are currently being created—with 500,000 more roles in the private sector since the election. That is where our focus should lie.

There is also, of course, the Work programme—intensive support for young people who are struggling to get into the workplace. Entry to that intensive support for any young person is after nine months, which is sooner than under previous schemes; but, crucially, there is entry after three months for some of those who are most challenged—those who have been NEET, and those who are struggling, from the most difficult backgrounds and circumstances—to get intense, personalised support from the Work programme providers. There is huge innovation among those providers, such as the recruitment of skilled military and leadership personnel to provide mentoring and guidance to young unemployed people; and the involvement of charities such as the Prince’s Trust, which have expertise in helping young people to meet their challenges and get into the workplace. All that is hugely important.

I accept the points made by my hon. Friend the Member for Banbury (Tony Baldry) and by the hon. Member for Bradford East (Mr Ward) about the need for a focus that is not just post-16 or post-18, and for a strategy of early intervention. That is why our school reforms are so important, and why we recently announced a package of support for 16 to 18-year-olds, who all too often are missed out in the current system. The innovation fund that we are launching this week will invite charitable groups to present proposals to tackle some of the challenges presented by 16 to 18-year-olds who drop out and do not go into education. That is all part of a strategy that we believe can make a big difference to an issue that is very real to the nation, and about which the previous Government did much too little.

Employment and Support Allowance

Lord Grayling Excerpts

Tuesday 21st June 2011 Ministerial Corrections

[Stephen Timms]

To ask the Secretary of State for Work and Pensions if he will estimate the number of recipients of employment and support allowance there would be in the (a) work related activity group and (b) assessment phase (i) with and (ii) without time-limiting in place for each financial year from 2011-12 to 2015-16.

[Official Report, 16 May 2011, Vol. 528, c. 94-5W.]

Letter of correction from Mr Chris Grayling:

An error has been identified in the written answer given to the right hon. Member for East Ham (Stephen Timms) on 16 May 2011.

The full answer given was as follows:

[Chris Grayling]

The first table shows the estimated future recipients of contributory employment and support allowance (ESA) in the work related activity group (WRAG) with and without time-limiting in force.

[Chris Grayling]

The first table shows the estimated future recipients of contributory employment and support allowance (ESA) in the work related activity group (WRAG) with and without time-limiting in force.

[Stephen Timms]

To ask the Secretary of State for Work and Pensions if he will estimate the cost to the Exchequer of excluding from the 365 day period of eligibility for contributory employment and support allowance any days that the claimant spends in the assessment phase in each of the next five financial years.

[Official Report, 7 June 2011, Vol. 529, c. 266-67W.]

Letter of correction from Mr Chris Grayling:

An error has been identified in the written answer given to the right hon. Member for East Ham (Stephen Timms) on 7 June 2011.

The full answer given was as follows:

[Chris Grayling]

As part of the Welfare Reform Bill we have set out our intention to introduce a time limit of one year for those claiming contributory employment and support allowance (ESA) and who are placed in the Work Related Activity Group (WRAG). The intention is that time spent in the assessment phase will count towards the 365 day period of the time limit. In total the policy is expected to generate annual benefit savings of £400 million in 2012-13 rising to £1.1 billion by 2014-15.

If the proposal were to change so that the time limit period is extended by the length of time it takes for each person to undergo a work capability assessment to determine entitlement to ESA, this would reduce the expected benefit savings.

The following table shows the expected change in the annual savings if the time spent in the assessment phase were excluded from the period of the time limit. It shows estimated overall costs to the Exchequer of around £200 million by 2014-15.

[Chris Grayling]

As part of the Welfare Reform Bill we have set out our intention to introduce a time limit of one year for those claiming contributory employment and support allowance (ESA) and who are placed in the Work Related Activity Group (WRAG). The intention is that time spent in the assessment phase will count towards the 365 day period of the time limit. In total the policy is expected to generate annual benefit savings of £400 million in 2012-13 rising to £1.1 billion by 2014-15.

If the proposal were to change so that the time limit period is extended by the length of time it takes for each person to undergo a work capability assessment to determine entitlement to ESA, this would reduce the expected benefit savings.

The following table shows the expected change in the annual savings if the time spent in the assessment phase were excluded from the period of the time limit. It shows estimated overall costs to the Exchequer of around £60 million by 2014-15.

Employment, Social Policy, Health and Consumer Affairs Council (17 June 2011)

Lord Grayling Excerpts

Friday 17th June 2011 Written Statements

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

The Employment, Social Policy, Health and Consumer Affairs Council will be held on 17 June 2011 in Luxembourg. I will represent the United Kingdom on all agenda items.

There will be two round-table discussions at this meeting. The first will be a policy debate on the Commission’s proposal for Council recommendations on member states’ employment policies. I will stress that the United Kingdom wishes to strike the right balance, between acknowledging the Commission’s right to propose these recommendations to all member states, and ensuring Council’s input to the final text. Ownership by Council, with recommendations reflecting national priorities, will best secure the commitment of member states to deliver, and challenge each other, on the pace and depth of our labour market and welfare reforms.

The second discussion will be on demographic change and family policies where member states will be asked to give their views on how to support families most effectively. I will highlight the UK’s policy approaches and stress that while European Union level-discussion can help to inform national decisions, this is not an area of policy that will ever lend itself to a “one-size-fits-all” approach. Discussion at European Union level needs to take account of the individual contexts in different member states and member state competence in this area.

There will be a progress report on the pregnant workers directive. I will stress that the United Kingdom will not accept a directive which would fundamentally change our system of maternity pay and impose significant and unjustified costs on member states. Regulation (EC) No 883/2004 on the co-ordination of social security systems (Miscellaneous Amendments) is also on the agenda for a progress report. I will acknowledge progress made on this dossier, and make a statement about the importance of clarifying the interaction between the social security co-ordination and the free movement directive. There will also be a progress report on equal treatment between persons irrespective of religion or belief, disability, age or sexual orientation, an area in which the United Kingdom has comprehensive legislation.

Ministers will consider a number of Council conclusions. These will cover promoting youth employment to achieve the Europe 2020 objectives, reconciling work and family life in the context of demographic change, and tackling child poverty and promoting child well-being.

Under any other business, the Hungarian presidency will report on conferences they have hosted and provide information on social and employment-related aspects of the legal migration directives. The Commission will report on the United Nations convention on the rights of people with disabilities and will also provide an update on electromagnetic fields. The Cypriot delegation will provide information on the forum on the future of democracy. The French delegation will outline plans for the G20 meeting of Labour and Employment Ministers and the incoming Polish presidency will provide information on their work programme.

Oral Answers to Questions

Lord Grayling Excerpts

Monday 13th June 2011 Commons Chamber

[Andrew Stephenson (Pendle) (Con)]

14. What steps his Department is taking to support young people into work.

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

Work experience and apprenticeships are central to improving the prospects of young unemployed people. In this year’s Budget the Chancellor announced funding for an additional 80,000 work experience placements, with eligibility widened to cover the 18 to 24 age group. In addition, we have announced tens of thousands of new apprenticeships. We will also be providing early access to the Work programme for young people from the most challenged backgrounds.

[Stuart Andrew]

I am grateful to the Minister for that answer. When the previous Government left office, apart from the record deficit, they left an extra 270,000 young unemployed. How are the Government working with business to ensure that new apprenticeships are what our economy needs to tackle youth unemployment and that we do not repeat the mistakes of the previous Government?

[Chris Grayling]

The Government have a very proactive campaign to engage employers, working with them to identify work experience places for young unemployed people. We have already located many thousands of opportunities for young people to gain their first foothold of experience in the workplace. In addition, my colleagues at the Department for Business, Innovation and Skills are working hard to engage employers in providing apprenticeship opportunities. So far they are being particularly successful in doing so and have met their targets for apprenticeships.

[Andrew Stephenson]

I welcome what my right hon. Friend has said about the importance of apprenticeships. There are 615 unemployed young people in my constituency. What other measures will he put in place to ensure that those young people have the skills they need to compete in the workplace?

[Chris Grayling]

The other policy that we will be introducing later in the summer is work academies, which will provide a mix of a short-term segment of training and a period of work experience, again designed to provide young people with a first foothold in the workplace and to give opportunities to those who do not have previous qualifications with a view to trying to get them into employment and build a lasting career.

[Mr Frank Field (Birkenhead) (Lab)]

May I congratulate the Minister on his statement today and on his announcement that the new Work programme comes into force around now? Does he accept, however, that at a time when there is a shortage of jobs, the new providers might well be placing in jobs those who find it easiest to get jobs anyway, and that we need a back-up scheme to ensure the involvement of those who find it most difficult to get jobs or who do not want to work? Will he keep his mind open about reintroducing at some stage the future jobs fund—not that he will do so under that name, but under a Tory name?

[Chris Grayling]

I am very grateful to the right hon. Gentleman for his comments. I do accept that there is a challenge in placing some people into work, which is why we have created a differential pricing structure to reflect the challenge of getting them into the workplace. The problem with the future jobs fund was the cost relative even to the outcome costs of other programmes run by the previous Government. Of course, in straitened financial times we have to seek not only what works in employment terms but what is affordable.

[Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)]

Will the Government reinstate Labour’s jobs guarantee to ensure that young people are offered a job or training place after six months out of work?

[Chris Grayling]

What the hon. Lady does not understand is that Governments do not create jobs. Governments have to create an environment in which jobs are created by the private sector. Our job is to ensure that unemployed people are in the best possible position to take advantage of jobs when they are created by employers. It has been encouraging over the past few months to see the private sector creating far more full-time jobs, and I hope that that continues.

--- Later in debate ---

[Ian Lavery (Wansbeck) (Lab)]

4. What estimate the Health and Safety Executive has made of the annual cost to the economy of inadequate workplace health and safety.

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

The Health and Safety Executive estimates that the annual cost to Great Britain of workplace injuries and work-related ill health is currently in the order of £20 billion.

[Ian Lavery]

Last year, there were 152 fatalities and 26,000 major injuries in the workplace and more than 800,000 people suffered a work-related illness. As a consequence of the cuts, the HSE has withdrawn a large number of workplace inspections. How will the Government ensure that those figures do not increase year on year?

[Chris Grayling]

As a former union official, the hon. Gentleman will know that the biggest challenge we face is employers who cut corners and break the rules. I would have thought that he would welcome a change in policy that focuses health and safety inspections not on low-risk, good employer sites, which have taken up so much resource in the past, but on employers who are not playing by the book and who endanger their employees and the public. That is where I want our regulatory effort to focus.

[Stephen Metcalfe (South Basildon and East Thurrock) (Con)]

As my right hon. Friend has said, we all agree that health and safety legislation, when applied correctly, is very useful and important, but does he also agree that when it is applied inappropriately and gold-plated, it can cost jobs and damage the economy?

[Chris Grayling]

I absolutely agree. Let me be clear that I believe it is extremely important to get health and safety right. As the hon. Member for Wansbeck (Ian Lavery) suggested, we need to protect people against real dangers in the workplace. However, we have to understand that if the system is over-bureaucratic, it will lead to the closure of businesses and cost jobs, and that does nobody any favours. The job of Government is to find the right balance, and that is what we seek to do.

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

5. What arrangements he plans to put in place for transitional payments for those who will be affected by the introduction of universal credit.

--- Later in debate ---

[Michael Ellis (Northampton North) (Con)]

8. What recent progress he has made on reform of health and safety legislation.

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

On 21 March, I announced an immediate review of health and safety regulation with a view to finding ways to simplify the regulatory burden on business. That review is being chaired by Ragnar Löfstedt, the professor of risk management at King’s College, London. He published a call for evidence on 20 May, the closing date for which is 29 July. We hope to publish the findings of the review later this year.

[Michael Ellis]

Some of the most inappropriate and burdensome health and safety recommendations on business come from unqualified, cowboy consultants. My right hon. Friend the Home Secretary is getting rid of cowboy wheel clampers; what are the Government doing to tackle those cowboy health and safety consultants?

[Chris Grayling]

I very much agree with my hon. Friend. At the beginning of April, we launched a new online register of qualified health and safety consultants, precisely with a view to stamping out the cowboys. I want businesses and other bodies that need consultancy advice to work with qualified people who are capable of advising on what the law actually says, rather than working with people who would like to argue that the law does something they claim it says.

[Mr George Howarth (Knowsley) (Lab)]

While the Minister is considering what reform to health and safety legislation might be necessary, I hope he will take into account the problems that the Health and Safety Executive has had at Sonae in my constituency. A major fire incident over the last few days has covered much of the industrial area as well as residential areas in acrid black smoke. Will he assure me that the HSE will work with the local authority, Knowsley council, the fire service and everybody else in the town, because we have reached the conclusion that this place should be closed down?

[Chris Grayling]

I am aware of the very unfortunate incident in the right hon. Gentleman’s constituency. I cannot comment specifically on that investigation, but I can assure him that the HSE is investigating carefully what happened. Clearly, lessons must be learned. However, that underlines my view that the HSE should concentrate its resources on dealing with genuinely serious incidents and problems, and not on trivial matters.

[Kate Green (Stretford and Urmston) (Lab)]

9. What his policy is on the couple penalty in the benefit system.

--- Later in debate ---

[Priti Patel (Witham) (Con)]

10. What recent progress he has made on the contracting arrangements for the Work programme.

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

I am pleased to tell the House that as of today, all bar four of the contract package areas for the Work programme are fully operational; that many thousands of claimants have already been referred to the programme; and that the first two job outcomes have been achieved in one contract package area, where the provider was particularly quick off the ground.

[Priti Patel]

Will my right hon. Friend join me in congratulating the providers that are participating in the Work programme? Does he agree that by involving that diverse range of providers, we can tackle the culture of welfare dependency and worklessness that grew under Labour, and ensure that work pays?

[Chris Grayling]

I absolutely agree with my hon. Friend. One encouraging thing about the Work programme is the vast diversity of organisations taking part—from big international organisations to small businesses; and from some of our bigger more prestigious charities, such as the Prince’s Trust, down to individual charities—even a walled garden project is involved in Yorkshire—and many of our local colleges. Together, they can make a huge difference in what is a revolutionary approach to the problem of long-term unemployment in this country.

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

The Minister will remember an exchange of correspondence that he had with the Select Committee about TUPE cover. Now that the Work programme has gone live, the confusion over which posts will enjoy TUPE protection has continued. Of two contractors in the same area, one says that TUPE does apply and the other says that it does not—in some cases, to the same workers in some of the subcontracting companies. I urge the Minister to clarify this issue and ensure that his Department sets out clear advice about which positions have TUPE protection and the rules regarding people working in the Work programme.

[Chris Grayling]

The hon. Lady needs to remember that in many cases the programmes that we are replacing are very different to the Work programme. Pathways to work, for example, was simply six work-focused interviews. There will be cases in which TUPE does not apply. We have been very clear in saying to the providers that it is a matter between the providers themselves, the individuals and the former employers to resolve when and where it applies. It is not for the Department to offer legal advice to providers.

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

I welcome the speed with which the Work programme’s contracts have been put together, but some small voluntary organisations in my constituency who took an interest in it were not successful. Will the Minister reassure them that there will continue to be opportunities for them to play a role in getting people back into work more informally?

[Chris Grayling]

I can indeed. First, there will be further opportunities to contract to provide support for the Department. In addition, we do not believe that the supply chains to the Work programme providers are fixed in stone in perpetuity. The whole nature of the Work programme makes it desirable for the prime contractors to look for the best in the business at getting people into work. If any organisation is excellent, I am sure that it will find its way into the programme, even if it has not done so yet.

[Michael Dugher (Barnsley East) (Lab)]

11. What recent assessment he has made of future trends in youth unemployment.

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

The independent Office for Budget Responsibility forecasts that unemployment will fall from its current level of 2.5 million to around 2 million by 2015. There is no separate forecast for youth unemployment, but over the medium term this would be expected to follow a broadly similar trend.

[Michael Dugher]

Fewer than 14% of my constituents are aged between 18 and 24, but this age group accounts for 35% of people looking for work. What is the Minister doing to ensure that private contractors in the new Work programme will not simply cherry-pick those areas of the country where it is easier to get young people into work and ignore areas performing less well economically, such as my constituency?

[Chris Grayling]

I would like to reassure the hon. Gentleman. One of the things that we wondered as we went in to the contracting process was whether we would see a difference in the level of interest between different areas of the country, depending on the nature of the local labour market. That was not the case: the competition was equally intense across all areas. I hope that the presence of the Work programme, offering young people support after nine months—and in some cases after three months—of unemployment, combined with the additional support that we are providing though Jobcentre Plus to provide work experience opportunities for young people, will make a significant difference to their prospects as the months go by.

[Robert Halfon (Harlow) (Con)]

Does my right hon. Friend agree that the best way to deal with youth unemployment is not just through the 250,000 apprenticeships, but the roll-out of the 24 university technical pre-apprenticeship schools around the country?

[Chris Grayling]

I do indeed agree. Those schools, the increased numbers of apprenticeships, the work experience scheme, the support being provided through the Work programme and the additional measures we have announced recently to support 16 to 18-year olds all show that we have a Government who recognise the problem of youth unemployment, understand its severity and are doing something about it.

[Mr Iain Wright (Hartlepool) (Lab)]

Does the Minister think that the record level of youth unemployment has been made worse by the botched ending of the Connexions career service, which was withdrawn with no replacement put in place? No transition plan has yet been put into place.

[Chris Grayling]

The hon. Gentleman talks about the causes of youth unemployment. He should look back to when the current increase started in 2003-04, in the good years under the previous Government. He should ask why their policies failed so badly.

[Harriett Baldwin (West Worcestershire) (Con)]

12. What recent meetings he has had on reform of disability living allowance.

--- Later in debate ---

[John Pugh (Southport) (LD)]

16. What recent representations he has received on his Department’s use of 0845 numbers; and if he will make a statement.

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

The Department—and, indeed, I myself—has received several communications from customers and their representatives asking about our policy on the use of 0845 numbers and whether we have considered changing to 0300 and/or geographical numbers. In the wake of those representations, I have asked the Department to undertake an internal review about our use of 0845 numbers and see what other options might be available to us.

[John Pugh]

I thank the Minister for that response, but given that benefit clients normally have no access to a landline, that calls from mobiles can cost as much as 40p and that they could be kept waiting for information on crisis loans and disability, should we not do more and consider talking to the Telephone Helplines Association about that to make faster progress than we are currently achieving with 0300 numbers?

[Chris Grayling]

I agree with the hon. Gentleman. We offer a ring-back service to anybody who is concerned about the cost of the call that they are making. None the less, there is a genuine problem and I have asked the Department to consider it and ascertain whether better options are available, particularly given the number of claimants who use mobile phones.

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

17. What recent representations he has received on his policy on the date at which the state pension age for women will start to rise.

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[Mr Philip Hollobone (Kettering) (Con)]

22. How many nationals of other EU member states are in receipt of benefits provided by his Department.

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

One of the things that I was surprised to discover in the past few weeks is that the Department does not keep any record—nor, indeed, did it under the previous Government—of the nationality of people who claim benefits. This is something that we are moving to address; indeed, we want to find a way to ensure that we do so.

[Mr Hollobone]

It is indeed a scandal that we do not know how many EU nationals are claiming benefits funded by the British taxpayer. Is it not completely wrong for an eastern European citizen to be working in this country, with his family and children back home in Poland or wherever, and to be claiming and receiving child benefit at the British taxpayer’s expense?

[Chris Grayling]

My hon. Friend puts his finger on one of the anomalies of the European system which is causing concern not just in this country, but in other capitals around Europe. I have had many conversations in the last few months with fellow Employment Ministers in other EU countries, and there is a mounting debate about the need for rule changes that will set out exactly when and where benefits should and should not be paid.

[Mr David Hanson (Delyn) (Lab)]

23. What steps his Department is taking to reduce the level of youth unemployment.

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

The issue of youth unemployment is one that the right hon. Gentleman would know, if he had listened to my earlier answer, is of great importance to this Government and the nation. We are taking urgent steps to seek to address it.

[Mr Hanson]

Despite excellent apprenticeship schemes such as the one at Airbus near my constituency, which employs about 100 apprentices a year, youth unemployment in Wales is, sadly, still higher than anywhere else in the UK as a whole. Given what the Minister said earlier about potential jobs being created, in the absence of a strong regional policy and with the scrapping of Labour’s job schemes, how can he guarantee that the jobs for young people will go to where the most young people are unemployed?

[Chris Grayling]

We need two things to solve the problem of youth unemployment. We need a strategy for growth, which was at the heart of the Budget put forward by my right hon. Friend the Chancellor of the Exchequer a few weeks ago. We will continue to seek measures that will encourage business to grow, develop and create jobs in this country. Alongside that, we will continue to pursue measures, through work experience, the Work programme and other arrangements to support young people to make sure that they are as well equipped as possible to take advantage of those vacancies wherever in the United Kingdom they arise and wherever in the United Kingdom they live.

[Rosie Cooper (West Lancashire) (Lab)]

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

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[Alun Cairns (Vale of Glamorgan) (Con)]

T4. The mental health charity Mind has suggested changes in the work capability assessment to capture better the complexity of the conditions of those suffering from mental illness. What reassurance can the Minister give about how the process can be enhanced to reflect those needs better?

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

We have already introduced mental health champions to the network of health care professionals who carry out the assessments, and we believe that the changes introduced at the beginning of April will bring more people with mental health conditions into the support group. However, we now have on our desks a new set of proposals from the charities which we asked them to supply to us. We are considering them carefully, and hope to respond in the very near future.

[Paul Goggins (Wythenshawe and Sale East) (Lab)]

One important purpose of crisis loans is to cover emergencies when claimants have no money and payment of their benefits or tax credits is delayed. Because applications are now limited to three per year, families in my constituency already face the blocking of that route to help, not because they have failed but because of failings in the system. Will Ministers look at the system again and establish whether a more flexible approach could be adopted?

[Tony Baldry (Banbury) (Con)]

T5. Will my right hon. Friend please update the House on the progress of the work clubs initiative?

[Chris Grayling]

Let me start by paying tribute to my hon. Friend for his work in establishing a national network of work clubs. Several hundred are now up and running around the country, some with a degree of help from Jobcentre Plus and others with none at all. I hope that this strong network of organisations will make a real difference to people looking for jobs, and that their number will continue to grow.

[Clive Efford (Eltham) (Lab)]

I opposed changes to Remploy made by my own party in government which resulted in the closure of my local factory in Woolwich. Before the Government implement any further changes under the Sayce report that may result in more closures of Remploy factories, will the Secretary of State contact the former employees of that Woolwich factory, and write to me telling me how many found jobs and are currently employed?

[Steve Baker (Wycombe) (Con)]

T6. On behalf of Micklefield job club in my constituency, a strictly voluntary effort to help people back into work, and on behalf of GB Job Clubs, a charity that supports a national network of like clubs, may I ask what the Government will do to ensure that the state does not crush such voluntary provision?

[Chris Grayling]

I should like to reassure my hon. Friend that I have made sure that there are no attempts within Jobcentre Plus and the Department for Work and Pensions to track and monitor and data-manage and performance-manage. This is a grass-roots movement. Our role is to provide a degree of local encouragement, and sometimes some initial funding to clubs to get up and running, but after that it is very much up to them to shape their destiny, and up to us to champion their success, but not to interfere.

[Alison McGovern (Wirral South) (Lab)]

The DWP’s own research on the future jobs fund published last month demonstrated the value of Government subsidy for the employment of young people during an economic crash. Does the Minister agree with his own Department’s research, and will he therefore reconsider the possibility of a work subsidy for young people if their employment levels do not improve in the coming year?

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[John Cryer (Leyton and Wanstead) (Lab)]

In the light of earlier questions on the Health and Safety Executive, will there be more workplace inspections next year or fewer?

[Chris Grayling]

We have made it clear that we are seeking to reduce the number of proactive workplace inspections by about a third by removing from proactive inspection low-risk premises that have no record of problems. In that way, the HSE can concentrate its resource on dealing with those employers where there is a problem and fault has been found. Indeed, we are introducing a system of fee for fault to ensure that we recover money from those employers who are breaking the rules.

[Jenny Willott (Cardiff Central) (LD)]

Changing from three to six months the period before which a claimant becomes eligible for the new personal independence payment not only means that people with sudden onset conditions, such as cancer or a stroke, have to wait longer for support, but it may affect their family’s access to carer’s allowance. Will the Minister investigate ways to enable those looking after loved ones who suffer sudden onset conditions early access to carer’s allowance?