Oral Answers to Questions

Debate between Damian Hinds and Louise Haigh

Monday 27th March 2017 Commons Chamber

[Damian Hinds]

I look forward very much to reading the report. We know that any day spent unemployed can have a lasting effect on people, especially at the start of their careers when they are young, and it is therefore particularly important for us to redouble our efforts.

[Louise Haigh (Sheffield, Heeley) (Lab)]

It is clear from the Minister’s answer to the question asked by my hon. Friend the Member for Sheffield South East (Mr Betts) that he does not know how much the closure of East Avenue jobcentre will save. We do not know how much rent is being spent there, and we do not know how much needs to be spent on Woodhouse or Cavendish Court to increase capacity for the additional claimants whom they will have to serve. Will the Minister commit himself to giving the House those figures before he makes his final decision and final statement to the House?

[Damian Hinds]

All the staff and services from Eastern Avenue will move to Bailey Court in West Street and Cavendish Court in Bank Street. I can reassure the hon. Lady that we have, of course, taken account in our projections and modelling of the exact space that will be required for those people and that level of workload.

Backbench Business

Debate between Damian Hinds and Louise Haigh

Thursday 16th March 2017 Westminster Hall

[Louise Haigh (Sheffield, Heeley) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Walker. I, too, offer thanks and congratulations to the hon. Member for Glasgow South West (Chris Stephens).

When I first saw the announcement about the closure of the Eastern Avenue jobcentre in my constituency I was relatively agnostic about it. Given that there were to be no compulsory redundancies and it is a relatively short distance into town, I did not think it would be that much of a problem. If the Government could make a case that centres needed to be closed and services improved in certain areas, I was prepared to listen to it. However, having read the further announcement, followed the plan’s progress and, as the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) said, participated in several debates, I have been horrified that no justification has been given for the decisions at all. None of the work—the assessments or gathering and publication of evidence—that one would expect ahead of a decision of this kind has been done; no such work informed the pitiful consultation process that has taken place so far.

It is claimed on the Government website that the decisions are due to the claimant count reducing and the number of digital interactions increasing, and the fact that 20% of the DWP estate is underutilised. To take those one by one, it may be the case that the claimant count is falling, but I do not think that anyone could tell jobcentre staff anywhere in the UK that their workload has reduced in the past seven years and is likely to continue to reduce—not least because of the roll-out of universal credit, which is incredibly complex. As has been mentioned, universal credit will require more interactions than in the past, including face-to-face interactions. For the first time, working people will have to attend interviews at jobcentres; and from April lone parents will be obliged to see work coaches once their child reaches three years old, rather than five, which is the current threshold. It is highly unlikely that interactions and workload will fall in the coming years.

As to digital interactions, the ward in which Eastern Avenue jobcentre is to close is one of the most deprived in the country; 74% of people there are in the 10% most deprived in the country. Many of them do not use the internet at all, let alone have the capacity to apply online—there are very high levels of digital exclusion. Ironically, the council is currently doing some work on digital inclusion, commissioned by the DWP, around Eastern Avenue jobcentre; that work will have to be halted. Again, there does not seem to have been any recognition or cognisance of the impact that the cuts will have on that work.

Whether or not the estate is underutilised at Eastern Avenue—or indeed at Cavendish Court, where the Government are expecting claimants to move to—is open to question. I have been to both jobcentres and there certainly does not seem to be any underutilised space—Cavendish Court in particular is bursting at the seams—but we do not know, because the Government have not published any of the evidence and do not seem to have done any of the work behind it. I met the manager for my region, North, East Yorkshire and the Humber, after the Minister advised me that that was the best way to proceed. It was not her fault, but I am afraid the manager had absolutely nothing to add to what the Government had already published.

As other Members have said, there has clearly been no equality impact assessment. Nor has there been any assessment of how many employment and support allowance or income support claimants are currently using Eastern Avenue and will therefore now have to go to the city centre. The Government do not know how many claimants the closure is going to affect, which is basic information that we would expect to inform the consultation process. There was no information on how much the Government would save by closing Eastern Avenue. That is important, because the regional manager admitted that money would have to be spent on the city centre jobcentre to increase its capacity and accommodate all the extra claimants, so we do not know whether the closure will actually save the taxpayer a single penny.

No plans have been put in place and no work has been done on whether claimants who currently come under Woodhouse jobcentre, but are looked after by Eastern Avenue if they need group sessions or screened appointments, can be accommodated by Cavendish Court, or whether more money will have to spent to develop the space at Woodhouse to conduct those sessions. Eastern Avenue currently conducts 17 screened appointments a week. That is a considerable amount of time to dedicate to claimants, and we have absolutely no idea whether Cavendish Court can accommodate them.

There was a paltry four-week consultation, although we were lucky to get even that in Sheffield; as we have heard today, many jobcentres throughout the country did not. The Government have treated Parliament and, worse, the public with disdain by refusing to justify their decision and publish the evidential basis behind it. How can Ministers possibly ask us to support the decision if the information is not available? Now that the consultation has closed, before the Government publish their final decision I ask the Minister to publish the DWP’s people and estates programme and any of the other impact assessments that were presumably conducted internally. I really hope that the Government have not taken the approach, which they seem to have taken in the past, of just pointing to jobcentres on Google Maps and deciding, seemingly haphazardly and arbitrarily, which centres to close.

I particularly want to press the Minister on why the Government have rowed back on their original commitment not to close jobcentres in particularly deprived areas. Finally, I urge him not to rely solely on Google Maps for travel times, as he recently admitted to doing in answer to a written question from me. [Interruption.] He is looking confused, but he confirmed to me that his Department used Google Maps for travel times.

[The Minister for Employment (Damian Hinds)]

As one of the methods.

[Louise Haigh]

Yes. The Department’s introduction to the announcement confidently asserted that the travel time between Eastern Avenue and the city centre would be 24 minutes. That analysis was based on Google Maps. A claimant who currently goes to Eastern Avenue did a travel journal for me of his journeys from Eastern Avenue to Cavendish Court on eight separate occasions, and not one of them took 24 minutes. The average journey time between the two jobcentres is 44 minutes.

--- Later in debate ---

[Damian Hinds]

I am pleased with that clarification, although we had the urgent question on 30 January, after the UK-wide announcement on 26 January, and the Westminster Hall debate in this Chamber on 20 December, as well as a number of oral and written questions—the hon. Gentleman’s colleague, the hon. Member for Glasgow South (Stewart Malcolm McDonald), suggested more than 100. I have not been counting, but I confirm that it is a substantial number. Of course, we have had the opportunity to meet one to one and with groups as well. I am grateful for this further opportunity to debate these important matters.

On 31 March next year, the DWP’s 20-year private finance initiative contract, which covers the majority of the Department’s property portfolio of more than 900 sites, will expire. The Department for Work and Pensions currently occupies about 1.5 million square metres of office space, and these days at least 20% of it is under-occupied. The falling claimant count and the increased use of our online services in recent years means that 20% of the taxpayers’ money that the Department is spending on rent is going towards space that is not being used. By paying only for the space we do need and the services required to operate from that, we anticipate saving about £180 million a year for the next 10 years.

The expiry of that contract at the end of March 2018 presents both a unique opportunity and a specific requirement to review the estate. In response to changing demands facing the Department, we have redesigned the estate in a way that delivers better value for the taxpayer. I need to be clear that this is not about reducing services; it is about taking the opportunity to stop spending taxpayers’ money on unused space so that we can target money effectively on supporting those in need. We have carefully considered the challenges that we anticipate the Department is likely to face in the future, but the jobs landscape and the way people work has changed significantly in the past 20 years.

As has been mentioned, some 90% of universal credit claims are made online and with more of our services moving online, in common with other organisations, we want to continue making the most of the opportunities that new technologies present to help best meet our claimants’ needs.

[Louise Haigh]

On the roll-out of universal credit, in Sheffield it has been rolled out only to lone individuals with no children. As it expands to cover other types of benefits, the rate will decrease dramatically and, as has been mentioned, the number of interactions is only going in one direction. It is therefore misleading to use that statistic.

[Damian Hinds]

I am certainly not trying to mislead and I do not think I am misleading. I reassure the hon. Lady that the Department for Work and Pensions, in common with others, does staff and resource planning that takes into account all the different demands that will be made on our services, and that includes the fact that, as a number of Members have mentioned, in universal credit there is the opportunity to work more closely with people, with the workload that that will involve, to encourage more people into work. Of course, that is all part of the plans and not something additional that has not been considered.

The hon. Lady mentioned work with, for example, lone mums on income support. There is also work with partners, as the hon. Member for Wirral West (Margaret Greenwood) mentioned, and then work with people in work, the self-employed and so on. I should add that some of those offers are in development, and we will adjust and evolve the operation of the offer to optimise it as time goes on. However, of course the assumptions on the amount of workload involved are reflected in the plans.

It is right that we reflect not only the impact of the digital revolution in meeting our claimants’ needs but the realities of a more flexible labour market and significant falls in unemployment since 2010. The employment rate is at a new record high: there are more people in work than ever before. We had the statistics on the unemployment rate come out just yesterday: they have hit a 12-year low. In fact, the last time the unemployment rate was lower than what was announced yesterday was in the mid-1970s. Of course, we always have to consider that things in the world will change. That is also considered in the planning assumptions made by the Department.

Oral Answers to Questions

Debate between Damian Hinds and Louise Haigh

Monday 20th February 2017 Commons Chamber

[Louise Haigh (Sheffield, Heeley) (Lab)]

13. For what reason his Department did not carry out an impact assessment prior to the announcement of the proposed closure of Jobcentre Plus estates on 26 January 2017.

[The Minister for Employment (Damian Hinds)]

We have been mindful throughout of the impact on staff and customers. Analysis and local knowledge have informed the proposals, which are all subject to consultation with staff and, where appropriate, the public. A full equality impact assessment will be carried out.

[Louise Haigh]

Following the Minister’s advice, I went to see the regional manager of my jobcentres last week, but she had absolutely no information on the number of employment and support allowance or income support claimants that will be affected by the proposed closure in my constituency; the plans for outreach in relation to what will replace my jobcentre after its closure; the amount saved by that closure; the necessary spend on increased capacity at the alternative centre; or projections of footfall at the centre destined for closure. I hope that such work has been undertaken internally, so will the Minister commit to publishing all that information not only before a decision has to made, but preferably before the end of the consultation period?

[Damian Hinds]

First, ESA and IS claimants are not required regularly to attend the jobcentre in the same way that JSA claimants are. We want to look at outreach and other opportunities in working with partners. As the hon. Lady will know, the consultation closes on 28 February. On the overall approach for the city of Sheffield, this is about consolidating the amount of available space and using that space better to get a better deal for the taxpayer, while being able to provide enhanced services for customers. It will raise utilisation across Sheffield from 51% to 69%.