(9 years, 10 months ago)
Commons ChamberI will take that as a peculiar compliment. We inherited a system in which people did not have to work for any time to claim jobseeker’s allowance. Within the existing rules, we will not pay for the first three months. If people are unemployed, they will be paid for three months. After that, they will be asked to leave. That is a much tighter position than the one we inherited. I, of course, would like to take it further. As the Prime Minister set out clearly in a recent speech, he believes that there should be years of contributions before someone is eligible to claim benefits, be they tax credits or jobseeker’s allowance. When the Conservative party gets back into power, we will implement that.
I, too, welcome the Prime Minister’s announcement in November that a future Conservative Government will have the toughest regime in Europe on limiting migrants’ access to our benefits system. Will the Secretary of State outline for the House the steps the Government have already taken to ensure that migrants come here to work and contribute, and what he has done to deter people from benefit tourism?
Exactly what I have mentioned. The mess that we were left by the last Government left little or no restrictions on anybody coming in, so the UK became a draw for people who wanted to claim benefits and be out of work, because it was a better option. We are tightening that up. We have stopped a number of things, such as housing benefit, and have shortened the time on jobseeker’s allowance. Tax credits are moving into line with that as well. As I said, when we are re-elected at the next election as a Conservative Government, we will tighten it up even more.
(10 years, 4 months ago)
Commons ChamberI am grateful to my hon. Friend, who is right about that, and I will come to that point in a minute. That is what happens in the development process. Universal credit is rolling out against the time scale I set last year, as I will demonstrate.
On behalf of my constituents, I want to thank the Secretary of State for all the excellent and essential work he is doing on welfare reform and for the part his Department is playing to deliver the Government’s long-term economic plan, which has seen unemployment in my constituency fall by 40% and youth unemployment fall by 50% over the past 12 months.
What an excellent intervention. It is a testing one, but I will try to live up to it.
Let me move on to universal credit. Across all 44 programmes of change in the Department, we are taking a careful and controlled approach to achieve a safe and secure delivery. For example, the benefit cap started with an early roll-out and is now fully implemented, seeing 42,000 households capped and 6,000 move into work. Universal credit is on track to roll out safely and securely, against the plan I set out last year. The hon. Member for Leeds West quoted a figure of £12.8 billion but, as ever, shows a poor grasp of the finances. We have always been clear that universal credit’s total budget is £2 billion, and we will not overspend.
Furthermore, we have taken decisive action so as not to repeat the way in which programmes were rolled out under the previous Government. The reset will avoid the “big bang” concept that they put forward at the last election. They did a number of things that led them to have to write off huge sums of money. For example, their benefit processing replacement programme was not even introduced; it was just scrapped after £140 million had been wasted on IT that could never be used. Lectures about money that has to be written off with nothing to show for it should be directed at them, not us.
We have introduced the pathfinder in order to test and learn. We are now rolling it out, as I announced the other day, to 90 jobcentres across the north-west, and that process will be completed in the autumn. Furthermore, I have announced that, from today, new universal credit claims for couples will be rolling out into the live status, and claims for families will follow that roll-out. That will complete universal credit’s roll-out in the north-west, as we set out last year.
On the digital solution, nothing offers clearer proof that the existing live service works. It is delivering universal credit and will continue to do so. As I have always said, the majority of the existing IT will continue to be used, even as we develop the final element, which is the digital service, using all that equipment. It is about an end-state solution—fully online, fully secure and responsive to all digital threats—enhancing what we have already built. Universal credit will roll out on time, and it will deliver what we have said it will deliver—at least £38 billion in net benefit to the Exchequer.
(10 years, 7 months ago)
Commons ChamberOrder. Mr McCann, I say to you in all courtesy and in all charity that the role of the Parliamentary Private Secretary—you are sitting in the PPS slot—is to nod and shake the head in the appropriate places, and to fetch and carry notes, not to shriek from a sedentary position or gesticulate in an unseemly manner.
Will my right hon. Friend confirm, and remind the House, that universal credit is set to deliver £35 billion of benefit to our economy?
Yes, I agree with my hon. Friend on that. The National Audit Office report said that a minimum of £38 billion would actually be the positive elements brought to the UK economy and those who are in need. The real problem is that the Opposition say they support it, but they carp about it. The reality is that every change they ever brought in was a failure. They wasted billions of pounds of taxpayers’ money. We will implement this carefully and because of that, people will benefit, rather than suffer, as we all recall they did when Labour introduced tax credits.
(10 years, 10 months ago)
Commons ChamberThat is exactly the point. I am sure that the leader of South Derbyshire district council is doing almost as good a job as my hon. Friend did previously, although I leave her to sort that out with him later. The key thing is that discretionary housing payments are there to help the most vulnerable. Councils should use them. We have allocated an extra pot for those that think they might run over, so there is extra money to bid for, and we are happy to entertain those bids.
4. What recent estimate he has made of potential savings to the public purse arising from implementation of the benefit cap.
Capping benefit at average earnings is forecast, by reducing the large benefit amounts previously paid to households, to save £85 million this year and around £140 million next year. What is more, some 19,000 potentially capped claimants have moved into work, where paying tax and national insurance contributions brings a further benefit to the Exchequer.
Residents in my North-West Leicestershire constituency are doubly astonished, first, that more than 30,000 households were claiming more than £26,000 in benefits prior to the introduction of the cap and, secondly, that the Labour party completely failed to support the introduction of a cap at all. Will my right hon. Friend assure us that this Government will persevere with its benefits cap policy and review the level at which the cap is set—currently at considerably more than the average post-tax income in my constituency?
My hon. Friend is not alone, when 73% of the public support the cap as it stands, as did nine out of 10 Londoners in a recent poll. It appears that the only people who do not support the cap are Labour Members. We will keep the policy under review, but the one thing we should celebrate is that we are reforming welfare to ensure that those who need the money get it, and those who do not get back to work.
(11 years ago)
Commons ChamberT1. If he will make a statement on his departmental responsibilities.
Today I welcome the latest labour market statistics. We have seen the largest annual drop in the claimant count for 15 years. Almost every area in Britain has seen the number of people claiming jobseeker’s allowance fall over the last year, contributing to a total fall in worklessness of more than 500,000 since 2010, while there are now more than 1 million more in work. All this is a testament, I believe, to this Government’s success in getting Britain working again.
Few would disagree that careers advice in schools needs improvement. Given that unemployment is now down to 2.6% in my constituency, does my right hon. Friend agree that Jobcentre Plus is well placed—it has the resources and the local knowledge —to deliver part of that improvement, preferably in conjunction with local employers?
I congratulate my hon. Friend and his area on having an unemployment rate of 2.6%, which is testimony to the efforts this Government are making. Schools obviously have a legal duty to secure independent careers guidance for their pupils, and employers have to work with them, but it is also a fact that Jobcentre Plus has a careers guidance programme. We are now in talks with the schools to ensure that somehow we can connect would-be school leavers, long before they leave school, with companies and businesses, to tell them exactly what they need to have and what skills they will need to obtain.
(11 years, 11 months ago)
Commons ChamberThat would go without saying—all impacts on various groups will be taken into consideration. The main point I would make is that, no matter what else, if we were to implement such a policy, we would have to take into consideration categories of people who might find it incredibly difficult, such as those described by the hon. Lady. There would not necessarily be carte blanche—there would be nuances and changes. However, as I have said, discussions are ongoing, and as she can see, no policy exists at the moment.
Does my right hon. Friend share my concern that less than 16% of the 204,300 young people under 25 with children who claimed housing benefit are in a couple?
That is obviously a matter for concern, but also for wider change. We want to ensure that couples stay together, and our plans and changes with universal credit will help with that enormously. It is worth reminding ourselves of the situation left by the previous Government. Labour Members go on about our policy, but in the past decade the housing benefit bill doubled from £11 billion to £21 billion. We are reducing the overall rise, but housing benefit under this Government will still rise by around £2 billion, as opposed to the huge sum the previous Government would have instigated.
(12 years, 7 months ago)
Commons ChamberI take this opportunity to congratulate my hon. Friend on the work that she has been doing on this. She is quite right that it is an important area and it is one that I have asked my Department and the Department for Education to consider together. Under the previous Government, the number of childminders fell quite dramatically. In 1996, there were about 100,000 and in 2011 that number had fallen below 60,000. That is a huge issue. When we took over, we found that the costs of child care in the UK are about the fourth highest in the world. My hon. Friend is absolutely right that there are big issues that we need to deal with and try to resolve so that we can get more people back to work with the support that they need.
7. What progress he has made on implementing the recommendations of the Löfstedt report on health and safety regulation.
(12 years, 10 months ago)
Commons ChamberDoes my right hon. Friend agree that those well-intentioned but misguided individuals who oppose the introduction of a benefits cap are in serious danger of killing with kindness the very people they seek to help, by condemning them to a lifetime of benefits dependency and worklessness, which the benefits cap will seek to reverse?
I fully understand those who on every principle and in every regard oppose the cap, but I cannot understand those who say they are in favour of it and then vote against it.
(12 years, 12 months ago)
Commons ChamberYes, I will, and if the hon. Gentleman would like to send me the details of that case, I will pay particular attention to it.
May I thank my right hon. Friend for his Department’s swift adoption of the Löfstedt review’s recommendations today? Does he agree that when introduced they will have the capacity not only to reduce the burden of red tape on organisations, but to improve their understanding of health and safety and therefore its effectiveness?
(14 years ago)
Commons ChamberI do not accept that point. We recognise that it is critical to create those jobs and we expect them to be created as the economy grows. The big problem with creating jobs under the previous Government was that 70% of all the jobs created in 15 years went to people from overseas and not from the UK. The big issue for us is getting people in the UK ready and able to do that work, which the Minister with responsibility for employment, the Minister of State, Department for Work and Pensions, my right hon. Friend the Member for Epsom and Ewell (Chris Grayling), is busy doing through the Work programme.
The Opposition seem convinced that the introduction of the universal credit will be dogged by IT difficulties. Does that not reflect their lamentable experience in this area? What reassurance can the Secretary of State give us that we will succeed where the previous Government failed so badly?
The previous Government had problems with IT development, as did lots of Governments—both sides accept that. To be fair, I have spoken to the shadow Minister, the right hon. Member for East Ham (Stephen Timms), who has been very positive about general developments. In his time, the development of the employment and support allowance computer was a very positive development, for which I compliment him. That is a very good example of the scale of computer development that we can undertake with the universal credit.