Universal Credit

Justin Tomlinson Excerpts

Wednesday 19th April 2017 Westminster Hall

[Justin Tomlinson (North Swindon) (Con)]

It is a pleasure to serve under your chairmanship, Mr Davies. I pay tribute to the hon. Member for Newcastle upon Tyne North (Catherine McKinnell) for obtaining this important debate. All the hon. Members who have spoken have made many constructive and proactive points based on individual experiences and the casework that we all regularly do. I know that in the Minister we have someone who is keen to listen and engage, and to take many of the challenges that have been raised today. I hope that he will further improve what is an important way of dealing with benefits in a modern society.

Universal credit is a vital part of our being able to deliver record employment in every region of the country and, crucially, to help improve people’s future opportunities and not just simply get them into work. The fundamental difference—this helps with many of the challenges that have been raised—is that for the first time the claimant has an individual, named work coach, someone they can turn to throughout the whole process. When opportunities and challenges come up, there is someone to help them to navigate the securing of additional childcare, training and support. Evidence has already shown that those on UC are typically able to spend 50% more time looking for work. For every 100 people who found work under jobseeker’s allowance, 113 found it under universal credit. It has removed the dreadful 16-hour cliff edge that under the old system prevented people from progressing towards full-time work, and it makes sure that work always pays better than benefits, with the support of claimants and taxpayers.

Crucially, the individual support is allowed to be personalised and tailored. I was interested to see what difference that makes, so in the past month I have twice been to visit the Swindon jobcentre to see how claimants are progressing through the system and to meet the staff, who in the past 20 years have navigated a huge amount of change from Governments of different parties and political persuasions. I went to see what was making a big difference. Swindon is an early adopter and we have been rolling out UC for quite some time. I understand that perhaps there is more experience there than in some areas where it is only beginning to come in.

I made notes on my visit. The staff are not people who will always give representatives of Government an easy ride, but they made it clear to me that they saw UC as a cultural change. The morale of the staff had significantly improved, as they were empowered to offer personalised, tailored support for the people who are often those furthest away from the jobs market. As we get close to structural full employment, the people seeking work need additional support, and we have empowered the staff to give it. In conjunction with the introduction of UC, jobcentres are being refreshed. The layout is brighter and less cluttered and the centre is a hive of activity, which is less intimidating for the claimants coming in. It is interactive and vibrant, and the staff felt they were a collective team, working together to help to support the people most in need of it. They felt that the ethos was now about what they could do to help; it was a conversation, and small steps. It was not rigid. It was removing the stigma of the jobcentre and encouraging external organisations to work in partnership to deliver the key improvements.

For me, the final thing was the recognition that the issue is not as simple as getting someone into work, typically on the national living wage. It is about providing support once they are in work and have shown they can turn up, and shown their dedication. It is about their being able to increase their hours, get promotion, become a supervisor and get additional training, so that they can progress up the career ladder that many of us took for granted. I was surprised at how positive the staff were. Yes, there are challenges—that is why there is a debate and why the Minister needs to engage with the issue—but overall UC is making a crucial difference to some of the most vulnerable people.

Personal Independence Payment: Regulations

Justin Tomlinson Excerpts

Wednesday 29th March 2017 Commons Chamber

[Justin Tomlinson (North Swindon) (Con)]

It is a pleasure to speak in this debate. Having spent 14 very happy months as the Minister responsible for these matters, I want to pass on some of the observations that I made during that time.

Let me make it absolutely clear that stakeholders and charities recognise that PIP is a better benefit than DLA. It is not perfect—much more work is still to be done to deliver further improvements—but the statistics show why it is better. Under DLA, only 16.5% of all claimants access the highest rate of benefit; under PIP, the figure is over 25%. PIP is better, in particular, at identifying those with hidden impairments, including mental health conditions. Under DLA, only 22% of claimants with mental health conditions access the higher rate of benefit, whereas the figure is about 66% under PIP. Improvements under this benefit mean that the Government have spent an additional £3 billion a year—about 6% of such spending—supporting those with long-term health conditions and disabilities.

In all the debates about this matter that I have attended, people have understandably said that a 65% success rate on appeal must mean that the quality of the assessments is not good enough. We must establish what is going wrong. Most successful appeals succeed because of additional evidence that has been submitted late, and that is one of the things that we need to improve.

[Catherine West (Hornsey and Wood Green) (Lab)]

If the system is so good, why do people need to come and see us? In my office, we have almost a 100% success rate when it comes to securing what people are entitled to without any intervention from any of us.

[Justin Tomlinson]

When a claimant comes to speak to any of us, as their Member of Parliament, presumably we talk to them about the respects in which they feel the decision was not right. When claimants receive a letter that says that they will not receive the benefit for which they were hoping, that letter spells out why that is, which normally triggers an assumption by claimants that their particular challenge has not been considered. A claimant will then submit additional late evidence, the claim will be looked at again and a different decision may be reached, but that does not mean that the original decision was wrong on the basis of the facts that were originally presented.

I am keen to find a way in which assessors can automatically access claimants’ medical records, with their consent. Many people have to fill in a 50-page form in which they must specify their challenges, and they sometimes under-egg those challenges.

[Mr Kevan Jones]

I know that the hon. Gentleman has been a Work and Pensions Minister, but he is just wrong. In my experience of constituency cases, the assessors do not consider some of the evidence, even when people take it along with them. When I have intervened and asked why that is, the cases have been overturned. I am sorry, but the system is not working.

[Justin Tomlinson]

I am not wrong. I said that the vast majority of successful appeals were due to the late submission of additional evidence. That is a fact.

[Tracy Brabin (Batley and Spen) (Lab)]

rose—

[Justin Tomlinson]

I will give way once more, but I am conscious of the time.

[Tracy Brabin]

People in my constituency are taking deckchairs to their citizens advice bureau at 5 or 6 in the morning in order to queue outside. Is not that yet another addition to their stress and the pressure they face, and should it not be made clearer that people can have the assessments that they need?

[Justin Tomlinson]

I am trying to explain what we can do to help to improve the situation, because there are cases in which there are mistakes—1.5 million people are going through the PIP process. However, we know that the PIP process is far better than that for DLA because we are spending £3 billion more, and because of the success rate in getting those with the biggest challenges on to the highest rate of benefit—the proof is in the pudding.

This debate has arisen because a legal judgment has suggested that there are certain areas in which additional money should be spent. As I argued when we considered this during proceedings on an urgent question, if we are to spend money to make further improvements, that needs to be done in a co-ordinated manner, not an ad-hoc way.

Let me set out how this would work. We have lots of impressive charities with great policy teams, and they lobby on the basis of the experiences of their users. Individual MPs also raise concerns and suggestions for improvement through debates in the Chamber and Westminster Hall, and by tabling parliamentary questions, and the policy teams then work through them. There have already been significant changes, such as the much-needed and very welcome changes for terminally ill claimants, and the fact that waiting times rightly improved after a very difficult start when PIP was first rolled out. Rightly, this transfer of 1.5 million people from DLA to PIP is now being done at a speed that will not compromise waiting times as people go through the process. If this takes longer, it takes longer, and that means that we do not make the mistakes of the initial roll-out. The quality of the assessments is also improving month on month. There are still lots more areas in which issues will arise, but I spent a lot of time meeting charities, particularly smaller ones representing people with less common conditions. They would then spend time helping to train the assessors and rewriting the manual so that those conditions would be picked up in the assessment, so learning from such experiences forms part of the process.

The timings of when people should come back for reassessment have been looked at for the first time. Under the old DLA system, 70% of claimants were on a lifetime award. The problem with that was that one in three claimants’ conditions would change significantly within 12 months, meaning that they should have been on a different benefit. The vast majority of those claimants’ conditions were getting worse, not better, so they would have been entitled to a higher rate of benefit, but many people simply did not phone up and ask to present themselves for reassessment, so they missed out on the benefits they should have received.

Under the PIP assessment, if someone has entered on a lower rate of benefit and the assessor can see that their condition is likely to get worse, meaning that they will need to access a higher rate of benefit, an estimate is automatically made of when that might happen, which triggers a reassessment. That process means that those who are most in need will get money in the best possible time.

[Stephen McPartland (Stevenage) (Con)]

I do not always agree with the Government on welfare, but I do believe that the assessments have been improving. My concern is that the situation surrounding the 50-page application form, with which people are struggling, is not improving. People’s access to assessments—they can be put in taxis for up to an hour—is also a growing problem.

[Justin Tomlinson]

My hon. Friend was one of the greatest advocates of change, and I had many constructive and challenging meetings with him as he brought forward suggestions. The point is that we have to look at this in a co-ordinated manner. Further improvements can be made to the initial application form and the way in which some of the descriptors are applied. The Government are also considering allowing assessments to be recorded automatically so that they can then be used in an appeal. That would benefit both the assessors and the claimants, who have been asking for this.

[Heidi Allen (South Cambridgeshire) (Con)]

I broadly agree with what I am hearing—PIP is a work in progress and the process needs to get better—and I could give 100 stories of my experience of sitting through the PIP process to show where it is going wrong.

I agree that gradual change is a great thing, but the courts have given us a loud and clear message that we have got it wrong on mental health. In this age where we are desperately trying to change society’s views of mental health and parity of esteem, we have to listen to the courts—they have given us a judgment for a reason.

[Justin Tomlinson]

I understand that point, and there might well need to be further improvements in that particular area, but they have to be made in a co-ordinated manner, not an ad hoc way. PIP is not about a condition; it is about the challenges that individuals face in their everyday lives.

[Several hon. Members rose—]

[Justin Tomlinson]

I will not give way because other people wish to speak.

If additional money is to be spent, it should go into the court system to speed up the appeals process, which would be helpful. There is a particular problem for those who could lose their Motability car before their appeal is heard. As I said, there should also be automatic access to medical records, which should be shared between ESA and PIP assessments when possible. Those assessments are often similar, so that would make the claimant’s life a lot easier.

We need to do more to signpost additional help. The Government are spending £11.4 billion more to support people with mental health conditions. The biggest challenge is often identifying people with such conditions so that they can be given support, but PIP is good at identifying them. We should be offering them additional support and saying, “If you would like them, these are the sorts of services that are available in this local area that you can take advantage of.”

I urge the Minister to continue to improve the situation and to work with the policy teams. I spoke to people from Macmillan yesterday, and they are grateful that they are able to continue to access senior Ministers to discuss suggestions. We have some brilliant stakeholders and really knowledgeable charities and policy teams. Let them help to shape where these further improvements will happen.

Oral Answers to Questions

Justin Tomlinson Excerpts

Monday 27th March 2017 Commons Chamber

[Penny Mordaunt]

I am afraid that the hon. Gentleman is being very irresponsible in saying that. He knows that there is no change to policy, to budget or to award amounts. I remind him that people with mental health conditions are receiving higher levels of benefit than they did under DLA. This benefit is not about people’s conditions; it is about the impact that those conditions have on the individual’s ability to thrive and live their life as they would wish. It is quite wrong and irresponsible to suggest anything otherwise.

[Justin Tomlinson (North Swindon) (Con)]

The vast majority of successful appeals are due to late additional submitted evidence. Therefore, to avoid unnecessary appeals, what steps is the Minister taking to automatically access medical reports with the consent of the claimant?

[Penny Mordaunt]

This is one of the key reasons why not only is 3% of the PIP caseload being overturned at appeal, but we are not getting the right decision at mandatory reconsideration stage. We have been doing a number of trials to improve that, including telephoning claimants to ensure that all the healthcare information that is required for a good assessment and a good decision is in place. There are other measures as well. I hope that this will improve the situation.

Personal Independence Payments

Justin Tomlinson Excerpts

Wednesday 15th March 2017 Commons Chamber

[Damian Green]

I can only say to the hon. Lady that the premise on which she based that question—which is that those with mental health conditions, as opposed to physical disabilities, are in some way being treated unfairly under this benefit—is simply and demonstrably wrong. I will not weary the House by quoting again the facts I have just quoted, but if we are to have an intelligent discussion about the details of benefit policy—this House deserves to have such a discussion—we have to base it on the facts, and the facts are that PIP is a better benefit for people with mental health conditions than the old disability living allowance.

[Justin Tomlinson (North Swindon) (Con)]

The Government are rightly spending an extra £3 billion a year supporting those with long-term health conditions and disabilities. Does the Secretary of State agree that if we are to continue to improve the system, that should be done in conjunction with the expertise of charities, stakeholders and users, and not be based on ad hoc legal decisions?

Housing Benefits (18 to 21-year-olds)

Justin Tomlinson Excerpts

Tuesday 7th March 2017 Commons Chamber

[Caroline Nokes]

The Scottish Government already have a wide range of powers that would enable them to alleviate the proposed changes. Our Government are committed to working with the Scottish Government on a whole range of issues in the DWP portfolio, to make sure that they have the power and the strength to implement those powers.

[Justin Tomlinson (North Swindon) (Con)]

What are the Government doing to ensure that this policy supports young people who are in work?

[Caroline Nokes]

My hon. Friend is right to mention young people who are in work. Anybody who is working 16 hours a week or more at the national minimum wage equivalent will be exempt.

Intergenerational Fairness

Justin Tomlinson Excerpts

1st reading: House of Commons
Tuesday 28th February 2017 Commons Chamber

[Justin Tomlinson (North Swindon) (Con)]

It is a real pleasure to follow the widely respected and thoughtful comments of the right hon. Member for Birkenhead (Frank Field). Sometimes they are difficult for the Government and sometimes they are difficult for the Opposition, but we should always take heed of his comments and listen to them very carefully.

This debate nearly passed me by until I saw a quote in the report stating:

“An economy that is skewed towards baby boomers and against millennials”.

That panicked me. We all have our own calling into politics. I went to a school that was bottom of the league tables in Kidderminster and my father died at an early age. Many of my friends did not fulfil their potential. I was always driven by the thought that, given the right opportunity, everybody can be successful if equipped with the right skills, sometimes the right luck, the right support and the right direction. All too many people—very, very good friends of mine—did not take that path and have missed out. That is bad for them, bad for the economy and bad for society.

I looked at that quote and I worried, because to me it was one versus the other, rather than the core principle that we have a duty to do our very best by everybody. I know a lot of people will focus their comments on the triple lock—whether it is right, whether we are doing too much for pensioners and whether we should be doing it in a different way. I would just gently say, because I wish to focus my comments on the younger generation, that we all welcomed the triple lock. There had been a long time when perhaps we had underserved those who had worked hard all their lives. I just urge caution. Once people get to pension age, they have limited opportunities through which to change their circumstances. They have either fulfilled their potential or there is not really much more opportunity to do so. They have reached the finish line that the right hon. Member for Birkenhead talked about. We have to respect the fact that their incomes are predominantly fixed, and we have to do our best by them.

[Jeremy Quin (Horsham) (Con)]

There is a lot in the report that I would recommend to my hon. Friend, but does he share my slight concern that we must not allow our long-term thoughts on pensions to be coloured by a particular cohort of pensioners retiring right now? In 10 or 15 years’ time, defined benefit schemes will have gone and people may be in a much worse position than those retiring this year or in the next few years.

[Justin Tomlinson]

I am very grateful for the fact that we have a fantastic Pensions Minister who will be responding to the debate and who will no doubt comment in detail on that point.

The broader point, as I turn to the opportunities for younger people, is that we all collectively—the Government and the Opposition—have a responsibility to recognise that we have a habit of spending more money than we get in as tax revenue. Since the second world war, I think there have been only six years where the Government of the day have spent less money than they have collected. What that really means in plain English is that we, as the generations from most of those years, wish to have more than we can afford and we would like our children, or maybe our children’s children, to pay for it. This applies to all Governments, except in those six years where, for whatever reason, the Government of the day were able to collect in more tax revenue than they spent. We have a moral duty and responsibility to future generations not always to take that easy decision.

I was doing a radio interview yesterday on a relatively contentious issue involving possible additional Government spending, and another MP said, “Well, if I was the Minister, I’d have taken the hit.” The key point was that it was not they who would have taken the hit; it was everybody. Given that we already spend more money than we collect, what they were saying was, “I’d pass that one on to the next generation as well.” We all know that. We would all like to balance the books immediately, but we also all have a long list of personal priorities we would like to spend money on—our inboxes are full of helpful requests from residents for where we could spend more money. Many of those are very important—a balance always needs to be struck—but I gently remind the House not to lose sight of the fact that if we wish to give the best opportunities to future generations, we must not saddle them with too much of our own overspending.

I am inherently a very positive person—I believe that if we equip people and give them the opportunity, they will seize it with both hands and make a huge success of it—so I am greatly encouraged that our Government have delivered 1.8 million more good or outstanding school places. As someone who went to a school at the bottom of the league tables, I understand the importance of equipping people with the right skills. In my constituency and across Swindon, we have had a difficult Ofsted report recently. We have fantastic teachers, headteachers and governors all trying their best in Swindon and we have secured extra funding for our schools, but we are not quite there yet.

We all—the Government, MPs, the council, the schools collectively, the parents—have to look at what more can be done. I am encouraged that the schools Minister recently visited two of my local schools, Nova and Swindon Academy, both of which are transforming the opportunities for their children, having come from what not so long ago were very poor ratings. Frankly, they were failing the children who were relying on them to equip them for the future, but both have transformed their ratings through strong leadership, and I am delighted that yesterday Ofsted confirmed that Nova had moved to “good” in all categories. I pay tribute to Mr Barton, the headteacher, and all his staff who have worked incredibly hard to achieve that. Schools are the fundamental building block for equipping young people in life.

I am also a huge fan of the National Citizen Service, a new initiative giving young adults real, tangible life skills, and every summer, without fail, I visit every stage of the three to four-week programme. It takes a random collection of young people—the activities cost about £1,500—and sends them away for a week to learn teambuilding skills. They then come back, form teams and choose a charity. They learn about that charity, organise entrepreneurial and fundraising activities, volunteer for the charity to see it at first hand, learn presentation skills, haggling, engaging and so on, and at the end, they graduate as NCS students. There is an incredible transformation in all those young adults, who arrive well educated by their schools but perhaps not quite ready for the workplace. I ran my own business for 10 years and employed a lot of young people and I am encouraged to see the huge difference in those young adults. They take the time in their summer holiday, when it is tempting to do other less-constructive things, to go and engage. In doing so, they give themselves the best opportunity when entering the workplace.

University numbers continue to increase, but the Government have rightly put a huge emphasis on apprenticeships. For generations, Governments and Opposition parties got into an arms race on students going to university. Every general election, we would hear, “We sent 25%.”, “Well, we’d send 30%.”, “We’d do a third.”, “We’d do 45%.”, “We’ll break 50%.”. Everybody has a talent. David Beckham is not renowned for being academically gifted, but he has a gift that has earned him more money in a week than the majority of people in society will ever earn, and that was because somebody recognised his skill and allowed him to develop it.

We all have a talent. Every time I failed to make it on to a sports team, I wondered whether I did—perhaps that is why I am here—but everyone has a talent, and apprenticeships rightly recognise that. Workplace learning provides people with real, tangible skills and a fantastic opportunity to secure a long-term career with good career prospects. That is also vital for our growing economy, particularly where we have skills gaps.

In the last Parliament, we had a commitment to 2 million apprentices, which we have met, and in this Parliament we have rightly identified an even more ambitious target. It will be tough to get there, but it is right to have such challenging targets. I have spent, as I am sure have all hon. Members, a lot of time meeting the young apprentices who are doing things that I have absolutely no idea about—advanced engineering, all sorts of complex things with computers. They are on the first rung on the ladder towards their brilliant careers. They will all go on to huge success.

Across the economy, this Government have now delivered record employment—2.7 million more people are in work than when we came to office in 2010. That is not just in London or the south-east, as has sometimes been seen in previous strong economic performances; it is in every single region of the country. In my town of Swindon, 8,400 more people are in work, which is greater than the number who currently go on a weekly basis to see Swindon Town bravely fighting the relegation battle. Thankfully, with the victory at the weekend, we have got a bit closer to achieving the objective.

There are now 865,000 fewer workless households, and youth unemployment is at its lowest since 2005. In Swindon—I know that people are keen to know how well we are doing—youth unemployment is down by 69.2% since 2010, which is a fantastic achievement. The Government have rightly introduced the national living wage so that we are looking at a wage of about £9-plus by 2020. That will help 6 million of the lowest earners to have a pay rise and to share in the proceeds of the strong economic growth that we have delivered. The increases in the personal tax threshold have taken the 3.2 million lowest earners out of paying any income tax at all, and we are continuing to raise that threshold to £12,500, after which it will be index linked, making sure that the lowest earners will never return to the point of having to pay income tax again.

[Mr Jackson]

My hon. Friend is making an excellent speech, based on his expertise as a former Minister. We share something in common, in that our towns and cities of Swindon and Peterborough are, unfortunately, the two largest conurbations in the UK without a university that was created from the beginning. Does he agree that, in that respect, it is important to build on apprenticeships, with university technical colleges, for instance, so that young people who are not of an academic bent can be persuaded to pursue a technical and vocational education, which is so important for our future economy?

[Justin Tomlinson]

I thank my hon. Friend for that powerful intervention. He is a real champion for his constituency. On his point about universities, my Swindon constituency benefits from having a huge influx of graduates, so we benefit from the network of local universities within striking distance of Swindon, which is why our area has seen such strong economic growth.

My hon. Friend is absolutely right to highlight the importance of university technical colleges. My constituency had one of the first UTCs—a £10 million facility in Swindon. It has had its teething problems, but the principle is fantastic, because it is identifying the people who would ultimately be doing advanced engineering and technical work, giving them a real focus on that. They are working with local businesses, which can help to shape the curriculum to fill the skills gaps that can be identified in the local economy. This means that young people will have the best chance of having a career at the end of their education.

The challenge with university technical colleges is how to attract the best and most able students for that type of education at the age of 14. Not unsurprisingly, schools, which are all judged by league tables, are not always brilliantly keen to encourage their most able students to transfer, because it will have a detrimental effect on their place in the league tables. I would urge the schools Minister to consider having a dual score in the league tables, whereby the student remains attributed to the original school, but the results can be shared with the UTC. That would get around the disincentive facing schools if they lose some of their best students. It will give them the opportunity to say, “Look, they are doing great; but they can do even greater with that type of specialist education”. Undoubtedly, apprenticeships and UTCs are making a huge difference.

Not everybody has the opportunity to walk straight into work. As a society, we therefore have a duty to make sure that our jobcentre network is at its most able to support people. I was not the Minister responsible for jobcentres during my time in the Department for Work and Pensions but we had a lot of joint meetings and I got very excited about the need to refresh our jobcentre network. I had been on a number of visits and I was fundamentally depressed when I saw the 1960s and 1970s concrete structures and the security guards who are, understandably, needed. Let me imagine, though, that I am going to a jobcentre. I am almost certainly nervous, and I am then greeted by a security guard in bleak surroundings. There is no celebration of the successes, and no highlighting of those who have faced the same challenges that I fear but know that I must overcome.

I also visited a Shaw Trust community hub that helped a number of people who were a long way away from entering the workplace. There were bright colours and great furniture. This security guard had a different uniform to show that he was a welcomer: as soon as people arrived they were made to feel special, were congratulated on taking this step, and were made aware that he was there to be their anchor throughout the process. It was a real hub of activity. I could see nervous people coming into the building, but as soon as they met the guard they were at their ease, keen to engage in the process and fulfil their potential.

I am delighted that the Government have rolled out this system. When I visited the Swindon jobcentre a few weeks ago, I was not sure what to expect. I was greeted by senior members of staff, who told me excitedly that although the jobcentre had a budget of only about £3,000, they had painted the walls, changed the furniture around, changed the way the entrance worked, and provided work stations so that people could use computers to look for jobs independently after receiving support from the staff. Those staff members were excited because those improvements had transformed their morale and engagement among those with whom they sought to work.

The staff were then keen to talk to me about the difference that universal credit was making by simplifying what had been an incredibly complex benefits system. Under the old system, involving about 167 benefits, it was necessary to be a nuclear physicist to work out what people were or were not entitled to. All too often, through our casework, we would discover that, because of the complexity of that system, our constituents were missing out on support to which they should have been entitled.

Everyone supports the idea of a simplified single benefit that enshrines the principle that the more people work, the better off they will always be, and removes the ridiculous 16-hour cliff edge that prevented people from progressing from part-time to full-time work, to the frustration both of employers and of those whose circumstances were changing and who wished to build up their hours. Crucially, real-time technology now allows people with fluctuating health conditions to have a minimum income. As the condition goes up or down, the system automatically kicks in, so that people no longer constantly have to reapply and experience complicated bureaucracy when they want to focus on dealing with their health challenges and with remaining, or progressing, in work.

Often it is the simplest things that make the biggest difference. Another exciting development is that, for the first time, there are named work coaches. When people arrive at the jobcentre, they do not just need direct help with their search for work; there are a number of other challenges that they may need to navigate, such as securing childcare or additional training. The named coach will help them through that process, giving them significantly more time to concentrate on looking for the work that they would like. The coach will stay with people when they start work, which will also make a huge difference.

Many of us, looking back on our careers, will realise that we were probably driven mostly by our parents encouraging us to make progress—encouraging us not to be complacent; encouraging us to push ourselves—but that is not a given in life. When I was at school, it was a given that many people had no interest in going to work. That was a shame, because they were brilliant people, and with the right encouragement they could have made huge successes of themselves.

Often, people—especially those who have been out of work for a long time—will enter work, but on the lowest wage. Sometimes they will then stagnate, and will not have the confidence to kick on to higher levels. Let us suppose, for example, that I have been out of work for a long period, and have secured work in a supermarket. I am determined to make it a success, so I turn up every day, work my hours diligently, and stay there. Now, however, the named work coach would contact me and ask, “How is it going?” I would say, “For the last three months I have turned up every day and worked as hard as I possibly can.” The named work coach might say, “Have you thought about asking to become the supervisor?” The reply would be, “I’m too shy to do that.” The named coach would say, “No problem,” and then ask the supervisors and managers in the store, “Is he ready to take that step up?” Therefore, the coaches help people to progress in the workplace.

It is great that we have 2.7 million more people in work and that we have introduced the national living wage, which has helped the 6 million lowest earners to get a pay rise, but the next challenge, as we move close to full structural employment, is to ensure that there is support for in-work progression, so that everyone can not just get a job but fulfil their potential. By working hard, they can then progress through those organisations.

[Richard Graham (Gloucester) (Con)]

I want to come back to the subject of the debate, intergenerational fairness. My hon. Friend has made some points about working issues. Does he agree that for those who have retired or are working but are due a pension a key issue is not only intergenerational fairness but fairness between people who own and run companies and who have responsibilities to people in pension schemes? The news today is a good example of how this place can help to secure the best outcomes for those who are promised pensions in a not very rich retirement world.

[Justin Tomlinson]

I thank my hon. Friend for his intervention. I am always at a loss to understand why he is not a Minister. He is one of our most able MPs. In the debates that I have attended, time and again, he is so thoughtful. I had a brilliant time visiting his constituency as a Minister to see the great work that he had done to help to promote apprentices, before it became fashionable and all of us started to campaign for more apprenticeships. He is always ahead of the curve. Rightly, his intervention highlights that we have to look at people of all ages and at the opportunities. I was an employer myself, so I understand the responsibilities to staff in respect of pensions and other benefits and career progression. As ever, he makes a powerful point.

[Mr Jackson]

Before my hon. Friend finishes his speech, on a positive note, does he agree that it is important that we have done everything we can to remove the badge of shame in the way we treat disabled people who want to work, and that the Disability Confident scheme, with which he was very much involved at the Department for Work and Pensions, is going from strength to strength, so that more disabled people, who should not be put in the shadows but allowed to fulfil their potential are able to do so in the employment market?

[Justin Tomlinson]

I thank my hon. Friend for his intervention. I know that he personally supported the Disability Confident campaign. I am coming to that, if he can hold on for a few more seconds.

Another thing that the staff at the jobcentre highlighted was the great initiative of the school advisers from the jobcentre going into schools, starting to identify those who would need help at an earlier stage and working with them to prepare them for their final day in education and to have a smooth transition. Staff are very excited about the early stages of that initiative. I am delighted that the small employment offer, a pilot that I introduced, is making a difference in getting more businesses to engage directly with the jobcentres, which are now a hub of activity, creating more potential vacancies for those who are still looking for work.

As a former disability Minister, it would be remiss of me not to talk about the additional opportunities that have been created for disabled people. On all the visits I ever did, the most passion I saw from people was when I played my favourite game, which was to ask anyone I ever met, “You are the Minister—what would you do?” I was always looking for good ideas. Without a shadow of a doubt, the most passionate, enthusiastic and engaged cohort of people I talked to were young disabled people who wanted to have exactly the same chances and opportunities as their friends. These were highly talented, often highly educated, brilliant young people, but not all employers had the confidence to consider offering them an opportunity. Nearly always, the employer just needed to make a relatively small change and they would benefit. As an employer, by accident—I am not looking for a halo—I employed people with a disability and it made a huge difference. Therefore, I welcome the fact that over the past three years 600,000 more disabled people have gone into work and that the Government are committed to delivering the disability apprenticeships. Those are real opportunities, predominantly for that younger generation.

I welcome this report, but I urge everyone to remember: it is not them versus us. We have a duty to do our best by people of all ages. I very much hope the Government continue their good work in this area.

[Several hon. Members rose—]

Personal Independence Payments

Justin Tomlinson Excerpts

Tuesday 28th February 2017 Commons Chamber

[Mr Speaker]

Order. That is quite sufficient. No further explanation is required. I am very grateful to the Secretary of State, and deeply obliged to him.

[Justin Tomlinson (North Swindon) (Con)]

I welcome the fact that the Government are now, rightly, spending a record amount to support those with long-term health conditions and disabilities. If the Government were to decide to increase that amount yet further, surely that should be done in conjunction with charities and stakeholders, utilising their expertise, rather than on an ad hoc basis dictated by the courts?

[Damian Green]

My hon. Friend, who also has huge expertise in this area, is exactly right. There was very extensive consultation when PIP was first introduced about the design of what is, inevitably, a very complex benefit. As I have explained, we have seen a considerable improvement in awards, particularly for those with mental health conditions. The Government’s changes will restore that situation, which was better than people ever knew in the past.

Social Security and Pensions

Justin Tomlinson Excerpts

Tuesday 21st February 2017 Commons Chamber

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I will start with some general comments on the Guaranteed Minimum Pensions Increase Order 2017 before turning to the Social Security Benefits Up-rating Order 2017.

Clearly we support the uprating of the guaranteed minimum pension in line with prices. However, I wish to touch on issues raised in last year’s National Audit Office report on the guaranteed minimum pension and the new state pension arrangements that came into effect last year. As we have heard, the Guaranteed Minimum Pensions Increase Order provides an annual increase in the guaranteed minimum pension where there has been an increase in the general level of prices during the period under review.

When the additional state pension was introduced in 1978, an option was created under which an individual could contract out into another pension scheme on the basis that that other scheme met certain criteria. In that instance, both the employee and their employer paid a reduced national insurance contribution given that they were forgoing the state pension entitlements. Between 1978 and 1997, schemes that took on such new members were required to provide a guaranteed minimum pension—a new test was applied after 1997. Nevertheless, contracted-out schemes still had to provide a guaranteed minimum pension to scheme members for rights accrued between 1978 and 1997.

In 2016, the introduction of the new state pension ended contracting out by replacing the additional state pension with a single tier. Working-age people will now have their existing state pension entitlement adjusted for previous periods of contracting out and transferred to the new state pension scheme. Occupational pension scheme providers will continue to revalue any guaranteed minimum pensions that people have built up.

For people retiring after 6 April 2016, the Government will no longer take account of inflation increases to guaranteed minimum pensions when uprating people’s new state pension. The changes mean any guaranteed minimum pensions accrued between 1978 and 1988 will not be uprated, and the scheme provider will uprate guaranteed minimum pensions built up between 1988 and 1997 only to a maximum of 3% each year.

The National Audit Office was contacted by people approaching retirement age who had concerns that the new arrangements for a single-tier state pension will leave them worse off than they would have been under the guaranteed minimum pension. People also raised concerns about the lack of notice. Where have we heard that before? The NAO investigated and concluded that there would be some winners and some losers under the new arrangements, depending on the amount of time that people were contracted into a scheme. The NAO also commented that, again, there had been a dearth of information for those new retirees.

The NAO suggested that those who lose under the new rules may be able to build up additional entitlement to the state pension. The report recommended that the Government, via the Department for Work and Pensions, improve their evidence and analysis of the impact of these reforms, and provide much clearer, targeted information to the public about how they will be affected. I would be very grateful if the Minister updated us on how her Department is responding to the findings of the NAO report.

The Social Security Benefits Up-rating Order 2017 provides for the annual uprating of social security entitlements excluded from the Government’s freeze to levels of social security enacted in the Welfare Reform and Work Act 2016. This year, the Secretary of State has decided to uprate social security entitlements by inflation under the consumer prices index measure, which is at 1%. As the Minister explained, that covers attendance allowance, carer’s allowance, disability living allowance, the personal independence payment, industrial injuries disablement benefit, bereavement benefits, incapacity benefit and severe disablement allowance, to name but a few. The Secretary of State has also decided to uprate the new state pension in accordance with the triple lock, and pension credit in line with earnings, at 2.4%.

We would not stand in the way of measures to increase the adequacy of the social security safety net provided by those benefits, especially not after seven years in which the system has been under considerable attack. We will therefore support the uprating order, but I must take this opportunity to expand on my real concerns about the inadequate uprating, particularly in the context of the freezing of many social security payments under last year’s Welfare Reform and Work Act, and the real cuts to some kinds of social security support, such as the employment and support allowance, the support for those in the work-related activity group, the universal credit work allowances, and the widow’s pension allowance, which we discussed yesterday, again to name just a few. This is an erosion of the adequacy of social protection for those who are often the most vulnerable in society.

[Justin Tomlinson (North Swindon) (Con)]

Surely the shadow Minister recognises that our support for those with long-term health conditions and disabilities has increased by £3 billion a year, to a record amount. That shows that we are directing money to the most vulnerable in society—rightly so.

[Debbie Abrahams]

I am grateful to the former Parliamentary Under-Secretary of State for Disabled People. Actually, we know that social security support will have declined by 2020.

[Justin Tomlinson]

indicated dissent.

[Debbie Abrahams]

The former Minister shakes his head, but these are the Government’s own figures. If we look at spending across Europe as a percentage of GDP, we see that we are below the EU average when it comes to social security spending, just as we are on health spending.

Let us start with rising costs. Traditionally, the link between social security and inflation has ensured that some of the most vulnerable households in our country are not made worse off, year on year, by inflation in the cost of basic goods and services. The adequacy of social security has been heavily eroded over the past seven years. Research by the Joseph Rowntree Foundation demonstrates that the price of essentials has risen three times faster than wages over the past 10 years. When that is combined with the coalition’s initial 1% freeze on uprating, introduced in the Welfare Reform Act 2012, and the complete social security freeze put in place in last year’s Act, it means that low-income households have seen a significant deterioration in the adequacy of social security support since 2010.

Clearly, the historic drop in oil prices and subsequent slow-down in inflation of the price of household goods provided some respite to low-income households, but we know that the impact of the EU referendum on, for example, food and fuel prices is only just starting. People on low incomes spend a much larger proportion of their household budgets on the essential goods and services that have been so prone to inflation, so they are likely to have felt the effects of spiralling prices long after they have slowed down.

The costs of basic household items are beginning to rise again, with last month’s official figures showing inflation at a two-year high of 1.8%. I understand that the actual increase in food prices has been approximately 20%, but that has only just started to be passed on to consumers, so it is going to get worse. That puts real pressure on households that are trying to provide for their basic needs. Indeed, last week the Joseph Rowntree Foundation published a report showing that 19 million people are now struggling to make ends meet and get the basics required for a socially acceptable standard of living.

In the context I have set out, a 1% uprating to some social security entitlements is unlikely to do much for those who are struggling to get by. If the Prime Minister is really serious about helping those people, I urge that there be some reconsideration. As a matter of principle, it seems only fair that social security should rise in line with inflation and should apply to all entitlements, not just the ones that the Government have cherry-picked. Although the economic arguments for a freeze may once have been founded on the slow-down in the prices of the basics that every household needs, now that prices are predicted to rise by 10% by 2020 even that weak economic justification no longer stands up. That is before we even get to the social argument for protecting the incomes of the poorest people in our society, whom this Government have set out to punish over the past seven years.

In last year’s inquiry by the all-party group on health into the effect of the Welfare Reform and Work Act 2016 on child poverty and child health, the freeze on social security support payments was singled out as the most damaging. I remind Members that the Institute for Fiscal Studies estimates that child poverty will increase by around 1 million as a direct result of social security and tax changes, and that will impact on those children’s health and futures. I make an impassioned plea to the Government and the Minister: we are approaching April, when several other disability benefits will be cut; I urge the Government to reconsider.

I shall not detain the House any longer. I urge the Government to review the cap before price inflation begins to pick up again. If they really cared about those struggling to make ends meet, that is exactly what they would do. In the meantime, although we regret the limit on the groups who will benefit from the uprating, we will support the order.

Oral Answers to Questions

Justin Tomlinson Excerpts

Monday 20th February 2017 Commons Chamber

[Penny Mordaunt]

We are looking at a range of things we can do in particular to help young people with learning disabilities, with autism and with mental health conditions. They need more options available to them, and they need more financial support in some of those areas. I am happy to look at what the hon. Lady suggests if she would like to write to me with evidence that these things are happening.

[Justin Tomlinson (North Swindon) (Con)]

Governments of all persuasions have tried and failed to shift the employability rate of those with learning disabilities from 6%. That rate is an absolute waste of the huge amounts of talent and enthusiasm that are out there. That is exactly why we brought forward plans to open up apprenticeships and to have a special disability apprenticeship scheme. Please would the Minister update the House on where we are with creating those opportunities?

[Penny Mordaunt]

I thank my hon. Friend for drawing attention to the apprenticeship scheme. We wish to open up the opportunities such schemes bring to those with learning disabilities, and we are making good progress on that with the Department for Education, but we need to do other things as well. When we talk about people with learning disabilities, we are talking about a huge range of individuals. We have not done enough for those who are at the highest-need end of that spectrum, and I hope we will be able to do more shortly.

DWP Estate

Justin Tomlinson Excerpts

Wednesday 18th January 2017 Westminster Hall

[Justin Tomlinson (North Swindon) (Con)]

It is a pleasure to serve under your chairmanship again, Ms Dorries. I pay tribute to the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) for securing this debate on the future of the DWP estate and the opportunities that it presents us across the UK. Although I cannot pretend that I agree with everything she said, it was absolutely clear throughout—it was thoughtful, detailed and she had her residents’ best interests at heart. I hope that she gets suitable responses at the end of the debate from the Minister.

We are in a time of record employment in all areas and we are now very close to full structural employment. The reality is that those still seeking work are often the ones who need the most help. In that context, the announcement of the health and work Green Paper gives us a real opportunity to shape the future of the DWP estate so that it delivers on the core principle of a personalised and tailored approach. That is supported by employers, charities, organisations and Work programme providers. Therefore, this is a timely debate on the thrust of seizing those opportunities across the UK.

As a former Minister, I saw this at first hand when I visited the Shaw Trust Hackney community hub. It tries to do things differently. It is a one-stop-shop—a community hub—where jobseekers receive a bespoke service that is tailored to their specific needs to help them to overcome the barriers that are holding them back from finding employment. People can access not only direct support in looking for work, but counselling sessions and support from healthcare professionals. There has been a significant increase in performance, an increase in staff and customer satisfaction levels and better Work programme participant engagement.

[Carol Monaghan (Glasgow North West) (SNP)]

The key word in the hon. Gentleman’s speech is “community”. What we are talking about is the heart being ripped out of our communities.

[Justin Tomlinson]

We have to deliver the best opportunities for all people who are looking for work. I am setting out what I believe to be the best way to equip those people who are trying to seize the opportunity of the growing economy. The Shaw Trust has provided me with a number of examples, including that of Kazeem, a 23-year-old, who arrived with very low confidence, experiencing depression and anxiety. With the bespoke support that he was given in that community hub, he was able to secure jobs at both Amazon and his local cinema. It was not just the Work programme providers, but employers such as ITV, Barclays and Michael Page that worked within that hub, which brought together those healthcare professionals and external employers as well as the Work programme providers. They made a huge difference, and there are many other examples.

[Natalie McGarry (Glasgow East) (Ind)]

Could the hon. Gentleman clarify, if he is talking about Kazeem getting a job with Amazon, whether Kazeem is from Glasgow, because Amazon is in Dunfermline, which is an hour away by bus?

[Justin Tomlinson]

This was at the Hackney community hub run by the Shaw Trust, so it would have been at Amazon there. This debate is on the future of the DWP estate, which covers the whole of the UK, but I wish any Kazeem in the hon. Lady’s constituency the best of luck with finding work, whether at Amazon or somewhere else.

Understandably, a lot of people who arrive at a jobcentre lack confidence and are nervous. I have seen that at first hand when I have supported my own constituents. All too often, I am afraid, people are greeted by a security guard, who is probably the last person that somebody wishes to see when they are nervous. Some jobcentres are drab buildings from the ’60s, ’70s or ’80s. They do not celebrate success stories. There are no posters or videos that show people who have gone through the same challenges, faced and overcome them, come through at the other end and benefited from work. The staff are too often fixed to the facility. I suspect most other hon. Members who speak in this debate will highlight the challenge of getting to jobcentres; sometimes the solution is taking the jobcentre directly to people.

One of the most important parts of the universal credit roll-out is that, for the first time ever, people entering work will continue to get support. I hope that support will extend to those coming into the workplace. A lot of those people will be entering work on the national living wage, at the beginning of a career path. They will need support in work to secure additional hours and to get promotion when they lack the confidence to push themselves forward. We are all confident here—we all push ourselves forward and we all wish to seek to improve ourselves—but not everybody has that ability. That is an example of why we need to take people out of jobcentres.

When I visited an award-winning job coach, who was doing a great job, I saw another example of why a fixed location should not always be the solution. There was a young lad who was incredibly enthusiastic and desperate to do bar work, which we have a chronic shortage of people for in this country. I used to work in the industry; I remember thinking that, if I still worked in it, I would have snapped him up. His issue was that he was so confident that he would sometimes talk for too long in an interview and talk himself out of a job. Each time, the jobcentre staff would say, “Go off and apply for some more jobs”, but he would come back two weeks later and he had talked himself out of another job. All it needed was a job coach to go with him to an interview to explain to the employer, “When you have had enough of him talking, just say stop”. He would have secured work straight away. Yet the system meant that he kept returning at his inconvenience every two weeks on a continuous loop, when it just needed somebody to go with him to the interview.

Rightly, we have started piloting a small business employment scheme. Too many employers do not want to engage with their local jobcentre—I was the same when I ran a business for 10 years. We need to get jobcentre people going out to small and medium-sized businesses and saying, “What skills gaps do you have? Can we identify them?” The DWP has been running a small business pilot, in which staff go around retail, industrial and business parks and find people. It was so successful that the DWP ran out of people, either at the jobcentre or in the Work programme, to fill all those roles. That is exactly the sort of challenge that we need to take on. Again, it saves time for the claimant. We also need to organise job fairs.

In an ideal world, the jobcentre would be a hub. It would be a co-location, so that we are not sending claimants from building to building. We need health support. My point about being close to full structural employment is that the vast majority of people are now looking for work. More than 50% of people on employment and support allowance have a health condition or a disability; having instant health support on site will make a huge difference.

For some bizarre reason, rather than letting Work programme providers use our space, we send them off to find their own facilities, for which they secure a contract for a number of years. They spend a huge amount of time finding facilities, settling into them and getting to know them before having to renew the contract. It also gives claimants the inconvenience of having to go from the jobcentre to the Work programme provider and to health support, spending all their time travelling rather than looking for work. That is something that we need to address.

A jobcentre should be a hive of activity. It should have job fairs in the evenings and it should get in external employers, charities and mentors. That should all happen in a brightly coloured, constructive hub that supports people.

[Margaret Ferrier]

The hon. Gentleman talks about hubs. Is he suggesting that there should no longer be any security staff in jobcentres?

[Justin Tomlinson]

Absolutely not. Experienced organisations such as the Shaw Trust have dealt with that issue. Their security staff are also meeters and greeters. They have blurred those roles so that, instead of somebody in a uniform who will make people even more nervous, there is somebody who can act as a security person if they need to, which I am afraid they sometimes do, but who also make people welcome when they arrive. That is so important for people who have a number of barriers to overcome.

We need to be mindful of those with disabilities. Representatives of Action on Hearing Loss came to Parliament today to meet a number of MPs; it reminded me that it is often the hidden impairments that people do not take account of. I urge the Minister to consult with disabled people whenever we consider future facilities. We need to ensure not only that staff are trained but that, when we build facilities, we make them fully accessible. We can embrace technology such as the video relay service that DWP has trialled, the pilots for which were so successful that it will continue for evermore. We need to ensure that that technology is used in the rest of Government facilities and by those who provide contracts to them. I know from visiting SSE that the private sector has embraced that. It allows those who rely on British sign language to get instant access to facilities, rather than having to wait for an interpreter. It is an absolute must for all Government facilities to have hearing loops and for staff to be trained to use them. I could say much more on disabilities, but I am conscious of the time.

What I have said applies not just to jobcentres but to assessment centres for benefits such as the personal independence payment, which are often soulless places. There should be videos in the waiting areas to advertise other support offered to people who have a disability or a long-term health condition. The Government often do pilots, but people often do not know about them, so let us advertise them. Mental health is a really good example: there is cross-party support for improving support to people with mental health conditions and considerable additional money is being spent, but, all too often, those who most need that help simply do not know about it.

I know that the Minister is extremely constructive and engages regularly with Work programme providers, charities and people with experience. We have a real opportunity to build on the Green Paper. I look forward to her response.