HMRC Staff: Dudley

Debate between Lord Austin of Dudley and Mike Wood

Wednesday 7th March 2018 Commons Chamber

[Ian Austin]

My hon. Friend is completely right. Everybody knows how hard he fights for jobs in Coventry and that it cannot afford to lose those jobs, just like the Black country cannot afford to lose the ones in Dudley. The city council passed a motion unanimously, probably in no small part due to his campaigning.

It was announced that the Dudley office at the Waterfront and Merry Hill would be taken on by the Department for Work and Pensions, and that staff would transfer to that Department; a small number of staff would have transferred to the Birmingham office. Staff at that office employed by Her Majesty’s Revenue and Customs to work on tax credits were told in 2015 that they would be transferred to the DWP to work on the introduction and implementation of universal credit. As recently as last October, they were told that they would remain at the Waterfront offices to work on the new benefit. Instead, at the end of January it was announced that the Government had changed their mind, that their jobs were at risk and that the office would close. That came as a huge shock to the hard-working, highly skilled and loyal staff. On the same day, DWP announced up to 150 job vacancies at the Waterfront site. Inquiries have been made and they are fixed-term appointments, although local discussions have revealed that they could become permanent. The announcement had little detail and more was promised, we were told, in April 2018.

It was originally envisaged that the Birmingham regional centre would have a capacity of about 3,200 full-time equivalent staff, but when the site of the Birmingham office was announced in October, that figure was reduced to 2,600. No official reason has been given for that, but sources are very clear that it is based on the high costs of premises in Birmingham. The figure of 2,600 did not include the Merry Hill staff, because they were due to go to DWP.

We have discussed the situation in Coventry, where hon. Members, including my hon. Friend the Member for Coventry South (Mr Cunningham), have been campaigning. The same is true in Wolverhampton, where MPs also want their HMRC office to stay open. It has 300 staff and the local council also supports the campaign. Discussions have opened with Andy Street, the West Midlands Mayor, based on the combined authority agreement, which was signed by the then Chancellor with all of the West Midlands combined authority councils, and which uniquely states that there should be a regional Government hub in Birmingham and sub-regional hubs elsewhere in the region.

[Mike Wood (Dudley South) (Con)]

I congratulate the hon. Gentleman on securing this debate on the closure of the offices in my constituency, which will affect many of his constituents. Does he agree that the success of the surge and rapid response team at the Waterfront demonstrates exactly the kind of modern capabilities that would add so much to delivering universal credit, and that the redeployment should be reconsidered, whether with DWP or with other bodies, to make use of the existing staff and skills at the Waterfront?

[Ian Austin]

The hon. Gentleman is completely right. I will make that point later. These are highly skilled, highly trained staff, who are very experienced in dealing with complex benefits. No better group of people could be employed for the introduction of universal credit. That is the case we are making to Ministers tonight and I am pleased that the hon. Gentleman is here to do so, too. I very much hope that Ministers will listen to and consider the argument over the next few weeks.

That is a really important point, because for staff in Merry Hill the closure will present grave difficulties. A high proportion of them have caring responsibilities which would make the journey to Birmingham impossible; I have spoken to mothers in exactly that position. A number of the staff came from offices that closed in the 1990s, and the journeys would make such a move impossible or impractical for them. The recent closure of the office in Walsall left more than half the staff without jobs, and the closure in Worcester is affecting nine out of 10 staff, who now face voluntary or compulsory redundancy; the majority of those staff have caring responsibilities.

HMRC insists that 90% of staff will have a job in the centres, despite the fact that all the closures so far have resulted in much higher job losses. The loss of these skilled and hard-working staff is very risky and it contradicts recommendations made by Committees of this House, which have called for a halt to the office closure process. Staff in Merry Hill believe that the DWP explanation that it has sufficient staff for universal credit to work properly flies in the face of all the current information we have about this complex new benefit’s introduction, as we heard a moment ago. Staff who work there are highly skilled: they have dealt with tax credits work since those were introduced, and they are helping with the changeover to UC from tax credits already. They were also stunned that the DWP vacancies were not even considered when the announcement was originally made.

Another point that I know will be of interest to the hon. Member for Dudley South (Mike Wood) is that the office is in the middle of a recently announced enterprise zone, DY5, and the roles undertaken by HMRC staff completely fit into the Government’s vision for this enterprise zone. This brings me to my final point, which is about unemployment in Dudley.

Skills and Growth

Debate between Lord Austin of Dudley and Mike Wood

Wednesday 17th June 2015 Commons Chamber

[Ian Austin (Dudley North) (Lab)]

We have to make education and skills our country’s No. 1 priority. Improving education is the answer to our country’s biggest challenges, as it brings better paid and more secure jobs to areas that have lost their traditional industries, tackles poverty and improves social mobility, boosts productivity, builds a stronger economy and enables us to tackle the deficit.

The only way our country will pay its way, let alone prosper, is with the skills we need to compete. Germany has three times as many apprentices as the UK. The number of young apprentices and apprentices in IT and construction is falling and, although I welcome degree-level apprenticeships, they account for less than 2% of the total number. On education, we are no longer merely falling behind Finland, South Korea and Germany in basic numeracy and literacy but behind Estonia, Poland, Slovakia and the Czech Republic as well. Think about this: we are the only country in the developed world in which those approaching retirement are more literate and numerate than those entering the workforce.

Children today will work with technologies that have not yet been invented or even imagined. They will have more than a dozen jobs over their lifetime, so they must learn how to adapt, how to learn and how to acquire new skills, but a CBI survey found that nearly a third of employers were dissatisfied with school leavers’ basic literacy and numeracy.

We should all agree—all parties, the Government, schools, colleges, universities, the teaching profession and businesses—on clear long-term targets to improve education and provide the skills we need to compete. The CBI is right to call for a cross-party review of 14-to-19 education considering exams, the curriculum and the status of vocational education so that we can plan properly for the future and prevent the sort of problems we face in Dudley at the moment.

[Mike Wood (Dudley South) (Con)]

Does the hon. Gentleman agree that there is a real need for greater and better capacity in vocational education for children with special educational needs, particularly for 14 to 19-year-olds?

[Ian Austin]

The hon. Gentleman is completely right. As he represents Dudley South, he will know that Dudley College has just opened fantastic new facilities on The Broadway. I do not know whether he has had a chance to visit yet, but he definitely should. It provides fantastic opportunities for young people with profound disabilities and learning difficulties. It is a unique institution, the first of its kind in the country. It is another brilliant success, which is down to Principal Lowell Williams and his colleagues, and it is an example that colleges around Britain should be following. The hon. Gentleman is absolutely right and I look forward to working with him to drive up educational standards and improve standards not just for children with special needs but for all children in Dudley over the next five years.

Under the brilliant leadership of Lowell Williams and his colleagues, Dudley College has not only provided those fantastic facilities but has transformed our town centre and opportunities for local people. Our new manufacturing college, Dudley Advance, has been developed with Aston University and local manufacturers. We have a new vocational centre, a new sixth form college and plans for a new construction centre. Ministers will be pleased to hear that the vast majority has been funded by more efficient use of the college’s own resources and not by external funding. Ofsted has rated all aspects of the college’s provision as “good” or “outstanding” in its most recent inspections and the college has been named one of the top three colleges in the country for students completing apprenticeships, with nine out of 10 students successfully completing their training compared with 69% nationally.

Mr Williams and his colleagues are helping local businesses to grow, educating young people and helping adults to get new jobs, too. They are doing exactly what Ministers have asked of them, but far from supporting their work, Government policies are putting courses and places at risk.

Cutting the adult skills budget by 24% means that Dudley College will lose £1.4 million, so 30 jobs are at risk and 1,500 places will be cut, most of which are employability programmes for unemployed adults and workplace qualifications in health and social care, early years and construction. The college faces further 20% reductions in each of the following two years, removing another 1,700 adult places. Thousands of adults struggling to find work will lose their retraining and many more jobs are at risk.

Dudley College has worked hard to help Ministers to increase apprenticeships, doing exactly what they want and making it by far the largest provider in the region. In May, the college again requested additional places from the Skills Funding Agency for 16 to 18-year-olds in areas such as engineering, manufacturing and care, which, again, is exactly what the Government want it to do. The agency indicated that that would be possible, as it was in previous years, but the funding is now at risk after the Chancellor’s announcement that the Department for Business, Innovation and Skills and the Department for Education must find £450 million of savings this year.

Spending on 16 to 18-year-olds is unprotected and apprenticeship providers are worried that the SFA will not be able to deliver the promised funding. That is the complete opposite of the long-term planning needed to fix the skills gap. Dudley College must either turn away 150 apprentices in priority areas or deliver the training without any funding. The college has also requested growth for 2015-16 and beyond, but how will the Government meet their target of 3 million additional apprentices if they cannot fund the growth at successful institutions, such as Dudley College, that are already doing a brilliant job and delivering exactly what the Government want?

Finally, Dudley College is now particularly vulnerable to changes in the amount of funding that the Education Funding Agency will offer for courses for 16 to 19-year-olds. That has been another growth area, with the EFA set to fund places for an extra 263 learners next year. A significant part of the college’s investment in new facilities such as Dudley Advance has been based on the expectation that EFA funding will increase, but the Chancellor’s announcement threatens that funding too, and any change in the number of funded places or the rate of funding will damage the college’s ability to meet local needs skills such as manufacturing. That comes on top of an 8% reduction in funding per learner in the past four years and a 22% funding reduction for 16-year-olds.

All of that shows why we should listen to the CBI, launch a cross-party inquiry and set out a long-term plan to tackle our country’s skills gap and, as I said at the outset, make education and skills our country’s No. 1 priority. But for a long-term plan to work, the Government need to give colleges the certainty they need to keep growing to meet demand.

Will the Minister work with the Skills Funding Agency to set out urgently the number of places it will fund in the coming year? Will he and the Business Secretary set out plans to meet the spending reductions as soon as possible, so that providers know how much funding will be available in the future? Will he come to Dudley and join me and the hon. Member for Dudley South (Mike Wood) in visiting the college, where he will be able to meet Mr Williams and his colleagues, see the brilliant work they are doing and help them solve the problems they face?