Out-of-work Benefits

Debate between Lord Robathan and Baroness Stedman-Scott

Monday 17th October 2022 Lords Chamber

[Lord Robathan]

To ask His Majesty’s Government what steps they are planning to take to reduce the number of people in receipt of out-of-work benefits.

[The Parliamentary-Secretary, Cabinet Office, and Parliamentary Under-Secretary, Department for Work and Pensions (Baroness Stedman-Scott) (Con)]

My Lords, building on all the work that we have done to date, we will continue to support people to move into and progress in work. Unemployment is at a near low of 3.5%, so our efforts have to date been working. Our comprehensive labour market offer gives claimants the best possible chance to be financially independent. We are investing £900 million in each year of the spending review into our work coaches, who are fundamental to help move people from welfare to work. As noble Lords all know, we are raising the administrative earnings threshold, strengthening the support we give to claimants, and setting very clear work expectations of claimants and a very clear outline of what we will do to help them.

[Lord Robathan (Con)]

That is helpful, but there is a severe labour shortage in this country. I hope that my noble friend will be able to tell me the exact number of people who are on out-of-work benefits within the working age population. Estimates vary but in some areas it is one in five people; in some cases one in four people is on out-of-work benefits. Of course, many people are disabled and need support, but the coalition Government of the Conservatives and the Liberal Democrats got a lot of people back into work with support. At the moment, the number of people on out-of-work benefits is rising at a time of labour shortage. What more can the Government do?

[Baroness Stedman-Scott (Con)]

My noble friend makes many important and accurate points. As of February 2022, 5.18 million working-age adults, or 12.7% of the GB working-age population, were receiving out-of-work benefits, the largest category being UC out-of-work or no work-related requirements. We are trying to reduce the flow into unemployment and inactivity by supporting disabled people and people with long-term health conditions; prevention and retention work, including launching a national information and advice service to help employers, because it is only employers who create jobs so they are the ones we need to work with to move people into work; and our interventions that I have already described, including large-scale trials of additional work coach support for the 2.8 million customers with health conditions.