Employment

Lord Sheikh Excerpts

Thursday 20th March 2014 Lords Chamber

[Lord Sheikh (Con)]

My Lords, I pay tribute to my noble friend Lord Freud for introducing this subject and for his excellent speech. I speak as a businessman and as somebody who has employed many people through several business ventures. At the outset I take the opportunity to commend the Chancellor of the Exchequer on his Budget Statement. I hope to speak more on this subject during the impending debate next week but it is useful to note in this debate the measures that will boost employment.

I welcome measures announced in the Budget to support businesses, which include cutting the cost of energy bills for manufacturing and doubling the annual investment allowance to £500,000. The Chancellor also stated that we will have the most competitive export finance in Europe, by doubling government lending available to exporters to £3 billion and cutting the typical interest rate by a third. All these will provide a much needed financial boost to businesses and free up money to spend on employing more staff, among other things. This was a Budget that backed businesses and, as a result, backed employment.

It is my belief that this Government’s work on welfare and employment is one of their greatest achievements. I have spoken on this subject in your Lordships’ House previously. It has been stated many times in this Chamber, in the other place and elsewhere that the coalition Government inherited a dire financial situation—but we must not forget that this was not the only legacy that their predecessors left behind. This Government also inherited a culture of worklessness, one whereby welfare could and often did pay more than work and where generations did not work. Let us not forget that children and young people who live in households where adults do not engage in any form of employment are not only the most deprived in our society but also the most likely to follow this path once they leave full-time compulsory education. This generational cycle of worklessness was a key factor in the rising levels of welfare dependency and poverty in our communities. Alongside this, there were also vastly high levels of unemployment.

There are now 1.3 million more people in work than when Labour left office. Unemployment now stands at 7.2%, the lowest for the past five years. The number of young people in work has increased by 43,000 in the past three months and the employment rate has now hit a five-year high with a record 30.1 million people in jobs. The OBR has forecast that over the next five years a further 1.5 million jobs will be created, with real earnings growing every year.

It is however important that we remember that employment is not merely a matter of statistics. Every position filled means another family have the security of a regular pay packet. We must not forget that this pay packet is put back into the economy both in taxation and in consumer spending, supporting yet more jobs and growth. Nor should we forget the great benefit to the person’s individual well-being. I am sure noble Lords will agree that work gives people pride and confidence. As an employer, I know that people tend to work for two reasons. The first is to earn a living and the second is to get job satisfaction. On the contrary, being out of work sometimes creates depression and has an adverse effect on people. Work is good for people’s mental health, their physical health and their general well-being—benefits that have been demonstrated repeatedly. Dependency is not liberating. It constrains people and prevents them from achieving their ambitions. What is more, if we can get more people in work, some of them will receive salary progressions and improve their standards of living.

The Government deserve recognition for trying to ensure that we have a fair welfare system to support those in genuine need. Since benefits were capped, 9,200 households have moved into work or reduced their own benefit claim. Some 4,300 of these households have found jobs. We have heard many times that it is the Government's aim to reward those families who want to work hard and get on. Here we are seeing that, as a result, thousands of people are finding jobs and moving off benefits. It was not right that tens of thousands of households received far more in benefits than the ordinary hard-working family earns. We cannot underestimate the resentment and anger felt by hard-working families who saw others who made a conscious effort not to work being rewarded handsomely by the state. This caused tensions within our communities, which is understandable. To have people saying that they “could not afford to work” was absurd. Britain must be one of the few countries in the world where this was the case. Social security should be for people who find themselves out of work and are trying to get back into employment. Few people would disagree with these aims.

I pay tribute to those who offer people the chance of work. The rise in employment is not created by Government alone. It is being fuelled by businesses and entrepreneurs across the country. They should be congratulated. As the economy continues to improve they are feeling increasingly confident about employing more people. I have spoken many times in this Chamber and elsewhere on the importance of supporting small businesses. As has been said many times, SMEs are the lifeblood of the British economy. An ambitious and thriving small business sector is vital for steering the economic recovery in the right direction. None of the early signs of recovery that we are seeing today would have been possible without these small businesses. Their importance comes not only in the money they can make but also in the jobs they create. We must ensure that the systems are in place to aid them in doing this. The National Insurance Contributions Act, given Royal Assent recently, was one such measure. The employment allowance will give businesses and charities a much needed tax cut as a result of the Act. This will benefit over 1 million businesses, with almost 500,000 being taken out of paying national insurance contributions altogether. Businesses will, more often than not, spend these savings on their business—investing it, increasing wages and creating jobs.

Let us also not forget the smallest of businesses, those which currently have no employees at all. The allowance will create a strong incentive for sole traders and new and start-up businesses to hire their first employee. The number of self-employed people has risen. I hope that soon they will have more employees of their own, creating wealth and jobs through innovation.

Another welcome measure is the removal of the jobs tax on young people under the age of 21. As a result of this, employer national insurance contributions will be removed altogether on 1.5 million jobs for young people. Youth unemployment is falling, but it is important that more is done to get young people into work. We can see from the experience of previous generations that the longer the period spent out of work as a youth, the longer the time spent out of work later in life. I am pleased that, thanks to this measure, the future is looking brighter for young people in this country. This will also come as a great benefit to the businesses that employ them. A young, vibrant and skilled workforce is a benefit for us all.

We should also welcome the rise in the number of women in employment. As someone who has spoken many times about female empowerment, it is most welcome that the number of women in employment has reached a record high, with more than 14 million in work for the first time. The number has increased by over 500,000 since the election. Getting into employment should not be something that people are expected to do alone, particularly for those who have never worked before. It can be a daunting process. I am pleased that the Government’s Work Programme is helping people into work. Unlike the short-term focus of previous schemes, the Work Programme is geared towards not just getting people into work, but keeping them there. It is helping large numbers of people escape the misery of long-term unemployment and get back into real jobs. Through this scheme, providers are rightly paid according to results. They have the flexibility to design support systems that address the needs both of the individual and of the local labour market. So far the scheme has helped 208,000 jobseekers find lasting work, including 17,560 young people. This is evidence that there are jobs available, but we must work to ensure that all the measures are in place to get those who need jobs into them.

It is my belief that this Government are committed to lowering unemployment and helping people back into work. However, we must not be complacent. More needs to be done to increase employment and train people to fill the jobs. To enable us to achieve that, we should not rely on my business, which is financial services, but expand our manufacturing activities and undertake more business overseas. We must increase our trade with India, China, Brazil and Africa. There are considerable opportunities in Africa, where I was brought up and with which I still have connections. Given our historic ties with a number of African countries, we must promote more trade with them. Also, we should increase apprenticeships and train more people in different trades and businesses.

Health: Neglected Tropical Diseases

Lord Sheikh Excerpts

Thursday 6th February 2014 Grand Committee

[Lord Sheikh (Con)]

My Lords, I am interested in this subject as I was born and brought up in east Africa. I have seen how the diseases that we are discussing today affect the lives of people. I thank the noble Baroness, Lady Hayman, for initiating this debate.

I applaud this Government’s continued commitment to international aid. Combating disease is a crucial part of this programme. We are now marking the two-year anniversary of the historic London declaration on neglected tropical diseases. Neglected tropical diseases affect more than a billion people throughout the world. They often affect the poorest people in the hardest-to-reach areas. The combined personal and family suffering also translates into wider economic hardship, trapping communities in a cycle of poverty. Eliminating NTDs is thought to be one of the most cost-effective and comprehensive ways to achieve development goals and eliminate poverty. Therefore, it is important that work to combat NTDs is absorbed into wider-scale initiatives on poverty.

Prevention is also a key principle. Measures such as better health education, greater nutrition and the provision of safe drinking water will help to reduce cases in the first instance. We must celebrate the progress that has been made in a number of ways. We have made political progress. Last May, 32 countries took part in deliberations during which the World Health Assembly adopted a resolution on all 17 neglected tropical diseases. This resolution calls for more effective financing and implementation of prevention and eradication programmes. It makes important references to increasing access to treatments. I am proud that the United Kingdom strongly supported this resolution and has pledged to continue playing an important role in this respect.

We have made progress on awareness. Neglected tropical diseases are receiving more coverage than ever before and are firmly on the international agenda. The engagement and generosity of pharmaceutical companies must also be noted. We now have all the treatments required to control and eliminate the seven most common NTDs. These account for over 90% of the global burden.

Although we have made progress, though, we must of course not be complacent. It is still necessary to further increase and maintain this progress if we are to reach our target. The millennium development goals expire in 2015. This provides us with a perfect opportunity to renew and accelerate the focus on eradicating NTDs. In its report last summer, the High-level Panel of Eminent Persons on the Post-2015 Development Agenda included the reduction of NTDs as part of its recommended goal of ensuring healthy lives.

In my view, the 2020 road map for the elimination of at least 10 diseases by the end of the decade is firmly in sight. It is very ambitious but I believe that it can, and I hope will, be achieved.

First World War: Personnel from the Indian Subcontinent

Lord Sheikh Excerpts

Wednesday 18th December 2013 Lords Chamber

Asked by

[Lord Sheikh]

To ask Her Majesty’s Government what plans they have to commemorate the role of armed forces and other personnel from the Indian sub-continent in the First World War.

[Lord Sheikh (Con)]

My Lords, I am pleased that this important subject was called for debate today. The centenary of the First World War is almost upon us. This war saw conflict and suffering on an unprecedented scale. The four war years serve as both a reminder and a commemoration of the struggles and the sacrifice of so many people across the world. I hope that time will encourage us all to honour and appreciate the lasting impact these events have had and will continue to have for generations to come.

In March this year I spoke in a debate on the centenary of the war in your Lordships’ House. I specifically focused on the contribution of Indian forces then and I want to expand on those points today. The significant part they played is not widely acknowledged and the sacrifice made by the Indians and the suffering they endured need to be fully appreciated. I hope today’s debate will serve to inform others and help address the situation.

This matter holds a special significance to me; I trace my family heritage back to India. That is where my father originally lived before moving to Uganda in the 1920s. I feel a deep connection with the many stories documented by Indian soldiers throughout the conflict. On the outbreak of the First World War all opposition to the British Government ceased, and the feelings of Indians at large were well summed up by the Honourable Pandit Madan Mohan Malaviya, a former president of the Indian National Congress. He assured the viceroy and the governor-general that,

“India would ensure the sacrifice of men and money in order that the British armies shall triumph”.

India raised the world’s largest volunteer army, with a total of 1.5 million people, during the First World War. Indians from all over the world, from such remote countries as Australia and Argentina, came forward to serve the Empire in its hour of need. More than 1 million of these personnel were sent overseas and 140,000 were engaged in active service on the western front. This marked the first time that Indian soldiers had ever fought on European ground.

They were originally called on to help when the British forces were suffering heavy causalities, which reinforces just how historically important their role was. The great Mahatma Gandhi was instrumental in making the case for Indian assistance. On 13 August 1914, he and 50 other activists signed an important circular, which stated the decision,

“for the sake of the Motherland and the Empire to place our services unconditionally, during this crisis, at the disposal of the Authorities”.

The seven Indian expeditionary forces provided crucial support and fought directly alongside British Forces in Europe. For example, at the battle of Neuve Chapelle they provided half the attacking force. A British general described them as a magnificent body who performed the most useful and valuable service. The expeditionary forces also saw action in east Africa, Mesopotamia, Sinai, the Suez, Gallipoli and Palestine. The Royal Indian Marine also served alongside the Royal Navy in a number of functions. Some ships served as gunboats and others as coastal minesweepers. Their merchant services in transport and supply were also crucial to the war effort. More than 74,000 Indian troops were killed or declared missing in action during the First World War, a number that is testament to the level of sacrifice and loyalty shown by the Indians in supporting the Allied Forces.

Participants from the Indian subcontinent were recognised for their bravery and valour in combat during the First World War with more than 9,200 decorations, including 12 Victoria Cross medals. Sepoy Khudadad Khan was the first native-born Indian to win the Victoria Cross for his gallantry in the face of overwhelming numbers in Belgium. He served in the 129th Duke of Connaught’s Own Baluchis regiment. Similarly, the courage of Naik Darwan Singh Negi of the 1st Battalion of the 39th Garhwal Rifles was recognised in 1914. He was one of the very few soldiers to have the great honour of being personally presented with the Victoria Cross on the battlefield in France by King George V. A notable example of the spirit and pride of the Indian subcontinent soldiers is that of a platoon of Sikhs, who in 1914 died fighting in Belgium to the last man, who shot himself with his last cartridge rather than surrender to the enemy. The soldier believed in the concept of chardi kala, which gave him the strength to be courageous and not to surrender.

The participation of the Indian subcontinent was not confined to the battlefield alone. Doctors and students from the Indian Medical Service provided care and rehabilitation to the wounded and many Indian military hospitals were set up across the UK, perhaps the most famous of which was the Royal Pavilion Hospital in Brighton. This housed more than 600 wounded soldiers from the western front. As shocking as these facts and figures are, we must also remember the personal and social hardship that was felt by Indian citizens and families not directly involved in the conflict. Much of the essence of the war is captured in writings from the time, and India contributed in this respect, too. One of the greatest poets during those years was an Indian called Rabindranath Tagore. Tagore wrote in a letter on 18 November 1915 that the war was fought,

“for the cause of liberty”.

Speaking in 1921, upon the placing of the foundation stone of the All-India War Memorial, Lord Chelmsford, the viceroy of India, remarked that the,

“immortal story of the endurance and valour of the sons of India is a legacy which their sons and their sons’ sons will treasure above all the wealth the world can offer”.

This memorial, completed in 1931, remains a testament to the sacred memory of the Indian soldiers who fell in different parts of the world. There are indeed numerous similar memorials in existence across the world to commemorate those soldiers who gave their lives during the First World War. A site called the Chattri exists on the South Downs, at Patcham near Brighton. It is associated with 53 Hindu and Sikh soldiers whose remains were cremated at that spot. A memorial service is held there every year. There is also a Muslim burial ground on Horsell Common in Woking, where 17 Indian soldiers were originally buried. Further burials took place after the Second World War. Renovation works are currently taking place there in preparation for next year’s anniversary. In Neuve Chapelle in France, there is a memorial that has been erected to honour the memory of the Indian soldiers who died fighting in Europe. In addition, I know that some years ago the noble Baroness, Lady Flather, led a successful campaign to erect a memorial on Constitution Hill to soldiers from India and other regions of the British Empire who served in the two world wars.

The commitment of these brave men to the war effort often emerged from a strong sense of personal duty to the Empire. Many letters written by Indian soldiers at that time reveal the honour they felt in fighting for their king. It was this loyalty and dedication that endeared many British troops to them. Indeed, alongside the military assistance they provided, there was the opportunity for social interaction between our different cultures.

I know that the Government have been proactive in developing a substantial programme of tributes and events, including last month’s announcement that a series of lectures will be held to commemorate the contribution of Commonwealth countries to the war effort. I shall be obliged if my noble friend the Minister can explain to your Lordships’ House what plans have been formulated to honour the contribution by the people of India during the First World War. I am looking forward to sharing in the commemoration and honouring their memories.

International Women’s Day

Lord Sheikh Excerpts

Thursday 7th March 2013 Lords Chamber

[Lord Sheikh]

My Lords, I thank my noble friend Lady Stowell for securing this timely debate. We are here to pay homage to the achievements of women all over the world, as marked by this annual celebration, as well as to emphasise the progress that needs to be made and the challenges that lie ahead.

Women play a central part in keeping families and communities together. There is a strong link between achieving peace and the sustained development and advancement of gender equality. Earlier this week I spoke in a debate on the plans to mark the centenary of the First World War. This was a key influence in the development of women’s rights in the United Kingdom as women often replaced the millions of men who had been called up to fight on the front line. During this time, approximately 1.6 million women joined the workforce across government departments and in business administration, and played an invaluable role in our munitions factories.

The past 100 years are full of numerous examples of the contributions to world history made by remarkable women, such as the suffragettes, led by the Pankhurst sisters. In that time we have covered a great deal of ground, particularly in respect of voting rights, the opening up of various professions, opportunities in higher education and positions in businesses. I am heartened by the progress that we have made in increasing the number of female Members of Parliament in recent years, although the House is united in acknowledging that more needs to be done.

Since Nancy Astor took her seat in 1919, we have seen female representation in the House of Commons increase to 22%, which is a significant step forward, but we must move faster. We have a similar situation here in the House of Lords. It is, however, encouraging that the numbers are much healthier among our younger politicians, with women consisting of half of the 28 MPs under the age of 30. It is accepted none the less that women are still underrepresented in many aspects of political, corporate and cultural life, and in the media.

I believe that this Government appreciate and understand the challenges that we face. On a visit to Mumbai two weeks ago, the Prime Minister stated that there are not enough women in boardrooms, or indeed around the Cabinet table, and that companies and political parties need to be more proactive in attracting women. We have already seen a number of measures over the past two years that have helped women in various respects. One of the most notable has been the establishment of the Women’s Business Council. This looks to challenge the barriers that women face in playing a fuller part in business and the workplace. As a businessman, I am particularly excited by the potential benefits for economic growth in addition to the further female empowerment that could come from this. As an employer, I have always promoted my staff on merit, irrespective of gender.

Better appreciating and harnessing the skills women have to offer will only accelerate our economic recovery and it is estimated that such action could deliver benefits of between £15 billion and £21 billion per year. The Government should be congratulated on their introduction of flexible parental leave, allowing new mothers to share their maternity leave with their partners and giving them ultimate flexibility over how and when it is taken.

The United Nations theme for International Women’s Day 2013 is ending violence against women. Domestic violence against women often takes place in households where children are present, and in some cases these children are also victims of abuse. There should be an increase in support services for children who have witnessed abuse and for those who are victims of domestic violence. Research suggests that a number of adults who witnessed domestic violence as children are perpetrators of violence against their partners. It is also thought that the current economic climate could have the effect of increasing acts of domestic violence in households that are struggling to make ends meet. Does the Minister agree that more attention should be given to identifying those who are most vulnerable and dealing with this disturbing trend?

Human trafficking is also an issue that is of great concern to me. I have raised it on a number of occasions in your Lordships’ House. I believe that this immoral practice is the equivalent of modern-day slavery. I am proud that the United Kingdom has ratified the Convention on Action against Trafficking in Human Beings. Women tend to be the main targets of the predatory gangs who engage in this immoral trade. What plans do the Government have to ensure that victims of human trafficking are given adequate support to rebuild their lives?

As a former visiting lecturer, I value the importance of education in giving people greater opportunities. Women have historically been deprived of chances to gain access to further education, and this has contributed to further inequality in the workplace. I am pleased to note that there has been a marked rise in the number of young women who are entering higher education in Britain. Last week, I was asked by the high commissioner of Bangladesh to present awards to British Bangladeshi school leavers who had attained very good results, and I was pleased to note that more girls than boys had been given the awards. However, these improvements are not reflected in the poorer parts of the world. It is imperative that we focus on regions and countries that have lacked progress and do all we can to educate and empower women in these places.

I care about the well-being of women, and I have spoken in your Lordships’ House on issues relating to female genital mutilation and forced marriages. Eighty per cent of cases of forced marriage involve girls. The Government have taken some positive steps on these issues, but it is important that we continue to address them through education and by encouraging the involvement of leaders and members of the communities in which these practices are taking place.

We are also very concerned about the use of rape as a weapon of war, which was debated in your Lordships’ House yesterday. I spoke then, and I shall reiterate a point that I made then. I am pleased that this Government have formed a UK team of 73 experts dedicated to combating and preventing sexual violence in armed conflict.

We should continue to lead by example, encouraging other countries to embrace the empowerment of women in the way that we have and inspiring our women, and indeed men, to continue extending and celebrating the reach and impact women can make in every facet of our lives.

Enterprise and Regulatory Reform Bill

Lord Sheikh Excerpts

Monday 4th March 2013 Lords Chamber

[Baroness Thornton]

My Lords, it was with enormous pleasure and humility that I put my name to this amendment on behalf of these Benches. It is true what the noble Lord, Lord Lester said. In 2009-10, I attended a meeting of hundreds of Dalits and their organisations and found myself completely convinced that there was a gap in the law. Our equality legislation did not cater for this group and it was something that we needed to resolve. That is all that is before us today.

I thank the movers of the amendment and I particularly want to thank the noble Lord, Lord Deben, because I thought his speech was extraordinary. All we want and all that we need to do is to add “caste” to,

“colour, nationality or ethnic or national origins”,

under the race characteristic of the equality legislation. It is not actually a very big thing to do, but it is a very important thing that we have to do today.

[Lord Sheikh]

My Lords, I am grateful for the opportunity to contribute to the debate and thankful to the Government for introducing this Bill, which will support British businesses in cutting unnecessary costs and red tape, boost consumer confidence and help to create more jobs.

I wanted to speak briefly on the amendment of the noble and right reverend Lord, Lord Harries, relating to the inclusion of caste when considering cases of discrimination. This is not a new debate; indeed, when the Equality Act was published in 2010, a specific provision was included to allow for caste to be added as an aspect of race at a later date. Later that year, the National Institute of Economic and Social Research undertook an extensive government-commissioned study into the prevalence and severity of caste discrimination in the United Kingdom and concluded that it does in fact occur in many of the areas covered by the Equality Act, such as education and the workplace. That led me to conclude that government action is indeed required as a matter of some urgency.

As a man with Indian ancestry, I am all too aware of the deep-rooted prejudice and unfair treatment that results from allowing the caste-based system to persevere. The Minister may be aware of the religious concept of untouchability, whereby certain individuals are declared untouchables due to their perceived association with impurity and pollution. As a result, they are ostracised and isolated from the rest of society in order to protect and preserve the quality of the majority.

In particular, across much of south Asia, the Dalit community has suffered greatly from this deep, ingrained form of discrimination. Dalits are a community considered so lowly in the social hierarchy that in some circles they are in fact excluded from the caste system altogether and completely segregated by social customs.

Historically, in countries such as India, Dalits have also been physically separated from the rest of society, housed outside the main villages and entitled to perform only the most menial of jobs. This horrendous social mentality still prevails in some rural communities, although thankfully it is becoming less common. Today, the Indian constitution outlaws discrimination based on caste and provides for the reservation of seats in the House of the People and the states’ legislative assemblies for those who have been historically disadvantaged due to the caste system. There are also programmes to promote and provide educational and employment opportunities for those such as Dalits. Many people in this country will be completely unaware of the existence of such a caste system and its history in suppressing minorities here. This is why it is particularly important that we acknowledge the potential extent of the problem in the United Kingdom.

I was instinctively drawn to support this amendment. Following further reading and a highly reassuring discussion with the Minister this morning, I am now very much aware of how seriously the Government are taking this matter. They have been very clear that nobody should suffer prejudice because of their caste, and as such have developed the Talk for a Change programme to work with the communities affected by this discrimination. As with so many of the most deep-rooted cultural ills, education and awareness is the key to prevention and this is exactly the approach this programme will take. I also appreciate that there will be a political focus on the Hindu and Sikh communities where the problem is most prevalent. Such assertive action is extremely welcome and is necessary both in the name of protecting vulnerable individuals and in maintaining our reputation as a country that embraces progressive and tolerant attitudes.

The Government have also been clear that they have no plans to remove the provision contained within the Equality Act which allows for caste to be included at a later date. This again reassures me that they are maintaining a flexible approach to tackling this problem and were we to enforce the type of legislation called for in this amendment we would simply be pushing against an open door.

We must realise that, as a nation which has so proudly and successfully championed the fusion of a diverse range of minority communities with modern-day Britain, we have inevitable responsibilities. These responsibilities should be seen as challenges to relish; ways in which we can assist our new communities and help them to integrate better into what many see as the mainstream of British life.

Our Prime Minister has made the point that Britain is open for business, and I believe that furthering our commitment to fairness and equality in our boardrooms, offices and factories can only serve to make us an even more attractive nation to do business with. I believe that the Government share this sentiment and I look forward to following the progress of the Talk for a Change programme.

If a Division is called, I shall certainly vote not-content.

[Baroness Stowell of Beeston]

My Lords, I am grateful to all noble Lords who have contributed to this very important debate. Let me start by being absolutely clear: the Government recognise that there is some evidence of caste prejudice and discrimination taking place in the United Kingdom. Such behaviour is wrong; no one should suffer prejudice or discrimination, whether because of caste or any personal characteristic, and it should not be condoned whether or not it is prohibited by legislation.

Before I go any further, I should like to pay tribute to the work of those who have campaigned so hard on behalf of victims of caste prejudice and discrimination, particularly the noble Lord, Lord Avebury, and the noble and right reverend Lord, Lord Harries of Pentregarth. I think they underestimate what they have achieved through their efforts over the last few years. Their commitment has already achieved a great deal in highlighting the problem and in ensuring consideration of this issue.

As noble Lords closely involved in this campaign know, the Government were already reviewing the NIESR report that has been referred to before my noble friend Lord Avebury tabled his amendment to this Bill at the end of last year. However, a decision by the Government as to what action they would take had not emerged at that stage. During debate in Committee, I undertook that the Government would reach a decision which would be announced before today’s Report. In the light of the strong arguments in Committee, I also undertook to ask the relevant departmental Minister, my honourable friend Helen Grant, to meet representatives from all the major pro-legislation caste organisations. That meeting took place earlier in February and my noble friends Lord Avebury and Lady Northover and the noble Baroness, Lady Thornton, were all able to attend. Though I was not able to be present myself because I was required on other business in this House, I met Helen Grant beforehand to relay personally the details of our previous debate. She has since given me a comprehensive read-out of the discussions.

Welfare Reform Bill

Lord Sheikh Excerpts

Tuesday 13th September 2011 Lords Chamber

[Lord Sheikh]

My Lords, this Bill is one of the boldest attempts to repair and restructure a welfare system that has essentially failed taxpayers and jobseekers. Welfare reform is an important plank of this Government’s programme. The current system has resulted in welfare provision that is not always distributed to the recipients who are most in need. It is also a system that favours reluctance among some people to work rather than to seek employment. That system is simply not sustainable.

The centrepiece of this Bill is the universal credit award. It has been reported that the universal credit has the potential to lift more than 350,000 children and 500,000 adults out of poverty. In streamlining the current system, the universal credit will provide clarity and accountability as opposed to the multifaceted approach. A simplified system will make a valuable contribution towards the fight against benefit fraud. It has been estimated that this type of fraud costs the taxpayer £1.5 billion per year.

I welcome the clearly defined boundaries within Part 1 of the Bill, as it details the sanctions that will be put in place if claimants fail to comply with the requirements of the universal credit award. I support the Government's efforts to tackle the current situation surrounding housing benefit, which has seen claims rise by £10 billion over the past 10 years. A move towards an annual uprating in line with the consumer prices index will contribute towards greater stability in rents. It has been estimated that the change will generate savings of approximately £300 million a year. The current system unintentionally allows a number of registered social landlords to encourage welfare dependency among clients for their own financial gain.

It can be argued that the most significant aspect of the universal credit is its potential to encourage unemployed people to find work while ensuring that they are not left out of pocket by doing so. Much debate has focused on the conditionality to be introduced with universal credit, requiring claimants to look for work with appropriate sanctions. As an employer and chairman of companies, I feel that we need to encourage people to work. People should work principally for two reasons: first, to earn a living and, secondly, to obtain job satisfaction. I shall therefore concentrate on matters relating to work.

Our welfare system should align incentives to ensure that those who demonstrate a willingness to work are not less well off than those who resist opportunities to earn. It is a tragedy that nearly 5 million people of working age in the United Kingdom are on out-of-work benefits, with almost 1.5 million having received them for more than 10 years.

We have one of the largest workless populations in Europe, and just under 2 million children living in households with nobody working. The current system penalises people for looking for work. The majority of people on benefits do not wish to be recipients for the remainder of their lives, but we need to consider carefully the process of transition so that they are not penalised in the interim period.

The most effective mechanism for relieving poverty is work. Work is good for people's mental health, their physical health and their general well-being. These benefits have been demonstrated repeatedly. Dependency is not liberating; it constrains people and prevents them achieving their ambitions. People have become trapped in our welfare system and they need to be freed.

This Government have shown their commitment to helping individuals find long-term employment through the work programme. Approximately 2 million children are living in households where those of working age are unemployed. Unemployment and a heavy reliance on benefits have devastating effects on our economy and our wider society. These adverse effects often include high levels of personal debt, anti-social behaviour and solvent abuse. The current system fosters a dangerous culture of dependency and lethargy.

The Department for Work and Pensions has estimated that the reforms proposed by the Bill could reduce by 300,000 the number of households where those of working age are unemployed. It is also thought that the changes could improve the net incomes of 700,000 of the country's lowest paid workers, as they will be able to keep a greater portion of their earnings. The Bill encourages social mobility while tackling the causes and effects of poverty and unemployment.

I turn to the new sanctions regime in the Bill. I welcome the fact that all those claiming benefits will have to sign a claimant contract, including a pledge to turn up for appointments and interviews and take up reasonable offers of work. By introducing more appropriate financial sanctions, the new regime will provide the necessary spur to the minority of claimants who fail to comply.

The provisions in the Bill encourage social mobility while tackling the causes and effects of poverty and unemployment. These elements suggest that there will be wider gains to the British economy. The Bill raises questions not of political allegiances, but of fairness. I welcome the Bill and the Government's resolve to get this right.

Poverty

Lord Sheikh Excerpts

Tuesday 15th June 2010 Lords Chamber

[Lord Sheikh]

My Lords, I thank the noble Lord, Lord Kirkwood of Kirkhope, for securing this important debate. Previous Governments have tried to tackle this issue with the best of intentions. However, the complexity and scope of this problem have often meant that past strategies have not been successful in addressing this matter. I intend to focus my contribution primarily on poverty among children and the present condition of adult poverty. I care about issues relating to poverty, and the charity which I chair and totally fund provides help and assistance wherever it can.

I welcome the Government’s pledge to maintain the goal of ending child poverty in the UK by 2020, as stated in the coalition agreement. It is widely believed that children often inherit poverty from their parents. Therefore, adult poverty and its causes are of equal importance in successfully addressing child poverty. At present, 5 million adults are illiterate and 17 million struggle with basic literacy. A significant number are parents to some of the poorest children in our communities. Children and young people who live in households where adults do not engage in any form of employment are not only the most deprived in our society but are most likely to follow the same path once they leave full-time compulsory education. The generational cycle of unemployment is a key factor in the rising levels of welfare dependency and poverty in our communities. A significant number of these parents who are in employment are typically in receipt of low incomes. The incomes of the poorest 20 per cent of families have consistently fallen every year since 2004. This situation has contributed to the rising level of deprivation in our society and, most unfortunately, it has removed the incentive for those on low incomes to remain in employment.

Poverty is a complex issue. A multifaceted approach to tackling this problem is necessary, as divergent components add to this injustice. I welcome the Government’s increased emphasis on how the merits of localism can bring about the change that is so desperately needed in our communities. Local authorities, agencies and community groups have the potential to play a vital role in ensuring that individuals and the most vulnerable members of society receive the support that they need. It is only fair that such initiatives should have access to adequate training and resources to enable them to continue to fulfil these duties.

Greater emphasis is required on tackling poverty among the ethnic minority communities. For example, levels of child poverty are higher among the black and Asian communities, at 31 per cent and 42 per cent respectively, compared with their white counterparts, among whom the level stands at 20 per cent.

There is a link between family breakdown and child poverty. Research suggests that children from separated families are 75 per cent more likely to fail academically, 70 per cent more likely to engage in drug abuse and 35 per cent more likely to experience long-term unemployment and to become reliant on state benefits. Does the Minister agree that recognising this pattern may result in reducing the number of children who live in poverty?

Research has proved that child poverty is less likely to be a factor in households where one or both parents engage in some sort of paid employment. It is therefore in the best interests of our young people for the Government to create an effective strategy to support families with children and to identify those who are at risk of losing their jobs. The State of the Nation Report reveals that 1.4 million people have been in receipt of out-of-work benefits for the overwhelming majority of the past 10 years. These figures are compounded by research from the Office for National Statistics that shows a rise in the number of unemployed people by 53,000. That suggests that the number of jobless people is at its highest since 1994.

I strongly welcome plans for the welfare reform Bill as announced in Her Majesty’s gracious Speech, with the intention of simplifying the benefits system in order to improve incentives to work. As an employer, I support proposals to provide work incentives and to get 5 million-plus people into work and out of poverty. Poverty among individuals of working age now stands at its highest level since 1961. I also await the findings of the independent review on poverty in the United Kingdom, which are scheduled for release before the end of this year.

It is worth touching briefly on some of the challenges that face our ageing population. Pensioner poverty is most prevalent among female pensioners. I welcome the 30-year rule relating to the qualifying period for the full state pension, which now applies to both genders. This will help to alleviate poverty among women, who generally live longer than men.

Studies by the Leonard Cheshire Disability charity reveal that disabled people are twice as likely to live in poverty as able-bodied individuals. I am confident that noble Lords will all agree that this is a shocking revelation. We have a moral duty to ensure that disabled people have access to a decent standard of living. I should be grateful if the Minister could tell your Lordships what steps the Government will take to address this unacceptable trend.

We are one of the wealthiest and most powerful nations in the world. We can boast membership of the G7 and G8, and also a seat on the United Nations Security Council. Despite these accolades, too many of our citizens are living in poverty. Successfully ending poverty in all areas of society is one of the biggest challenges facing us today. I am particularly concerned about lifting children out of poverty, as the future success of this country is in their hands. Young people who are poor often have low self-esteem, which can lead to a number of undesirable outcomes, including alcohol and narcotic abuse. We cannot afford to waste the potential of our young people. The poorest children are at a competitive disadvantage, especially in education. We need to adopt a bold approach in addressing this inequality. We have both a civic and an economic duty to deal with the prevalence of poverty in our society, and the Government’s proposals to address this matter effectively are indeed encouraging.