Households Below Average Income: Statistics Release
Mel Stride Excerpts(8 months ago)
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The Secretary of State for Work and Pensions (Mel Stride)
The Department for Work and Pensions has today published its annual statistics on incomes and living standards covering 2022-23. This includes Households Below Average Income, which contains estimates of household incomes and a range of low-income indicators for 2022-23, derived from the family resources survey. Further publications in today’s release are: “Income Dynamics”, “Pensioners’ Income Series”, “Children in Low Income Families”, “Improving Lives Indicators”, “Separated Families Statistics” and the family resources survey. These publications cover the four statutory measures of child poverty required to be published by DWP under the 2010 Child Poverty Act.
In 2022-23 the war in Ukraine and global supply chain challenges led to unexpected and high rates of inflation, which averaged 10% over the year. This outstripped growth in wages and occupational pensions, as well as benefits, which were increased by 3.1% in 2022-23, in line with the rate of consumer price inflation in September 2021, as is standard practice. As a result, there was upward pressure on poverty.
In response to these pressures, the Government provided an unprecedented cost of living support package worth £96 billion over 2022-23 and 2023-24, including £20 billion for two rounds of cost of living payments for over 8 million households on eligible means-tested benefits, over 6 million people on eligible disability benefits and over 8 million pensioner households. This support helped to shield households from the impact of inflation. Analysis today shows that the Government cost of living support prevented 1.3 million people from falling into absolute poverty after housing costs in 2022-23. That includes 300,000 children, 600,000 working-age adults and 400,000 pensioners.
This Government have overseen significant falls in absolute poverty since 2009-10, underpinned by increases in labour market participation, with 4.1 million more people currently in employment, and sustained increases to the national living wage. In 2022-23, there were 1.1 million fewer people in absolute low income after housing costs compared to 2009-10, with the rate falling by 3 percentage points. This includes 100,000 fewer children, 700,000 fewer working age adults and 200,000 fewer pensioners.
In the context of global energy price rises, the war in Ukraine and surge in inflation, between 2021-22 and 2022-23 median incomes fell slightly, and there were increases in the number of children in absolute poverty after housing costs and, to a lesser extent, for working-age adults. Absolute poverty rates for pensioners after housing costs remained stable.
Since the period covered by these statistics, the economy has turned a corner. Inflation has more than halved and is forecast to fall below 2% in 2024-25. Wages are rising in real terms. Together with our cuts in national insurance, this means more money in people’s pockets.
As inflation comes down to target, we are continuing to provide extra support to those who need it most, with the extension of the household support fund in England for a further six months to help vulnerable families with the cost of essentials. Following the Government’s uprating of benefits and pensions by 10.1% in 2023-24, from April benefits will also increase by 6.7%, while the basic and new state pensions and the standard minimum guarantee in pension credit will be uprated by 8.5% in line with average weekly earnings. This delivers on our manifesto commitment to honour the triple lock for state pensions.
To further support those on low incomes, local housing allowance rates will rise to the 30th percentile of local market rents in April 2024. This will benefit 1.6 million low-income households by around £800 a year on average in 2024-25. In addition, from April, we are further supporting the lowest paid with a 9.8% rise in the national living wage, following the largest ever cash increase last year, which means it will increase to £11.44 per hour.
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Oral Answers to Questions
Mel Stride Excerpts(8 months, 1 week ago)
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Duncan Baker (North Norfolk) (Con)
The Secretary of State for Work and Pensions (Mel Stride)
My Department does a great deal to support the long-term sick and disabled, including through universal credit and its health element, and through the personal independence payment, which is a contribution to the additional costs of sickness and disability.
Duncan Baker
My constituent Jenifer Picton is currently undergoing extensive treatment for cancer and is consequently unable to work. I wish Ms Picton all the very best with her treatment. She has come to my office, which has helped with universal credit, PIP and the new-style employment and support allowance. She has now managed to get PIP, but given that she is seriously ill, why should she have to come to my office for help? Why do we make it so arduous and difficult for people who need treatment to get help?
Mel Stride
I thank my hon. Friend for his question and the typical assiduity with which he takes up his constituency case. May I send my best wishes, and I am sure those of the whole House, to Ms Picton? I am happy to meet him to discuss in more detail the circumstances that he has described.
Marsha De Cordova (Battersea) (Lab)
Data in responses to my written questions on PIP appeals shows that more than 50,000 ill or disabled people had their appeals upheld at tribunal without the need for new evidence. Given that the UK Government will be examined today by the UN Committee on the Rights of Persons with Disabilities following its 2016 special inquiry that found that the threshold had been met for grave and systematic violations, is it not time to replace the flawed and outdated PIP system with a framework that is fit for purpose?
Mel Stride
Of course, we always keep all benefits under review at the Department, including PIP and the assessment processes. As the hon. Lady points out, there is rightly an appeals process for those who are not happy with the conclusions of those assessments. We keep those under review, and I can reassure her that they represent a relatively small proportion of the total number of applications.
Chi Onwurah (Newcastle upon Tyne Central) (Lab)
Gordon Henderson (Sittingbourne and Sheppey) (Con)
The Secretary of State for Work and Pensions (Mel Stride)
Jobcentre Plus provides a variety of different support to encourage and support people into work, including training and one-to-one, face-to-face counselling by work coaches.
Gordon Henderson
In February, there were 615 claimants aged 18 to 24 out of work in Sittingbourne and Sheppey. Does my right hon. Friend agree that it is important that schools and businesses work together to ensure that young people have the qualifications and skills they need to progress into work once they finish full-time education?
Mel Stride
I could not agree more with my hon. Friend. It is exactly why we have youth hubs providing advice and support on not just getting into work but other important matters to young people, such as housing, their health and debt management.
Emma Hardy (Kingston upon Hull West and Hessle) (Lab)
I was talking to the Royal National Institute of Blind People, which represents the blind and partially sighted. It told me of an employee who said,
“I am newly employed and I am unable to fulfil my role. It has been extremely stressful and frustrating”,
and this is because of Access to Work. Does the Minister agree that without having Access to Work in place within the first four weeks of someone entering work, it is incredibly difficult for them to maintain that position?
Mel Stride
I am pleased that the hon. Lady raises Access to Work, because it is extremely effective. The grant can be there year in, year out and be up to a maximum of £66,000. Along with other approaches, it has very much led to our meeting our employment goal for disabled people in half the time that we set in 2017—over a million more disabled people were in work by 2022.
Theresa Villiers (Chipping Barnet) (Con)
What are the Government doing to use apprenticeships to help young people engage with the labour market, to tackle levels of economic inactivity and to give them the opportunities they need to get the careers that they want?
Mel Stride
My right hon. Friend raises economic inactivity, which is lower in our country than in the United States, France and Italy. It is below the average of the OECD, the G7 and the European Union. Apprenticeships play a very important part in producing those good figures, though there is of course always more to be done, not least through our approach of engaging extremely closely with employers, both at the national level and through our jobcentres.
Andrew Gwynne (Denton and Reddish) (Lab)
As somebody who has fought really hard over the last four years to overcome the difficulties presented by long covid, I am sure that the Secretary of State will appreciate that a significant number of the people not in work because of health conditions will have some form of post-viral fatigue linked to long covid. What assessment has he made of the effect of long covid on the workforce, and what is he doing to help people who have it get back to work?
Mel Stride
The hon. Gentleman specifically raises long covid, which is one of many health pressures in our society and post covid in many other countries that were also affected by the virus. We have a number of approaches, including universal support, which places people in employment and gives them critical support for up to 12 months. We also have WorkWell, and we are looking at occupational health and what tax incentives we might put in place to encourage employers to do more on that front. We are doing a great deal.
Alison McGovern (Wirral South) (Lab)
Arguably, the biggest barrier to growth in the UK and to turning around the Prime Minister’s recession is the supply of labour. Following the Chancellor’s “Back to work Budget” in the autumn and all the measures unveiled since then, some of which the Secretary of State has just reeled off, did the Office for Budget Responsibility upgrade or downgrade its forecast on employment growth in the Budget 12 days ago?
Mel Stride
One of the most important figures in the spring Budget economic and fiscal outlook was a recognition by the OBR that there will be a net 200,000 more people in employment as a consequence of that fiscal event and the one that preceded it in the autumn. What the hon. Lady cannot get away from is that economic inactivity in our country is at a lower level than in every year under the last Labour Government.
Alison McGovern
What the Secretary of State cannot get away from is the fact that, as has already been said, our employment rate has not returned to the post-pandemic level. He cannot answer the question because the truth is that the OBR downgraded its forecast: the unemployment forecast is worse. The reason for that is a truth that the British people have known for a long time now: these Ministers sitting on the Treasury Bench have no idea, no plan for jobs, no plan for growth. They are done; it is time for a general election.
Mel Stride
I have already referred to the 200,000 additional jobs that the OBR suggests in its forecast, but the hon. Lady cannot get away from the fact that we have record levels of payroll employment in our country, and near record low unemployment. Let us contrast that with Labour’s record: it always leaves unemployment higher than when it comes into office. Economic inactivity was higher than it is now in each year of the previous Labour Government, and we had more people in absolute poverty after housing costs under Labour as a direct consequence.
Nigel Mills (Amber Valley) (Con)
The Secretary of State for Work and Pensions (Mel Stride)
We are bringing forward a number of important reforms to our welfare system at pace. Phase 1 of our universal support has already been activated, and phase 2 will be later this year. Next month we will announce 15 WorkWell areas—about a third of England—that have been successfully selected, and will be rolled out live this autumn.
Nigel Mills
I thank the Secretary of State for listing all those reforms. The data is clear that after 13 weeks out of work, the chances of someone finding work starts to fall off rapidly. Therefore, there is a need for more intensive and tailored support. Could he update the House on the additional jobcentre support roll-out, and when my constituents might get access to those benefits?
Mel Stride
We are keen to do that. AJS, to which my hon. Friend refers, has been rolled out in parts of the country at six weeks, but shortly will be extended and strengthened for two weeks at the 13-week stage of the unemployment journey. That is part of the more intensive conditions that we apply to ensure that we help—and in many circumstances, require—people to go back into work.
Tim Farron (Westmorland and Lonsdale) (LD)
Some of the poorest people I know in my constituency work for themselves. Hill farmers have seen a 41% drop in their income over the last four years. The welfare system does not work for them, because they are paid less than the minimum wage. Access to universal credit is less for them, because of the minimum income floor. Will the Secretary of State urgently look at that, so that small business owners—especially hill farmers in my constituency —are not made even poorer because of the Government’s rules?
Mel Stride
The hon. Gentleman is right inasmuch as universal credit for the self-employed has to recognise the fact that sometimes there are inconsistent levels of income month to month. That is why we have a minimum income floor and the arrangements around that. I know he has a rural, agricultural constituency; I recognise some of those issues, and I am looking closely at them.
Margaret Greenwood (Wirral West) (Lab)
Gen Kitchen (Wellingborough) (Lab)
The Secretary of State for Work and Pensions (Mel Stride)
Food banks are independent organisations, with DWP having no direct role in their operation. We do, however, monitor the use of food banks through the family resources survey, and the next instalment of that will be later this month.
Mr Sharma
Nearly 50,000 people needed help from Ealing Foodbank last year. Some 38% of them were children under 16. It is amazing that the food bank and its volunteers are there to help, but it is a national shame that it is needed. What are the Government’s plans to reduce dependence on food banks?
Mel Stride
This is the Government who have overseen a 400,000 reduction in the number of children in absolute poverty since 2010. Despite the chuntering from the Opposition Front Bench, unfortunately the figures were far worse under the last Labour Government than they may be at the moment. The hon. Gentleman asks directly what we are doing. We are again putting up the national living wage by substantially more than inflation this April. The Chancellor has already brought in national insurance cuts that will be worth £900 to the average earner. Benefits themselves are going up by 6.7% next month. We have also changed the arrangements for local housing allowance, which means that 1.6 million people, many of whom are on very low incomes, will be better off by an average of £800 a year.
Gen Kitchen
While on the campaign trail, I met the Daylight Centre and SERVE Rushden. Both have seen their service users increase in number, even with the extension of the household support fund, which they both welcome. What can the Secretary of State do to expand the eligibility of the fund, improve uptake and increase the value of the healthy start payment?
Mel Stride
May I welcome the hon. Lady to her place? In answer to her question, I will simply point out that there was much speculation before the spring Budget about whether the housing support fund was going to be extended. In my opinion, the Chancellor took exactly the right approach, and the fund has now been extended for a further six months.
Mel Stride
The most important thing is that this Government recognise that the best way out of poverty, and the best way to address the circumstances that the hon. Lady describes, is through work. That is why the Chancellor reduced taxation, making work pay ever more, and why the national living wage is to be increased by close to 10% this April, following a similar increase around this time last year. Benefits are going up by 6.7% and increased by 10.1% this time last year. I have already mentioned local housing allowance, and of course we have now had eight consecutive months of real wage growth as inflation has fallen.
Peter Gibson (Darlington) (Con)
Hywel Williams (Arfon) (PC)
The Secretary of State for Work and Pensions (Mel Stride)
We are bearing down on poverty, not least by incentivising work within the benefit system. As the hon. Gentleman will know, we have reduced the universal credit taper, for example, which has led to a record level of payroll employment and near record low unemployment.
Hywel Williams
I commissioned a poverty report for the Arfon constituency from the highly respected Bevan Foundation—copies are available online in Welsh and English. One finding is that, of the people receiving both universal credit and housing benefit in Arfon, 35% are paying the bedroom tax, compared with 21% across Wales. This is cushioned to some extent by the Gwynedd local authority’s discretionary help, but will the Minister review the differential negative effects of the bedroom tax between communities, particularly those with a diminished housing stock because of, for example, high levels of holiday homes?
Mel Stride
I thank the hon. Gentleman for referring to that report, which I will look at with interest. Of course, there is no such thing as a bedroom tax, as it is not a tax at all; it is a spare room subsidy. It is there for very good reason: to free up additional space for those who need it. On the housing front, as I said earlier, local housing allowance has been improved such that 1.6 million people on low incomes in the private rented sector will be, on average, £800 a year better off come April.
Virginia Crosbie (Ynys Môn) (Con)
One of the best ways to tackle poverty in rural areas such as Ynys Môn is through jobs fairs. Will the Secretary of State join me in thanking Alwen Gardiner and my brilliant Ynys Môn DWP team for organising an excellent tourism and hospitality jobs fair, which was attended by over 150 jobseekers in Llangefni and companies such as Tredici Butchers & Deli in Beaumaris, and the Breeze Hill in Benllech? Diolch yn fawr.
Mel Stride
I thank my hon. Friend for drawing attention to her jobs fair. She is a local dynamo in standing up for her constituents. When I arrived there recently thinking I was very special to support yet another jobs fair—a disability jobs fair—I was quickly reminded of the fact that I was the 32nd Minister to have been to her constituency in, I think, the past 12 months.
Jane Hunt (Loughborough) (Con)
Gavin Newlands (Paisley and Renfrewshire North) (SNP)
The Secretary of State for Work and Pensions (Mel Stride)
We are reducing child poverty through the use of a large number of measures, not least ensuring that work pays, hence our increase in the national living wage in April and the reduction in the national insurance tax that my right hon. Friend the Chancellor announced recently.
Stuart C. McDonald
A total of 100,000 children will be kept clear of poverty this year thanks to the Scottish Government’s policies—primarily the Scottish child payment. Surely the Secretary of State must now look to rolling out some of our policies in other parts of the UK and, at the very least, ditch the two-child limit, which deliberately forces children into poverty.
Mel Stride
The limit to which the hon. Gentleman refers is there for a very good reason, which is that people in those circumstances should face the same basic decisions as those not on benefits. That is an important matter of fairness across those who receive benefits as well as the many who are paying tax. As for the number of children in poverty, that has fallen by 400,000 since 2010.
Gavin Newlands
Many of those people are in work, Secretary of State. Some £14 million has been paid to more than 10,000 children’s families in Renfrewshire thanks to the widely praised Scottish child payment. Praise has come from the Institute for Public Policy Research Scotland, which says that the Scottish Government are making employment for parents central to their child poverty strategy, but it says that devolved employment support programmes are
“held back by responsibility being split across governments and a reserved Jobcentre system which is more often focused on compliance than helping people reach their full potential.”
It recommends the full devolution of employment support to tackle child poverty. Will the Secretary of State listen to the experts?
Mel Stride
I am always very interested in listening to the hon. Gentleman and any ideas that he has about how we should improve our welfare system, but I point to the fact that this country has seen a considerable drop in absolute child poverty, after housing costs, of 400,000 since 2010.
Richard Graham (Gloucester) (Con)
What correlation does the Secretary of State see between children in poverty and workless families? Given that there is no age restriction on most apprenticeships, and today’s announcement that there will be 20,000 more apprenticeships and that the apprenticeship levy can be spent on greater numbers of contractors and sub-contractors, what opportunities does he see for his Department to highlight those opportunities for people who are of working age and who may have children in poverty?
Mel Stride
My hon. Friend refers to workless households. He is absolutely right about the correlation: a child is five time more likely to be in poverty if they are growing up in a workless household. He was right to draw attention to the announcement that has been made today about even greater investment in apprenticeships, and also the change in the way that the apprenticeship levy works so that supply chains can benefit to a greater degree.
Sir David Davis (Haltemprice and Howden) (Con)
The Secretary of State for Work and Pensions (Mel Stride)
May I join the House in saying happy birthday to the Minister for Employment, my hon. Friend the Member for Bury St Edmunds (Jo Churchill)? It should be a national holiday as far as I am concerned—perhaps that is an idea for a private Member’s Bill, or something similar.
I am pleased that, since the last questions, we have published our review into autism employment, and I place on record my thanks to my right hon. and learned Friend the Member for South Swindon (Sir Robert Buckland) who did such excellent work in bringing that useful report forward.
Looking forward from April, we will see benefits generally rising by 6.7%, the state pension by 8.5%, the national living wage by around 10%, and the next tranche of the household support fund being brought forward. As I have already set out, our plan is working. It means more employment, historically low unemployment and an economic inactivity rate below countries such as the United States, France and Italy.
Sir David Davis
The economic inactivity rate is now very high, with 2.8 million people citing long-term sickness as a reason. Some 17 million days of work are lost, at a cost of £13 billion to the economy. Has the Secretary of State seen the Policy Exchange report published today, with policy proposals backed by two of his predecessors, David Blunkett and my right hon. Friend the Member for Norwich North (Chloe Smith)? What steps are the Government taking to improve the provision of workplace health services through occupational health pathways and vocational rehabilitation, and will he consider the 15 proposals in the Policy Exchange report?
Mel Stride
I will of course look closely at the report that my right hon. Friend refers to; indeed, I reached out to him recently to invite him to the Department to discuss that and other matters. With regard to long-term sickness and disability, we are working on an array of interventions, including occupational health support within businesses; WorkWell, bringing together medical interventions with work coaches; universal support to help people into work, and to stay in work with that support; and fundamental reform of the work capability assessment, such that the OBR says that 371,000 fewer people will go on to those benefits going forward.
Liz Kendall (Leicester West) (Lab)
In the Budget, the Chancellor said that he wants to end national insurance contributions because the
“double taxation of work is unfair.”—[Official Report, 6 March 2024; Vol. 746, c. 851.]
People’s NICs records help to determine their entitlement to the state pension, so if national insurance is scrapped how will they know what pension they will get?
Mel Stride
I am not surprised that the hon. Lady brings that up, because I am well aware of the position that her party has taken on the announcements that we have made. She will be clear in her own mind that the Chancellor has not guaranteed that we will reduce at one stroke national insurance contributions; it is an aspiration that has been spoken about as occurring over a number of years, if not Parliaments, so the problems that she is conjuring up to frighten pensioners are nothing short of political scaremongering.
Liz Kendall
The Secretary of State can bluster and deny all he likes, but the Prime Minister told The Sunday Times:
“We want to end this double taxation on work”.
It is there in black and white, so let me try again. How will people’s pension entitlement be determined if NICs are scrapped, and if the Government are going to merge NICs with income tax what will that mean for pensioners’ tax bills? Is the truth not that their unfunded £46 billion plan to scrap NICs is yet more chaos from the Conservatives, and Britain’s pensioners deserve so much better?
Mel Stride
The hon. Lady quoted from The Sunday Times, and I scribbled it down:
“We want to end this double taxation”.
Of course we do, but that is not the same as a near-term pledge; it is a longer-term aspiration—[Interruption.] We have been quite upfront, quite unlike—[Interruption.] If she would care to hear me out, it is quite unlike the £28 billion firm commitment that her party made, and subsequently U-turned on, which was nothing short of fiscally reckless, and would have led to increases in interest rates, inflation, unemployment, and so on.
Henry Smith (Crawley) (Con)
Kirsty Blackman (Aberdeen North) (SNP)
The Resolution Foundation highlights that scrapping the two-child limit would be one of the most efficient ways to drive down child poverty rates, and would lift 490,000 children out of poverty overnight. Surely one child growing up in poverty is one child too many. The Secretary of State should reverse course on this, and the Labour party should also commit to scrapping the two-child limit. Does the Secretary of State agree that no child should grow up in poverty, and will he take action to ensure that that stops now?
Mel Stride
The hon. Lady raises the same point as her colleague, the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald), about the two-child limit. I will not detain the House by repeating exactly the same answer, other than to agree passionately with her that one child in poverty is one too many, and to say that, although we have further to go, it is important to recognise that we have reduced the number of children in absolute poverty, after housing costs, by 400,000 since 2010.
Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (Con)
Mrs Sheryll Murray (South East Cornwall) (Con)
Mel Stride
I thank my hon. Friend and near neighbour for her question—I know that she cares deeply about the issue that she has raised. We work closely with other Departments. For example, we work with the Department of Health and Social Care on NHS talking therapies, of which we have announced 400,000 more over the next five years, as well as on WorkWell, which I have mentioned, and on fit note reform. With the Department for Levelling Up, Housing and Communities, we are working closely on housing—I have spoken about the local housing allowance changes coming through—and with the Department for Education we are working on SWAPs, and on training and apprenticeships.
Grahame Morris (Easington) (Lab)
Schools, general practitioners, social services, charities and housing associations can all refer their clients to a food bank in an emergency, yet this Government, who are responsible for benefit sanctions, have ordered DWP staff to stop referring claimants to food banks. How can Ministers justify this decision to the families of the 4,027 children living in poverty in my east Durham constituency?
Gordon Henderson (Sittingbourne and Sheppey) (Con)
Mel Stride
I thank my hon. Friend for raising this matter. I obviously cannot comment on an individual case. However, I am very happy to look closely into the matter he has raised, and either I or a relevant Minister will be happy to meet him.
Andrew Bridgen (North West Leicestershire) (Ind)
The number of the long-term sick has risen from 2.1 million pre-pandemic to 2.8 million today. This huge increase started in spring 2021, at the same time as the roll-out of the experimental, emergency-use vaccines—or does the Secretary of State have an alternative explanation for the unprecedented rise in long-term sickness in the UK since spring 2021?
Mel Stride
Among the major drivers of the increase to which the hon. Gentleman refers are mental health issues and musculoskeletal issues. I am not entirely sure that he is accurate when he says that the upward trajectory in the number occurred just as vaccination occurred—I think it predated that moment—and I certainly do not subscribe to the view that vaccination is in any way unsafe.
Neil O’Brien (Harborough) (Con)
Mike Amesbury (Weaver Vale) (Lab)
The last Labour Government lifted 1 million children out of poverty. After 14 years of Tory Government, we have 1 million children in destitution. What has gone wrong?
Mel Stride
I have to take issue with the hon. Gentleman. He needs to look more closely at his party’s record in government. Fact No. 1 is that the Labour party always leaves office with higher unemployment. Fact No. 2 is that economic inactivity in our country is lower than in any year in his party’s time in office. Fact No. 3 is that absolute poverty has declined in our country since his party was in office. Fact No. 4 is that there were more children in workless households on his watch than there are on ours. Perhaps most tellingly of all, during his party’s time in office, over 1 million people languished on long-term benefits for almost a decade. That is a disgraceful record.
Bob Blackman (Harrow East) (Con)
Budget Resolutions
Mel Stride Excerpts(8 months, 2 weeks ago)
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The Secretary of State for Work and Pensions (Mel Stride)
Thank you, Madam Deputy Speaker. The right hon. Lady commenced her remarks by saying much about where Labour is on tax. She criticised the aspiration that the Government rightly have to abolish national insurance at some point in the future. She rather disingenuously repositioned that as a firm commitment, rather than an aspiration, but let us set that to one side.
The right hon. Lady knows all about firm commitments, because we had a firm commitment from her to £28 billion- worth of spending every year over the forecast period. That did not survive contact with reality. Indeed, she has little to say that is original. When she writes about economics, she has to cut and paste from Wikipedia. When she trumpeted her ruinous £28 billion spending plan, she ultimately had to U-turn and run for the hills. For this shadow Chancellor, when it is not cut and paste, it is cut and run. [Interruption.] I thought the right hon. Lady would like that.
The right hon. Lady has also accepted our tax measures as set out in yesterday’s Budget, including the abolition of non-dom status and the windfall tax on oil and gas. She has hypothecated the money raised from those two measures many times over—for the NHS, dentistry, breakfast clubs and so on. Now that she has accepted all the tax measures in the Budget, I invite her to come back to the Dispatch Box; I will give way to her if she will let us know whether she will U-turn again on her spending commitments on the NHS and dentistry, or whether she will put up taxes and borrowing. I would be very happy to hear from her—all right, perhaps not.
Rushanara Ali
When the Secretary of State was Chair of the Treasury Committee, he was keen on Office for Budget Responsibility assessments and forecasts. Indeed, he argued for them, but his then Prime Minister and Chancellor failed to listen to him and crashed the economy. He and his Government want to pursue the aspiration, as he now calls it, of scrapping national insurance contributions altogether, which would cost £48 billion a year. Will he commit to seeking an OBR forecast and assessment of that, and showing how the Government would pay for that?
Mel Stride
Let me talk about the general point that the right hon. Member for Leeds West (Rachel Reeves) made about the tax burden. It is as if history has been erased from her mind. The fact is that the covid pandemic shrank the economy overnight by 10%, and this Government stepped in, supported jobs, and saved 10 million jobs as a result of the intervention that we came forward with. It is as if it has been erased from her memory that a war is going on between Russia and Ukraine, and that that has led to an increase in energy prices and inflation. This Government have stepped in to support the most vulnerable in society, including families, pensioners, and the disabled up and down this country. The Government provided £400 billion of support across that period, and in all candour, I do not believe that there was a single occasion on which she opposed any of our interventions. She was up for spending the money to support people, but not up for recognising that it has to be repaid. That is why the tax burden is indeed increasing.
To go back to the point about the OBR’s economic and fiscal outlook raised by the hon. Member for Bethnal Green and Bow (Rushanara Ali), the OBR makes it clear that the measures taken yesterday in the Budget mean that the tax burden will be lower than was forecast in the autumn, as a result of the management of the economy and the reduction in taxes that my right hon. Friend the Chancellor brought forward.
Lilian Greenwood (Nottingham South) (Lab)
The Secretary of State might not be surprised that Labour Members take it a little unkindly when he suggests that we are forgetting the past, when he seems to have forgotten the immediate past, and the state that the former Prime Minister left the British economy in just a year ago. How much extra debt interest will the Government pay as a result of the Chancellor’s unfunded commitment to abolish national insurance contributions, at a cost of £46 billion?
Mel Stride
It is an entirely disingenuous statement to say that there is any such unfunded commitment. The only unfunded commitment in recent times is the £28 billion that the Labour party came forward with; the Leader of the Opposition called it something along the lines of “absolutely critical”, only for the shadow Chancellor to U-turn on it not long afterwards.
Let me turn to the comments that the right hon. Member for Leeds West made about pensioners. She neglects to point out that we have stood by the triple lock. Since 2010, there have been 200,000 fewer pensioners in absolute poverty after housing costs. That is a result of this Government making the protection of our pensioners a key priority over many years. Among many things that have been erased from her memory, she has forgotten that on her watch, when Gordon Brown was Chancellor, there was the 75p increase in pensions.
Michael Shanks (Rutherglen and Hamilton West) (Lab)
This morning the Chancellor appeared to suggest that income tax and national insurance contributions will be merged as part of his commitment yesterday. As national insurance is not currently levied on some forms of income, will the Secretary of State confirm to the House how much extra tax pensioners will pay as a result of the Chancellor’s policy decisions?
Mel Stride
There is no immediate Government approach to merging income tax and national insurance, and I rather put that in the category of those comments about the apparent commitment of £46 billion, although I think the hon. Member for Bethnal Green and Bow nudged it up in a typical Labour way to £48 billion a moment ago.
Let me turn to the remarks that the right hon. Member for Leeds West made about growth. As she knows, we have had a technical recession of two quarters of negative growth—one of which was the princely amount of 0.1%—and most of the purchasing managers index data makes it clear that the economy is on a very different path. Indeed, to return to the comments of the hon. Member for Bethnal Green and Bow, the OBR makes it clear that over the period of the forecast, there will be reasonable and decent growth—greater than that of France, Italy and Germany. That is on the back of exactly the kind of growth record that this Government have had since 2010.
Sir Stephen Timms (East Ham) (Lab)
On growth, it was the former Prime Minister, when seeking election as leader of her party, who characterised the growth record since 2010 as lamentable. She was surely absolutely right about that particular point.
Mel Stride
My point is that the externalities that I referred to, such as covid and the war between Ukraine and Russia, have impacted economies around the world. Relative to other economies, and looking at the OBR’s forecast over the next five years, we will have a growth record that is up there and better than many of our major competitors, including countries such as Germany.
Matt Western (Warwick and Leamington) (Lab)
To clarify a point that perhaps I have misunderstood, what is the growth per capita record for the last seven quarters?
Mel Stride
My point clearly remains that growth is a function of both the size of the population and the level of productivity. As a consequence of all the elements that feed into growth, the OBR has confirmed that we will be growing a little faster at certain times than was anticipated at the time of the autumn statement, and our growth will compare favourably with countries such as Germany.
This debate is meant to be about making work pay, and the right hon. Member for Leeds West had very little —in fact, next to nothing—to say about that. [Interruption.] As she says from a sedentary position, she mentioned the national living wage—something the Conservative party is proud that it brought into being.
Mel Stride
You are thinking of the national minimum wage. The national living wage was a Conservative decision —[Interruption.] You did, but it is a pleasure to correct you on this occasion—[Interruption.]
Madam Deputy Speaker (Dame Rosie Winterton)
Order. This is the problem with conversations across the Dispatch Box. It is very difficult for the Hansard writers to follow if we veer off into private conversations. It should all come through the Chair.
Mel Stride
I am sorry Madam Deputy Speaker, and I am sorry for Hansard, but it was quite enjoyable. This debate is about making work pay, and the right hon. Member for Leeds West had precious little to say about that. I wonder why that might be. Might it be because unemployment has always gone up under Labour Governments? That is a simple fact for her to think about. It rose by 1 million under the last Labour Government. Youth unemployment rose by 45% under the last Labour Government, and the number of households in which no one had ever worked doubled during the last Labour Government. I find it particularly striking that under Labour 1.4 million people spent almost a decade on out-of-work benefits. Labour should be ashamed of that record of its time in office.
Jim McMahon (Oldham West and Royton) (Lab/Co-op)
The Minister mentions making work pay, but Unison has pointed out that a number of social care workers are being disadvantaged because HMRC mileage rates have not changed since 2010. Does the Treasury not believe that the cost of running a motor vehicle has changed in the last 14 years?
Mel Stride
One of the principal costs of running a motor vehicle is the fuel in the tank. Because of our stewardship of the economy, the Chancellor was able to announce yesterday that we are freezing fuel duty for the 14th year in succession, as well as beer duty, to help those supporting our vital pubs.
Yesterday’s Budget sets the course for a brighter future for our country. It is a Budget for long-term growth, with more investment, more jobs and an economy that is turning the corner. That has allowed us to cut taxes because this Government believe in rewarding aspiration and hard work.
Rushanara Ali
I am incredibly grateful to the Minister for giving way a second time. I remind him that the tax burden has gone up by £27 billion in the last year, and it will go up by £19 billion after the election because of decisions his party made. People who earn less than £19,000 will be worse off because of the Budget. Two decades of lost pay growth—that is the record of his Government over the last 14 years.
Mel Stride
I thought I had already covered this point, but the reality is that the tax burden has had to go up to pay for all the support we provided around covid, and because of the inflationary pressures created by a war on European soil. The hon. Lady cannot get away from the fact that through this fiscal event, and the previous one, 27 million hard-working people, employed in businesses up and down the country, will be better off to the extent of £900 per year. Some 2 million self-employed people will be £650 per year better off. She talks about those earning less than £19,000, but those many millions of people who earn above £19,000 will have a lower tax burden than before, when we take into account the interplay of the freezing of thresholds and the cuts in national insurance.
Stephen Kinnock (Aberavon) (Lab)
It has been widely reported that the taxpayer is having to pick up the tab for £15,000 of legal costs and damages incurred because of the actions of the Secretary of State for Science, Innovation and Technology, the right hon. Member for Chippenham (Michelle Donelan), who is rapidly becoming known as the hon. Member for “chipping in”. Will the Minister confirm that the figure of £15,000 is correct? Will he say whether he thinks it is morally right that the taxpayer should be picking up the bill for the outrageous lack of judgment and behaviour of one of his colleagues?
Mel Stride
What I think will be absolutely outrageous is the taxpayer having to pick up the bill for a future Labour Government. I have just explained the record of the hon. Gentleman’s party in government.
Sir Geoffrey Clifton-Brown (The Cotswolds) (Con)
My right hon. Friend is making a good case for yesterday’s announcements in the Budget. He has dealt very thoroughly with Labour’s record when in office, but will he turn his attention to its present proposals? If Labour will not reverse the tax on non-doms or the cuts to national insurance, does that not leave a whopping £6.5 billion in uncosted expenditure pledges?
Mel Stride
My hon. Friend is absolutely right. At the beginning of my speech, I invited the shadow Chancellor to explain to the House what she will do, given that the non-dom status will be abolished and windfall taxes on oil and gas will come forward. Will she once again U-turn and run for the hills, as she did with the £28 billion, or will she raise taxes or borrowing? Answer came there none.
Karin Smyth (Bristol South) (Lab)
When the Minister has time, he might want to read the shadow Chancellor’s speech in Hansard and help his colleagues who will be speaking later.
May I take him back to the subject of ordinary people? As a result of last year’s mini-Budget, people who remortgage are now paying £240 more—real money for them—than they were previously. If he does not accept that there is a £46 billion hole as a result of yesterday’s announcement, will he tell us what he thinks the figure is? Can he assure people who are remortgaging this year that they will not be further impacted by yesterday’s announcement and that there will not be a further scare on those markets?
Mel Stride
I can reassure all mortgage holders up and down the country that this Government are absolutely determined to see inflation return to its target. The OBR’s economic and fiscal outlook, published yesterday, makes it clear that we will meet the 2% target one year earlier than it forecast in the autumn. The significance of that for interest rates is obvious: interest rates will come down faster if inflation recedes quicker, and that is exactly what has happened.
Alex Cunningham (Stockton North) (Lab)
On that point, will the Minister give way?
Mel Stride
I have been very generous with my time, but how can I say no? I must then make some progress.
Alex Cunningham
The Minister is a decent man. The Government make much of getting value for money, but they have little to say about the handing over of Teesside’s greatest land asset to two private developers, who have since banked tens of millions of pounds in profits, leaving crumbs for the public. That is after the investment of £500 million of taxpayers’ money and no private investment. Is the Minister content with that, or does he believe, as his own Government’s inquiry into the Tees Mayor’s business dealings recommended, that the deal should be renegotiated?
Mel Stride
I will not get into the weeds of the issue that the hon. Gentleman is attempting to draw me into, other than to say that he made at least one comment that I agree with: I am indeed a decent man. I thank him very much for that.
Inflation is falling faster than expected. People’s wages are rising in real terms, and have done for the last seven months. Under this Government, our labour market has been strong and resilient, delivering opportunities despite the headwinds. We have put incentives at the heart of our welfare. We have grown faster than Germany, France or Italy. According to the OBR, we will continue to do so over the next five years. We are attracting the business investment that is key to growth, delivering high- quality jobs across the country—from Nissan to Google to AstraZeneca, which announced £650 million of investment only yesterday.
No matter how much the Labour party seeks to talk down Britain, the investment flowing into our economy is a huge vote of confidence in our country. It shows that our plan is working. By contrast, as has been laid all too bare this afternoon, the Labour party has no plan or credible record. I have already gone through the tale of woe about the level of unemployment that Labour has left us in the past. Those poor young people had a 45% increase in youth employment on the watch of the shadow Chancellor’s party, and over 1 million people were left on out-of-work benefits for almost a decade.
On the Government Benches, we believe that work, not welfare is key to improving living standards. That is why we are incentivising and rewarding work in this Budget. Making work pay and ensuring families are better off means tackling the global inflation that I have referred to, on which we are making significant progress. As inflation decreases, we recognise that there are still some people who need extra help. I was pleased to see the extension of the household support fund for a further six months from April, which was also pushed for by the Chair of the Work and Pensions Committee, the right hon. Member for East Ham (Sir Stephen Timms).
Sir Stephen Timms
The Minister is right that I warmly welcome that extension. Is there not a strong case for making the household support fund permanent, not just extending it for another six months?
Mel Stride
Six months is a meaningful period of time. Inflation is coming down. As the OBR says in its report, inflation is expected to hit target within the next few months, which will make a huge difference. It highlights some uncertainties around that, but £500 million of investment over six months, including Barnett consequentials, is a major move forward to support the most vulnerable.
The sustainable way to change lives is through work, and the evidence could not be clearer. It is good for the economy, communities and the individuals concerned. I want everyone who can work to have the opportunity to do so. One of the great labour market challenges is economic inactivity, and I want to put that into context. In the UK, inactivity has come down since its pandemic peak and remains lower than the average across the G7, the OECD and the European Union. Our progress has seen a significant fall in the number of people who are inactive because of caring responsibilities. We have the second lowest youth inactivity rate in the G7, and thousands of over-50s are returning to work.
However, the rise in the number of people out of work due to ill health and disability is stifling potential—potential that I am determined to realise. That is why, as we cut taxes for working people, our multibillion-pound back to work plan is providing substantial support to help the long-term sick return to work and keep people in the workforce. That includes doubling the number of placements on universal support, expanding access to mental health support, delivering Work Well, giving people earlier and better access to integrated work and health support, reforming fit notes and working with employers to improve occupational health. Through our next generation of welfare reforms, we are breaking down the barriers to work. Our chance to work guarantee will enable people on incapacity benefits to try work without fear of losing their benefits if a job does not work out. As the OBR has confirmed, our reforms to the work capability assessment will reduce the number of people on those benefits by 371,000. That is 371,000 more people getting the support they need to enter employment.
As part of our back to work plan, we are also tackling long-term unemployment, because the longer people stay in unemployment, the less likely they are to rejoin the workforce. That is why we are phasing in more rigorous requirements for fit and able jobseekers, with more time with work coaches, more intensive support and mandatory work placements. Ultimately, if a claimant does not engage with the support they are being offered, they will lose their benefits, underscoring our belief that we should always be there for those who need our support, but we must equally be fair to taxpayers.
By contrast, for all the protestations from the Opposition that they have changed, they are not fooling anybody. They are squeamish on conditionality, weak on sanctions and completely out of touch with the British public, who rightly expect a welfare system in which everyone meets their obligations.
Mel Stride
I am being asked to conclude, so I think I need to do that. [Interruption.] I have been pretty generous in giving way to just about everybody who has sought to catch my eye.
This is a Budget that rewards work and will grow the economy. It comes on the back of a once-in-a-century challenge that this Government have met. We have turned the corner, and this Budget takes us further still. It rewards work with lower taxes, it delivers growth, it makes work pay, and it ensures a brighter future for us all.
Liz Kendall (Leicester West) (Lab)
Thank you, Mr Deputy Speaker. Yesterday, the Conservative Government’s seventh Chancellor gave his second Budget—thankfully, the last before the general election. Ministers have repeatedly claimed that the economy has turned a corner, but they have driven it into a dead end. Our economy is smaller now than when the Prime Minister entered Downing Street. Not only was GDP per person down in every quarter last year, but it will be lower at the end of this year and lower, too, in four of the next five years. In this Parliament, we have had the biggest hit to living standards on record, and we have the highest tax burden for 70 years.
But people in this country do not need statistics to tell them the dire state we are in or that they are paying more but getting less. They see it every day in the higher cost of the weekly shop and in their gas and electricity bills. They see it in higher mortgages and rents and in soaring childcare costs. They see it in their crumbling school buildings and in the 8 am scramble to see their GP.
The argument I want to make today is that one of the central reasons why the Government have failed on the economy is that they have failed on work. For all the claims made by Ministers, the OBR lays bare the scale of their failure and the appalling cost to the British people.
The official unemployment rate is low, but that is not because a record proportion of people are in work. We are the only country in the G7 whose employment rate has not returned to pre-pandemic levels. Yesterday, the Office for Budget Responsibility revealed that our employment rate will be lower by the end of this year than it forecast in November; that the rate will be lower in five years’ time; and that in 2028-29 it will still not be back to where we were before the pandemic. That is the truth of what another five years of the Conservatives will bring.
The reality is that increasing numbers of people are leaving the labour market and not even looking for work. Whatever the Secretary of State says—he repeated it today—the OBR says that economic inactivity is increasing, not declining. It says that economic inactivity is proving more persistent than it previously thought. It is no longer declining from the post-pandemic high and has instead rebounded to a total of 9.3 million people—the highest in over a decade.
Much of the problem is driven by poor health, an issue raised by many hon. Members in this debate. On the Labour side of the House, we know that a healthy nation is critical to a healthy economy and that the Government are failing on both. Some 2.8 million people are now not in work because of long-term sickness—an all-time high. Many of them are over 50: often women struggling with bad hips, knees and other joints, often caring for elderly parents at the same time.
There has been an extremely worrying increase in young people out of work due to mental health problems, with many lacking basic qualifications. As the Centre for Cities has shown, all those problems are far worse in northern towns and cities, which the Conservatives promised to level up, but which have once again borne the brunt of their economic failure. In places such as Blackpool, Blackburn, Middlesbrough and Hull, if we include the hidden unemployed in the figures, it takes the official unemployment rate from 5% to 20%. The Labour party thinks that unacceptable.
The waste of individual potential is appalling, as hundreds of thousands of people who want to work are written off and denied help to get back on their feet. This is a waste for British businesses, which are desperate to recruit and need the talents of everyone in our country to grow and succeed. It is an appalling waste of taxpayers’ money, too. Over the next five years, 600,000 more people will be on sickness and disability benefit, which will cost an extra £33 billion—more than our day-to-day expenditure on defence.
The impact on our economy is profound. Yesterday, the OBR said that
“higher and rising levels of inactivity”
are offsetting increases in the size and growth of our population, and will leave GDP in five years’ time
“unchanged…and the level of GDP per person…lower.”
There it is in black and white: the Conservatives’ failure on work is a drag on the economy, a drag on growth, and a drag on living standards and money for our vital public services. That is not good enough.
Mel Stride
I thank the hon. Lady. She is rightly not happy with the level of economic inactivity; that is why we are bearing down on it. Given that the level of economic inactivity was higher during every year of the last Labour Government, would she like to comment on their record on it?
Liz Kendall
I will not take any lessons from a Government who are overseeing economic inactivity at record levels. The number of people out of work due to sickness is at a record level, resulting in soaring costs for individuals and livelihoods. If I were the Secretary of State, I would put in place a proper plan for reform, not offer half-baked programmes, rehashed and re-announced schemes, and more of the same empty rhetoric on benefits.
Mel Stride
If our plans are half-baked and rehashed, why has the OBR confirmed that by the end of the forecast period, 371,000 fewer people will be receiving the long-term sickness and incapacity benefits to which the hon. Lady refers? If our plans are half-baked, why will 371,000 fewer people be on those benefits?
Liz Kendall
The OBR says that there will be 600,000 more people on those benefits, and the total cost will be £33 billion. The Secretary of State tries to deny that the schemes are rehashed. Well, let us look at the reform to fit notes announced in 2023. Back in 2017, what did the Chancellor, then Health Secretary, announce? Reform to fit notes, taking them beyond GPs. The Government recently announced that there will be mandatory work placements. In 2011, what did they announce? A mandatory work activity programme. In 2017, the current Chancellor, as Health Secretary, said:
“We will appoint an Expert Working Group on occupational health.”
They are the same policies with the same failure. It is absolutely time for a change.
We do not have to go down this road; we can choose a different path. Under a Labour Government, we will do so. Our back to work plan will tackle the root causes of worklessness by driving down waits for NHS treatment, and we will recruit 8,500 more mental health staff. We will ensure that employment support is tailored to individual and local needs, by overhauling jobcentres to end the tick-box culture, and devolving employment support to local areas. In every part of the country, we will create more good jobs in clean energy and through our modern industrial strategy. We will make work pay and improve the quality of work, by ensuring a genuine living wage, banning exploitative zero-hours contracts, and strengthening rights to flexible working. And we will do more.
There are now 850,000 under-24s who are not in education, employment or training—one in eight of all our young people. That is a terrible waste for them and for our country as a whole. Given that half of all mental health problems start before people turn 14, we have to intervene earlier, so the first part of our offer to young people is about providing specialist mental health support in every school, and walk-in access in every community. That way, we will tackle one of the key drivers of worklessness before it takes hold. Secondly, we will deliver 1,000 new careers advisers, and good-quality work experience, so that young people leave school ready for work and ready for life.
Thirdly, we will overhaul skills by creating new technical excellence colleges and reforming the Tories’ failed apprenticeship levy, which has seen apprenticeship starts by young people fall by a third. Our new growth and skills levy will help young people to get the skills that they need, including by offering them a second chance at basic skills and pre-apprenticeship training if they did not get the right qualifications at school. Fourthly, we will provide new employment advisers for young people in our young futures hubs. They will offer joined-up specialist help and support, because the old, one-size-fits-all approach will not work when it comes to tackling this problem. Finally, we will overhaul access to work for young disabled people who want to work, so that they know what equipment, adaptations or personal support they will get before they start, giving them the confidence to take the plunge.
Our proposals are fully costed and funded, and will be paid for by scrapping tax breaks for private schools and closing the tax loopholes enjoyed by private equity fund managers. That is our offer to young people. This year, they and the rest of the British public face a choice: another five years of stagnation, low growth, high costs and worklessness under the Tories, or a long-term plan to get Britain building again, growing again and working again under Labour. The public know it is time for change. Let us have an election, and let us have the guts to have it now.
Oral Answers to Questions
Mel Stride Excerpts(9 months, 3 weeks ago)
Commons ChamberRead Full debate Read Hansard Text Watch Debate Read Debate Ministerial Extracts
James Sunderland (Bracknell) (Con)
The Secretary of State for Work and Pensions (Mel Stride)
Automatic enrolment has succeeded in transforming pension savings, with more than 11 million employees being automatically enrolled in a workplace pension since 2012 and an additional £29 billion in real terms saved into marketplace pensions in 2022 compared with 2012.
Mrs Drummond
I was very pleased when the Government brought in auto-enrolment for pensions in 2012, as making sure that everyone saves for a pension should prevent pension poverty. What is the rate of take-up of these pensions and what provisions are the Government putting in place to help those on low wages build up a pension pot to help provide a decent income in retirement?
Mel Stride
The increase in take-up since 2012 has been extraordinary, particularly among women, for whom the rate was 40% in 2012 and is now 86% and in line with men. My hon. Friend will know about the 2017 review that we conducted on auto-enrolment. As and when we bring in those changes, that will mean 3 million more people auto-enrolled with £2 billion of additional savings each year.
Craig Tracey
I am chair of the insurance and financial services all-party parliamentary group, and financial inclusion has been one of our key areas of focus, particularly following the pandemic which showed that anybody has the potential to quickly become vulnerable. What are the Government doing to increase the financial resilience of our constituents and make them best placed to cope should such an unforeseen event happen again?
Mel Stride
May I first recognise the fantastic work my hon. Friend does on financial resilience? The Government have, through very difficult times, come forward with £104 billion of cost of living payments between 2022 and 2025. I would point my hon. Friend to one particular scheme: the help to save scheme encourages low-income households to save and we have recently extended that by 18 months, until April 2025.
Mr Speaker
I call James Sunderland. Not here. I call the Chair of the Select Committee.
Sir Stephen Timms (East Ham) (Lab)
I agree with the Secretary of State about the cross-party success of auto-enrolment, which has doubled the proportion of eligible employees saving for retirement, but we know that the current regular auto-enrolment contribution of 8% of earnings is not enough to deliver the standard of living in retirement that most people hope for. Does the Secretary of State recognise that that minimum level of contribution will need to be increased?
Mel Stride
The contribution rates of the employer and employee are a very important matter, and we keep both under review.
Jim Shannon (Strangford) (DUP)
Thank you, Mr Speaker.
When I was 16, my mother took me to Danske bank—or Northern bank as it was then—and opened an account for me. When I was 18, my mother phoned up the pension man in Ballywalter and told him I needed a pension. My mother has been a big guide in my life. What would the Secretary of State say to encourage the young people of today to take their mother’s advice on opening bank and pension accounts and planning for the future?
Mel Stride
I think the response to that is, always take your mother’s advice. I always did—and look where it got me. At the age of 16, I would have thought the hon. Gentleman would have been saving into a piggy bank, putting his little pennies in a porcelain pig. I direct him to the gov.uk website, where there is a plethora of information for young people and those of all ages about saving and what the Government are doing to assist.
Mr Speaker
The good news is that Mrs Shannon is still giving him advice. I call the shadow Minister.
Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)
One of the simplest ways to get people saving for the future is by ensuring that they are enrolled in a pension scheme, but all too many are currently excluded from auto-enrolment, particularly women, who are twice as likely to miss out. The Government have known about this problem for years. They first proposed widening the criteria in 2017. Last year, thanks to a private Member’s Bill, the Minister was given the power to do just that, but still we have seen no update on when this will be implemented. Can the Secretary of State shed light on when these vital changes will take place?
Mel Stride
The hon. Lady draws attention to savings for women. I have already stated that 40% of women invested in workplace pensions back in 2012, and that has skyrocketed to 86% today. There are now 2.3 million employers providing pensions through the auto-enrolment route, and there is £29 billion more in workplace pensions in 2024 than was the case in 2012. The hon. Lady refers, I think, to the 2017 review, which I have already referred to. That is currently under review.
Alexander Stafford (Rother Valley) (Con)
Peter Grant (Glenrothes) (SNP)
The Secretary of State for Work and Pensions (Mel Stride)
Welfare is there to help those who need assistance, including many of the most vulnerable, which is why we increased most benefits by 6.7% for 2024-25. That was on top of an increase of 10.1%, including the benefit cap, in 2023-24.
Peter Grant
That is all very well, but the rate of inflation for low-paid families has been significantly higher than the headline rate of inflation for some time. That means that those families who were struggling badly last year are struggling even worse this year. Citizens Advice has shown that families on low incomes have less disposable income this year than they had last year. Does the Secretary of State accept that it is time to introduce an essentials guarantee so that nobody on universal credit or another income-based benefit can ever be allowed to fall below a level where they cannot afford the basic essentials of life?
Mel Stride
As the hon. Gentleman will know, we keep all benefits under review. I point him to various things that we have done to ensure that we look after those lower-income families, including increasing the national living wage by about 10% in both of the last two years; the increase in the local housing allowance to the 30th percentile announced at the last fiscal event, which will be worth about £800 a year for about 1.6 million people; and, of course, the tax cuts that the Chancellor was able to bring forward, which for an average earner are worth £450 a year.
David Linden (Glasgow East) (SNP)
Rather than deal with the known policy failures within the benefits system, the Government seem to be more focused on penalising people through, for example, the two-child cap. Last week, the Labour party joined the Conservatives in prioritising lifting the cap on bankers’ bonuses rather than the two-child cap on working women. Does the Secretary of State take comfort in the fact that his cruel legacy will be protected by the Labour party?
Mel Stride
I am not going to get involved in the crossfire between the Scottish National party and the Labour party, other than to say—[Interruption.]
Mr Speaker
Order. I do not need a continuing argument and disagreement. I am sure that when the questions come to an end, you can speak outside.
Mel Stride
Thank you, Mr Speaker. The two-child cap is there for good reason: so that families in those circumstances are taking the same kind of decisions that others—the taxpayers funding benefits—have to take.
Yasmin Qureshi (Bolton South East) (Lab)
Antony Higginbotham (Burnley) (Con)
The Secretary of State for Work and Pensions (Mel Stride)
There are, of course, significant costs related to an increase in long-term sickness and illness rates in work. That is why we have our £2.5 billion back to work plan, to help 600,000 disabled people and people with health conditions start and stay in work. That approach, along with others, has seen economic inactivity reduce by 330,000 since its peak during the pandemic.
Andrew Western
NHS waiting lists are currently at 7.8 million, with more than 177,000 people on waiting lists in my own NHS trust area. When it is this difficult to access medical treatment, it is no surprise that we have a record 2.8 million people out of work due to ill health. Does the Minister accept that this Government’s failure on the NHS is stymying economic growth, denying people the dignity of work and costing taxpayers billions of pounds?
Mel Stride
On NHS waiting lists, there has been progress, in that the two-year waiting lists have almost been entirely dispensed with and those of 18 months have been very substantially reduced. Our Department recognises that work is part of the solution to improving people’s health, which is why we are putting forward the WorkWell service, bringing together medical input and work coach input; fit note reform to help at an earlier stage of the journey; and the reforms to the work coach assessment. All those things are moving towards getting more people into work, which is good for their health.
Simon Fell
In Barrow and Furness, an estimated 4,000 people who could be contributing to the labour market are not doing so. I am incredibly grateful to my right hon. Friend and his team, in the Barrow jobcentre and centrally, who, alongside Team Barrow, have worked with local employers and skills providers to help get those people back into our incredibly tight labour market. Will he pass my thanks on to those teams? May I also encourage him to visit to see their good work?
Mel Stride
I thank my hon. Friend for highlighting all the good work that has gone on in his constituency. I believe he opened a jobcentre only as recently as 30 January in his constituency. He is a doughty campaigner for and supporter of employment in his patch. He asks whether I will visit his constituency. I would certainly like to consider that, but my hon. Friend the Employment Minister might also visit, because she just said she was particularly keen to do so.
Antony Higginbotham
Burnley and Padiham has so much going for it—with the rest of Lancashire, our area is the manufacturing powerhouse of the United Kingdom—but still has stubborn levels of economic inactivity among people who could be contributing to economic growth and having financial security, which we all want them to have. What more can we do to help those people? In particular, can my right hon. Friend do more to join up with other Departments so that areas such as Burnley, which might have structural problems, get more intensive support?
Mel Stride
My hon. Friend asks what approach we can take to resolve the issues that he has raised. We have announced a doubling of universal support, a scheme with which he will be familiar; WorkWell, to which I just referred, bringing together medical support and work coaches; and reform of the fit note system so that we get involved earlier in the journey that many people experience when they fall out of the workforce into longer-term sickness and disability benefits. Overall, the evidence is clear: economic inactivity is down by 268,000 on the year, and by more than a third of a million since its peak during the pandemic—a 52% reduction.
Priti Patel (Witham) (Con)
The Secretary of State for Work and Pensions (Mel Stride)
The Office for National Statistics estimates that 36,000 jobs were provided by employers in Witham in 2022.
Priti Patel
As it is Apprenticeship Week, will the Secretary of State join me in thanking businesses in Witham for everything that they are doing to employ youngsters and put them on that apprenticeship pathway? Those businesses, however, are crying out for a labour market strategy that will help them to harness the skills and the upskilling that they need in certain sectors. Would the Secretary of State be prepared to advance that, and push it, across other Departments?
Mel Stride
I congratulate my right hon. Friend on the extraordinary work that she does locally to promote apprenticeships. I believe she was involved in a jobs fair on 24 January, hosted by Reed, which was highly successful. The employment rate in her constituency is 81%, well above the national average, which I put down almost entirely to the work that she is doing. She asked how we would proceed. We already have swaps, bootcamps and returnerships, but I am indeed looking at specific areas of the labour market, particularly in the context of migration changes, where we may be able to do more on a strategic basis.
Mr Rob Roberts (Delyn) (Ind)
The Secretary of State for Work and Pensions (Mel Stride)
Autistic people have a huge amount to offer in the workforce, which is why we set up the Buckland review in April 2023, led by my right hon. and learned Friend the Member for South Swindon (Sir Robert Buckland), to look at the barriers to autistic people gaining employment and to ensure that we have a more inclusive workforce for them.
Mr Sheerman
May I push the Minister on what progress has been made by the Buckland review? Will he also remind jobcentres up and down the country that people on the autism spectrum have great talents and often need only slight workplace modifications of simple things such as lighting or noise levels? This could open up a source of real talent for our country.
Mel Stride
The hon. Gentleman is entirely right. Small changes can often make a big difference, not just for autistic people but for the businesses they go on to serve and work in. He will have to be a little more patient about the Buckland review report coming out, but it will not be long. I also point him to the Access to Work and Disability Confident approaches, which both do exactly what he suggests.
Jonathan Gullis (Stoke-on-Trent North) (Con)
The Secretary of State for Work and Pensions (Mel Stride)
The Department has been busy supporting the most vulnerable, with the third instalment of the £900 cost of living payments starting to reach the bank accounts of 8 million low-income households tomorrow. We are also on the verge of publishing our disability action plan. We have seen economic inactivity decrease by 330,000 since its peak during the pandemic.
I have made it a priority for my Department to engage across Parliament. As Secretary of State, I appeared before the Work and Pensions Committee in December. The pensions Minister, my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard), appeared before the Committee on 10 January; the Minister for Employment, my hon. Friend the Member for Bury St Edmunds (Jo Churchill), appeared before the Committee on 31 January; and I believe the Minister for Disabled People, my hon. Friend the Member for Mid Sussex (Mims Davies), and Viscount Younger, our Lords Minister, will appear before it next month. There will be a statement on the disability action plan this afternoon.
Helen Hayes
Lambeth Council and Southwark Council have worked hard over the past few years to deliver targeted cost of living support through the household support fund. Many local people continue to face serious hardship as a consequence of this Government’s political decisions, but local authorities do not know what, if any, funding they will receive after 31 March. When does the Secretary of State expect to confirm the future of the household support fund, so that local authorities can plan ahead?
Mel Stride
I am pleased that the hon. Lady recognises the importance and value of our various interventions. Ten million payments have been made through the HSF since its inception, and £1 billion has been put into the fund in the last year. She will know that her question is a matter for the Chancellor, and the matter will quite possibly—I really do not know—be dealt with at a future fiscal event. There is no news on that at this stage.
Virginia Crosbie (Ynys Môn) (Con)
Mel Stride
I thank my hon. Friend for her question, because autism is an issue of great importance to the House and to her personally. I know about the work that she is doing with Ryan Gibbs, Becca Pierce and Shelly Rankin Jones. She will know that the Buckland review was instigated in April 2023 and will conclude relatively shortly, with a report being published online. I look forward to visiting her disability jobs fair in Holyhead at the end of this week.
Mr Speaker
Order. I remind Front Benchers that this is topical questions, which are meant to be short and punchy, and they should stick to the rules. Do we understand each other?
Mel Stride
The hon. Lady refers to the latest weighted numbers just released by the Office for National Statistics, which show that unemployment as a percentage is lower than originally forecast. She cannot get away from the fact that there are 330,000 fewer people in economic inactivity since the peak. As a result of our work capability assessment reforms, the Office for Budget Responsibility has scored us as having 371,000 fewer people on long-term sickness benefits than would otherwise have been the case.
Liz Kendall
The former health Minister Lord Bethell says that he is “gobsmacked” by the figures, and that
“the economic hit will be hard”.
The Minister would do well to listen to his words. Yesterday, the Education Secretary said that the Government cannot guarantee that their promises will be met on childcare, which parents need in order to work. Today, their Prime Minister admitted that he has failed on NHS waiting lists, which the long-term sick need dealt with if they are to get back to work. Why does the Secretary of State not do the decent thing and admit that he has failed too, and adopt Labour’s plan to cut waits, roll out breakfast clubs, overhaul jobcentres and get Britain working again?
Mel Stride
We are getting Britain working, unlike the Opposition, under whose last Administration unemployment increased, youth unemployment went up by 40%, some 25% more women were unemployed and 1 million people or thereabouts were stuck on long-term benefits for almost a decade. That was a disgrace.
Peter Aldous (Waveney) (Con)
Dr James Davies (Vale of Clwyd) (Con)
Mel Stride
I congratulate Philippa’s son on the very good work that he does. We have disability employment advisers in our jobcentres. I am visiting my hon. Friend’s constituency later this week; I know that he has been involved in the Denbighshire project, including the We Mind the Gap programme for young people, and I will be interested to discuss that and other matters.
Peter Grant (Glenrothes) (SNP)
Jonathan Gullis (Stoke-on-Trent North) (Con)
I wish to place on record my thanks to the Secretary of State for helping to guide my private Member’s Bill through Parliament. It lowers the pension auto-enrolment age from 22 to 18, and abolishes the lower earnings threshold. Briefly, has the Secretary of State received reassurances from the Chancellor that the necessary forms will be implemented in the spring Budget?
Mel Stride
I thank my hon. Friend for that question. Those matters are under active consideration.
Munira Wilson (Twickenham) (LD)
Mel Stride
The specifics of my negotiations with the Treasury remain between me and the Treasury. As I have said, the any of those decisions on the HSF are matters for the Treasury.
Marco Longhi (Dudley North) (Con)
Wendy Chamberlain (North East Fife) (LD)
Mel Stride
Cost of living payments can be affected by when people are paid, and therefore by whether they are on universal credit and qualify at precisely that point. I do not have the figure to hand that the hon. Lady requests, but I will of course get back to her with it.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
This morning’s report by the Academy of Medical Sciences revealed that our appalling child health and infant mortality rates are worse than those of 60% of similar countries and is the key driver of child poverty. What assessment has the Secretary of State undertaken to make on the impact that stopping the household support fund in April will have on relative child poverty and, subsequently, infant mortality?
Mel Stride
As the hon. Lady will know, the number of those in child poverty has decreased by 400,000 since 2010. We do not yet have a decision on the household support fund, to which she refers, but I point her to the very significant uplift in the local housing allowance, which will give 1.6 million people £800 a year more on average, thereby taking many of them out of poverty.
Alistair Strathern (Mid Bedfordshire) (Lab)
From unanswered emails to unreturned calls, it has been heartbreaking to hear from so many vulnerable constituents who are in a state of limbo and distress, and trying to chase up personal independence payments. When will Ministers ensure that people can get the support that they need in a timely and straightforward manner?
Sir Stephen Timms (East Ham) (Lab)
Will the Secretary of State point out to the Chancellor that many councils have used the household support fund to pay £3 per day per child during the school holidays to families entitled to free school meals, and that if the fund closes at the end of March, those families will be straight into hardship in the Easter school holidays?
Mel Stride
I thank the right hon. Gentleman for his representation, and indeed would be grateful for any others that he is minded to make to me as we conduct our ongoing review on where we go with the household support fund.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
When will the Minister wake up to the fact that working as an apprentice in engineering is a fabulous career choice, and well paid? Will she come up to Huddersfield to look at Cummins, whose apprentice system is first rate?
Oral Answers to Questions
Mel Stride Excerpts(11 months, 1 week ago)
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Siobhan Baillie (Stroud) (Con)
The Secretary of State for Work and Pensions (Mel Stride)
I had the great pleasure of visiting my hon. Friend’s jobcentre in April. Since then, it has been closed temporarily, I believe, and moved to Gloucester. I am sure there is no connection. [Interruption.] I am really sure, I can reassure the hon. Member for Cambridge (Daniel Zeichner). Of course, it does a fantastic job in matching jobs through work coaches, jobs fairs, recruitment days and an extensive skills offering.
Siobhan Baillie
Work experience is often really hard to nail down—places go to those with friends and family in the sector, and employers are really busy. That is particularly so for small skilled manufacturing businesses in Stroud, so I am working with employability experts Finito to launch a campaign for low-fuss shadowing work experience across the board. We want to allow everybody, young and old, to find out more about weird and wonderful jobs, and to allow employers to assess candidates. Is that something my right hon. Friend is interested in, and will he meet me to discuss it?
Mel Stride
I thank my hon. Friend for the question, and I would be delighted for either me or the relevant Minister to meet her. I know the terrific work she has done, particularly with organisations such as Finito, in getting young people ready for work. Indeed, I believe she set up the all-party parliamentary group on the future of employability. I am very happy to have a meeting.
Judith Cummins (Bradford South) (Lab)
The Secretary of State for Work and Pensions (Mel Stride)
The Government are committed to increasing employment. Payroll employment is at a near record high of 30.2 million, which is up 1.2 million on the pre-pandemic level. The Office for Budget Responsibility forecasts that our back to work plan will see 30,000 more people in work over the forecast period.
Chris Elmore
The OBR revealed at the time of the autumn statement that after more than 13 years of this Conservative Government, 600,000 more people will be on health and disability benefits by 2028-29. Far from it being a back to work Budget, the Secretary of State knows that that is not anything like the truth and that the Tories are failing the employment market in this country.
Mel Stride
I cannot agree with that. In fact, I point the hon. Gentleman to the figure of 371,000, which is the number of people fewer the OBR forecasts will be on those very long-term sickness and disability benefits because of the reforms that this Government are bringing in.
Judith Cummins
Last week, the Office for National Statistics published figures showing that 6.6% of people of working age in Bradford are claiming out-of-work benefits, which is the highest rate in the Leeds city region. Does the Secretary of State believe that the Government’s back to work plan is working for people in my constituency of Bradford South?
Mel Stride
The back to work plan has billions of pounds-worth of investment behind it, including the £3.5 billion announced by the Chancellor in the spring Budget. Such things as extending restart, bringing forward mandatory placements after 18 months to ensure that people get into work and doubling universal support are important measures that will see increased numbers in work.
Alison McGovern (Wirral South) (Lab)
All we hear from the Secretary of State on employment is smoke and mirrors, but thankfully the OBR has published the numbers. We have just heard what he believes is happening with employment because of his policies, but when the OBR looked at his policies, did its forecast show the employment rate, compared with today, to be going up or down in 2024-25?
Mel Stride
I have already shared the figures with the House, which are that payroll employment is at a near historic high and unemployment is at a near historic low. As the hon. Lady will know, we have never had a Labour Government leave office with unemployment lower at the end of their term than when they started. Youth unemployment went up 45% under the Labour party, whereas under this Conservative Government it has reduced by 45%.
Alison McGovern
You can always tell the Conservatives are struggling to answer the questions, Mr Speaker, because they go back to those same old things about what happened under the last Labour Government. After 13 years, they have nothing to be proud of. If what the Secretary of State said was true, we might expect that after a little time some of his policies would work, but is it not true that it is not just next year that the OBR forecasts the employment rate to be down, but the year after that, too?
Mel Stride
We will continue to bear down on the level of unemployment. As the hon. Lady knows, economic inactivity has reduced, and we have 300,000 fewer people in economic inactivity than at the peak during the pandemic. We have a plan. Is it not the reality that the Opposition have no plan and no ideas as to how to get those numbers down? We do, and it is working.
Nigel Mills (Amber Valley) (Con)
The Secretary of State for Work and Pensions (Mel Stride)
In 2022-23, fraud and error fell by 10%. We are investing £900 million in addition to that which we have already put forward to prevent £2.4 billion of fraud and error by 2024-25.
Nigel Mills
I thank the Secretary of State for his answer and welcome the measures the Government are taking. On the new powers to search through bank accounts to look for fraudulent transactions, can he confirm that the Government will seek to use them only where fraud is suspected and will not, as some people have suggested, search every state pensioner’s bank account to look for something that almost certainly will not be there?
Mel Stride
I thank my hon. Friend for what is a very important question, because there has been a great deal of scaremongering about what exactly these powers are about. I can make it categorically clear from the Dispatch Box that these powers are there to make sure that, in instances where there is a clear signal of fraud or error, my Department is able to take action. In the absence of that, it will not.
Wendy Chamberlain (North East Fife) (LD)
The cost of living payments are a vital means of support during the cost of living crisis, but my constituent has lost out, through no fault of her own, because of the well-known issue whereby two of her work paydays fell within the assessment period used to assess eligibility. Will the Government review the eligibility process for the third cost of living payments to ensure that no one else misses out?
Mel Stride
This is a long-standing issue that crops up every few years. It is not something on which the Government intend to take specific action. We trust people to manage their finances, such that they can cope with the occasional eventuality where there is an additional year within any one calendar year.
John Penrose (Weston-super-Mare) (Con)
Richard Burgon (Leeds East) (Lab)
The Secretary of State for Work and Pensions (Mel Stride)
The Government are, of course, fully committed to protecting the most vulnerable, which is why we rolled out £104 billion in cost of living payments across the period from 2022 to 2025. It is why, as the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies), has repeatedly stressed, we increased the rates for the LHA housing support, and why benefits increased by the full 6.7%.
Richard Burgon
It is absolutely heartbreaking that in the world’s sixth-richest country we now have 4 million people living in destitution. We know that disabled people are more likely to live in poverty, yet this winter disabled people will not be getting any additional help with the cost of living after the separate disability cost of living payment was quietly dropped. The cost of living for disabled people is still going up, so will the Secretary of State commit to reinstating the payment, and at a level that meets the extra living costs faced by disabled people?
Mel Stride
I am not sure precisely which disability payment the hon. Gentleman is referring to, but certainly the cost of living disability payment has been paid this year, in addition to the increase in the national living wage, tax cuts and national insurance tax cuts, all of which help people, particularly those on low pay. That is why, under this Government, the level of absolutely poverty has fallen by 1.7 million since 2010, with 400,000 fewer children in poverty.
Tim Loughton (East Worthing and Shoreham) (Con)
Siobhan Baillie (Stroud) (Con)
The Secretary of State for Work and Pensions (Mel Stride)
May I begin by welcoming my new team to the Front Bench? Joining the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies), and Lord Younger in the other place are the new Minister for Employment, my hon. Friend the Member for Bury St Edmunds (Jo Churchill), and the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard). I know that they will make a great contribution to the Department. Let me also thank those who have departed, my right hon. Friend the Member for Sevenoaks (Laura Trott) and my hon. Friends the Members for Corby (Tom Pursglove) and for Hexham (Guy Opperman), who have important other duties in Government.
This has been a year of considerable achievement for my Department. We have already heard about the cost of living payments, the support for the most vulnerable, the 6.7% increase in working-age benefits, the 8.5% increase in respect of the triple lock for pensioners, welfare reform, near-record levels of payroll employment and almost historically low levels of unemployment, and rising real wages.
Siobhan Baillie
I welcome the Government’s decision to boost childcare payments for parents on universal credit by almost 50%, which the Work and Pensions Committee pushed for. I have asked the Department to review childcare rules for parents in training and education, but can my right hon. Friend outline the other ways in which the Government are supporting low-income families in Stroud?
Mel Stride
My hon. Friend is being too modest in laying all the progress at the door of the Select Committee, because it was she in particular who pushed for those reforms to childcare within universal credit, and I believe that she was quite rightly name-checked by the Chancellor in his Budget statement. We of course have the back to work plan, the extension of restart, the doubling of universal support, the greatest-ever increase in the national living wage and the reductions in employee national insurance, all of which are there to drive further employment.
David Linden (Glasgow East) (SNP)
During the recent covid inquiry, the former Health Secretary, the right hon. Member for West Suffolk (Matt Hancock), said that statutory sick pay was “far too low” and that if he had a magic wand, he would fix it. Given that the Secretary of State has the magic wand, as the Minister responsible for this, when is he going to fix it?
Mel Stride
I am certainly not going to start making policy up on the hoof at the Dispatch Box this afternoon or promising more money for statutory sickness pay. That would require discussions across Government, but I note the point that the hon. Gentleman has made.
David Duguid (Banff and Buchan) (Con)
Liz Twist (Blaydon) (Lab)
Mel Stride
As the hon. Lady will know, these are matters for the Treasury, and specifically for the Chancellor of the Exchequer. He and I have conversations on these matters and others. Announcements will be made in due course, but of course the household support fund will be in place until the end of March.
Nigel Mills (Amber Valley) (Con)
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
Twenty months ago, the Equality and Human Rights Commission issued a section 23 agreement request to the Department, following concerns regarding breaches and potential discrimination against disabled people. Why has the Department still not reached an agreement?
Mel Stride
As the hon. Lady will know, there are ongoing discussions on these matters. By virtue of the legislation that underpins those interactions, the discussions are necessarily held in private. I am informed that they have resulted in positive engagement, and that the Department and the EHRC will come forward with a response as soon as possible.
Andrew Selous (South West Bedfordshire) (Con)
Mike Amesbury (Weaver Vale) (Lab)
In 2010 there were 117,000 16 to 24-year-olds on long-term sickness and health benefits. That figure now stands at a massive 235,000. Why is that, and what are the Government doing about those appalling figures?
Mel Stride
The hon. Gentleman is right. There has been a marked increase in the prevalence of mental health conditions, particularly among those aged 16 to 24, which is why we are bringing in measures such as universal support and talking therapies within the national health service, for which 400,000 additional places were announced by the Chancellor at the autumn statement. We have introduced measures such as WorkWell, and others, to address exactly these issues.
Sir Mike Penning (Hemel Hempstead) (Con)
I have patiently sat through questions, and I have not heard Disability Confident mentioned once. Disability Confident was, and I hope still is, a very successful scheme that I launched when I was a Minister—I went around the country with Simon Weston. Can I have confidence that the scheme is still in place?
Marion Fellows (Motherwell and Wishaw) (SNP)
After the UK Government appallingly downgraded the dedicated role of disabilities Minister, Scope’s executive director, James Taylor, wrote to the Prime Minister saying that
“the UK’s 16 million disabled people deserve so much better than this treatment.”
It is a clear message that the UK Government do not view disabled people as a priority. Will this Government urgently reverse their decision and reinstate the role?
Mel Stride
That is a complete misunderstanding; the hon. Lady refers to reinstating the role, but all the responsibilities of the previous disability Minister have been taken over by the current one, the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies), who happens to be the most experienced Minister in my Department. She is extraordinarily capable; she absolutely understands the issues and will do a fantastic job.
Sir Robert Buckland (South Swindon) (Con)
I warmly welcome the new disabilities Minister, as I know she shares my passion for closing the autism employment gap. Will she work with me, as we reach the closing stages of my independent review of autism and employment, to make sure that the publication of the report will be the beginning of a process whereby we can dramatically tackle the scandal of having fewer than three in 10 autistic adults in employment?
Andrew Western (Stretford and Urmston) (Lab)
The Trussell Trust has recently reported that in the past year there has been an 80% increase in the number of children in Stretford and Urmston being supported with food parcels. Can the Minister tell me why it believes that is the case?
Mel Stride
The record speaks for itself: this Government have been behind £104 billion-worth of support for the most vulnerable over the period 2022 to 2025; poverty in absolute terms, after housing, has fallen by 1.7 million since 2009-10, when the hon. Gentleman’s party was last in office; we have 400,000 fewer children and 200,000 fewer pensioners in absolutely poverty—under the last Labour Government, we had the fourth highest level of pensioner poverty in Europe; and we have put the national living wage up by 9.8% and cut taxes as well.
Tim Loughton (East Worthing and Shoreham) (Con)
May I add my warm welcome to my near neighbour, the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex, as the new disabilities Minister? Does she acknowledge that one feature of covid has been a big increase in the incidence of mental health issues, particularly among younger people? What is her Department doing to tailor its programmes to get those non-working parts of the population who have not been working since covid and are suffering from mental health challenges back into the workforce?
Autumn Statement Resolutions
Mel Stride Excerpts(12 months ago)
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The Secretary of State for Work and Pensions (Mel Stride)
Securing good jobs for more people is the best way out of poverty, and the best route to raising living standards. That is why, in his autumn statement, the Chancellor announced a cut in the main rate of employee national insurance from 12% to 10%. That is why we have raised the national living wage, representing a boost of more than £1,800 to the annual earnings of a full-time worker. That is why we are delivering the next generation of welfare reforms to help thousands more people into work. That is why, Madam Deputy Speaker, we on the Conservative Benches will never tire of reminding Opposition Members of our record since 2010: nearly 4 million more people in work; numbers on company payrolls at a near-record high; the unemployment rate around halved; more than a million fewer people in poverty; and UK economic inactivity lower than the G7, the EU and the OECD average, and down nearly 300,000 from its pandemic peak.
As Conservatives, we believe in making sure that those who can work have every opportunity to do so. Indeed, that is precisely how we can afford a strong welfare safety net for those who are unable to work and support for the most vulnerable in our society.
Sir Edward Leigh (Gainsborough) (Con)
If we were to insist on work visas being given only to people who are on average UK earnings, would that not create a virtuous circle by which only skilled people came here, and care homes would be forced to pay proper wages, ensuring that more people came off my right hon. Friend’s books and got into productive work?
Mel Stride
My right hon. Friend is attempting to tempt me into matters that I know are under discussion at the highest levels of Government at the moment around the policy that we should adopt on immigration, but I will not be drawn immediately in that direction.
Stephen Crabb (Preseli Pembrokeshire) (Con)
I am grateful to my right hon. Friend for giving way. Let me return to the record of the past 13 years. At various points in that time, there has been no shortage of people in this House and outside who have been very quick to predict an explosion in unemployment—whether that was when we were introducing the public spending restraint under the coalition Government or when we were coming out of the covid pandemic. Does not the fact that those predictions were wrong demonstrate two things? The first is the underlying resilience of the British economy and labour market, and the second is the success of the measures taken by numerous Ministers in his Department over the years always to make work pay and to make sure that our welfare system is reformed to encourage work incentives?
Mel Stride
As usual, my right hon. Friend makes characteristically insightful remarks about the UK economy, not least about unemployment, where he is right: the expectation during covid was that unemployment would rocket up to the kind of levels that we last saw in the 1980s. The fact that no such thing happened is a testament to many of the Ministers, as my right hon. Friend suggests, and not least to our current Prime Minister, who as Chancellor came forward with the furlough scheme and the support for business.
Our commitment to supporting the most vulnerable is clear, including in the substantial the Government have provided to help families with the cost of living. That includes the millions of cost of living payments, landing directly into the bank accounts of those on the lowest incomes, as well as to millions of pensioners and disabled people. Of course, one of the most important actions that we have taken to help families is to deliver on the Prime Minister’s pledge to halve inflation. A compassionate Government recognise that, for the poorest families, cost of living pressures remain, which is why we are increasing universal credit and other benefits by 6.7% from next April in line with September’s inflation figure.
A compassionate Government recognise that rising rents are affecting private renters on the lowest incomes, which is why we are increasing the local housing allowance to the 30th percentile of local market rents from April next year. A compassionate Government back their pensioners, which is why we are honouring the triple lock, with an increase to the full state pension of 8.5 %. That is the second biggest ever increase, following last year’s increase of 10.1%.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
Will the Secretary of State comment on the number of deaths that are anticipated, as I mentioned last week, due to elements of the policy proposals around forcing people into work, and taking their benefits off them if they are unable to fulfil that?
Mel Stride
I will come to benefit reform momentarily, but let me assure the hon. Lady—I know that this is a particular concern of hers, and she is right to be concerned about these matters—that my Department is extremely concerned to ensure that all changes in our benefit reforms are proportionate and are introduced in the most sympathetic and supportive way possible. Underlying those reforms, however, is a simple belief: we believe that where people want to work—where they have the ability to work—work is good for them. We want to open our door to as many people as possible, including many who are currently long-term sick and disabled, to give them exactly that opportunity.
John Redwood (Wokingham) (Con)
I have declared my business interests in the Register of Members’ Financial Interests. Noting the good words from the Chancellor in favour of self-employment, and noting the national insurance measures to help, are there things that the Department for Work and Pensions is doing, or can do, so that self-employment is an option for people who are currently without work but who may have a lot to offer?
Mel Stride
My right hon. Friend is right to draw attention to the self-employed and to the national insurance changes that my right hon. Friend the Chancellor announced in his autumn statement. Of course, my Department does a huge amount to support the self-employed. Many of our programmes are open to self-employed people to ensure that we are there to support them with the wages that they are able to bring home in self-employment, and we will continue to do exactly that.
A compassionate Government also need to be honest about the significant challenge that we face with the rising number of people leaving the labour market due to ill health or disability. Around 2.6 million people are currently off work with a long-term physical or, increasingly, mental health condition. Given the positive impact that work has, not just on finances but on health and wellbeing, there is a clear need to do more to help and encourage those people. In a tight labour market, with employers looking to fill nearly 1 million vacancies, there is also a wider economic imperative. Every time someone returns to work, they benefit and everyone benefits. It helps the economy to grow, debt to fall and inflation to decline still further.
Just as importantly, given the waste of human potential that inactivity often represents, there is a moral case to act. That is why, with the £2.5 billion-worth of investment over the next five years, our back to work plan will help thousands of disabled people and those with health conditions to stay in work, or if they fall out of it, to move quickly back with the right support. A key part of our approach is bringing together employment and health support, because we know that work and health go hand in hand.
Liz Twist (Blaydon) (Lab)
What steps is the Secretary of State taking to ensure that Access to Work schemes will be readily available, funded and put in place much more quickly than they are now?
Mel Stride
The Access to Work scheme is a fantastic scheme for encouraging those with disabilities to go into work. It is one of the reasons why disability employment is an area in which we have had so much success. In 2017, we set a 10-year target of getting 1 million more disabled people into work. We exceeded that target by 40% in just five years. Access to Work is part of that. The funding for Access to Work, as the hon. Lady will know, can exceed £60,000. It is an enormous commitment by a caring and compassionate Government to ensure that those who may need the assistance actually receive it.
That approach is at the heart of our new WorkWell service, which is integrating employment and health support at the local level. We will reform the fit note process to ensure that it is not a simple pass to sickness absence, but more of a prescription for the right support that is needed to keep someone close to work or to resume work after a period of illness. We are also doubling the number of placements available on our universal support programme, to help 100,000 people each year into roles, with up to 12 months of ongoing wraparound support to help ensure that they stay in work.
Lia Nici (Great Grimsby) (Con)
I applaud my right hon. Friend and the Chancellor for bringing in all these new initiatives to make people get back to work. Grimsby has a higher unemployment rate than the national average, although it is coming down. Will he or one of his Ministers commit to meeting me to talk about what we can do to encourage more employers to become disability confident and to offer work placements to those people who are currently out of work, but are capable of getting back in to work?
Mel Stride
I know my hon. Friend is a very powerful champion for employment in her Great Grimsby constituency and I will indeed make sure that a Minister is available for the discussions she has sought.
Given that we know how important high-quality occupational health is for helping people with health conditions to stay in work, we will support businesses to develop voluntary minimum levels of intervention that employers can adopt to help to improve employee health.
My right hon. Friend the Secretary of State for Health and Social Care is also introducing measures to reinforce our efforts to join up employment and health support by tackling one of the main reasons for sickness absence. Our expansion of access to mental health services will support almost 400,000 extra people through NHS talking therapies, and an additional 100,000 places will be made available through individual placement and support to help people who experience severe mental health conditions to start and stay in employment. With that significant expansion of extra support, we are breaking down the barriers that for too many have been a roadblock to the rewards of work. That requires bold reform.
Mel Stride
While the world of work has transformed significantly in recent years, the way we assess someone’s ability to work, or to prepare for work, has not changed for over a decade—not since the work capability assessment was last comprehensively reviewed in 2011. Since then, we have seen the rise of flexible working and new legislation giving workers the right to request it from day one of a new job. We have seen big increases in hybrid and home working, and there is a much greater understanding on the part of employers of the importance of reasonable adjustments and how to support disabled people in the workplace.
Mel Stride
Those changes have opened many more opportunities for disabled people and those with health conditions to participate in work, and for employers to benefit from their talents, but the fact is that too many people who could work are being denied access to those opportunities because they are deemed not fit to work or even to prepare for work. The proportion of people going through a work capability assessment and receiving the highest level of health-related benefits, where there is no requirement to look or prepare for work, rose from 21% in 2011 to 65% in 2022.
However, crucially, one in five in that group would like to work in the future with the right support, and more than half of those who felt that they could work within the next two years saw a fear of not being able to return to benefits as a barrier to work. With our new chance to work guarantee, we are removing that barrier and that fear for millions of disabled claimants who want to try work.
The reform will effectively abolish the work capability assessment for the vast majority of existing claimants who have already been assessed and do not have any work-related requirements. They will be free to do some work without the prospect of having to be reassessed and potentially losing their benefits if a job does not work out. It brings forward a major part of our longer-term plan, set out in the health and disability White Paper published earlier in the year, which will see the work capability assessment abolished completely.
In the meantime, for new claimants, we are ensuring that the work capability assessment is fit for the modern world of work and reflects the greater opportunities for disabled people. To that end, we are updating some of the criteria we use to assess whether someone can work or prepare for work, including the “mobilising” and “getting about” activities, as well as the substantial risk rules. Those reforms will come in from 2025, and it is important to emphasise that we will continue to protect the most vulnerable and those with the most significant limitations.
Mel Stride
The changes will help many more people who can work—who want to work—to gain all the benefits of a job. That is my mission. It is a mission that extends to helping anyone who falls out of work, for whatever reason, to get back into work quickly. It is a mission to ensure that a spell out of work does not turn into the scourge of long-term unemployment, because we know that the longer someone remains out of work, the harder it is for them to return. That is why we are ensuring that people who are deemed fit to look for work are put on a stronger path to employment, rather than being parked on benefits indefinitely.
Stella Creasy
Another scheme intended to help ensure that people can get back into work is the expansion of childcare. Last week’s report showed us that the Office for Budget Responsibility believes that the Government’s childcare reform will mean a reduction in welfare spending, and that the £5.2 billion pledged to childcare will need to be only £4.6 billion—a reduction of more than 10% in the funding available for childcare. We all agree that childcare will help people back into work, so will the Secretary of State take this opportunity to pledge on the record that the Government will put directly into childcare the full £5.2 billion that our constituents were promised in March?
Mel Stride
I was expecting a devastating, killer intervention, given how keen the hon. Lady was to intervene, but it never quite arrived. She will know that in the Budget, the Chancellor made a substantial investment—the hon. Lady mentioned the figure £5 billion—in childcare. In my Department that is huge, because it means that we will deal with the retrospective nature of the first month’s payment, and that the amount available to those wishing to take advantage of childcare will be increased by some 49%.
Through our back to work plan, we are phasing in more intensive support and more rigorous requirements on jobseekers much earlier in their claim. We are accelerating the point at which claimants are required to undergo a more intensive 12-month work-search regime, which will kick in six months, rather than nine months, after the start of a claim. Anyone who has not moved into work by the end of that will be required to accept a mandatory work placement or other intensive activity to improve their chances of employment.
For those who refuse that support, it is right that there should be consequences. If a claimant does not accept those new conditions without good reason, their universal credit claim will be closed. As a result, no claimant should reach 18 months of unemployment in receipt of their full benefits if they have not taken every reasonable step to comply with jobcentre support. We will back that up with closer monitoring to ensure that the rules are being followed, including by tracking claimants’ attendance at jobs fairs and at interviews organised by jobcentres. That will mean that work coaches have the information that they need to know whether claimants are meeting their commitments. As part of this more rigorous approach, we will continue looking at the impact of more intensive support at seven weeks into a claim being delivered through our additional jobcentre support.
These back to work reforms strike at the heart of the quid pro quo that defines the contract between the state and individual. We are saying, “The Government will provide you with the support you need to move into work, but if you fail to keep your side of the bargain—if you refuse to engage or ignore available job opportunities —we will stop your benefits.”
Steve McCabe (Birmingham, Selly Oak) (Lab)
I do not think that many people will object to the idea that those who can work should work, and that the Secretary of State’s measures to get people who are capable back into work should be adopted. However, he will be aware that the Work and Pensions Committee has recently been considering vulnerable people who are entitled to benefits but do not get them. What safeguards can he provide to guarantee that the health of people who are ill is not made worse by the pressure that some jobcentres will apply in trying to meet his targets?
Mel Stride
The hon. Gentleman raises a really important point. I have great respect for him, and I have appeared before the Select Committee and been cross-examined by him. He is right to raise those kinds of concerns. They are concerns that we think about on a daily basis in my Department, to make sure that we get it right.
The regime I am outlining is for people who have been intensively supported for 18 months during their job search, who are fit and able—so they are not the people the hon. Gentleman described—and who, when presented at that point with the opportunity for work, decline that work. I think most people up and down the country would feel that it is right that there are consequences at that point.
When it comes to those who cannot work—those who are long-term sick or have significant disabilities—I want more than anybody else, and as much as any other person in this House, whichever side they may be on, to make sure that, as a civilised society, we are there to support them, no questions asked. But we can only do that for the most vulnerable in our society if we have a fair system that carries the support of the general public and can fund itself in the way we need it to.
Our back to work plan is about putting fairness at the heart of our welfare system: fairness for claimants who play by the rules and try their best, and fairness for taxpayers who contribute to the system. Contrast that with the Opposition, who have no plan. The only serious proposal they have for welfare reform is to water down benefit claimants’ requirements to work, which could cost £2 billion. That is not just reckless but unfair. It is no wonder that Labour has never left office with unemployment lower than when it entered it. It is no wonder that under Labour, youth unemployment rose by over 40%, unemployment increased by over 1 million, and more than 1 million people were left to languish on out-of-work benefits for almost a decade. That was not a record in office; it was a national disgrace. On Labour’s watch, countless lives were left to ruin.
The puddle of nihilism that is the Opposition Front Bench has no plan. Labour Front Benchers carp and vacillate from the sidelines, suck their teeth and dither, transfixed on the one hand by the fairer approach that they know in their heart the public demand, but frightened stiff on the other hand by the rank and file behind them. Is the truth not rather simple, Mr Deputy Speaker? They have no plan because compassion demands courage, and by their omissions they tell us that they have neither. This autumn statement protects the poorest and most in need, rewards work by cutting taxes and increasing pay, and takes the long-term decisions on welfare reform by helping people into work, growing the economy and changing lives.
Liz Kendall (Leicester West) (Lab)
My constituent David has a 30-year-old son with autism and severe obsessive compulsive disorder. David says that despite all the challenges his son faces, he has recently moved into independent living and is working really hard to try to find a job. David’s son has lots of skills, especially in computing and research, but because of his autism and, particularly, his OCD, he needs an employer who understands his conditions and will give him a real chance and offer him the work flexibility that someone in his situation needs. He is doing everything he possibly can to find work. He recently applied for a job at Tesco and was really pleased to get an interview, but because the job required a lot of overtime and there are limits on how many hours he can take because he is on employment and support allowance, he could not take up the offer.
This is the reality facing many sick and disabled people across Britain today. They want to work not just for the money, but for the sense of purpose, dignity, independence and self-respect that work brings. They deserve a Government who back their efforts and aspirations and who will tear down the barriers to their success, but under this Government nothing could be further from the truth.
The last few weeks have seen the Prime Minister, the Chancellor and the Work and Pensions Secretary railing against the soaring numbers of people out of work due to long-term sickness. It is as if, after 13 long years, this has nothing to do with them, but these problems have happened on their watch and they only have themselves to blame. Britain remains the only country in the G7 where the employment rate still has not returned to pre-pandemic levels, and 2.6 million people are now shut out of work due to long-term sickness, which is the highest number since records began. What do the Government expect when they have driven the NHS into the ground and let waiting lists soar to 7.8 million, and when social care has been forced to its knees?
And what is the result? There are more and more people over 50 out of work due to long-term sickness, with people struggling with bad hips, knees and joints left stranded on NHS waiting lists and waiting for treatment in discomfort and pain. Many of them are women who are trying to care for their elderly parents or other sick and disabled relatives at the same time, with precious little help from an unreformed social care system after 13 years of this Government.
The number of young people out of work due to long-term sickness has doubled over the last decade and now stands at more than 230,000. Much of that is driven by mental health problems, but it is compounded if such a young person lacks basic qualifications and lives in a part of the country—often a town or coastal area outside our large cities—that is struggling economically.
We know from brutal experience the terrible consequences that long-term youth unemployment brings, and all these problems are far worse in poorer parts of the country. The grim reality is that someone is twice as likely to be out of work due to ill health if they live in the most deprived fifth of areas in England than if they live in the least deprived fifth, with rates of worklessness due to long-term sickness among the over-50s rising three times faster in the north of England than in the south.
This is the reality of Conservative Britain, and it is such an unforgivable waste. It is a waste of individual talent and potential when millions of people who want to work are written off because they cannot get the support they need to get back on their feet. It is a waste for British businesses, which desperately need to recruit staff and use the skills and experience of everyone in our country to thrive and succeed. It is an appalling waste of taxpayers’ money too, with taxpayers paying an extra £15.7 billion a year in higher benefit bills and lost tax revenues compared with before the pandemic.
What are Ministers proposing to deal with a problem so serious that the OBR says it is a significant risk to fiscal sustainability, driving higher taxes and weakening our growth prospects? We heard a lot last week about how more sick and disabled people can work from home. Let us put to one side that, barely 18 months ago, the last Prime Minister but one, the then right hon. Member for Uxbridge and South Ruislip, said that working from home does not work, and the right hon. Member for North East Somerset (Sir Jacob Rees-Mogg) claimed that homeworking reduced productivity and led to higher taxes. I am a strong supporter of home and hybrid working but the reality is that by far the highest levels of homeworking are among people earning £50,000 a year or more. Two thirds of people who work from home have a university degree, compared with only around one in 10 of those with no qualifications. Did we hear anything from the Government about getting sick and disabled people the degrees and professional qualifications they need to secure these high-paid work-from-home jobs, or about how to get the internet access, computers, home adaptation aids and other support that they need, given that so many disabled people are living in poverty? We did not.
Instead, as I am afraid the Secretary of State repeated today, we heard a rehash of old plans that would not be needed if they had worked in the first place, and of measures so inadequate, unambitious and ineffective that they will fail to tackle the root causes of worklessness and get Britain working again.
The much-lauded reforms to fit notes and the new “expert group” on occupational health to drive improvements in employee health at work were both announced six years ago, in the “Improving lives” strategy that the Chancellor published when was he was Health Secretary back in 2017. The new mandatory work placements were first announced back in 2011, when the Government said jobseekers who need initial support to get back to work can be referred on to mandatory four-week work placements. I am all in favour of work placements and better occupational health, which I have campaigned for in my constituency for years, but reannouncing old programmes that clearly have not worked is not a plan for success.
As for the Government’s changes to the work capability assessment, Labour has been warning for years that benefit assessments are not fit for purpose and should be replaced with a simpler, clearer system that gets decisions right the first time and focuses on what people can do, not just what they cannot, as part of much wider reforms that give practical help and support to get people into work and to stay in work. But that is not what the Government are proposing and their plans are not a recipe for success.
That is not just my assessment, or the assessment of disabled people’s organisations and charities; it is what the Office for Budget Responsibility says in its response to the autumn statement. A reasonable person might think that the results of a successful back to work plan would probably start with fewer people out of work due to long-term sickness and disability, but that is not what the Government’s plans achieve: the OBR says that 600,000 more people will be on sickness and disability benefits after the Government’s plans. Might we expect a higher overall employment rate? Sorry, wrong again: the OBR forecasts that this will remain static at just 60.6%. What about lower spending on sickness and disability benefits overall? I am afraid we would be wrong again; the OBR says that spending on sickness and disability benefits will increase by a staggering £33 billion over the forecast period—that is up by a whopping 75%. That is the result of the Government’s plans.
Britain desperately needs an alternative plan to get Britain working again, and that is what Labour will deliver. Our top priority will be ensuring that everyone who can work, does, because rights to taxpayer support must go hand in hand with the responsibility to take up work and training when they are offered. Conditions have always been part of the social security system since the original Beveridge report, and under Labour that will always remain the case. But Beveridge also said that the state has a responsibility to do everything within its power to help people get back on their feet, including through an NHS that focuses as much on prevention and rehabilitation as on cure, and an economy that delivers full and productive employment across the country. That is why Labour’s fully costed, fully funded plan will tackle the root causes of worklessness, drive down NHS waiting lists, overhaul jobcentres, transform skills, reform social security and make work pay.
That starts with our long-term plan for the NHS, because we know that a healthy nation is the key to a healthy economy. We will invest an extra £1.1 billion a year, paid for by abolishing the non-dom tax status, to provide 2 million more NHS appointments and clear the NHS backlog. We will recruit 8,500 more mental health staff, with support in every school and in every community to tackle mental health problems early on, paid for by closing private equity bonus loopholes, because when half of all serious mental illness starts before the age of 18, we have to get that help and support early on.
We will go further still. We will overhaul jobcentres, so that they provide personalised help tailored to individual needs—not the one-size-fits-all approach that drives too much of what the Government do. Jobcentres will also have new duties to work in partnership with the local NHS, employers and others. There will be a new focus on helping people to progress out of low pay, because we do not just want people to get a job; we want them to get on in their job and to use their talents and skills to the full. That is crucial to improving productivity and putting money in people’s pockets.
Mel Stride
The hon. Lady has substantially described our plan. What she has not said is whether she supports it. Does she support our plan?
Liz Kendall
I do not support a plan that leads to £33 billion more spending at the end of the forecast period and 600,000 more people on sickness and disability benefits because the Government have failed to tackle the root causes of worklessness or to put a proper plan in place. I know that the Secretary of State is desperate to say that people on the Opposition Benches do not support conditions or the requirement to work, but work is our party’s name. We believe that the benefits of work go beyond a payslip to the dignity and self-respect that good work brings. We will devolve employment support, so that it works for local issues and local needs, because the man, or even woman, in Whitehall can never know what is best in Leicester, Liverpool or Leeds.
Instead of demonising disabled people, we will put in place a proper plan to ensure that those who can work, do. Our “into work guarantee”, backed by the Centre for Social Justice and the Social Security Advisory Committee, will provide real incentives for sick and disabled people, allowing them to try work without fear of losing their benefits if things go wrong. It seems that the Government have finally nicked our proposals, just as they did with our NHS workforce plan. I have no idea what took them so long. Unlike the Government, however, who have let waits for Access to Work support soar, we will drive those waits down so that people can get the adaptations, equipment, travel and other support when they need it, rather than having to wait for weeks on end.
That is not all. Our mission to break down the barriers to opportunity will overhaul skills, so that no one is ever written off, whatever their age, including with new technical excellence colleges and by reforming apprenticeships. We will make work pay with a real living wage and by banning zero-hours contracts and fire and rehire. We will help parents balance work and family life with breakfast clubs in every primary school and more rights to flexible working through our new deal for working people.
Above all, our driving mission in government that will drive everything we do will be getting growth across every part of our country, because that is the key to our future success. We will get Britain building again by overhauling planning with ambitious new housing targets and first dibs for first-time buyers. We will get Britain investing again, providing the long-term certainty and stability that businesses need, which have been so fatally undermined by this Government. With our national wealth fund, we will leverage private sector investment to create the jobs of the future and make Britain a clean energy superpower. We will get Britain innovating again with our modern industrial strategy and plans to make this country the best place to start up and grow a business.
This autumn statement, hot on the heels of the damp squib of a King’s Speech, proved—if proof were ever necessary—that after 13 long years, the Government have run out of road and run out of ideas. Conservative voters, and even Conservative Members, could be forgiven for wondering what on earth their party is for. They say that they are the party of lower taxes, but the tax burden is the highest for 70 years, and working families are paying £4,000 a year more in taxes in this Parliament alone. They promised to take back control of our borders and stop the boats, but so far this year 27,000 people have arrived on small boats this year, their flagship Rwanda policy is in tatters, and, at 745,000, net migration is the highest recorded in history.
The Conservatives claim to be the party of home ownership, but home ownership has fallen under this Government, with couples now having to spend on average a decade saving for their first deposit, up from only three years under Margaret Thatcher. The armed forces have been cut and cut again, with the Army now employing a third fewer troops than it did in 2010, despite all the risks and threats that we face. Our criminal justice system is on its knees, with violent crime rising, court backlogs soaring and judges being told not to jail convicted criminals because the Tories have failed to build enough prisons. So much for being the party of law and order. That is before we even consider the dire state of our public services, where our schools are literally crumbling, patients are left dying in ambulances, and local government is on its knees.
Britain deserves so much better than this. I know from talking to people across the country, from Hastings to Erewash and from Swindon to Selby, that they are desperate for change, but the Conservatives cannot be the change from 13 years of their own failure. Under the leadership of my right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer), we have changed the Labour party, and we stand ready to change the country. Let us have a general election, and let us have it now.
Work Capability Assessment Consultation
Mel Stride Excerpts(1 year ago)
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The Secretary of State for Work and Pensions (Mel Stride)
The Department for Work and Pensions will today publish its response to the consultation on changes to the work capability assessment to reflect the modern world of work and greater employment opportunities for disabled people and people with health conditions.
Through a new “chance to work guarantee”, we will effectively abolish the work capability assessment for most existing claimants who are not expected to look for, or prepare for, work. This will remove the fear of re-assessments and give people the confidence to try work, while providing continuity of service for vulnerable claimants.
This brings forward a key part of our reforms announced earlier this year in “Transforming Support: The Health and Disability White Paper”, which sets out our future direction to completely abolish the work capability assessment and introduce a new personalised, tailored approach to employment support.
Ahead of these longer-term plans, we need to ensure that the work capability assessment delivers the right outcomes, and reflects changes in work since the WCA activities and descriptors were last comprehensively reviewed in 2011.
Over this time, the labour market has changed significantly, as evidenced by the increase in flexibility, and the availability of hybrid and home working jobs. At the same time, the proportion of people assessed to be entitled to the highest tier of health-related benefits, without any requirement to look or prepare for work, has risen from 21% in 2011 to 65% in 2022. Yet we know that one in five people who are not expected to engage in work preparation would like to work at some point in the future, if the right job and support were available.
To help inform our decisions on how we intend to take forward changes to the work capability assessment, we have carefully considered all the consultation responses and feedback from our public events and engagement. We received 1,348 written responses from disabled people and people with health conditions, as well as the organisations that represent and support them. We also engaged directly with clinical experts, employer groups and disability organisations across the country.
To reflect new flexibilities in the labour market and to ensure that more people are supported to move closer to work, from 2025 we will:
remove the “mobilising” activity used to assess “limited capability for work and work-related activity”;
reduce the points awarded for the “getting about” descriptor used to assess “limited capability for work”; and
ensure that the criteria used to determine a substantial risk to health of a claimant found capable of work-related activity is used only in exceptional circumstances so it is in line with the original policy intention.
We will continue to protect the most vulnerable and those who have the most significant limitations. We have determined not to make any changes to the continence or social engagement activities.
We will also change how we describe our health benefit groups in future. We will no longer refer to people’s limitations and will instead focus on what they can do. From 2025, the term “work preparation” will replace “limited capability for work”, and “health group” will replace “limited capability for work and work-related activity”.
Alongside these measures, the Government’s recently announced back to work plan will help more disabled people and those with a long-term illness to overcome barriers to work. This includes, through our new WorkWell service, bringing together work and health support locally and an expansion of universal support to place more people in roles and provide ongoing wraparound help.
By making these changes, we will ensure fairness for both claimants and taxpayers, step up the support on offer to the most vulnerable claimants, and remove barriers to work.
[HCWS64]
State Pension and Benefit Rates: 2024-25 Statutory Review
Mel Stride Excerpts(1 year ago)
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The Secretary of State for Work and Pensions (Mel Stride)
I have concluded my statutory annual review of state pension and benefit rates in Great Britain. The new rates will apply in the tax year 2024-25 and come into effect on 8 April 2024.
I am pleased to announce that the basic and new state pensions will be increased by 8.5%, in line with the increase in average weekly earnings in the year to May-July 2023. This delivers on our “triple lock” commitment to increase these rates in line with the highest of growth in prices, growth in earnings or 2.5%. This year’s increase is the second highest on record—and means that the full annual rate of the basic state pension will be over £8,800 from next April. The full rate of the new state pension will rise to over £11,500.
The standard minimum guarantee in pension credit will also increase by 8.5%, as will the weekly earnings limit in carer’s allowance.
Recognising the upward pressure in rents, despite the challenging fiscal context, the local housing allowance rates will be increased. These rates for universal credit and housing benefit will cover the lowest 30% of local rents; and the national maximum caps will be increased, so claimants in inner and central London will also see an increase in their housing support payments.
Other state pension and benefit rates covered by my review under the Social Security Administration Act 1992 will be increased by 6.7%, in line with the consumer prices index for the year to September 2023. This includes universal credit and other benefits for people below state pension age; benefits to help with additional needs arising from disability, such as attendance allowance, disability living allowance and personal independence payment; statutory payments including statutory sick pay and statutory maternity pay; and additional state pension. The pension credit savings credit maximum amount will also increase by 6.7%.
Uprating of devolved benefits in Scotland is a matter for the Scottish Government. Some of these—such as attendance allowance, carer’s allowance, disability living allowance and personal independence payment—are being temporarily delivered by the Department for Work and Pensions on behalf of Scottish Ministers under agency agreements. In these cases, the Scottish Government will bring forward corresponding uprating legislation in the Scottish Parliament.
Social security is a transferred matter in Northern Ireland. Corresponding provision for state pension and benefit uprating will be made by the Department for Communities there.
I will place the full list of proposed state pension and benefit rates for 2024-25 in the Libraries of both Houses in due course.
[HCWS63]
Work and Pensions
Mel Stride Excerpts(1 year ago)
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Mel Stride
There are certain things that the shadow Secretary of State, the hon. Member for Leicester West (Liz Kendall), and I can agree on, and smoking is one of them. I was interested to learn that she is a former smoker. They always say that former smokers have a passionate desire to stop other people smoking, and she certainly demonstrated that. We know that one in four cancers is caused by smoking.
[Official Report, 13 November 2023, Vol. 740, c. 474.]
Letter of correction from the Secretary of State for Work and Pensions.
An error has been identified in the speech I gave in the Debate on the Address. The correct statement should have been:
Mel Stride
There are certain things that the shadow Secretary of State, the hon. Member for Leicester West (Liz Kendall), and I can agree on, and smoking is one of them. I was interested to learn that she is a former smoker. They always say that former smokers have a passionate desire to stop other people smoking, and she certainly demonstrated that. Smoking causes a quarter of deaths from cancer.
Back to Work Plan
Mel Stride Excerpts(1 year ago)
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The Secretary of State for Work and Pensions (Mel Stride)
Later today, the Chancellor of the Exchequer, the Secretary of State for Health and Social Care and I will announce a new back to work plan. This is a package of employment-focused support that will help people to stay healthy, to move off benefits and to move into work, which will form part of the Chancellor’s autumn statement on 22 November.
The number of people economically inactive due to long-term sickness has risen to a record high of 2.6 million, and the number of people who are on unemployment benefits is expected to grow over the coming years. With almost 1 million vacancies in the economy, it is vital we ensure that every opportunity is given to those who can work.
Our back to work plan will tackle economic inactivity by addressing the rising flow of people out of work due to long-term sickness and enhancing back to work support for the long-term unemployed.
Our back to work plan will not only help disabled people and those with a long-term illness to overcome barriers to work; it will also provide support for people currently employed to take preventive action and help them stay in or return to work quickly. Fast access to the right type of joined-up work and health support can prevent people falling out of work, ensuring they reap the physical, financial and mental benefits of being in work.
To address the rising flow of people out of work, we are formally launching our new WorkWell service, announced at the spring Budget. This will be delivered by my Department, and the Department of Health and Social Care, and will support almost 60,000 long-term sick or disabled people to start, stay and succeed in work through integrated work and health support. A prospectus launched in the coming weeks will provide information for all integrated care systems across England to develop their localised work and health strategies. The service will then be delivered in approximately 15 pilot areas.
Our flagship universal support programme will also be expanded to reach more people. It is a new, voluntary employment programme for economically inactive long-term sick or disabled people who are experiencing additional barriers to employment. Universal support offers individuals up to 12 months of “place and train” support from a dedicated keyworker, helping them to find a suitable role and offering personalised support. In addition, we will explore reforming the fit note process to provide individuals whose health affects their ability to work with easy and rapid access to specialised work and health support.
The Secretary of State for Health and Social Care will also introduce measures that reinforce our efforts to join up employment and health support and expand access to mental health services, tackling one of the main reasons for sickness absence. This includes a significant expansion in access to NHS talking therapies and individual placement and support, building on the evidence that these programmes deliver positive health and employment outcomes.
The back to work plan will also support more people on unemployment benefits who are able to work to get back into work. This means earlier, more intensive support for those who find themselves out of work, reducing flows to long-term unemployment. We will provide upskilling, job search support, practical work experience and tailored advice to support claimants to sustain themselves and actively participate in growing our economy. This will include a phased roll-out where we will expect claimants to either take up a job, take up mandatory work placements, or engage in a programme of intensive activity to get them off benefits and into jobs. This also means more intensive contact with claimants and smarter case monitoring to make sure that they are not forgotten and that they do not fall behind in their journey back to work.
There are some unemployed people who resolutely refuse to engage in job-seeking activities and continue to receive benefits. They are able to work, and it is not fair on taxpayers who contribute to our welfare system. For this reason, we are toughening the application of sanctions for those who fail to comply with expectations on job searching. Our welfare system should be a safety net for those genuinely not able to work or only capable of limited work, and provide a springboard for those capable of working to help them back into employment as quickly as possible. As a result of these reforms, no claimant should reach 18 months of unemployment in receipt of their full benefits if they have not taken every reasonable step to comply with jobcentre support.
This package will help up to 1.1 million people over the next five years: rewarding fairness; boosting labour market participation; growing our economy; and just as importantly, changing lives.
[HCWS43]