Welfare Reform and Work Act

Baroness Maclean of Redditch Excerpts

Wednesday 21st March 2018 Westminster Hall

[Dr Whitford]

I am, and I thank my hon. Friend for that intervention. The problem with all the changes, going right back to 2010, is that there never was a proper cumulative impact assessment to look at what changes on top of changes have done and what happens to people who are in more than one group. We know that lone parents are impacted by changes, but what if a lone parent is also disabled?

[Rachel Maclean (Redditch) (Con)]

Does the hon. Lady agree that all the changes in the welfare legislation should be seen in the broader context of other policies, such as the rise in the national living wage, which is lifting some of the lowest paid people in this country out of poverty?

[Dr Whitford]

I will come to that point later in my speech, if the hon. Lady is happy to wait.

In addition, carers are now subject to conditionality and treated as jobseekers, regardless of what their caring commitments are. That means that they may be open to sanctions. In 2013 we had the infamous bedroom tax, which thankfully in Scotland we have been mitigating, but which has impacted on people with disability, who will lose 14% of their housing benefit if they are deemed to have a spare room. Many disabled people require additional space, whether that is for complex equipment or because they need to sleep separately from their partner, or because they routinely or occasionally require someone to stay over when they are not well.

With the Welfare Reform and Work Act we also saw the removal of the work-related activity group component from employment and support allowance. We spoke out against that repeatedly. Taking £30 a week away from someone who has been defined by DWP assessors as not fit to work will most certainly not get them back into work. That impacts particularly on people recovering from major illness. As a cancer surgeon, I have seen for myself the impact on people who have gone through a year of intense surgery, radiotherapy and chemotherapy and the time it takes to get back to work. We are talking about extra heating, because they are at home. In England, we are talking about prescription charges and car parking charges at hospitals, both of which, thankfully, patients in Scotland do not have to pay. Is it any wonder that this Government have been criticised by the United Nations for breaking the convention on the rights of persons with disabilities? It has been a relentless attack.

The stress has increased the mental health issues suffered by people with disability. A survey has shown that over 40% have at some time considered suicide. What kind of society are we, if we are not willing to look after those who are vulnerable? We can judge a society by how it looks after its most vulnerable. As these disability benefits come to Scotland, it is our aim to use a human rights approach and ensure that dignity is at the centre of how we treat people.

Carers should also be supported and valued. They save the state millions of pounds by providing virtually free care. In Scotland, one of the first Acts that will come in next year will increase the carer’s allowance to at least the level of jobseeker’s allowance. It is little enough, but it is at least a declaration of intent. It is envisaged that employment support allowance is to support those who, due to their disability, are simply unable to work. PIP is meant to allow those with disability to reach their full potential. We should not be sticking people in their houses, because we take away their mobility, and then saying, “We are trying to get them into work.” People with disability who are working have extra costs, and that is the whole point of PIP, so the Government should put their money where their mouth is.

We also know that child poverty is rising and is expected to rise further. We have seen it climb by about 5%. The poorest areas in the UK now have child poverty rates of around 50%. How can that be right, when we know the impact that will have on children? But while we talk often about child poverty, we should recognise that it is actually family poverty, and that children cannot be separated from the experience of their family. Their income has been hollowed out since 2010. We saw the benefit cap in 2013 set for families at £26,000 a year. That affected about 20,000 families. The Welfare Reform and Work Act 2016 cut that to £23,000 in London and to £20,000 elsewhere in the UK. That affected 88,000 families, who lost either £3,000 or £6,000 from their income.

In 2011 we saw the local housing allowance brought in to cut what was paid for those living in the private sector. It reduced housing allowance from the median in their area to 30%. But in 2016 that was frozen and in a third of areas it does not even come close to 30%. In London, housing benefit for those in the private rental sector will cover only 16% of their housing costs, meaning that they fall about £1,000 a month short. That is significant for anybody’s wallet, but for those at the lower end of income earnings it is a severe hit. That has led to over 4.5 million people in the private rented sector struggling as rents have soared.

In 2016 the Government cut the family premium that was allowed with a new claim or a new birth, leading to a loss of £907. The bedroom tax also affects families, particularly in situations of separation or divorce, because the parent with minor caring responsibilities is not recognised. For example, a man—most likely—now living on his own in a small flat is not allowed a bedroom that would enable his children to stay over when he has them for the weekend. What does it say about us that we are not trying to strengthen families, but actually trying to undermine them?

Tax credits, which had such a big impact on child poverty, have faced attrition since 2011, when the first thing to go was the baby element, removing over £500. The 2012 changes saw families over £700 worse off. We all remember the haggling in the Chamber about changes to tax credits and the Chancellor stepped back from doing it after the Lords objected, but that was because he knew that those tax credit changes were simply hidden within universal credit and that, therefore, eventually they would hit everyone. The Government have removed the family element for the first child, again over £500, and now tax credits are claimable for only the first two children. The third child in a family loses out £2,780 a year. That has a huge impact on such families.

Universal credit has also reduced the work allowance. That means that it will often not be worth the while of the partner in a family—the second earner—going out to work, because they would lose so much and, particularly when childcare is taken into account, could end up worse off than if they did not take the extra work. The Government always talk about making work pay, but they do not always follow through.

The policy from the 2016 Act that has had the biggest and widest net, dragging more people into poverty, is the benefit freeze. Again, that comes on top of a 1% cap that was in place from 2013. The holding down of all working-age benefits has been in place for a number of years.

--- Later in debate ---

[Dr Whitford]

Yes. That is exactly what I will move on to. Obviously, the former Chancellor, George Osborne, justified the benefit freeze because at the time inflation was 0.3%, but inflation now, due to Brexit and the fall in the value of the pound, is officially 3%, as measured last September. By 2020, low-income families will be over £830 worse off, just due to the benefit freeze. If we look at the cumulative cuts, an average family will be £1,300 worse off. But if we drill down into families that have three or more children, that builds up and becomes eye-watering.

[Rachel Maclean]

The hon. Lady is being extremely generous in giving way. I want to ask about the principle behind what she is saying. I was not an MP when the benefit freeze was introduced, but I believe the logic was that at that point benefit spending was rising much faster than average earning. Does she think it is right that spending on benefits should go up faster than the average earnings of people in the country? Does she think that should be the case, and is she advocating for that to continue now?

[Dr Whitford]

I am advocating that inflation is now ten times what it was when the policy was brought in, and that therefore this policy should be re-thought. It was never imagined to have such a punitive impact. As my hon. Friend the Member for Airdrie and Shotts (Neil Gray) said, the return to the Treasury has been much greater than planned, so the Government could easily afford to unfreeze benefits. That measure is having a particular impact on the poorest.

Like the point raised by the hon. Member for Redditch (Rachel Maclean), the Government and the Conservative party claim all the time that they are helping the poorest through other actions. The number one thing that is always quoted is the national living wage: not the real living wage, which is 95p an hour higher, but the pretendy living wage. The Office for Budget Responsibility, however, points out that this does not offset the benefit cuts. The increased earnings owing to the national living wage will be £4 billion a year by 2020. The benefit cuts are three times that: they will be between £12 billion and £13 billion a year. I am sorry, but the Government and the Conservative party cannot hide behind that claim. They are still taking £8 billion from the poorest families.

The other thing that is always quoted is the raising of the personal tax allowance. That obviously has a bigger impact if someone pays tax, but only £1 out of £6 spent by the Treasury on raising the personal tax allowance will end up being for people in the lower half of the income distribution curve. Unfreezing benefits would be much more targeted—even excluding child benefit from that and focusing on all the other benefits would have the biggest impact on helping poor families.

Other benefit cuts have specifically impacted on children and families with children. The health in pregnancy and Sure Start maternity grants were both cut, even though we know the importance of the first 1,001 days after conception. That is about the health and nutrition of the mother and the early years of the child. We know that the impact of poverty affects children life-long; it reduces their educational attainment and tends to limit their job prospects. They are much more likely to end up on benefits in the future. It also affects their health. They have higher rates of physical and mental health issues than those in affluent families. They are at greater risk of addiction, of ending up in the criminal justice system, of committing suicide and of being in a road traffic accident or a house fire.

All that costs money. Mitigating in later life the issues that come from child poverty is estimated to cost the Treasury almost £6.5 billion a year. If there is no change in direction from the Government, we expect 200,000 more children to be growing up in poverty by 2020. I suggest to the Minister and the Government that they do not spend £6.5 billion mitigating suffering in later life, but invest in early years now.

[Rachel Maclean (Redditch) (Con)]

It is a pleasure to serve under your chairmanship, Mr Gapes.

I congratulate the hon. Member for Central Ayrshire (Dr Whitford) on securing this important debate. It is a pleasure to follow her speech, which raised some very important issues. As Members of Parliament, we all want to ensure that the welfare system operates correctly. I am a strong believer in what the Government are doing on welfare and find myself, once again, in a debate about welfare reform. I am glad to be here, because one of the Government’s most important jobs is looking after those who are unable to look after themselves. I am proud of what this Government have done during the time I have been in Parliament, and of the record since the 2010 coalition Government and the Conservative Government that followed.

[David Linden (Glasgow East) (SNP)]

The hon. Lady talks about how proud she is of this Government’s actions, but by the time this debate concludes, at 11 o’ clock, St Stephen’s church café in Redditch will open as a food bank. Does she not understand that there is a clear correlation between this Government’s actions on welfare reform and the food banks in her constituency?

[Rachel Maclean]

I visited the food bank and have spoken to the people there, but time does not permit me to talk in depth about those issues. I have an ongoing dialogue with both the people who run the food bank and the people who use it. I understand very well what is happening in my constituency of Redditch and, if the hon. Gentleman will forgive me for moving on, I will speak about some of my experiences with universal credit and the jobcentre there.

I will focus my remarks on universal credit because it is a key plank of the Government’s reforms. Since my election, I have made it a priority to understand what services exist for my constituents who face challenges, whether those are unemployment, poverty or physical and mental health problems. As a constituency MP, I understand very well what is going on. There are areas of deprivation in Redditch, as there are in every constituency up and down the country. It is up to the Government to ensure that the help is on the ground, where it is needed.

It is important to revisit the principles behind the drive to reform the system that we inherited from the last Labour Government. In that system, people had little or no incentive to get back into work. When they did, they found themselves worse off and liable to lose money if they took on more hours or a better paid job. How could that be right?

The hon. Member for Central Ayrshire talked about tax credits. It is my understanding from DWP statistics that tax credit spending ballooned from £1.1 billion at its introduction to £30 billion a year by 2015. I do not think it is right to spend such a rapidly escalating amount of GDP on benefits. That indicates there is something fundamentally wrong at the heart of the system.

There is widespread public support for the principle that welfare should be not a life sentence, but a lifeline as someone transitions through difficult circumstances or the loss of a job. The old welfare system had become labyrinthine in its complexity, with a number of different benefits adding to the confusion over what someone was entitled to. It was not a system that gave people a ladder to a better life, but rather one that trapped them in worklessness and poverty.

[Dr Whitford]

Does the hon. Lady recognise that more than 60% of people who require support are working, but are stuck in low-income jobs? Surveys show that very few of them are out of working poverty 10 years later.

[Rachel Maclean]

I do not agree with that, because the evidence does not bear it out. Universal credit is an agile system that is designed not only to get people who are out of work into work, but to support them as they look for better-paying jobs. I will come to that in my speech.

I accept that reforming welfare is difficult, as the hon. Lady said. There can be no MP in this House who has not come across heart-breaking cases where the system has failed. Those are wrong, and we all stand up for our constituents, but they are not evidence of a failing system—rather, they are the inevitable consequences of a large and challenging public sector reform process. Since I have been in this House, I have seen Ministers listen to problems and make changes to fix the system. Recently, we have seen adjustments reflecting concerns raised on both sides of the House, which are welcome. We hear much criticism from the Opposition, both the SNP and the Labour party, on this. It is extremely easy to criticise from the Opposition Benches, but no real constructive alternative is offered.

I have made it my priority to visit the jobcentre and speak to local people on the ground in Redditch. These are just a few of the experiences that I have heard. My local jobcentre manager has worked there for 30 years. She described the system as “working very well” for her clients. She said that it is “the best system” she has seen in her 30 years as a jobcentre manager and that it helps people “who really need help”.

The first example is a customer who was seen by a work coach when universal credit first went live. The customer had a very difficult personal background. She was totally disengaged when she saw the work coach and she was quite difficult to work with. The work coach encouraged the customer to gain upskilling in maths and English. With the work coach’s help, she found work. The customer is now working in a role where she wants to help others to find work. She even shares knowledge of vacancies with her former work coach to encourage other people to find work.

Another example is a customer who had been on and off benefits since 2012 and was working with a work coach. This customer struggles to make eye contact and lacks confidence. Over time, the work coach established a rapport and helped him to gain confidence. They referred him to work experience with a local retail outlet. When he attended, the work coach asked if there had been any changes. The customer looked them in the eye and said, with a smile on his face, “Would that include the fact that I’ve got a job?” The coach said that they are “delighted” and “so glad” that they referred him to the retailer in the first place, and:

“Seeing the customer smiling about his success really made my day.”

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

Will the hon. Lady give way?

[Rachel Maclean]

This must be the last intervention. I am aware that others wish to speak.

[Drew Hendry]

In that case, I am grateful to the hon. Lady for allowing me to intervene. She is recalling the experiences of DWP managers in her case studies, but how many claimants has she spoken to directly to get their stories?

[Rachel Maclean]

I have spoken to claimants in local organisations on the ground.

[Drew Hendry]

How many?

[Rachel Maclean]

Many. I can write to the hon. Gentleman with the precise numbers, if he would like me to.

I will touch on another example. A qualified hairdresser had been a carer and was a single parent to her disabled children. She found it difficult to find work to fit around her responsibilities. Her work coach suggested that she consider self-employment and she was referred to the new enterprise allowance in February 2016. She commenced self-employment, hairdressing in care homes, from April 2016.

By April 2017, she had expanded her business by 200% and was nominated for entrepreneur of the year by learndirect. At the ceremony on 4 July, she won the award. She was delighted and said it was all down to the initial push and referral from her work coach, followed by support.

After the meeting, she sent an email to the work coach, which said:

“Thank you for meeting with me yesterday, I felt very positive after our appointment. This is the first time I have ever been out of work and in this situation so was dreading the whole ‘Job Centre’ scenario. I don’t know what people complain about, so far everyone I have encountered has been really helpful and proactive.”

Is it not time that we had more such stories in the media, instead of the negativity we are always hearing from this place?

At the heart of the system are the work coaches, who offer tailored, individualised support to help people. Last week, I was privileged to open Redditch Nightstop, a centre for young people living in family-supported housing, where I did indeed meet claimants of the system, which the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) asked about.

I talked in depth with the local jobcentre manager. Her feedback was that she was able to join up the local courses offered by Redditch Nightstop with some of her clients, who would otherwise struggle to cope with basic life skills. That type of system is a positive step forward that enables people on the ground, who know the local sources of support, to access them and to gain confidence. Universal credit works with those clients, not against them.

I am aware that other hon. Members wish to speak, so I will keep my remarks about older workers brief. I have often spoken in Parliament about the discrimination faced by older workers in our society. I am an older worker myself, but age should not be a barrier to entering a new career or occupation, retraining or upskilling, provided that it is a positive choice.

In addition, because skills shortages affect many businesses now that we have virtually full employment—thanks to the work of this Government—many businesses are realising that youth is not everything when it comes to employing staff. B&Q has long been a champion of that policy, and it has reaped many accolades in the process, but other household names are now championing it too.

The Government have introduced many measures, including the fuller working lives strategy, to provide real support for the objective of achieving human potential at any age. The strategy states that ageist stereotypes should be challenged and older people should be allowed to contribute, as many want to. I believe, as do the Government, that work is not just an economic proposition. It allows people to have a purpose in life, to improve their mental health and wellbeing, and to retain their independence and autonomy.

To support that with practical measures, the Department has expanded the older claimant champion network in all 34 Jobcentre Plus districts. The champions work collaboratively with more than 11,000 work coaches and employer-facing staff to raise the profile of older workers, highlight the benefits of employing older jobseekers and share best practice. Recent research indicates that older claimants found that support useful. Further analysis of the provision for older claimants is ongoing. When the Minister sums up, will he tell us when the Department will publish the impact assessment, which was promised for spring 2018?

Anne Willmot was recently appointed as Business in the Community’s “Age” campaign director. She speaks of the challenges that an older population faces. Ageism is rife; a 50-year-old is 4.2 times less likely to be invited to interview than a 28-year-old. We need to support those with health issues and caring responsibilities to prevent them from leaving their jobs, and to deal with the discrimination and bias in recruitment that have made it so hard for the over-50s to secure employment.

I welcome any update from the Minister about what more the Government can do on that issue. Taken together, those policies, and many others, will help to achieve the aims of a welfare system that works for everybody, at all stages of life.

--- Later in debate ---

[Alex Burghart]

As the hon. Gentleman will have heard from my opening remarks, there are two issues at play. The first was the broken economy. As I have said, if the Government had not taken action to dramatically reduce public spending—[Interruption.] Our deficit has been cut. The hon. Gentleman suggests from a sedentary position that that was in 2008 and the situation is different now. Our deficit has been much reduced by the actions of this Government and the coalition Government over the past eight years, but it has not yet been fully eliminated.

Once the deficit is fully eliminated, we will be able to do the most important thing, which is to start to reduce debt as a proportion of GDP. That is essential, because at the moment we are spending more on servicing our debt than on defence, on education or on our police forces. None of us wants that. Effectively, we have created a new “Department of Debt” that sits in Whitehall and gobbles up money. I want to see the budget for that Department cut year by year, but only the steps that this Government are taking will achieve that.

Let me return to my point about the broken welfare system. Regardless of what happened in 2008, it was essential that the welfare system be reformed to encourage more people to take more work and benefit from all the associate factors surrounding it. We all know that there is great dignity in work and that it provides pride, purpose and a great example to children. It is what we want for ourselves and for our constituents.

[Rachel Maclean]

My hon. Friend is making an excellent speech. Does he recognise that well over half a million fewer children are living in workless households now than in 2010? Children are five times more likely to be in a low-income household if they are in a workless household than if they are in a household in which all adults work. There is a knock-on effect for the next generation.

[Alex Burghart]

I am extremely grateful to my hon. Friend for stealing my thunder and taking away my next paragraph. Yes, I am fully aware of that fact and she is right to emphasise it. One of the great things that has happened since 2010, which must be acknowledged in a balanced debate on the subject, is that we have achieved record employment in this country. Unemployment has fallen substantially—in all constituencies, I believe—but it is unfortunate that so far my hon. Friend has been the only hon. Member to welcome that in this debate.

It is right to talk about the full package. Yes, there have been cuts and freezes to welfare payments but, as my hon. Friend mentioned, they must be seen alongside increases to the national living wage, increases to the tax threshold, a new offer on childcare and the creation of universal credit, which enables people to progress in work without the disincentives that existed before. Alongside all that, the most important thing that has happened is that far fewer people are in out-of-work benefits. When we talk about assessments that people may have lost money under the welfare changes, we must always acknowledge that this is a dynamic system. The whole point is that people move into work and progress in work so that they earn more money. I fear that that has not been acknowledged in this debate.

The Welfare Reform and Work Act introduced several changes, as hon. Members have already mentioned, but they must be seen in the context of fairness. The welfare cap limited the amount of money that some families receive, because it was deemed by Parliament that it was unfair for families out of work to receive more than families in work. It was not just a parliamentary majority of Conservatives and Liberal Democrats who agreed with that; regular polling has found that 77% of the population do, too.

I am delighted to draw attention to a new report by Policy in Practice, “Low Income Londoners and Welfare Reform”, which has examined the effect of the welfare cap on 600,000 low-income people in London. It shows that there has been a positive impact on employment outcomes for those families and no measurable impact on homelessness in comparison with a control group of similar households. The welfare cap is working in London, and the most serious piece of analysis so far conducted upholds that. It is a good example of how adjusting the welfare system carefully can create work incentives to help people to make positive choices to improve their lives and those of their families.

The hon. Member for Central Ayrshire mentioned the four-year benefit freeze. I acknowledge that inflation is now higher than it was when the freeze was set. I also acknowledge that it is now falling. As my hon. Friend the Member for Redditch (Rachel Maclean) pointed out, the value of benefits increased by 21% between 2008 and the 2016 Act, while the value of wages increased by only 11%. The freeze is therefore not quite as stark a corrective as the hon. Member for Central Ayrshire makes out.

On the two-child limit in universal credit, it is only right that we have a welfare system in which people who are out of work have to make similar decisions to people in work. However, it is extremely important that people in the welfare system understand the potential consequences. I have become concerned that there may be people who are thinking of having a third child but are not aware that they will not be entitled to further benefits under universal credit. The system cannot work as intended if people are not aware of how it works.

Women and Work

Baroness Maclean of Redditch Excerpts

Wednesday 14th March 2018 Westminster Hall

[Rachel Maclean (Redditch) (Con)]

I beg to move,

That this House has considered women and work.

It is a pleasure to serve under your chairmanship, Sir David. May I address you as Sir David? What is your preference?

[Sir David Crausby (in the Chair)]

You can. My friends don’t have to, but I think they should.

[Rachel Maclean]

Thank you for that clarification.

Women make up half the population but, for many years, less than half the workforce. The key to female empowerment is economic independence, which is what this debate is about.

Hon. Members will know that it is only comparatively recently that women were accepted in the workplace. When I was growing up, my mum was unusual, because she worked outside the home as a GP. I had to let myself into the house when I came back from school and make my own meals, which forced me to become independent from an early age. I learned great life skills, including how to make a quick, nutritious meal for my sister and myself, as well as how to climb over garden fences and through bedroom windows when I lost my door key, which happened quite regularly. I hasten to add—I am sure hon. Members will be pleased to know—that that is not a skill I have used regularly since that time.

We women have made great strides in society from the days when it was completely normal to say that a woman’s place was in the home, or we had to give up our careers when we became pregnant, or we were forced out due to attitudes and outdated policies or the unwelcoming culture of the workplace. In my very first job after university, in a large high street bank, I was the only woman recruited into my job role, at the age of 22. I remember when I was called into the top boss’s office and was asked what they should write in a maternity policy if I became pregnant. They had never had a female employee in that role, let alone anyone with a baby. How times have changed. Those incidents date me of course, but they also illustrate how things have changed in just four short decades.

Women cannot achieve their potential in society, in the workplace or in the family without independent resources of their own. That is why women and work is a critically important subject and why I have called this debate. I pay tribute to the progress made under previous Governments of all colours to open up the workplace to women. It has been a long journey. Although I accept that there is always more that we can do, I will touch on a few key themes and highlight the major progress that this Conservative Government have made.

As Conservatives, we believe in helping everyone, male or female, achieve their potential. I am proud of the progress that we have made since 2010. Some 15.1 million women in the UK aged 16 and over were working in December 2017, which is 1.48 million higher than a decade ago. That represents a record high employment rate of 70.8%, and results in the smallest gap between male and female employment rates, of just under nine percentage points, since comparable records began in 1971. As we would probably expect given that it is still the norm for women to take on the bulk of caring responsibilities in the family, women are more likely than men to be working part time, but I note that, since 2014, the growth in full-time employment for women has outpaced that of men.

Why does this matter? There is a massive evidence base that diverse teams that include men and women equally perform better. This is not just about doing something to benefit women. It is about action that benefits men and the whole of society. The evidence is overwhelming. Study after study, report after report, demonstrate beyond all doubt that diverse teams overcome groupthink, problem-solve more effectively and build better teams.

What have the Government done to encourage women into the workplace? One critical factor is being able to work flexibly or to stay in work when the alternative would be to give up work, which is very good news for individual employees and their employers, and good news for the economy. Under the Conservatives, I welcome the fact that working patterns are becoming increasingly flexible.

In the three months to August 2016, 23.2 million people were working full time—362,000 more than a year earlier. There were 8.6 million people working part time—198,000 more than a year earlier. Based on 2011 data, around 60% of employees had done some form of flexible working in the previous year, up from 56% in 2006. There is no doubt that the extension of the right to request flexible working has doubled the number of employees who are able to make a request, to more than 20 million. The former business Department—the Department for Business, Innovation and Skills—estimated that that would lead to a further 80,000 requests a year, which has led to 60,000 new working arrangements a year.

Let us pause for a moment to consider what that means in a woman’s life. It means that a woman is able to have control over her work-life balance and take on the responsibilities she may face, whether that is caring for children or for elderly relatives, yet still contribute to the workplace without being discriminated against.

[Leo Docherty (Aldershot) (Con)]

I am very pleased that my hon. Friend has been able to secure this important debate and I am pleased to be here. I agree that having women in the workplace is not just good for women. It is also good for men. I pay personal tribute to the fact that my hon. Friend embodies that maxim through her contributions to parliamentary business. She touched elegantly on her personal experience and mentioned her mother. In terms of what drew her into having a working career, was there a particular role model? Does she think that role models in general are a critical factor in bringing women into the workplace?

[Rachel Maclean]

I thank my hon. Friend for that well-considered question. He touches on the reason I requested this debate. I have a number of personal role models, the greatest of whom is my sadly departed mother-in-law, Margaret Maclean. She was a fantastic example of a woman who started her own business—not even from the kitchen table, but from the downstairs toilet. Many times we have been in her toilet packing up boxes of books for her book distribution business. I learned the value of hard work and never having a day off. I recognise that she did that and raised her three children, one of whom is still my husband, I am pleased to say.

We have seen in the Government’s recent industrial strategy that they are committed to continue to work with businesses to make flexible working a reality for all employees across Britain and to inform the evaluation of the right to request flexible working regulations. We all know that some barriers remain to requesting flexible working. I worked in businesses for 25 years before I entered the House and I know that there are barriers for women. It is only by making overwhelming change in the culture of business and society that it will become the norm to request and to grant flexible working to women and men with caring responsibilities. It is really good news for women when forward-thinking businesses are able to have a dialogue with their staff and accommodate the reality of our lives. Of course, as my hon. Friend the Member for Aldershot (Leo Docherty) said, men also benefit from that, along with the whole family.

[Mrs Helen Grant (Maidstone and The Weald) (Con)]

I congratulate my hon. Friend on securing this important debate. Does she agree that apprenticeships are a very good way of allowing women and girls to achieve, progress and reach their full potential in the workforce by working flexibly? I declare an interest as chair of the apprenticeship diversity champions network.

[Rachel Maclean]

I thank my hon. Friend for that question, because it draws attention to the statistics on women and apprenticeships. Women account for the majority of apprenticeship starts in recent years—53.4% in 2016-17 and 52.8% in 2015-16. That has risen year on year under this Government, and is no doubt a tribute to the work that she is doing in championing diversity and apprenticeships in the workplace. I thank her very much for that.

Having women in the workplace is very good news for men and the culture of businesses as a whole because it encourages a more dynamic, progressive and modern workplace. When the Minister responds, will he touch on the uptake of shared parental leave, which is a fantastic policy supported by this Government and previous Governments? What more can the Government do to encourage more employers to take it up? I am sure hon. Members will agree that it is very important.

I believe that women are natural entrepreneurs, so a debate on women in work would not be complete without a celebration of our tenacity and business acumen. This is a subject close to my heart, because I have spent the past 25 years running my own business. I have battled issues that I am sure we have all faced, including mansplaining and hepeating, which is a new one—obviously, hon. Members in this Chamber are not guilty of those sins—juggling my family and my work, losing my income when my business went bust, and all the highs and devastating lows that came with that journey.

Groups of women, such as the mumpreneurs and others, are increasingly using technological tools to make a living for themselves and to set their own agenda. The latest statistics indicate that there are now 1.2 million women-led small and medium-sized businesses in the UK, which contribute an estimated £110 billion to the economy. The Government are getting behind those women with a range of realistic measures designed to help them. Government-backed start-up loans are one of the ways we are helping women to realise their talents, create jobs and boost the local and national economies, but there is more to do. Only 5.7% of women were involved in starting or running a new business last year—half the rate of men. I think that is a shame, and the Women’s Business Council agrees. If women were setting up and running new businesses at the same rate as men, there would be 1 million more female entrepreneurs.

I am therefore pleased that the Government have recognised the urgency of this mission. My hon. Friend the Exchequer Secretary has responded to calls from across the world of business and politics to investigate the funding gap, which women face when they try to access capital. According to the Entrepreneurs Network, men are 86% more likely to be funded by venture capital and 56% more likely to secure angel investment than women. A new study by the Federation of Small Businesses shows that one quarter of female small business owners said that the ability to access traditional funding channels is a key challenge. Many are therefore forced to rely on alternative sources for growth, such as crowdfunding, personal cash and credit.

I have personal experience of that. Before I entered Parliament, I worked for a tech start-up, and I saw for myself the barriers that women in that sector face. There is a massive disparity between men and women in that industry, which is a huge shame because women have so much potential to offer. Statistics indicate that one in eight women want to launch their own business in the UK. I agree with my hon. Friend the Exchequer Secretary, who said that helping more women access the capital they need presents

“a massive economic opportunity to the UK”.

That opportunity is currently untapped. I therefore look forward to seeing the results of the landmark study announced by the Treasury of the female funding gap. I hope that important lessons are learned, and that the Government do everything in their power to tackle this important issue.

The third key issue I wish to raise is that of returners, which relates to women who find it difficult to interact with the workplace. The group is loosely called returners, but it includes a lot of different women at different stages of their life. Taking a career break can often mean the end of a career or put barriers in the way of progression. I had four children and four periods of maternity leave, so I know how difficult it is to re-enter the world of work after the stress and exhaustion of having a baby. It is a joyful time, but as any new mum will say, coming back to work is hard. They have to contend with not just the sleep deprivation but the challenges of keeping up with new developments in the workplace and in technology, and of course juggling childcare. That is why I am pleased that the Government acknowledge that issue and are leading the way on it.

I hear evidence of large companies such as AXA getting on board. There are many others, but I have singled out AXA because I read the evidence that it recently gave to the Treasury Committee. It has instigated flexible working, maternity buddying and maternity coaching to ease the transition back into the workplace. Such practices should become the norm, not the exception. By constantly talking about the importance of such issues in this place, I hope we send out the signal that the world of work has changed and will change in the future. A woman can be just as effective working from home, with a managed team and open and honest communication with her team.

When I recruited staff for very senior management positions in the business I ran, I never hesitated to recruit mothers, women with children, or even dads who wanted to work part time or school hours. That is unusual in many businesses, but I knew that they would be perfectly able to manage by using technology and virtual methods of communication to overcome the barriers of not being present. They do not need to sit at a desk to be effective. I knew that, although they were not physically present every moment of the day, their brains would be working on business problems, even while they were taking care of their children, doing the school run, preparing meals or doing the laundry. If you want anything doing, ask a busy person—especially a mother or a father who is up against a deadline to collect a child. I guarantee they will get the job done.

The Government are supporting hard-working women and businesses in this country. I welcome the fact that in the 2017 spring Budget the Government committed £5 million to support people who would like to return to paid work after spending time caring for others. That funding will help to unlock the potential and benefits of work for those individuals, employers and the economy. Some 2.1 million people, nearly 90% of whom are women, are currently out of the labour market because they are looking after their home or caring for family members, so we can see how important that agenda is. More and more businesses are joining the fight and making this a boardroom issue. Change will come only when directors step up and lead, and put their money and resources where their mouth is. I call on them to acknowledge the reality of the world of work for women today.

I want to touch on the Taylor review, of which I have experience, because I was a member of the Business, Energy and Industrial Strategy Committee for a short period. The Government are listening to and acting on the concerns raised in that important review, which looked at the world of work and recommended measures to protect all workers in our economy, including the gig economy, from being exploited. Many women work in lower-paid sectors of the economy, and they are just as entitled to good working conditions, which is why I welcome the Government’s action on this issue. There is more to come.

Working is good for women. It is not just an economic proposition; it is a chance for a woman to make the most of her potential and contribute her talents. There are many other upsides, including a real impact on her health and wellbeing. The fact that being in work has a positive impact on mental health is not talked about enough. In doing research for this speech, I uncovered statistics that indicate that women who work are less likely to be depressed, to live in poverty, to be in a violent relationship or be a victim of domestic abuse, to suffer substance abuse, or to experience family breakdown. They are more likely to live a balanced, happy life. They are also less likely to be offenders or be in prison. If a woman has children and is working, the children are more likely to grow up in a stable home with a stable experience. They are more likely to achieve academically, and are less likely to have mental health problems.

The issue of women and work touches all our lives, businesses and families, which is why I welcome Government action on it. Thank you for allowing me the time to have this debate, Sir David. I hope hon. Members agree that if a woman can work, earn and achieve in her own right, nothing can stop her and the world is her oyster.

[Several hon. Members rose—]

Universal Credit

Baroness Maclean of Redditch Excerpts

Tuesday 13th March 2018 Commons Chamber

[Neil Gray (Airdrie and Shotts) (SNP)]

I am grateful for the opportunity to speak to these motions for the Scottish National party. I will use the bulk of my time on early-day motions 1004 and 921, as motions two relate only to England or England and Wales.

The universal credit regulations referred to in early-day motion 921 cover most of what was announced in the Chancellor’s autumn Budget, after months of negative headlines for the Government about universal credit. It was the Government’s big sell to their concerned Back Benchers, which was really not much. For instance, they reduced the waiting time before universal credit can be paid to recipients from six weeks to five, which was a welcome but very wee step.

Meanwhile, the Government also included more controversial measures such as changes to the rules on surplus earnings and self-employment losses, which come into force next month. They removed the automatic temporary exemption from work search and availability requirements for illness for claimants who have been found fit for work, and they reduced the time people have to register and supply evidence regarding a change in their circumstances from one month to 14 days.

The Government’s tweaks to the welfare system over the last eight years and the drip, drip, drip of cuts are slowly eroding the value and support it provides. It is completely unfair to expect people on low incomes to cope with the fact that their benefit will be frozen and fail to meet their costs of living, while the Government continue to add layers of punitive bureaucracy designed to trip them up. An individual financial sanction or one person missing the deadline for an increase in entitlement is of tiny financial value to the Department for Work and Pensions, but it is proportionally an enormous chunk of that person’s income. Yet this Government seem content to make these changes off the cuff, in the same way they tweaked the universal credit work allowance, which eroded its value, and the same way they tried to tweak personal independence payments, to stop people with severe mental health problems receiving the higher rate. It is underhand, and it is appalling.

I received an official warning recently that universal credit will be rolled out in my constituency next month. I have been working closely with my local citizens advice bureau to make sure there is a joined-up response to the issues as they unfold, as it has done in many Members’ constituencies. I am worried about the impact that the roll-out of universal credit will have on local employers and their employees, because the picture elsewhere has been disastrous. The continued roll-out of universal credit is having a devastating impact on claimants, with debt and rent arrears through the roof.

[Rachel Maclean (Redditch) (Con)]

The hon. Gentleman is speaking about the roll-out of universal credit. We had the roll-out in Redditch just a few months ago. I can assure him that, according to the manager of the jobcentre, who has worked there for 30 years—an independent person working day in, day out to help people—the roll-out is much better than any previous system. Maybe he would like to visit Redditch and speak to her.

--- Later in debate ---

[Peter Dowd]

That has upset Tory Members; they are deeply upset about it. The four statutory instruments taken together would end childcare vouchers, restrict the number of children receiving free school meals and limit access to universal credit for the self-employed and disabled people.

[Rachel Maclean]

Will the hon. Gentleman give way?

[Peter Dowd]

No, I will not.

Far from seeing the light at the end of the tunnel, this Government have indicated once more their relentless desire to throw some of the poorest into the shade. While the Chancellor came to the House today to pat himself on the back, with no sense of irony whatsoever, these new regulations remind us that austerity is far from over. Depriving some of the poorest children in the country access to a free school meal on its own would be considered shameful, but paired with the restriction on childcare vouchers and the introduction of tougher criteria for universal credit, we have a cruel cocktail of cuts and misery—and Tory Members know a lot about cocktails as well when they are at their meals.

The Children’s Society estimates—[Interruption.] Fact check: the Children’s Society estimates that the changes the measures the Government are seeking to introduce will see 1 million children in poverty unable to benefit from free school meals because of them pulling the rug on the current transitional arrangements, and to add insult to injury, by setting an income threshold for the children of those on universal credit to qualify for free school meals, the Government are creating a cliff-hanger which will leave around 350,000 families worse off. [Interruption.]

PIP Back Payments

Baroness Maclean of Redditch Excerpts

Tuesday 30th January 2018 Commons Chamber

[Sarah Newton]

I simply rebut what the hon. Lady says about anybody in the DWP treating people cruelly. I assure her that we want to make sure that people claiming our benefits are treated with respect and dignity, and that the process is fair. Independent evaluations show that the majority of claimants rate their experience as good.

To answer the hon. Lady’s question about the advice that she could give her constituents, they will be contacted by DWP if we feel that they are entitled to more money. Nobody is going to be called in for a face-to-face assessment, and nobody is going to have money taken away from them.

[Rachel Maclean (Redditch) (Con)]

We have all met constituents in our surgeries who have concerns about PIP, so I really welcome today’s announcement, which will help people in my constituency. Will the Minister confirm what more her Department will continue to do, in the light of this announcement, to move forward the transformative benefits of getting disabled people back into work, which is one of the greatest levers for improving mental health for disabled people?

[Sarah Newton]

I thank my hon. Friend for her insight, because she is absolutely right that good work is good for people. A core part of our Work and Health programme is that we do everything we can to test and learn so that we enable more people to play their full part in society, including at work.

Financial Guidance and Claims Bill [Lords]

Baroness Maclean of Redditch Excerpts

2nd reading: House of Commons
Monday 22nd January 2018 Commons Chamber

[Rachel Maclean (Redditch) (Con)]

It is a great pleasure to follow the hon. Member for North Ayrshire and Arran (Patricia Gibson).

I rise to support the Bill. It is a key part of our Conservative philosophy to back responsible financial management, and the Bill contains measures to help individuals manage their finances responsibly, which is something we all support. It is important to acknowledge the great strides this Government have already made. As a small employer in my previous life, I saw the impact of auto-enrolment. The Government were very successful in encouraging people—particularly younger people, who often fail to save for their pension and their retirement—to take part in an auto-enrolment scheme. The statistics are positive. We now see 16.2 million people saving for their pension in that way, up from 10.7 million in 2010.

I have a few remarks and a couple of suggestions for the Minister, and I seek a few assurances. I promise that my speech will be short.

First, I have touched on my experience as an employer. Will the Minister consider the impact on small businesses? The hon. Member for Oldham East and Saddleworth (Debbie Abrahams) mentioned the self-employed. Small businesses and small employers have to think about the right auto-enrolment system for their staff and for themselves. Will the single financial guidance body have the remit to cover that issue for employers and employees?

Secondly, how will the new body seek to target advice at young people specifically? Young people are often at risk of poor financial planning and of falling prey to some of the worst debt issues. They are most likely to be at risk of being influenced by social media and of inadvertently falling into debt, sometimes because they are not engaged with the financial system.

We have heard much in this Chamber about students and student loans. When students consider their future, it is important that they get accurate advice on student loans. Unfortunately there are many myths out there in the public domain, and it is important that that misinformation is addressed so that students have accurate advice, outside the heat and light of the political spectrum, when undertaking that significant step to secure their future.

Will the body cover credit unions? I have a pertinent issue right now with a credit union in my constituency. Concerns are being raised about people who are dealing with credit unions and about how those people will seek advice.

Many people have mentioned cold calling, and I wish to add my voice. I am the daughter of an over-80-year-old dementia sufferer, and I have seen at first hand how many calls she receives. These companies are completely flouting the Telephone Preference Service regulations. There is no recourse for people in that situation to take action, and why should they have to? It is completely unfair that companies are preying on them.

[Patricia Gibson]

The hon. Lady correctly says that there is no recourse for people who are plagued by cold calls. Does she agree that cutting the problem off at source by having director-level responsibility would be a very effective way forward?

[Rachel Maclean]

I thank the hon. Lady for her intervention. She made some excellent points in her speech, and I hope the Minister will consider them. Getting this right so that we treat the most vulnerable in our society well is at the heart of what this Government are doing, and we need to go further in this Bill, as well as through other measures.

I urge the Minister to work closely with the Secretary of State for Education. We have seen the introduction of financial education in our schools, and the previous lack of financial education is part of the root cause of some of the issues we seek to address. We are seeing people getting into debt, sometimes through no fault of their own, simply because of their lack of financial education and their lack of capacity to manage their finances at an early age.

People are now so influenced by the world of social media, and it is all too easy for them to think that many of the positive things they see on social media could be within their grasp, if only they took out a loan or got into debt to afford holidays, clothes, cars or whatever it is—it can seem very easy to people. I call on the Minister to work with colleagues in the Department for Education to introduce education on financial responsibility at an early age so that people get into good habits early.

I finish by welcoming the measures in the Bill. At our surgeries we have all seen the suffering that getting into debt and a lack of advice can bring. I am glad that there will be advice and support for the people who need it most.

Private Sector Pensions

Baroness Maclean of Redditch Excerpts

Monday 22nd January 2018 Commons Chamber

[Ms McVey]

The Pension Protection Fund is there to do just that: to support pensioners. It does step in and support them where necessary. The hon. Gentleman is quite right: where businesses have not worked responsibly, we should be getting involved, and we did that when we saw the conditions with British Home Stores. What happened there is that anti-avoidance enforcement did take place, and £363 million was got back, so we did not have to use the PPF. Also, a prosecution did take place. All these instances have been different, but the hon. Gentleman is quite right: where there has been an abuse of the system, we will carry out an investigation and bring people to account.

[Rachel Maclean (Redditch) (Con)]

What action is my right hon. Friend taking in working with the Secretary of State for Business, Energy and Industrial Strategy to look at the conduct of the directors of Carillion in this regard? Specifically, following on from the point raised by my hon. Friend the Member for Harwich and North Essex (Mr Jenkin), what can be done now to recover any of this money for the people affected?

[Ms McVey]

I thank my hon. Friend. An investigation is going on. Not only is there one that has been initiated by the Business Minister, but the Insolvency Service will also be investigating what went on. If there is any evidence that untoward things have been done, a prosecution will follow. That is what we are about: we want businesses to act responsibly. They employ the majority of people in this country, so it is only right that we support them when they need our support and bring them to account when they are doing things wrong.

Disability Confident Scheme

Baroness Maclean of Redditch Excerpts

Wednesday 10th January 2018 Westminster Hall

[Rachel Maclean (Redditch) (Con)]

It is a pleasure to follow my hon. Friend the Member for North Swindon (Justin Tomlinson), who has given such a passionate account of his own personal experience. I have taken a lot from that and have been inspired to consider doing something similar in my constituency in Redditch. We have heard excellent contributions from all parties. The debate is very important and I am pleased we are having it today.

My personal experience as an employer before I entered the House taught me how valuable it is to build diverse teams, not for any altruistic reason but because it makes such a difference to the performance of the business. Like the hon. Member for East Kilbride, Strathaven and Lesmahagow (Dr Cameron), I have a background in psychology and I studied workplace psychology. Diverse teams—diversity of ability as well as all the other things that we think about—have been shown time and again to perform better. They make better decisions and achieve better results, so it makes an enormous amount of sense for us all to promote the Disability Confident scheme for employers.

I agree that work is not just an economic proposition. It is about achieving human potential. It is about individuals and whatever ability they have been born with being able to achieve their potential, contribute and make a difference in their lives. It is so inspiring to hear some of the stories that we have heard today.

I am a relatively new Member. I am pleased that 23 employers in Redditch have signed up to the Disability Confident scheme. I want that number to grow and I shall take practical tips from Members to try to push that number up. I have already visited six of those employers, so I have seen what a difference the scheme makes and how transformational it is for individuals’ lives when they contribute and have a purpose. It is not just about a manufactured scheme. It is about a real contribution on the same basis as any other employee. They are valued for the contribution that they make to the business or organisation. That is what is important. People who are disabled, like people who are not disabled, deserve to be valued for what they put into the workplace and into the organisation. Like my hon. Friend the Member for Ochil and South Perthshire (Luke Graham), I have signed up to the scheme.

I was interested to watch the programme on TV, “Employable Me”, a few months ago, which I thought was a fantastic example of what a difference employment makes. It was inspiring and heart-warming to hear from people who had faced challenges to get into the workplace. Very often simple and practical changes can be made in a workplace. I agree with the hon. Member for Strangford (Jim Shannon), who has left, that sometimes employers can be put off. I recognise that. Working in a small business and starting up a small business without a dedicated HR function can mean that there is a fear—people visualise a lot of different equipment or modifications being needed, when sometimes that is not the case. It is very much about educating colleagues in the workplace to understand and appreciate how they can make small changes to enable people to fulfil their potential. I have personal experience of working with disabled individuals in many different walks of life. It has always been overwhelmingly positive and has made such a difference when one takes the time to understand what the challenges can be.

I welcome and commend the Government’s ambitious scheme. Like colleagues, I have a couple of suggestions for the Minister. The Shaw Trust has just won the contract in Redditch to deliver the programme there. I recommend the Minister looks at the recommendation that the trust has put forward. There is a one-stop shop, a portal, for employers to go to, where they can receive all the information and resources that are there for them to improve Access to Work. A former Minister for Disabled People referred to the Access to Work programme as one of the Government’s best-kept secrets. We should not let that be a secret. It should be a primetime headline, because it is excellent news.

The Minister might like to consider whether we should publish more figures. Should we require large companies to publish figures of their success on employing disabled people? We have seen what is happening in the gender pay gap, where there is definitely a lot more to do, but we are starting to achieve positive change. Perhaps we could do that with disability as well.

[Several hon. Members rose—]

Youth Employment

Baroness Maclean of Redditch Excerpts

Wednesday 6th December 2017 Westminster Hall

[Mhairi Black (Paisley and Renfrewshire South) (SNP)]

I congratulate the hon. Member for Chichester (Gillian Keegan) on securing this debate on an often neglected but none the less important issue. I also congratulate her on being, I believe, the first female MP to represent her area—well done on that.

When doing research ahead of this debate, I was disheartened, although not surprised, to learn that people aged 16 to 24 are more likely than any other age group to be employed on zero-hours contracts, be in temporary employment, be stuck in part-time employment or be in unskilled work.

[Rachel Maclean (Redditch) (Con)]

The hon. Lady is absolutely right to highlight that issue, but does she recognise that the research briefing shows that, although zero-hours contracts do not suit everybody, they do suit a number of people? Some people study at the same time and welcome the flexibility that zero-hours contracts give them. My son is on a zero-hours contract and it suits him down to the ground. He is 18 and is getting experience he would not otherwise get.

[Mhairi Black]

I genuinely appreciate the hon. Lady’s point, but if she is suggesting that all young people benefit from zero-hours contracts, she is on a different planet. If that is not what she is saying, that is fine. That kind of overly positive attitude towards zero-hours contracts is something that we would read in a Tory party briefing, rather than any other briefing.

I suspect that the Government’s response to any criticism during this debate will be to say that the number of young people not in education, employment or training has been slowly falling—magic! We could say, “Well done,” welcome the fall and simply leave it at that, but like all things in life the situation is more complicated than that. That kind of argument completely ignores the quality of the work. Patting ourselves on the back about the falling numbers is all well and good, but if they are falling because people are working in insecure jobs that do not last long, is it really worth celebrating? If the Government have lowered those figures by pushing people into destitution and poverty—that is my experience since I was elected—is that really something to celebrate? That is not to mention the pitiful minimum wage, which my hon. Friend the Member for Glasgow East (David Linden) talked about, which starts at £4.05 for those under the age of 18. I do not see how anyone can afford to run a household on £4.05 an hour, especially if we consider the fact that the Government have seen fit to take away housing benefit from 18 to 21-year-olds.

Organisations such as the Resolution Foundation are reporting that the Government’s tax and social security policies will drive the biggest increase in inequality since Thatcher. I know that the Government greatly admire that woman, but perhaps they will look past their ideological nostalgia and look again at how they achieved those falling numbers.

The Government could consider following the lead of the Scottish Government, who achieved their target of reducing youth unemployment by 40% four years ahead of schedule. Going further, the Scottish Government will introduce a jobs grant to help even more 16 to 24-year-olds into work. Funnily enough, I highly recommend the Scottish Government’s work, given that Scotland has the lowest youth unemployment in the UK and one of the best youth employment rates in the whole of Europe.

--- Later in debate ---

[Rachel Maclean (Redditch) (Con)]

I congratulate my hon. Friend the Member for Chichester (Gillian Keegan) on calling this critical debate on an issue that affects all Members of Parliament. I have certainly been inspired by her story. She is a fantastic example of the power of opportunity. When it is presented to a young person, it can enable them to reach their potential. I share the wishes of all Members of this House: all young people in all of our constituencies should be able to access those types of opportunities. I hope this debate will influence the Government’s thinking on the issue.

Work is important because it is not just an economic proposition. It is about more than just earning money; it is also about achieving our human potential and cementing our identities in the world. Who could have imagined that a young girl who grew up in Liverpool and started work at 16 could become a Member of Parliament? There are many more such stories that show the impact that work has on young people’s mental and physical health, and on their capacity to make a difference in the world. It is so inspiring to hear that.

Since I became an MP, I have focused on youth unemployment and worked with businesses and young people in Redditch. I started a Redditch mentors programme, and I am encouraging businesses to work with schools and colleges in my constituency to ensure that young people see what is available for them in the area. That is why I am backing the campaign for an institute of technology in Redditch, which would be a fantastic step forward for our town. Before I came to this House, I set up an education and skills charity, and I worked in Birmingham introducing employers to schools, because at that time we were suffering from the devastating impact of the financial crash, under the Labour Government, which caused record rates of unemployment in that area.

I want to make two major observations. The Labour Government did some very good things for our country—I congratulate them on their focus on higher education—but they neglected to think about the technical, practical and IT skills that our young people need. They missed a massive opportunity. The Government are now rightly focusing on those skills and are putting a lot more effort into careers education, T-levels and institutes of technology up and down the country. That is the right thing to do.

[Leo Docherty]

My hon. Friend is making an eloquent point about her constituency of Redditch. I am very pleased that my constituency of Aldershot has experienced a remarkable decrease in youth unemployment: it was 450 back in 2010, and it is now 110. Is there a similar picture in Redditch? I would be very interested to learn whether there has been a similarly remarkable decrease in youth unemployment in recent years.

[Rachel Maclean]

I thank my hon. Friend for bringing me on to the next point in my speech. I am delighted to hear that youth unemployment in Aldershot has gone down, and I am pleased to say that it is a similar picture in Redditch. In 2010, 620 young people were unemployed and the figure now is 185. That is a significant drop, with 435 fewer unemployed young people.

I want to return briefly to the point made by the hon. Member for Paisley and Renfrewshire South (Mhairi Black) about zero-hours contracts and flexibility. I accept that they should not be forced on people—I want to put that statement on the record—but they offer flexibility for young people. Apprenticeships give people the flexibility to earn while they learn. The workplace today is changing massively, as are jobs and work. We need to make sure that employers get behind that in a positive way so that it is an opportunity for young people.

[Mhairi Black]

I accept what the hon. Lady said for the record, but does she also accept that zero-hours contracts—certainly in the experience of my constituents and even people I know—are forced on people? Not only are they expected to function with a household and often with a livelihood and children; they also live with uncertainty about how much money will be coming in. That, unfortunately, is a reality for far too many people.

[Rachel Maclean]

I completely accept the hon. Lady’s point. We have a picture of much lower employment across the country, including in her constituency. The Select Committee on Business, Energy and Industrial Strategy is specifically considering cases of exploitation.

[Stephen Kerr]

Is my hon. Friend looking forward to the Government’s formal response to the Matthew Taylor report, which we hope will go some way towards ironing out some of the inequities that might exist in the issues raised by the hon. Member for Paisley and Renfrewshire South (Mhairi Black)?

[Rachel Maclean]

Yes, and I thank my hon. Friend for reminding me about the absolutely brilliant work that is being done. This Government banned exploitative zero-hours contracts that prevent people from taking on other work, so now such contracts can be a solution, although I still recognise that they should not be forced on people or be the only option. We want more opportunities across the board for people of all ages.

I will finish by bringing to the House’s attention another positive story that I heard from my Jobcentre Plus office in Redditch. My constituent, who was under the local authority care system, attended her universal credit appointment and was asked by the work coach why she was making a claim. She said that she desperately needed to get a job; she was not happy in her care home and she needed to earn to move on. The work coach explained that she would not be entitled to universal credit because the local authority was responsible for her until her 18th birthday, but that the jobcentre would help by looking over her CV and advising her about job search sites. At the time there was a provider in the office with whom the work coach worked closely. They discussed what the provider could offer and how people could be helped into work.

Redditch Jobcentre Plus has a very high success rate for customers getting training through the provider, the Training Academy. The work coach took my constituent there to introduce her personally and to explain that she was only 16. The contact at the provider asked if he could help my constituent in any way and invited her to enrol at the academy the following day. That day, the work coach received an email to say that the provider had secured an interview on the same day for my constituent, closely followed by an email with a photograph of her holding up a plaque stating, “I got the job”. What a fantastic result for her: she went from being told that she would not be entitled to any universal credit, to securing full-time employment within two days. I have many more stories, but that is a fantastic example of how universal credit is helping young people into employment when provided with a package of full support, as is the case in Redditch.

Universal Credit Project Assessment Reviews

Baroness Maclean of Redditch Excerpts

Tuesday 5th December 2017 Commons Chamber

[Mr Gauke]

The hon. Gentleman raises an important point about broadband roll-out, which obviously, as he knows, is not my responsibility. I understand that there are significant concerns about how that is progressing. It is the case that jobcentres provide the ability for people to complete forms, and they can also provide information about the availability of wi-fi.

[Rachel Maclean (Redditch) (Con)]

My right hon. Friend touched on the measures announced in the Budget. Does he agree that this £1.5 billion has been found to prioritise help where it is most needed in our society? Given the pressures on the public finances, that demonstrates that this Government really care about getting this right for the people who really need it.

[Mr Gauke]

My hon. Friend puts it very well. We are determined to deliver this policy successfully and to ensure that it helps more people to have better opportunities. That is what universal credit is about. That is why we have allocated £8 million over four years to conduct a number of tests and trials to support the development of evidence about what works to help people progress in work—this is about not just getting into work, but progressing in work.

This comprehensive package responds to concerns raised inside and outside the House. Our clear objective is to ensure that as many people as possible get the opportunity to work and to maximise their potential to better their circumstances. This is Labour Members’ last Opposition day of the year, and what have they achieved?

Work, Health and Disability

Baroness Maclean of Redditch Excerpts

Thursday 30th November 2017 Commons Chamber

[Mr Gauke]

The hon. Gentleman raises an important point, and I know that the Minister for Disabled People, Health and Work is particularly keen to meet him in his capacity as chair of the all-party group to discuss the issue further.

[Rachel Maclean (Redditch) (Con)]

I wonder whether the Minister or other Members watched the programme “Employable Me” on BBC2 the other night. When I watched it, I was struck by the courage of the disabled people who were very keen to get back into work but faced insuperable challenges, and by the enlightened employers who gave them a chance. It demonstrated the life-enhancing power of work for people who make a positive choice to work and who are supported. Will the Minister think about how difficult it is for small businesses and charities, which featured in the programme, to give the right support? Will he tell us how this welcome statement will make that go further?

[Mr Gauke]

I confess that I have not had the opportunity to see the programme that my hon. Friend mentioned, but she is not the first person to recommend it strongly to me. I will perhaps endeavour to watch it over the weekend. She raises an important point about small businesses. We need to help small businesses to find the best way of providing support to disabled people. That will give small businesses access to people who, as I understand the programme demonstrates, have significant ability, are very talented and could bring a lot to the labour market, but who have not had the opportunities that they should have had, partly because of attitudes, culture and so on.