Labour Market Activity

Debate between Alan Campbell and Guy Opperman

Tuesday 28th February 2023 Commons Chamber

[The Minister for Employment (Guy Opperman)]

Can I start by adding my tribute to Betty Boothroyd, who was a role model to so many in this House? As a former chair of Women2Win, I can certainly say that she made a massive difference to so many candidates. Can I also urge colleagues to get behind World Book Day this Thursday?

Unlike the hon. Member for Wirral South (Alison McGovern), I would like to thank all colleagues who have contributed to this debate. I am certain that my hon. Friend the Member for Glasgow South West (Chris Stephens)—I know he will be in trouble because I have called him an hon. Friend—is most definitely not a Labour party member, is definitely not a Labour MP and is strongly advocating the SNP cause.

The UK labour market remains in a strong position, with payroll employment at a record high. There were 30 million people on company payrolls in January 2023. There are also 2 million more women in work than in 2010. Unemployment remains at a very low level, with long-term unemployment 12% lower than it was pre-pandemic, and unemployment below the pre-pandemic level of 4%.

However, on inactivity, we know that levels of vacancies remain high, and increasing the labour supply is a key priority of this Government. The Prime Minister has tasked the Secretary of State to look in detail at the workforce participation programme, including how to address economically inactive cohorts. We need to reduce the number of people leaving employment into inactivity, and encourage those who are economically inactive and can work back into the labour market. Many today have made pitches to the Chancellor, who will be reporting back on these matters in 15 days’ time. I am sure he has taken due note of that. The point on historic levels of economic inactivity was made at great length by Labour Members. I entirely accept that the current rate is approximately 21.4%, but it is fair to note that in 2010 it stood at 23.3% under the previous Labour Government.

The hon. Member for Glasgow South West and the hon. Member for Motherwell and Wishaw (Marion Fellows) raised issues about the innovation pilot that we are carrying out, which has just begun. I urge them to read the written ministerial statement by my right hon. Friend the Secretary of State, which gives details of who is excluded from that particular pilot. It particularly deals with the fact that anyone with exclusions—basically, only claimants who are work-ready will be dealt with under that pilot. I have already met some of the job coaches and managers who are driving the pilot forward at Crawley, where I was yesterday. This is fundamentally about one thing: providing more support. The hon. Member for Motherwell and Wishaw raised concerns about travel. That is what the flexible support fund is for: it covers any travel costs in those circumstances, and there are no questions whatsoever but that that can be addressed in those particular ways.

Many points were made by those on the Labour Front Bench, most of which were dealt with by my right hon. Friend the Secretary of State. It is interesting that the shadow Secretary of State is now committed to conditions and sanctions—a genuinely amazing flip-flop given his position barely three weeks ago in the debate on uprating. He is resembling more and more a kangaroo in how he turns around and flops away to his next policy.

On flexible work options, as hon. Members know, the Under-Secretary of State for Business and Trade (Kevin Hollinrake) is introducing flexible working legislation. In 2010 there was no paid-for childcare for the 15 or 30 hours; there was no 85% universal credit childcare worth £1,108 per month for two or more children, with support provided by the flexible support fund on an ongoing basis.

On the disabled, I totally rebut the arguments made by the shadow Minister. The Government are committed to improving the lives of disabled people and those with a health condition, and we will deliver the most ambitious disability reform agenda in a generation. We set a goal to see 1 million more disabled people in employment between 2017 and 2027. The most recent data show that between the first quarter of 2017 and 2022, the number of disabled people in employment increased by 1.3 million, meaning that that goal was met after only five years. I urge employers up and down the country to get behind the Disability Confident campaign.

On the 50PLUS campaign, the Government are already providing more than £20 million of funding for an enhanced offer for people aged 50-plus, and there is an opportunity for multiple older worker fairs, which are happening every single week up and down the country. I have met the 50PLUS champions in Bolton, Hackney and various other places. They are doing a fantastic job to roll out and explain the situation. We are doing so much to try to bring more people back into the workplace. In addition, the Midlife MOT looks at wealth, work and wellbeing. It has already been rolled out to jobcentres, and been introduced on a private sector basis and online.

We are committed to helping people to progress while in work, and we are therefore extending the jobcentre support provided to people in work and on low incomes, to help them increase their earnings and move into better-paid quality jobs. That in-work progression offer is being expanded on an ongoing basis. The youth offer sees youth hubs, and so much support from youth employment and employability coaches who provide flexible support to young people with significant complex needs and barriers, to help them move into employment. The jobcentre offer provides localised support up and down the country to nearly 800 jobcentres. It is different for each individual jobcentre, and from Banff to Brixton to Basildon, there is a different approach on an ongoing basis.

[Sir Alan Campbell (Tynemouth) (Lab)]

claimed to move the closure (Standing Order No. 36).

Question put forthwith, That the Question be now put.

Question agreed to.

Main question accordingly put.

Question accordingly agreed to.

Resolved,

That this House is concerned that the number of people out of work and economically inactive is higher than before the pandemic, that thousands of older people have left the labour market and that there have been significant increases in the number of people out of work due to ill health or mental ill health; notes that recent employment support schemes have underperformed and underspent; condemns the Government for its failure to get more people into work; regrets that this failure is contributing to low economic growth and falling living standards; and therefore calls on the Government to get Britain back to work by reforming disability benefit assessments, devolving employment support to local areas and providing specialist and targeted help for those with long-term ill health or aged over 50 to grow the economy and boost both public finances and household incomes.