Oral Answers to Questions Debate
Full Debate: Read Full DebateAlison McGovern
Main Page: Alison McGovern (Labour - Birkenhead)Department Debates - View all Alison McGovern's debates with the Department for Work and Pensions
(4 days, 1 hour ago)
Commons ChamberThe two-child benefit cap was introduced by the Conservative party 10 years ago. Its period in office saw child poverty rise to over 4 million and one in three of our children arriving at primary school not ready to learn. As soon as the Secretary of State and I were appointed, we got to work to establish our child poverty taskforce, as promised in Labour’s manifesto, and those efforts are ongoing.
A BMJ study found that people in food poverty have diets with worse health outcomes including more fat, sugar and salt, so what conversations has the Minister had with the Health Secretary about how lifting the two-child benefit cap could improve diet and reduce costs for the NHS?
The Health Secretary and I talked about child poverty many times as we sat on the Opposition Benches watching the situation for our kids get worse and worse every year. The Member makes a very serious and important point about the wide-ranging consequences of poverty and, if I may, I would encourage him to submit the evidence he mentioned to the child poverty taskforce so that we can take full account of it.
One in two children in my constituency live in poverty. There is a lot of speculation swirling around the excellent child poverty taskforce, which I applaud the Government for establishing, including that the cap could be lifted for under-fives, which would affect fewer than 20,000 households compared with the 440,000 households which currently are affected by the two-child benefit cap. Can the Minister reassure the House and the country that the child poverty taskforce is looking to support all children in poverty, whatever decisions it comes up with, and not just a small segment of them?
Yes, I can. All children matter. We are taking account of a considerable range of different policy options, carefully working through the impact that they would have, but all the children in this country matter.
I meet regularly with Business and Trade Ministers. We are committed to working with businesses to ensure that policy is pro-employer and pro-worker. Boosting wages will increase workforce participation, helping employers fill vacancies and supporting us to reach our ambition of 80% employment.
With many Labour Members claiming that they care about young people being employed, has the Minister’s Department made assessments about the employment impact of the decision to introduce minimum guaranteed hours for students and young people who rely on the flexibility of being able to pick and choose their work hours, particularly those who are working in the hospitality sector, which is being decimated by this Government?
I think the hon. Gentleman is referring to the ban on exploitative zero-hours contracts, but if somebody wants a flexible hours contract, then that is a good thing, and nothing in the changes prevents that. In fact, since I have been at the DWP, I have found that employers have not had sufficient contact from jobcentres and only one in six employers think about using them. When getting young people a proper range of choices and jobs through the jobcentre, not nearly enough work has been done to serve employers better. That is what a real growth agenda looks like from DWP.
Lá Fhéile Pádraig Sona Duit—a happy St Patrick’s day to you, Mr Speaker, and all your team.
The disability employment gap stands at 30% and countless disabled workers end up out of work because their employers refuse to make simple changes that would help them to do their jobs. Does the Minister agree that the default right to flexible working in Labour’s Employment Rights Bill will help many disabled workers to keep the jobs they love? What else can the Minister’s Department do to help more disabled people to find and keep work?
May I first say how great it is to hear the beautiful language of Irish spoken in this Chamber?
With the increase in conditions that can be variable over time, the flexible working right will help people. The Minister for Social Security and Disability and I are working closely with disabled people’s organisations, charities and others to think about how we can build those pathways into work as we change jobcentres and improve employment support, ensuring that raising disability employment rates is at the heart of those changes.
The introduction of universal credit and the policy choices of the last Conservative Government seem to have had some effect on people’s propensity to be in work. In January, the Department for Work and Pensions published data showing that of the increase in the incapacity benefits caseload since the 2018 universal credit roll-out, 30% of the rise in claims could be explained by foreseeable demographic change and the effect of the structural alterations to the benefit. That leaves 70% of the increase that we do not have data to explain, but the Office for Budget Responsibility and others have drawn attention to the structure of social security and the changes over the past decade. On publishing the analysis I just mentioned, I told the House that the previous Conservative Government took decisions on social security that
“segregated people away from work and forgot about them.”—[Official Report, 29 January 2025; Vol. 761, c. 366.]
I stand by those comments.
The people of Spelthorne are very hard-working and do not mind their taxes being paid for a safety net for the most vulnerable in our society, but they really do get annoyed when they see their taxes going to people who are scamming the benefits system. What assessment have any of the Ministers on the Front Bench made of so-called sickfluencer sites—social media platforms where people are shown how to game the benefits system? Have any of them looked at those sites? Are they a good or bad thing?
The hon. Gentleman will know that the Public Authorities (Fraud, Error and Recovery) Bill is going through the House at the moment. The issue that he has raised is at the forefront of the attention of the Minister for Transformation, my hon. Friend the Member for Stretford and Urmston (Andrew Western), who will take every step he can to deal with issues in that area.
On Friday I visited Stansted airport, a huge employer for my constituency, and found out about the important work it is doing with the DWP and the jobcentre to get long-term unemployed people back into work. What work is the Department doing with organisations such as Stansted airport to promote good practice, such as that at Stansted and Working Minds in my constituency?
Through my hon. Friend, I give my thanks to everybody at Harlow jobcentre, because it sounds like they have their shoulders to the wheel in getting job opportunities for people who need them. When we arrived in the Department, we uncovered that there was not nearly a good enough relationship between the Department and employers. That is why we put a new strategy in place to do the basics well: there is a single point of contact and we are making sure that there is on-the-job training that is tailored to specific employers. We will be doing more to promote change in that area, but I thank everyone in Harlow for the efforts they are making.
There continue to be unacceptable delays in processing Access to Work applications, both for my constituents in Torbay and across the country. This leads to fears among disabled people that job offers will be withdrawn by their would-be employers. What reassurance can the Minister give the Chamber that the Government have plans afoot to tackle that backlog?
The hon. Member makes an important point. We had a manifesto commitment to try to tackle the backlog. We have put more staff in place to deal with that backlog, but we have more to do, because it is important that disabled people are able to take up jobs that are offered to them. We need to make sure that that is a scheme that works.
Official unemployment currently sits at 4.4%, which is clearly much lower than the historic high of 11.9% in June 1984. However, today’s official unemployment level masks the legacy of the Conservatives’ recent period in office, which saw the number of people off sick rise to nearly 3 million, concentrated in places with employment rates well below the national average, creating a vicious circle where people are forced to leave the place they love for the chance of a career, and where those who are left do worse and worse. That is why, as part of our “Get Britain Working” reforms, we are building a new jobs and careers service that will be locally tailored and will help everyone find access to support to get a good, meaningful job and to progress in work.
Compared with this time last year, almost 500 more people are on the claimant count in Basildon and Billericay. Almost 100 of those are under 25. How many more will have to be made unemployed before Labour Ministers listen to charities, GPs, supermarkets, manufacturers and care providers? They visited me in my constituency and said that Labour needs to think again about its catastrophic national insurance rise which, before it even hits in April, is already costing the jobs of my constituents.
We have a significant reform plan to make sure that we tailor jobcentre support towards the needs of employers, because there is still a significant number of vacancies out there that young people should be making the most of to start their career and progress in life. That is why we have a new employer strategy, so that the Department for Work and Pensions can serve businesses properly.
Disabled people often face additional barriers when trying to get back into work. Does the Minister acknowledge that rather than freezing or cutting their benefits, we will need to invest in those people to help them back into work and to sustain them there?
Yes, I do agree. We see potential in every single person in the country, and many of those who have been written off and left on the scrapheap deserve a much better pathway back into work.
In the year to September 2024, 4.7% of working-age people were unemployed in Stoke-on-Trent, but as I said earlier, that often masks bigger problems relating to economic inactivity, frequently caused by ill health. We propose to join up work, health and skills support, and to ensure that local areas throughout England have “Get Britain Working” plans so that every part of the country has a plan to grow.
It is clear that the Government are making a serious attempt to remove the barriers preventing people with mental health conditions from entering work. May I issue an invitation to the Minister, and commend to her the work of the combined healthcare trust in Stoke-on-Trent and its peer support mentors? These are people who have overcome mental health challenges and now work with other people struggling with their own mental health to build confidence and opportunity. Whatever plan the Government introduce, work of this kind should be central to it, and I think that if they came to see it, they would be very impressed.
I would love to come to Stoke—[Interruption.] There are so many football-related jokes that I could make at this point, but I will not trouble the House. I would love to come to Stoke, and not just on a wet Tuesday night.
My hon. Friend makes the case for exactly the strategy that underpins our reform, which is to join up health and work support. I have seen in my own constituency the power of peer mentors for mental health conditions, and I would love to come and see the brilliant work that my hon. Friend has described.
JobsPlus pilots were launched in July 2024 and are helping to address employment barriers for the residents of 10 social housing communities. We plan to publish our initial evaluation in the summer, which will help us to understand more about how this type of innovative community-led employment might support our vision to get Britain working. I look forward to working with all Members, especially my hon. Friend, on the next steps for this project.
I absolutely join the hon. Member in thanking all the organisations he mentions. If he could link them up with his local jobcentre, we can help make the connection between young people who have suffered disadvantage and that really positive community support that is available for them in his constituency. That would be very helpful.
As my hon. Friend mentions, there are important opportunities in Slough that the young people growing up there need to be able to take advantage of. That is why we launched our youth guarantee as part of our plan to get Britain working. It will be there for 18 to 21-year-olds. Again, I encourage my hon. Friend to work with his local jobcentre in Slough as we improve the support available for young people.
At a constituency meeting last week, I was told that small businesses are starting to ask employees to go self-employed as they cannot otherwise keep roles open because of forthcoming national insurance contribution rises and extra employment laws. Will the Department watch out for this trend in its data, in case it was not the Government’s intention to make workers less secure with these new taxes and more regulations?
Since we took office, we have published research, reports, data and other bits of information that the Department for Work and Pensions had previously been sitting on. The hon. Lady can rest assured that we monitor employment trends and are keen to ensure that the DWP is far more transparent about data than it has been.