Oral Answers to Questions

Lord Sharma Excerpts

Monday 7th January 2019 Commons Chamber

[Leo Docherty (Aldershot) (Con)]

11. What assessment the Government have made of trends in the level of employment since 2010.

[The Minister for Employment (Alok Sharma)]

Let me first wish you a very happy new year, Mr Speaker.

The UK’s employment rate is at a joint record high of 75.7%, and more people are in employment than ever before. Thanks to the policies of this Conservative Government, 3.4 million more people are in work than in 2010, and wages are growing faster than inflation.

[Royston Smith]

Many of my constituents have been able to find work, but much of it involves low-paid service-sector roles and few career prospects. What is my hon. Friend doing to help those who are already in work to move towards higher-paid, more rewarding occupations?

[Alok Sharma]

About 75% of the jobs that have been created since 2010 are full-time, permanent, high-skill occupations attracting high wages, but my hon. Friend is right to say that we need to help people with low earnings to progress. That is why, under universal credit, work coaches offer one-to-one support, and we are undertaking trials to determine what further support we can provide to help people to move into better-paid work.

[Leo Docherty]

Since 2010, unemployment in my constituency has fallen by two thirds. Can the Minister tell us how many employment records the Government have broken?

[Alok Sharma]

My hon. Friend has highlighted an important point, which, of course, the Opposition never want to talk about. Under this Conservative Government, 18 new employment records have been set since 2015, underlining the confidence that employers have in our policies. That confidence would evaporate if that lot got anywhere near government.

[Kate Green (Stretford and Urmston) (Lab)]

Getting people into work is a good thing, but there is no point in trapping them in in-work poverty. About two thirds of children in poverty are growing up in working households. What is the Minister doing to address that?

[Alok Sharma]

The hon. Lady has raised an important point, but I should point out that there has been no particular increase in in-work poverty. Indeed, 1 million fewer people, and 300,000 fewer children, are living in absolute poverty. Ultimately, however, this is about helping people into work, and, as we have said, we are doing an enormous amount through universal credit to ensure that that happens.

[Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)]

Further to the question asked by the hon. Member for Southampton, Itchen (Royston Smith), will the Minister not acknowledge that there is a big challenge for many of my constituents who work in more than one job on low wages, who do not have the time or the money to progress to further training, and whose employers are not willing to invest? How will he help those people to move to better, long-term, secure jobs?

[Alok Sharma]

As I said in answer to an earlier question, 75% of the jobs created since 2010 are indeed in high-level occupations which attract higher wages, but of course we need to do more and that is why the Government are investing in apprenticeships for both young and more mature workers. We are also investing in a national retraining scheme and technical skills. That is what is going to create support for individuals looking for jobs in the market right now.

[Dr Julian Lewis (New Forest East) (Con)]

How do our low unemployment levels compare with those of France and other countries unfortunate enough to be trapped in the eurozone?

[Alok Sharma]

That is a typically forthright question from my right hon. Friend. To compare rates, in France the unemployment rate is over 9% I believe, but of course the other incredibly important progress we have made is in youth unemployment. That has been almost halved since 2010, thanks to the work we have been doing in government.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Local authorities in Scotland—

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[David Linden (Glasgow East) (SNP)]

17. What progress her Department has made on the roll-out of universal credit.

[The Minister for Employment (Alok Sharma)]

The roll-out of universal credit is now complete and is available in every jobcentre across the United Kingdom. By 2023, all existing legacy claimants will have been moved to universal credit which, as set out in our business case, will result in £8 billion in economic benefits a year to the British economy.

[Patricia Gibson]

Local authorities in Scotland have spent over £20 million on mitigating the harmful effects of UC, thus diverting money from key local services. Does the Secretary of State think this is acceptable, and was it envisaged when universal credit was conceived? Is it not more evidence that this system needs to be stopped and fixed to make it fit for purpose?

[Alok Sharma]

We do of course have the policy of new burdens funding, and in 2017-18 the Government paid out £30 million to local authorities across the country. If the hon. Lady has specific issues in relation to local councils on her patch, she should come forward as I will be very happy to have a discussion with her outside this oral session.

[Ronnie Cowan]

I would like to highlight one particular universal credit case that my office is dealing with. My constituent has incurable skin cancer which requires using a cream treatment. He has to use the cream at home and it needs to be applied for several hours every day. He has been told that as his treatment for cancer is not radiotherapy or chemotherapy he should be able to attend work. My constituent has daily and lengthy treatment for an incurable condition. Can the Secretary of State or the Minister tell me what my constituent should be applying for?

[Alok Sharma]

I am very sorry to hear about the distress the hon. Gentleman’s constituent is undergoing, and I thank the hon. Gentleman for his regular engagement with the jobcentre in his constituency. I would be very happy to discuss this case with him in detail and see what more we can do to support his constituent.

[David Linden]

Last night on Twitter Steven McAvoy contacted me about the issue of disabled students being unable to access universal credit unless they have already passed their work capability assessment by the time they become a student. This is an incredibly difficult issue for some of the most vulnerable people in our constituencies, so will the Minister look into this again?

[Alok Sharma]

I would be happy to meet the hon. Gentleman to discuss the matter.

[Eddie Hughes (Walsall North) (Con)]

Can the Minister reassure my constituents who have heard claims that some housing associations are refusing to accept tenants in receipt of universal credit by giving an assurance that the Government will make sure this is never the case?

[Alok Sharma]

My hon. Friend has huge experience of the housing sector of course, and I thank him for the work he does in his constituency; I have been to visit him. The landlord portal has now been rolled out across almost 70% of the social housing sector, but I will be happy to discuss with him any specific cases he wants to raise.

[Stephen Kerr (Stirling) (Con)]

I very much look forward to welcoming the Secretary of State to Stirling shortly. When she comes will she take time to visit the Jobcentre Plus at Randolph Field, where she can talk to work coaches who will give a far more positive story about the impact—the positive, life-changing impact—of universal credit than the critics on the other side of the House have given?

[Alok Sharma]

The Secretary of State has already outlined the visits that she has made, and I know that she is going to make many more. What my hon. Friend describes is something that I also consistently find when I visit job centres—namely, the huge enthusiasm and the real desire to help individuals. For the first time, jobcentre workers and work coaches are able to do precisely that, through the one-to-one support that was not possible under the legacy system.

[Mike Amesbury (Weaver Vale) (Lab)]

If true, the reported U-turn on managed migration in response to considerable pressure from the voluntary sector and those on the Labour Benches, is welcome, but any attempt to avoid scrutiny is not. Can the Minister assure the House that those regulations will still be debated in full in this Chamber, and if so, when?

[Alok Sharma]

The Secretary of State has set out the position very clearly. Of course we will be bringing forward any potential new regulations. The hon. Gentleman and his colleagues talk a lot about supporting vulnerable people, but they voted against the £1.5 billion of support last year and against the £4.5 billion of support introduced in the Budget. He should be supporting those policies, not talking them down.

[Robert Courts (Witney) (Con)]

6. What assessment the Government have made of the effectiveness of universal credit in helping people into work.

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[Hugh Gaffney (Coatbridge, Chryston and Bellshill) (Lab)]

8. What assessment she has made of the effect of universal credit on self-employed people.

[The Minister for Employment (Alok Sharma)]

Universal credit supports self-employed people to develop and grow their businesses where doing so is the best route for them to become financially self-sufficient. We recently announced changes to the grace period for the minimum income floor and the extension of the new enterprise allowance scheme, all of which provide additional support to self-employed claimants.

[Hugh Gaffney]

Citizens Advice estimated in October that self-employed workers could lose up to £630 a year because of the way universal credit payments are calculated. It also stated that 400,000 claimants could suffer losses because of the minimum income floor, which the Minister mentioned. Those claimants are people who are trying to make a living for their families and themselves. Will the Secretary of State commit to reviewing the effects of the minimum income floor on self-employed workers who are claiming universal credit?

[Alok Sharma]

As I highlighted in my earlier answer, we have made a change to the minimum income floor. The grace period will be extended to one year for all people coming in who are gainfully self-employed running a business. Ultimately, different businesses take different lengths of time to reach profitability, so, in the period before the minimum income floor is applied, we are giving people a chance to develop their business. That is also why we provide support through the new enterprise allowance.

[Bill Grant (Ayr, Carrick and Cumnock) (Con)]

Mention was made earlier of the fantastic fall in youth unemployment since 2010—around 50%, I believe. What action can the Minister take, or is the Minister taking, to ensure that that trend continues evenly across the United Kingdom so that our young people get the best start to their working lives?

[Alok Sharma]

My hon. Friend highlights a very important point. Youth unemployment has almost halved since 2010, and we have the youth employment support programme to thank for that—the work we do through jobcentres in schools to make sure that people do not end up not in education, employment or training. Ultimately, however, this is about supporting people through the process, and that is what we are doing in universal credit.

[Stephen Timms (East Ham) (Lab)]

I hope it does turn out to be the case, as reported, that the Secretary of State is going to pause the roll-out of universal credit in order to fix it. I hope she has noticed that the right hon. Member for Chingford and Woodford Green (Mr Duncan Smith) congratulated her because he thought that that was what she had decided. Can the Minister assure the House that those who are being transferred to universal credit from other benefits will not have to wait five weeks before they are entitled to support? That is what is forcing them into debt.

[Alok Sharma]

I know the right hon. Gentleman cares very deeply about these issues, and we have had many discussions about this. It is precisely to help people with their cash flows that we have made advances available up front—up to 100%, if that is what they require—as well as two weeks of housing benefit run-on.

[Rachel Maclean (Redditch) (Con)]

13. What steps the Government have taken to deliver the pensions dashboard.

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[The Minister for Employment (Alok Sharma)]

We have previously published an equalities assessment and, as we have noted, we will do the same ahead of the full roll-out of managed migration.

[Alan Mak (Havant) (Con)]

T4. As universal credit is rolled out in Havant, I welcome the use of new technology to help applicants. What support is available to those applicants to ensure that they make the best use of the new systems?

[Alok Sharma]

As my hon. Friend will know, we now have a new partnership with Citizens Advice to deliver universal credit support, and his constituency is part of the early mobilisation of that programme. However, it is important that for those who are not able to use such technology, we still make a freephone helpline available, and that, as the Secretary of State has outlined, home visits can be arranged.

[Alison Thewliss (Glasgow Central) (SNP)]

T6. Church of England figures suggest that 5,500 children in my constituency alone may be affected by the roll-out of the two-child limit, which will restrict all new claims for universal credit to the first two children in a family. By the time this policy rolls out, it will affect 3 million children, pushing them into poverty. Will the Secretary of State meet me and campaigners from different organisations, from the Church of England to Rape Crisis and women’s organisations, to discuss the impact that this policy will have? Will she pause the policy and stop it rolling out from 1 February this year?

[Henry Smith (Crawley) (Con)]

T5. I am pleased that employment levels in Crawley are above the national average, but what further support can be provided to get more people into work so that they can realise their full potential and that of our economy?

[Alok Sharma]

I thank my hon. Friend for the enormous amount of work that he does in supporting employers so that they can create jobs. He is right. We need to make sure that the jobs market is very strong, and that is why we make support available through universal credit, with one-to-one interaction.

[Matt Western (Warwick and Leamington) (Lab)]

T7. Does the Minister think that a 47-week average wait for a PIP appeal hearing at the Coventry centre is acceptable, particularly considering that the person appealing will not receive any money during that time and that 80% of decisions are overturned at tribunal?

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[Melanie Onn (Great Grimsby) (Lab)]

We have been told time and again that people will not be worse off under universal credit, but my constituent is £463 a month worse off after transferring from tax credits in work to universal credit. Is that something the Government are proud of?

[Alok Sharma]

I am happy to look at the individual case that the hon. Lady raises, but I would point out that £2.4 billion was unclaimed under the legacy benefit system, and that is changing under universal credit.

[Heidi Allen (South Cambridgeshire) (Con)]

I would like to put on the record my thanks to the Secretary of State for listening and changing her approach to managed migration. I think we will see a step change in how vulnerable claimants feel about their security under universal credit. I have given her a list of other areas of UC that need improving. I urge her to look at one area that will completely revolutionise how people feel about the system—the five-week wait has got to go. If we make the advance payment the first payment rather than a loan, we will see food bank usage and the whole system transformed immeasurably.

[Jessica Morden (Newport East) (Lab)]

Under tax credits, under-25 lone parents got paid the higher over-25 rate. Under universal credit, they do not. What is the Secretary of State going to do about that? I ask her on behalf of the group of young parents from Newport who are worse off under this system and in hardship.

[Alok Sharma]

I am always happy to meet the hon. Lady to talk about these issues. As she will know, the changes we introduced in the Budget mean that work allowances are going up by £1,000 precisely to support those who need it—individuals with children and, of course, the disabled.