Oral Answers to Questions

Andrew Bridgen Excerpts
Monday 9th March 2015

(9 years, 8 months ago)

Commons Chamber
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John Bercow Portrait Mr Speaker
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No, no. I was calling the hon. Member for North West Leicestershire (Andrew Bridgen) to ask about Question 4. Several hon. Members were on their feet in respect of this question.

Andrew Bridgen Portrait Andrew Bridgen (North West Leicestershire) (Con)
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Does the Minister agree that it is important for us to acknowledge the role that sanctions play as the ultimate backstop in support of our welfare system, particularly as 70% of claimants say that they are more likely to abide by the rules when they know that their benefits are at risk if they do not?

Esther McVey Portrait Esther McVey
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Sanctions have been around since the benefit came into being, to ensure compliance, to enable the Government to have a backdrop to the social security they provide, and to enable the support to be matched by work to enable people to go into a job. As the secretary-general of the OECD said:

“The United Kingdom is a textbook case of best-practice on how good labour and product markets can support growth and job creation.”

Mental Health and Unemployment

Andrew Bridgen Excerpts
Tuesday 24th February 2015

(9 years, 9 months ago)

Commons Chamber
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Paul Burstow Portrait Paul Burstow
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Yes; I want to come on to that, and I look forward to hearing what the Minister has to say about the pilots, where they have got to and the intentions going forward. It is inescapable that back-to-work support that is designed primarily around physical health problems and disabilities is poor at meeting the needs of people with mental health problems. Where the support is well-designed, it has so far not got the reach or take-up necessary to make a difference. The Access to Work mental health support service was described in the Sayce review as

“the best kept secret in Government”,

because despite its success rates—90% retention rates, for example—very few people have been helped: just over 2,500 people with a mental health problem since the service started in 2011, on the most recent data I could find. The potential is good, but more needs to be done to ensure the take-up of such programmes, so that people can benefit from the advantages that they provide.

Over the past two years, I have had the opportunity to chair an independent commission on mental health for the think-tank CentreForum and to co-chair a task and finish group on mental health and employment with Marjorie Wallace, the chief executive of the charity SANE. That group’s work has led to the NHS adopting an employment-based indicator, and to the development of a new commissioning incentive for NHS organisations to provide for adults who are in contact with secondary mental health services to help them to gain or retain employment. The group is also helping with the drafting of a new National Institute for Health and Care Excellence quality standard on schizophrenia containing a specific reference to employment.

Andrew Bridgen Portrait Andrew Bridgen (North West Leicestershire) (Con)
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I have been listening with great interest to my right hon. Friend’s speech. Does he agree that the incidence of mental health problems increases the risk of unemployment? Does he also acknowledge that unemployment itself has the capacity to induce and exacerbate mental health problems in those who find themselves in the distressing situation of being unemployed?

Paul Burstow Portrait Paul Burstow
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The short answers are yes and yes. In particular, severe mental health problems such as schizophrenia can lead to an increase of 65% in the likelihood of not being in employment unless properly supported. There is clearly an issue there.

SANE’s report into schizophrenia and employment revealed that, of those who were not engaged in employment or related activities, 59.4% said they would like to be. About 45% of people who receive a diagnosis of schizophrenia recover after one or more episodes, but about 20% show unremitting symptoms and disability, with the remaining 35% showing a mixed pattern with varying periods of remission and relapse. There are therefore issues about how we should tailor support for people with those conditions. Even though health care professionals acknowledge the importance of work, they often hold the view that people with schizophrenia would be better suited to low-skilled, low-responsibility or non-competitive work, but that is a fallacy. It is a mistake and it needs to be challenged vigorously. We need tailored programmes that fit the individual’s circumstances, abilities and needs.

The evidence of the beneficial nature of work for people with schizophrenia includes increasing social skills and enhancing the opportunity for the development of friendships; learning new skills; financial rewards; and the stabilisation of the condition. Employment brings clear health benefits for people with schizophrenia. Research shows that those in paid employment are over five times more likely to achieve functional recovery than those who are unemployed or in unpaid employment.

Last year, the Minister of State, Department of Health, my right hon. Friend the Member for North Norfolk (Norman Lamb), along with Ministers from the Department for Work and Pensions, launched a programme to pilot better ways of co-ordinating mental health services and employment services. The pilots are testing a number of different approaches based on the recommendations of the RAND report. This work points the way to a more tailored approach to meeting the needs of people with mental health problems. As I said earlier, the Work programme helps just 6.7% of people with mental health problems into work. In some cases, the way in which different parts of the back-to-work system works has the unintended effect of pushing people further away from the workplace, and that is not what anyone wants.

So what is next? First, the goal needs to be clear. We have said that we want to close the scandalous 20-year life-expectancy gap that exists in regard to mental health, and we must do more to tackle that issue. We also need to close the opportunity gap. Currently, just 5.7% of adults in contact with secondary mental health services are in paid employment, yet in some areas employment rates are as high as 20%. The goal should be to achieve at least a 20% rate of employment by 2020 across the whole country. That means building on the learning from the pilots. It also means acting on the evidence of what works. In particular, it means much more use of the individual placement and support that my hon. Friend the Member for Halesowen and Rowley Regis (James Morris) has just mentioned.

Individual placement and support has been shown to be twice as likely as any other employment support scheme to enable people with severe mental health problems to enter work. IPS works to secure paid employment that matches the person’s interests and aspirations by co-producing a plan of action, rather than requiring them to undertake certain activities. Support continues once the person gets a job and, as these schemes are often based in secondary mental health care services, they are integrated with the person’s health support. A recent psychological well-being and work report by RAND for the Government estimated the cost-benefit ratio at 1:41 for this approach. In other words, the Government save £1.41 for each pound they spend on IPS models. Where IPS is in use, it is delivering very positive outcomes. For example, WorkPlace Leeds, which is part of Leeds Mind, provides a specialised service, using individualised, tailored and collaborative approaches to enable clients to meet their goals. WorkPlace Leeds uses the IPS model, including CV building; interview skills; job searching; tailored applications; confidence-building; one-to-one sessions; advice on benefits; and practical assistance to overcome barriers such as child care difficulties or public transport issues. It also offers peer employment support interventions to develop confidence and a shared understanding of the struggle to get back to work. It recognises that there are no quick fixes, that the journey can be a long one and that it can sometimes take a lot of support for clients to achieve goals—I am thinking of things such as volunteering or training along the way. Work is the focus—that is the outcome people are striving for—but there is a recognition that the journey is important and needs to be properly supported. Perhaps that story of what happened to Anne-Marie could have been different if she had had access to that sort of support when she returned to work.

That support is delivered in partnership with the mental health, social care and housing services, all of which play a crucial part, and with the secondary mental health service. WorkPlace Leeds has also worked in partnership with Jobcentre Plus to identify the gaps in service provision—that is crucial to the evolution of services in this area. In other words, there is a joining up at the local level, with a devolved approach that actually seems to work. The annual cost of this approach in Leeds has been put at £5,819, compared with the £13,700 cost to the Work programme of supporting an employment and support allowance claimant.

So I hope that one thing that will come out of the pilots—I look forward to hearing the Minister’s aspiration for this Government and indeed future Governments—is that a future Government will put in place a programme to improve access to IPS, rather like previous Governments introduced a programme to improve access to psychological therapies. We need that level of drive and determination to make sure that this evidence-based practice becomes the norm, not the exception it is at the moment.

Finally, surveys have found that mild to moderate mental health problems, including stress, anxiety and depression, are the most common reasons why people are signed off work. The figure cited is that this costs the economy £26 billion every year: That is an average of more than £1,000 for every employee, so it is in everybody’s interests and it is everybody’s business to make sure that we properly support people in the workplace. Although there are great employers who really get mental health and its impact on their employees, as well as their business, and do take the necessary steps, there is still so much more to be done.

In bringing my remarks to a conclusion, I wish to ask the Minister whether we could make better use of the Health and Safety Executive, a sometimes maligned body which some years ago developed new tools relating to stress audits, which could be used by employers. If the company in Anne-Marie’s story had used a stress audit, it may well have identified some of the things it could change before she got to a crisis and had to leave work. I hope that the Minister will be able to say more about how the HSE and the work it has done in the past could be updated and become part of its day-to-day practice in the future.

With that, I hope that today’s debate will not only generate a useful exchange across the Chamber, but demonstrate again that there is a commonality of purpose: a recognition that for far too long these issues of mental health had not been given the time, focus or priority they should get, that they are getting that now and that we will make progress in the next Parliament. If we do not, we are not just costing our society a huge amount—we are costing individuals a fortune.

Compulsory Jobs Guarantee

Andrew Bridgen Excerpts
Wednesday 11th February 2015

(9 years, 9 months ago)

Commons Chamber
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Stephen Timms Portrait Stephen Timms (East Ham) (Lab)
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I beg to move,

That this House calls on the Government to put a strict limit on the amount of time that people can be left on jobseeker’s allowance without being offered, and required to take up, paid work, by introducing a compulsory jobs guarantee that would ensure that anyone under 25 who has been receiving jobseeker’s allowance for a year, and anyone over 25 who has been receiving jobseeker’s allowance for two years, would be offered a paid job, with training, that they must take up or face losing benefits; and further calls on the Government to ensure this compulsory jobs guarantee be fully funded by a one-off repeat of the tax on bankers’ bonuses and restricting pension tax relief on incomes over £150,000.

This is a debate about the kind of recovery our country needs to see, about who is being left behind, about the kind of future we are building for the next generation and about whether this Government are using more than just warm words when they talk about full employment, as the Prime Minister has done recently.

Our challenge to Ministers today is to put a strict time limit on the period for which someone can be left on jobseeker’s allowance before they are offered, and required to take, proper paid work. The compulsory jobs guarantee, funded by a tax on bankers’ bonuses and restrictions to pensions tax relief on incomes over £150,000 a year, would mean a new start and new hope for the more than 29,000 young people who have been out of work for over a year, and for the 130,000 over-25s who have been out of work for more than two years.

Andrew Bridgen Portrait Andrew Bridgen (North West Leicestershire) (Con)
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Will the right hon. Gentleman clarify whether this will be the 10th or the 11th time his party has spent the bankers’ bonus tax?

Stephen Timms Portrait Stephen Timms
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We had a bankers’ bonus tax in the past, but this will be the sole purpose for the new bankers’ bonus tax to be introduced after the next election. We will all be committed to the guarantee that I am setting out for the House this afternoon.

Those people I have described are the ones this Government have left behind. They are the people whom Labour Members are not going to forget, not only because we owe them a fair chance to escape long-term unemployment but because we cannot afford, as a country, to leave them on benefits for years on end. Nor can we afford the consequences of the low wages that they are likely to earn if they do find work after such a long period of unemployment.

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Stephen Timms Portrait Stephen Timms
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I will in a moment, but I wish to make a little more progress first.

There are serious causes for concern in the labour market and much more needs to be done to build a recovery that works for everyone. Long-term unemployment remains much too high. The long period—three years—after the general election when there was almost no growth in the economy has left too many people locked out of employment and now left behind even as overall employment is rising. The number of people claiming jobseeker’s allowance for more than two years is 224% of what it was in May 2010, and young people remain at high risk of unemployment. Strikingly, the relative position of young people has become steadily worse since 2010 The most recent figures show that the youth unemployment rate is almost three times the overall rate—it is 2.9 times that rate—and for the past three months, while overall unemployment has been falling, youth unemployment has been going up. The total is now back above three quarters of a million, and we just have to hope that that is not the new trend. Action needs to be taken now to make sure that it is not and that young people are able to share in the benefits of the recovery.

Andrew Bridgen Portrait Andrew Bridgen
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Would the right hon. Gentleman like to comment on the words of James Sproule, the chief economist of the Institute of Directors? He said that

“Labour’s job scheme does not bear much scrutiny as a solution. No government can pull a lever in Whitehall and expect youth unemployment to disappear.”

Is not the truth that only the private sector can create sustainable jobs but that it needs a business-friendly Government to do so?

Stephen Timms Portrait Stephen Timms
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Jobs are being created. The question is: who is going to get them? At the moment, the evidence clearly shows that young people disproportionately are not. We know that the future jobs fund worked—I will discuss that in a moment—and we are going to be repeating that approach with this jobs guarantee.

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Stephen Timms Portrait Stephen Timms
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I have just mentioned the FSB. My hon. Friend will know how active it has been in demanding change of the kind he describes and makes a telling case for. I agree: more should be done to support small business in that way, and in other ways. We need to reform how the banks deal with their small-business customers too.

Andrew Bridgen Portrait Andrew Bridgen
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The right hon. Gentleman is being generous in giving way. He has expounded a great deal on his belief in Jobs Growth Wales. His party’s socialist policies have been implemented in Wales, but figures from the Welsh Government show that only one in three of the young people who have applied for Jobs Growth Wales got a job, so it is nowhere near guaranteeing a job for all young people.

Stephen Timms Portrait Stephen Timms
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We will be delivering a guarantee, exactly as we did with the future jobs fund. Anyone can look back at the record of the future jobs fund, where a guarantee was delivered. It will be again.

I shall say a little more about how the guarantee would work. Participants would be required, if their employer did not plan to keep them on when the subsidy ended, to pursue intensive job search for a permanent opportunity at the end of the six months. Any jobseeker who refused to take up a job offered under the guarantee would, in the normal way and in line with the long-standing conditions for benefit claims, lose their benefits. That is always the case.

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Andrew Bridgen Portrait Andrew Bridgen (North West Leicestershire) (Con)
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I oppose the Opposition’s motion, but I wholeheartedly thank them for giving me an all too brief opportunity to talk about the huge success of the economy in my constituency under the current Government, and about the impact of their long-term economic plan on job creation there.

Unemployment in my constituency is 1.5%, which means that there are 716 jobseekers. That is too many, and we have much more work to do. But the good news is that only last week, East Midlands airport in my constituency announced that it was creating 1,250 jobs across the airport this year. Depending on the traffic on the M1, I hope to go up there this evening to join the Chancellor of the Exchequer in congratulating the airport on its sterling work and economic growth. Since 2010, we have had nearly 800 fewer jobseeker’s allowance claimants, a drop of almost 60%. Even more pleasingly, our youth unemployment claimant count has fallen by 310 since 2010, a reduction of almost 70%.

In North West Leicestershire, we have one of the highest-growing economies outside London and the south-east. That is because we have business-friendly government at all levels—a Conservative-led coalition Government, a Conservative county council and a Conservative district council—delivering the long-term economic plan right to the doorsteps of my constituency. In North West Leicestershire, Labour’s proposal for a compulsory jobs guarantee would be a solution—an expensive, discredited one—looking for a problem.

Last week I visited a multinational company, Schneider Electric, in Ashby-de-la-Zouch. It trains 15 to 20 people a year to become highly skilled engineers, and it is a very impressive set-up. It is not looking for Government intervention; it is looking for a Government who will provide the right mood music, set the right agenda and create an environment in which businesses can feel confident to invest, create jobs and wealth and pay the taxes that will support the essential public services that we all need.

I struggle to understand how business can have any confidence in a party led by an individual who ducked out of addressing the British Chambers of Commerce conference just the other day. Just as we cannot have a strong NHS without a strong economy, we cannot have strong wealth creation without a Government who support enterprise and business. That is something that Labour would not do, given its relentless attacks on business and wealth creation. After all, how can we take seriously a party that wishes to emulate François Hollande’s failed and discredited economic model? I remind the House that the Leader of the Opposition has stated that he wants to do in the UK what President Hollande is doing in France. He should clearly be more careful what he wishes for, because the socialist policies in France have resulted in a youth unemployment rate of 25.4%.

This Government have got to the root of the problem when it comes to unemployment. The Opposition want to do what all Labour Governments do—they want to chuck taxpayers’ money at the issue in the hope that some of it sticks. Their compulsory jobs guarantee scheme seems to be modelled on the discredited future jobs fund, a scheme that was five times more expensive than some other employment programmes and created only short-term placements, costing around £6,500 per job.

It should come as no surprise to those in this Chamber or to the people of our country who will go to the polls in a few months to elect a new Parliament that no Labour Government have ever left office with unemployment lower than when they took office. The Labour party claims to love the poor, and indeed it must, because every time it gets into government it always creates more of them.

None Portrait Several hon. Members
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rose

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Gemma Doyle Portrait Gemma Doyle (West Dunbartonshire) (Lab/Co-op)
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If there is one group of people in this country whom the Government have let down it is our young people. Young adults in this country have been pushed to the fringes by this Government, who have chosen to focus their energies on pockets of society they believe are more important. But nobody is more important than our young people. No one knows that more than our older people. Grannies and granddads are heartbroken that their grandchildren are unable to start making their own way in the world, and are having to rely on mums and dads who are dealing with pressure on top of pressure. Our older people have seen it all before, and this Government should have spent the past five years helping them and helping our young people. Instead, they have sat back and watched poverty creep across the UK, so that it is now a normal part of far too many working people’s lives.

Gemma Doyle Portrait Gemma Doyle
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I will not give way.

The Government have sat back as almost 1 million people have turned to food banks for help. Their mismanagement of the economy means that prices have risen faster than wages for 52 out of their 53 months in office. Under this Government, unemployment reached more than 2.5 million, which is its highest level for 17 years, and youth unemployment peaked at more than 1 million.

Ministers may rejoice at the figures in their briefings, but let me tell them that things do not feel like they are getting better for my constituents. Some 6% of young people in my constituency are claiming jobseeker’s allowance, which is twice the UK average. Although that figure represents about 500 people, in every month of this Parliament the number of unemployed young people in my constituency has been closer to 1,000. Sometimes the figure is above 1,000, but mostly it is close to it. Those young people, who are struggling to find work, have been let down month after month after month by this Government. Tory Ministers would rather give millionaires a tax cut than help our young people. Young people think that life under the Tories is not fair, and they are absolutely right.

A Labour Government would introduce a compulsory jobs guarantee to get more young people into work. Those young people would receive in-work experience, on-the-job training, and wages; perhaps most importantly, they would have the dignity and confidence they need and deserve.

Government Members are wrong in saying that our scheme is not costed. We have set it out very clearly. It would be paid for through our tax on bankers’ bonuses and by restricting pensions tax relief for those who earn more than £150,000 to the same rate as that for basic taxpayers, which is fair enough. This scheme is necessary. Our young people deserve a better future. We cannot have another five years of this Government.

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Kate Green Portrait Kate Green (Stretford and Urmston) (Lab)
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This has been a good debate and I thank all hon. and right hon. Members for their contributions.

Our motion is about how we tackle long-term unemployment, particularly long-term youth unemployment. While I welcome the belated increases in the numbers in work that hon. Members have talked about in relation to their constituencies—in passing, I point out that that rise in employment has been accompanied by record in-work poverty—today’s debate is about the fact that our long-term unemployment rate, particularly our long-term youth unemployment rate, remains far too high.

As my right hon. Friend the Member for East Ham (Stephen Timms) pointed out in opening the debate, long-term youth unemployment, at 750,000, is not only rising but worsening relative to the population as a whole. Research by the House of Commons Library has shown that in 2010 youth unemployment stood at 2.5 times all unemployment. Now, on the latest figures we have, that proportion has increased to 2.9 times, so young people’s position is not improving; it is getting worse. As many hon. Members have noted, we should all be concerned about the scarring effect that occurs over lifetimes for individuals and communities if young people do not get the best start at the beginning of their working lives.

Andrew Bridgen Portrait Andrew Bridgen
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Does the hon. Lady agree that not having a role model and being brought up in a workless household are also sources of long-term youth unemployment? Does she welcome the fact that there are 400,000 fewer workless households under this Government?

Kate Green Portrait Kate Green
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Very few households choose to be workless. Indeed, very few—[Interruption.] I understand that the hon. Gentleman was not saying that. It is an issue not just of role models, but of opportunities. It is welcome that more people are in paid employment, but today’s debate is about that vulnerable minority who are scarred by long-term unemployment.

Oral Answers to Questions

Andrew Bridgen Excerpts
Monday 26th January 2015

(9 years, 10 months ago)

Commons Chamber
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Iain Duncan Smith Portrait Mr Duncan Smith
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I will take that as a peculiar compliment. We inherited a system in which people did not have to work for any time to claim jobseeker’s allowance. Within the existing rules, we will not pay for the first three months. If people are unemployed, they will be paid for three months. After that, they will be asked to leave. That is a much tighter position than the one we inherited. I, of course, would like to take it further. As the Prime Minister set out clearly in a recent speech, he believes that there should be years of contributions before someone is eligible to claim benefits, be they tax credits or jobseeker’s allowance. When the Conservative party gets back into power, we will implement that.

Andrew Bridgen Portrait Andrew Bridgen (North West Leicestershire) (Con)
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I, too, welcome the Prime Minister’s announcement in November that a future Conservative Government will have the toughest regime in Europe on limiting migrants’ access to our benefits system. Will the Secretary of State outline for the House the steps the Government have already taken to ensure that migrants come here to work and contribute, and what he has done to deter people from benefit tourism?

Iain Duncan Smith Portrait Mr Duncan Smith
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Exactly what I have mentioned. The mess that we were left by the last Government left little or no restrictions on anybody coming in, so the UK became a draw for people who wanted to claim benefits and be out of work, because it was a better option. We are tightening that up. We have stopped a number of things, such as housing benefit, and have shortened the time on jobseeker’s allowance. Tax credits are moving into line with that as well. As I said, when we are re-elected at the next election as a Conservative Government, we will tighten it up even more.

Oral Answers to Questions

Andrew Bridgen Excerpts
Monday 8th December 2014

(9 years, 11 months ago)

Commons Chamber
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Esther McVey Portrait Esther McVey
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What we know is that we provide £94 billion in working age benefits. We also know that, for the extra people we have got into work, in-work poverty has actually fallen by 300,000 since the election. The Government are getting more people into work so that they can have a job, a career and a progression—they can move forward. The hon. Gentleman does not want to hear independent statistics, but that is the case. We have more people in jobs than ever before.

Andrew Bridgen Portrait Andrew Bridgen (North West Leicestershire) (Con)
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8. What recent assessment he has made of levels of youth unemployment.

Esther McVey Portrait The Minister for Employment (Esther McVey)
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Youth unemployment is continuing to fall. In this year alone, it has fallen by the biggest ever number: more than a quarter of a million. There are just more than 700,000 unemployed young people, but if we take out those in full-time education, the number is below half a million.

Andrew Bridgen Portrait Andrew Bridgen
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Since the Government came to office, youth unemployment in my constituency has fallen by 60%, helped in part by a near trebling in the number of apprenticeships. Will the Minister join me in congratulating the agencies and businesses that have delivered those figures? What plans does her Department have to ensure that we build on that success?

Esther McVey Portrait Esther McVey
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My hon. Friend is right: this has been an incredible success. The Government came forward with the Youth Contract. What could we do? Was it wage incentives, work experience or sector-based work academies? We have helped more than a quarter of a million young people through work experience and sector-based work academies. That is working: extra work experience seems to be what young people need and that is what we are going to do. My hon. Friend knows a lot about this. He was young executive of the year when he ran his own business and young director of the year. He helped his family business to grow, extending it and turning it into a plc. He wants real jobs for real people. He is all about social mobility.

Oral Answers to Questions

Andrew Bridgen Excerpts
Monday 3rd November 2014

(10 years ago)

Commons Chamber
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Steve Webb Portrait Steve Webb
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It is difficult to know which of those dubious assertions to choose from that question. [Interruption.] The hon. Lady asks which one is dubious. She says that 3% of what she calls welfare spending goes to the unemployed—[Interruption]—goes on benefits to the unemployed, so she presumably counts state pensions as welfare spending. I do not.

Andrew Bridgen Portrait Andrew Bridgen (North West Leicestershire) (Con)
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I welcome the news that over the last 12 months we have seen the largest annual fall in unemployment since records began. Does the Minister share my view that the best way out of poverty is through sustainable employment and a regular pay packet—something enjoyed by an extra 847 of my constituents since January 2013?

Steve Webb Portrait Steve Webb
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My hon. Friend is quite right. We know that the risk of a child, for example, being in poverty is three times as great if they are in a workless household rather than a working household. We have almost become blasé about new record falls in unemployment month after month. That is the key to our drive to tackle poverty.

DWP: Performance

Andrew Bridgen Excerpts
Monday 30th June 2014

(10 years, 4 months ago)

Commons Chamber
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Iain Duncan Smith Portrait Mr Duncan Smith
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I am grateful to my hon. Friend, who is right about that, and I will come to that point in a minute. That is what happens in the development process. Universal credit is rolling out against the time scale I set last year, as I will demonstrate.

Andrew Bridgen Portrait Andrew Bridgen (North West Leicestershire) (Con)
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On behalf of my constituents, I want to thank the Secretary of State for all the excellent and essential work he is doing on welfare reform and for the part his Department is playing to deliver the Government’s long-term economic plan, which has seen unemployment in my constituency fall by 40% and youth unemployment fall by 50% over the past 12 months.

Iain Duncan Smith Portrait Mr Duncan Smith
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What an excellent intervention. It is a testing one, but I will try to live up to it.

Let me move on to universal credit. Across all 44 programmes of change in the Department, we are taking a careful and controlled approach to achieve a safe and secure delivery. For example, the benefit cap started with an early roll-out and is now fully implemented, seeing 42,000 households capped and 6,000 move into work. Universal credit is on track to roll out safely and securely, against the plan I set out last year. The hon. Member for Leeds West quoted a figure of £12.8 billion but, as ever, shows a poor grasp of the finances. We have always been clear that universal credit’s total budget is £2 billion, and we will not overspend.

Furthermore, we have taken decisive action so as not to repeat the way in which programmes were rolled out under the previous Government. The reset will avoid the “big bang” concept that they put forward at the last election. They did a number of things that led them to have to write off huge sums of money. For example, their benefit processing replacement programme was not even introduced; it was just scrapped after £140 million had been wasted on IT that could never be used. Lectures about money that has to be written off with nothing to show for it should be directed at them, not us.

We have introduced the pathfinder in order to test and learn. We are now rolling it out, as I announced the other day, to 90 jobcentres across the north-west, and that process will be completed in the autumn. Furthermore, I have announced that, from today, new universal credit claims for couples will be rolling out into the live status, and claims for families will follow that roll-out. That will complete universal credit’s roll-out in the north-west, as we set out last year.

On the digital solution, nothing offers clearer proof that the existing live service works. It is delivering universal credit and will continue to do so. As I have always said, the majority of the existing IT will continue to be used, even as we develop the final element, which is the digital service, using all that equipment. It is about an end-state solution—fully online, fully secure and responsive to all digital threats—enhancing what we have already built. Universal credit will roll out on time, and it will deliver what we have said it will deliver—at least £38 billion in net benefit to the Exchequer.

Oral Answers to Questions

Andrew Bridgen Excerpts
Monday 23rd June 2014

(10 years, 5 months ago)

Commons Chamber
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Mike Penning Portrait Mike Penning
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No, I do not. As the Chair of the Select Committee knows, there is no universal credit backlog, so her statement about that is not particularly helpful. I think that we need to concentrate on ensuring that benefits go to the people who deserve them. That is what is most important.

Andrew Bridgen Portrait Andrew Bridgen (North West Leicestershire) (Con)
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Can the Minister confirm that Atos Healthcare will not receive one penny of compensation from the taxpayer for the early termination of its contract?

Mike Penning Portrait Mike Penning
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There is no doubt that the contract was taken out by the last Labour Administration. Her Majesty’s Opposition called for me to sack Atos. If we had done so, we would have had to pay it a huge amount of compensation, but, instead, it will pay substantial damages to the Government when the contract is terminated.

Oral Answers to Questions

Andrew Bridgen Excerpts
Monday 31st March 2014

(10 years, 7 months ago)

Commons Chamber
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John Bercow Portrait Mr Speaker
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Order. Mr McCann, I say to you in all courtesy and in all charity that the role of the Parliamentary Private Secretary—you are sitting in the PPS slot—is to nod and shake the head in the appropriate places, and to fetch and carry notes, not to shriek from a sedentary position or gesticulate in an unseemly manner.

Andrew Bridgen Portrait Andrew Bridgen (North West Leicestershire) (Con)
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Will my right hon. Friend confirm, and remind the House, that universal credit is set to deliver £35 billion of benefit to our economy?

Iain Duncan Smith Portrait Mr Duncan Smith
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Yes, I agree with my hon. Friend on that. The National Audit Office report said that a minimum of £38 billion would actually be the positive elements brought to the UK economy and those who are in need. The real problem is that the Opposition say they support it, but they carp about it. The reality is that every change they ever brought in was a failure. They wasted billions of pounds of taxpayers’ money. We will implement this carefully and because of that, people will benefit, rather than suffer, as we all recall they did when Labour introduced tax credits.

Oral Answers to Questions

Andrew Bridgen Excerpts
Monday 24th February 2014

(10 years, 9 months ago)

Commons Chamber
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Mike Penning Portrait Mike Penning
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No, we will not, because we are already two thirds of the way through the incapacity benefit reassessment process. We have 1 million people in the process and, as I said earlier, 650,000 have already progressed through.

Andrew Bridgen Portrait Andrew Bridgen (North West Leicestershire) (Con)
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I am very pleased that the employment rate for disabled people has now reached 45%. Does my hon. Friend agree that that shows that, with the right support, disabled people can find and keep work and provide for their own families?

Mike Penning Portrait Mike Penning
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I welcome the fact that it is now 45%, but we can do better, and we need to do better for those disabled people who want to get back into the workplace. That is why Disability Confident is going around the country showing employers how easy and right it is that they employ people with long-term illness and disabilities, and that has been very successful.