(8 years, 6 months ago)
Commons ChamberI commend my hon. Friend for hosting that jobs and apprenticeships fair. She is absolutely right: such fairs provide a gateway for young people who are looking for work. I know that many Members on both sides of the House have been doing exactly the same, but I encourage all Members to bring employers together in their constituencies, and to give young people the opportunities that they are seeking.
5. What recent progress his Department has made on reducing the number of workless households.
The number of workless households has reached its lowest level since records began, and the latest figures show that it has fallen by more than three quarters of a million since 2010. That demonstrates that not only is our approach to the economy working, but, crucially, more families are benefiting from the security and dignity that work brings.
Does the Secretary of State agree that too many people are suffering as a result of drug and alcohol abuse, which is preventing them from returning to work? Does he agree that helping those people to become drug and alcohol-free is essential, and will he visit the Burton Addiction Centre to see how we can transform lives, help people to become free of addiction, and get them back into work?
My hon. Friend has asked an excellent question. As he probably knows, I visited the BAC O’Connor Centre in Newcastle-under-Lyme two weeks ago, and saw for myself a group of addicts in recovery who were making that difficult journey back into work. Many of those people are motivated by voluntary work placements and the goal of achieving a paid job when they finish. Their dream is getting into paid work, and the work of rehabilitation and recovery centres like BAC O’Connor Centre is crucial in that regard.
(9 years, 8 months ago)
Commons ChamberWe have provided a whole array of support. We measured what was working best and asked how we would roll that out. By working with businesses, we found that the answer was work experience, the sector-based work academies, and apprenticeships; we have introduced 2 million of those—and it is national apprenticeship week. Getting young people into a job is about skills, including employability skills, and we are doing as much as we can.
T8. My constituents in Burton and Uttoxeter welcome people coming to this country who want to work hard, pay their taxes and contribute, but they are concerned about those who come to take advantage of our benefits system. Will the Secretary of State reassure my constituents that this Government take that seriously, and will he outline what we will do about it?
My hon. Friend is right. When we came into office there was an open door policy—people could come in, be unemployed and claim benefits immediately. They could claim housing benefit. Since we have been in office, we have stopped people claiming housing benefit. They must be resident for three months before they can claim jobseeker’s allowance, and after three months, if they do not have a job or the prospect of a job, they will not be allowed to stay in this country. These changes introduced by this Government and the new ones on universal credit today mean that we are serious about this. Labour never was.
(10 years, 2 months ago)
Commons Chamber1. What assessment he has made of the level of charges levied by doctors for completing benefit assessment information.
The Department is able to request medical information from doctors as part of the process of assessing an individual’s entitlement to benefit; for example, doctors have to complete the fit note and the ESA113 forms and they have also to complete, where we pay them, forms related to the application for the personal independence payment.
I thank the Minister for that answer, but East Staffordshire citizens advice bureau has raised with me concerns that GPs are charging vulnerable constituents of mine up to £135 to provide information requested as part of the work capability assessment. Although his Department is not responsible for those charges, does he share my concern that vulnerable people on benefits are being charged this amount of money and may actually not be able to access benefits to which they are entitled?
I am grateful to my hon. Friend for raising that point. Certainly as far as the WCA for the employment and support allowance is concerned, GPs are contractually required to provide a fit note and to provide the ESA113 form, so perhaps if he and I speak afterwards I can get further details of the specific case he mentions, because it may raise some issues that need to be drawn to my attention.
(10 years, 8 months ago)
Commons ChamberIt is a privilege to follow the right hon. Member for Salford and Eccles (Hazel Blears), of whom I am a big fan, and to support what she said in her exciting speech that extolled the virtues of the big society. I congratulate the Secretary of State who has done such a great deal to bring on the big society and social enterprise, through his work at the Centre for Social Justice and in the Department.
I am, however, somewhat disappointed to be speaking in this debate having heard the shadow Secretary of State be so disparaging about the cut in beer duty. It is not just I, the Member of Parliament for Burton—the home of British brewing—who will be disappointed that the Labour party dismissed such an important industry, but the 1 million people who are employed in that industry, the 4,000 people in my constituency who earn a living from the beer and pub industry, and the 120,000 members of the Campaign for Real Ale who campaigned hard across the country because they love British beer, they love the industry and they wanted a cut in duty.
My hon. Friend, the MP for Britain’s second foremost brewing town, has done a fantastic job on this issue. In the pub over the weekend I noticed a lot of people talking about a penny off a pint. Has he made any assessment of the scrapping of the beer duty escalator, as well as the cut in duty, and how much a pint would have cost had the Labour party had its way?
I thank my hon. Friend for that intervention, and I will not let petty rivalries interfere in this important debate. He is right, however, because this is cumulative: it is not just about the historic cut in duty by a penny this year, but last year’s 1p cut in duty and the scrapping of Labour’s hated beer duty escalator. Added together, they have taken more than 7p off the price of a pint in our local community pubs. Beer drinkers, publicans and the industry will welcome and raise a glass to that, and it is part of the measures that have shown this Government to be the most pro-pub and pro-beer Government in generations. It is historic: this is the first ever Chancellor to cut beer duty two years running, and it comes after the previous Government, when beer duty rose by an eye-watering 42% between 2008 and 2012. Is it any wonder that the industry has been in such dire straits?
This industry is important for our community pubs. We talk about supporting community pubs, but seven out of 10 drinks purchased in a pub are a beer. This is a great British product that is brewed and consumed in this country and employs people in this country. Those 1 million jobs are important—46% of those workers are under 25, and more than 50% are women. If we want to help young people into the jobs market and get more women into the workplace, supporting the hospitality industry, pubs and breweries is exactly the way to do it. CAMRA, the Society of Independent Brewers, and the British Beer and Pub Association have welcomed the support that this Government have shown for beer and pubs.
Last year the Chancellor had a beer brewed in his name. Pennies from 11 was brewed by a Tatton brewery, and Sajid’s Choice was brewed in recognition of the support that the Financial Secretary gave the brewing industry during his time in the Treasury. I have no doubt that in weeks to come, Morgan’s Magnificent Mild will be brewed in gratitude.
I totally agree with my hon. Friend, but no list of beers named after hon. Members would be complete without Ginger Rodent, which was brewed in honour of the Chief Secretary to the Treasury.
I absolutely agree with my hon. Friend, and I enjoyed sampling a pint of Ginger Rodent in the Strangers Bar. It was particularly enjoyable as it was a penny less as a result of this Government’s measures.
We should not underestimate the community pub. It is an important industry, and £620 million from beer exports came into our coffers as a result of the cut in beer duty last year. Beer exports outside the EU were up by 23%—this industry is incredibly important to our country and has great potential. We all know that we brew the best beer in the world in this country, and having a Government who stand up and not only listen but act in support of that industry will mean that the business will grow, employ more people, and create more revenue for the country as a result. I commend the work that has been done.
The facts speak for themselves. Last year we said to the Chancellor that if he cut beer duty, scrapped Labour’s hated beer duty escalator and gave beer and pubs a break, there would be investment and growth in the industry. That proved to be absolutely right. We have seen two quarters of growth in beer sales in the past 12 months, which is the first time in 10 years that beer sales have been on the increase. Brewers all say that that is as a result of the support that the Government have given to the beer and pub industry.
This is not just about scrapping the beer duty escalator. The Government also gave a £100,000 business rates break for pubs up and down the country, and scrapped Labour’s job tax by scrapping employers’ national insurance contributions for those under 21—important people whom this industry employs. As a result, we are seeing growth and investment. Some £400 million has been invested by the industry in the past 12 months. Only yesterday, Marston’s brewery in Wolverhampton announced 3,000 new jobs as a result of the Government’s support for beer and brewing.
I thank all the right hon. and hon. Members from all parts of the House who supported our campaign to reduce the duty on beer. This was a cross-party campaign. On behalf of CAMRA, SIBA, the British Beer and Pub Association and all beer lovers across the country, we will be raising a glass, saluting the Government and saying, “Cheers, George.”
I enjoyed the speech of the hon. Member for Penrith and The Border (Rory Stewart). He focused on issues relating to older people, and I think that many of the points he made were welcome. No doubt we shall have opportunities to explore them over the coming months and years. However, I have to dispute, for reasons that I shall explain shortly, his opening remark that the Budget had focused on young people.
As we know, this year’s Budget followed a huge global financial crisis and several years of flatlining in our economy. The growth that we are now seeing is very welcome, but I think we must acknowledge that, outside the M25 collar around London, it is quite patchy. In many areas, local communities are struggling to secure balanced growth in their economies, and it is undeniable that many people are experiencing a cost of living crisis. In Telford, which has a history of low wages, a history of temporary working and a history of agency working, people are still struggling to make ends meet. There has been some growth in the banking sector—the food banking sector, that is. More people are having to resort to the food bank in Telford, for a variety of reasons. I pay tribute to the volunteers who work at the food bank. I also say “Well done” to the local authority for funding it, and for recognising its contribution.
I understand the point that the hon. Gentleman is making—I too represent a northern, or midlands, constituency—but does he not welcome the fact that unemployment in his constituency has decreased by 25.6%?
I intend to talk about unemployment, and about youth unemployment in particular. I know that the hon. Gentleman represents a northern seat, although I do not know how much further north it is than mine, if at all. Let me add that I enjoyed his comments about the brewing industry. I welcomed the Chancellor’s policy announcements about the industry, which I think were very positive, and, as a supporter of CAMRA, I agreed with much of what the hon. Gentleman had to say.
(11 years ago)
Commons ChamberThe hon. Gentleman talks about policy mistakes of the Thatcher Government and about previous Governments. Will he admit that one of the most damaging things for our pension provision was the previous Prime Minister’s £100 billion raid on our pensions when he was Chancellor?
I assume the hon. Gentleman is referring to the decision to remove the dividend—[Interruption.] I say to him, first, that I do not know where he gets that figure from. I have heard it from Conservative MPs, in particular, but I would be delighted if he explained where he got it from. I would be interested, because anyone who has looked at the matter closely would say that the figure had been plucked out of nowhere. Pensions are a long-term business, and I am not suggesting that the only Governments who ever made a mistake were previous Conservative Governments. However, the fundamental policy decisions that set the UK on a slippery slope regarding additional pension savings were the mistakes the Thatcher Government made through the enormous encouragement given to personal private pensions.
The hon. Gentleman might remember, or might have read about, the way in which an army of pension salesmen was unleashed to persuade people that they should leave high-quality occupational schemes or the high-quality second state pension—the state earnings-related pension scheme—and go into personal pensions. They were offered enormous lump sums, not realising that such sums, up front, actually came out of their pension savings. They were promised enormous returns, and they were promised that they could pay less into a pension and get a much better retirement income. Where did that lead? It led directly to the private pension mis-selling scandals, whose legacy of public mistrust of pensions we all live with today.
That relates back to my point about the Minister’s approach. He is trying to build back up and deliver, or try to deliver on, a consensus around the Turner proposals—that is the right thing to do. However, if he is going for a hard, fast wind-up of the second state pension, with the losers being low-paid private sector workers, he has to be clear and convinced that every auto-enrolment scheme—10 million people are going into these schemes—delivers value for money. That is where my view, and that of Opposition Members, that he has not moved fast enough comes from, and it is evident in his change in view that I have cited. His view on the private pensions market has evolved. We welcome his movement, but we say to him that he has to move faster, and that leads me to amendment (a).
We have to draw a distinction between costs and charges. Our amendment would, in particular, make possible the disclosure of all transaction costs. The Minister alluded to that, saying, rightly, that we cannot have transaction costs in the cap. I absolutely agree with that; I do not know anyone who would say that transaction costs could be included in the cap. However, we need to ensure that the transaction costs are disclosed to employees and employers. He suggested that it was odd that the Opposition would want there to be a statutory record of costs and charges, but that is not odd; it is central to reforming the private pensions market.
(12 years, 2 months ago)
Commons ChamberI can give the hon. Gentleman that guarantee. If he has any concerns that he thinks we might not have dealt with, my door is open for him to come and talk to me. I am talking to many organisations, including Refuge, to ensure that we cover those issues. This is a priority concern for us and I give my absolute guarantee that that will happen.
19. What recent representations he has received on the setting of an annual benefit cap at £35,000.
We have received a number of representations on the benefit cap, which will be introduced from 2013 and be set at a maximum of £26,000 net a year. That is about restoring fairness to the system and ensuring that those on benefits no longer receive more in state support than the average earnings of a working family. We have worked hard to identify the households and families that will be affected by the cap well in advance of the April start date. There is additional funding of some £190 million to smooth the transition over the spending review period.
I thank the Secretary of State for that answer and congratulate him on the work he has done on this issue.
The average salary in my constituency is £22,400, and people cannot understand why anybody would oppose a cap on benefits that is substantially more than they earn to feed their families. A week on Friday I am organising a jobs fair in Burton, which we expect 2,500 people to attend. Does the Secretary of State agree that it is important to tell jobseekers that they will always be better off in work than on benefits?
This is one of the most popular programmes that this Government are introducing, and the public genuinely believe that it is the right thing to do. The only group, it seems, who do not think it is the right thing to do are those sitting on the Opposition Benches.
When we recently started dipping into the issue and surveying those who were likely to be affected, it was interesting to find out that, already, well in advance of what is going to happen, about a third of people have admitted that they are out looking for work as a result of the oncoming benefit cap. Some 88% are now up to date with their rent, and 1% have reported having to move.
(12 years, 8 months ago)
Commons ChamberI beg her pardon. I say to the right hon. Lady—quite rightly so and well deserved—that we are in the business of trying to secure life change through all these groups so that they can take control of their lives. My hon. Friend the Minister with responsibility for disabled people is working to ensure that it is far easier than ever before for people to get into work and take control of their lives, and that is what most of the lobby wants us to do.
3. What steps his Department is taking to support students who suspend their studies due to illness.
It is important to support students who become seriously ill. Those whose illness or disability causes them to suspend their studies with the agreement of their college may be eligible for disability living allowance, which has a three-month qualifying period. A student in receipt of DLA can also claim employment and support allowance. However, those who are terminally ill are not subject to the qualifying period and can claim DLA and ESA immediately.
My constituent Ian Leech sadly lost his daughter Melissa to non-Hodgkin’s lymphoma in 2008, while she was a student. It was six months before Mel received any financial support from the Government. I am proud that last year the Government removed an important barrier to seriously ill students receiving support, by ending the rule that said that those who had to suspend their studies would be treated as having received their student loan. However, those students cannot claim ESA unless they qualify for DLA, even though they might be suffering from a disease such as cancer. Will the Minister look again at what more can be done to help students?
I am very much aware of the case that my hon. Friend raises and pay tribute to Mr Leech, who has been a tireless campaigner for change in this area. Employment and support allowance is an income-replacement benefit; therefore, students are eligible only under limited circumstances, because their main source of financial support is the education system. However, I understand my hon. Friend’s point that a three-month qualifying period for DLA means that some long-term sick students might have to serve a waiting period before they become eligible for ESA. I am taking the opportunity presented by the introduction of PIP— the personal independence payment—to reconsider the position, and I can tell him that I am looking closely at it.
(12 years, 11 months ago)
Commons ChamberI think that it will be generally accepted that people’s long-term living standards depend on decent pensions and that as a society generally we need to save more. Until now, having a pension has been seen as the safest way of saving—
I certainly shall not.
Over the past few years people in the private sector have seen their bosses slash the pensions available and swindle them out of what they thought they signed up to when they joined their pension scheme. Now the Government are turning that idea on the public sector, with higher contributions, longer years of work and then lower pensions. One of the dangers is the lesson people will draw from what has happened in the private sector and is now proposed for the public sector. The Government talk about nudge, but the nudge will now encourage people not to bother to save because some swindler, either public or private, will take it off them and they will not get what they thought they signed up for.
On 11 August the Prime Minister repeated his praise for the emergency services, the police, firefighters, ambulance staff and A and E staff. Then he went back to Downing street and proceeded to press on further with trying to undermine the pension provision for all those people, making them work longer, pay more and then get less in their pension. He clearly considers them only when doing a bit of PR at the Dispatch Box. The same is true of the Government’s approach to teachers.
It is impossible to exaggerate the importance of teachers to this country’s future, especially head teachers, whose leadership is crucial in schools, because they do more for wealth creation than anyone in the City of London has ever done. They educate, train and produce adaptable young people who are the greatest asset to wealth creation in this country so that we can compete with the best on quality and not be dragged down to having to compete with the cheapest on price, because that is something we will never do.
The Government ought to wonder why head teachers are going on strike. Not only are they going on strike for the first time, but they have had a strike ballot for the first time. They are determined to improve their schools and believe that the pension proposals, if they go through, will damage their schools in the long term. Everyone accepts that changes are necessary. The teachers have accepted that changes are necessary, and they accepted agreements a year or two ago to make a bigger contribution.
The interesting question that the Government do not answer is why they have not produced the actuarial review of whether the teachers pension fund is in credit or deficit. They know that it is in credit, but they will not produce the answer because they know that it will expose the fact that they are trying to shift money from the teachers to the Treasury to pay for the incompetence of the Chancellor of the Exchequer, who has made as big a mess as was predicted when he took over as Chancellor. I have nothing more to say, Madam Deputy Speaker.
(13 years, 8 months ago)
Commons ChamberI am grateful for the opportunity to speak in this important debate. I begin by paying tribute to the Budget that was delivered by the Chancellor which has been warmly welcomed in many parts of my constituency. It was particularly warmly welcomed by the people involved with the Staffordshire air ambulance, who feel that they will benefit greatly from the changes to charitable giving. As the president of the East Staffordshire Community and Voluntary Service, I have been contacted by many charitable and third sector groups that believe this is a real way for them to build for the future and offer more help and support in the community.
The Budget was also well received by businesses in my constituency. The changes to corporation tax will be a big boost to growth. Businesses were delighted to hear talk of manufacturing, which they feel has been overlooked and forgotten for so long in this country. To hear a Chancellor and a Government talk about manufacturing was a boost for businesses and they are excited about the future.
The Budget was welcomed by families in my constituency. The poorest families were pleased that many of them will now be taken out of tax completely. More importantly, it was welcomed by many in my constituency who feel that it reinforces what many of them consider the most important plank of what we as a Government are trying to achieve—that is, to make work pay. The decision within the changes to personal taxation to make it more rewarding to go out to work and to support people back into work has been welcomed not only by those who do the right thing, pay their taxes and work hard, but by many people who are desperate to get back into work and feel that this is a great opportunity which will make it more financially viable for them to do that.
However, there is one element of my constituency where the Budget was not so well received. It is fitting that the former chairman of the all-party parliamentary beer group should be in the Chair when I make these points. I must declare an interest as the MP for Burton, the home of British beer—the home of Marston’s Pedigree and Carling Black Label, and Punch Taverns, the largest pub company in the country. Brewing and the future of pubs are hugely important. This is an issue on which there is usually agreement across the Chamber. The need for us to support the brewing industry and pubs is recognised in all parts of the House.
We regularly have debates, particularly in Westminster Hall, about what we can do to support pubs and the brewing industry, and there is general support across the House, even from the shadow Minister with responsibility for pubs, the hon. Member for Derby North (Chris Williamson), who in a recent debate admitted to us that not only was he teetotal but that he did not use pubs very often. Even he recognises the need for us to support pubs and the brewing industry.
I recognise that the Chancellor was hamstrung when he inherited a massive deficit—£120 million a day in interest payments alone—and a decision to increase beer duty by means of the beer escalator by 7.2% this year. It was somewhat unfair of the Chancellor to say in his statement that there would be no changes to beer duty in the Budget. Whether it was his fault or not, we will see an increase in beer duty equivalent to about 10p a pint. That will impact on brewers across the country and on publicans in each and every one of our constituencies.
We all support the community pub. We all recognise that a pub is a safe environment for us to enjoy alcohol and for us to encourage young people to drink safely and responsibly. Increasing beer duty by 7.2% is a major problem, particularly because beer duty in the UK is already 7.9 times greater than in France, 12.4 times greater than in Germany and 12 times greater than in Spain. We have the second highest beer duty in Europe. I hope the Government will look again to see what they can do to support brewing and the beer industry in this country.
For instance, the Government could look at the inequality between cider and beer. Why is it that a pint of cider attracts half the duty that is charged on a pint of beer brewed in my constituency? I welcome the Government’s decision to reduce tax on beer of 2.8% strength. That is very useful, but I urge them to go to Europe, fight the case on behalf of British beer, and raise that 2.8% to 3.4% or 3.5% so that we can have some great British beer and support our pubs in the process.
(13 years, 9 months ago)
Commons ChamberI am grateful to my hon. Friend the Member for Ynys Môn (Albert Owen). As many of my hon. Friends are doing this afternoon, he underlines the point that right across the country, over an extended period of Labour’s term in office, youth unemployment was falling fast. Unemployment can never be as low as Members want, but the question that confronts us is how to draw the right lessons from those overwhelming successes in getting people back into work and how to apply the lessons to the present crisis when one in five young people is not in work.
Perhaps I can help the right hon. Gentleman by making a short intervention. Does he believe that the previous Government’s spending of £3.5 billion on programmes to get young people back to work while youth unemployment rose was good value for money?
I am not sure whether the hon. Gentleman was in the Chamber at the beginning of the debate when we explained the simple point that during the latter months of our term in office, when the recession was difficult, youth unemployment was not rising but falling. All that progress—the fall between the peak of youth unemployment and when we left office—has been undone in the months since May. The hon. Gentleman shakes his head, but it is a fact. That is why earlier this week the former chief economist at the Cabinet Office, Mr Portes, told the Government bluntly that the challenge of youth unemployment is serious. He told The Times that the Government were failing to address the scale of the problem. Without urgent action, he warned, hundreds of thousands of youngsters face a bleak employment prospect throughout the rest of their lives. That is why our motion calls on the Government to reflect again on the lessons of the future jobs fund, to commission an independent evaluation, draw the right lessons, learn from them, establish a more substantial programme for the future, and do it with urgency.
The future jobs fund is at the heart of the motion. Because we felt so strongly about the scourge of youth unemployment, a concern that is shared by many Members, we were determined to make sure that as it began to rise again after falling so far, something was in place that would help. We set up the future jobs fund because we knew that one of the greatest lessons from the 1980s is that when young people are allowed to drift too far from the jobs market they lose the habit of work, which is a curse that can stay with them for the rest of their lives. That is why we made substantial investment, which at the time was supported by the Conservatives, to get 150,000—rising to 200,000—new jobs that would last six months, 100,000 of them for young people and 50,000 of them in areas of high unemployment.