Unemployment

Anne Main Excerpts
Wednesday 14th December 2011

(13 years ago)

Commons Chamber
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Liam Byrne Portrait Mr Byrne
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My hon. Friend is absolutely right, and he has been a long-standing champion of the need to get young people into work and, crucially, equip them with the skills to succeed in the workplace, but I am afraid that we have a deficit of that from the Government. It is an embarrassment for the Minister that he is unable to tell the House how many people his schemes are getting into work. The Secretary of State appears to have so much confidence in the schemes that he cannot be bothered to turn up this afternoon. However, I want to make a more substantive point about the Minister’s flagship scheme.

Anne Main Portrait Mrs Anne Main (St Albans) (Con)
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Will the right hon. Gentleman give way?

Liam Byrne Portrait Mr Byrne
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I will in a moment, but first I want to make one point about the Work programme.

The Work programme is a new scheme that builds on the flexible new deal. We have said that if it works and delivers value for money we will keep it in place, but the Minister must accept that worries about the programme are growing. [Interruption.] I am delighted that the Secretary of State has been able to join us to hear this important point. The Minister for unemployment has repeatedly told the House that he cannot produce statistics on how well the Work programme is doing, and I completely understand his caution. I think that he is the only Minister who has been formally warned by the chairman of the UK Statistics Authority, who last year said that the Minister’s use of figures was

“likely to damage public trust in official statistics”.

No doubt he has repented for that sin and is seeking redemption, and I understand that he apologised and is certain not to repeat the offence. If the Work programme was working, surely the Department’s statistics would show that more and more people were flowing off benefits and into work. That is a simple test we can apply, but the problem is that the figures do not show that.

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Liam Byrne Portrait Mr Byrne
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Let me repeat that when Labour was elected in 1997, youth unemployment was about 14%. It came down to about 12% before the recession and then, yes, of course it went up during the recession, as all unemployment did. But rather than sit there doing nothing, as this Government have over the past year and a half, we chose to act. That is why youth unemployment was coming down before the election and why, since this Government were elected, it has gone up to record highs and has done so again this morning. That is surely not a record of which the hon. Gentleman can be proud.

Anne Main Portrait Mrs Main
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If the right hon. Gentleman wishes young people to be near the labour market, does he regret presiding over the lowest number of social housing units ever developed under a prosperous Government? That means that young people cannot have social housing at an affordable level and are therefore unable to access jobs in areas where there are high house values.

Liam Byrne Portrait Mr Byrne
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We do wish that more houses had been built over the past year, and that is precisely why we have said that a sensible tax on bankers’ bonuses could create the funds to build 20,000 new homes. Why does the hon. Lady oppose that policy?

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Anne Main Portrait Mrs Anne Main (St Albans) (Con)
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I shall take no interventions, given the need for brevity. I share the concerns of my hon. Friend the Member for North East Hertfordshire (Oliver Heald) that Labour Members seem to have collective amnesia about exactly how much they frittered away during the prosperous times for this nation and that they now claim that only they know how to fix it.

I am amazed that that flexible old chestnut, the bankers’ bonus, has been wheeled out yet again as a way of solving all the ills. This is from a party that did not tackle bankers’ bonuses in the good times, when there were plenty to tackle, and seems to have found them now as a cash cow that can be used many times—this is the sixth or seventh time the Opposition have proposed using that source of finance. They did not tackle bonuses then, yet they did abolish the 10% tax rate, which they seem to have forgotten about. Many women and low-paid workers were on that tax rate. Indeed, when I was knocking on doors during the 2010 election, many people told me that after that rate was removed it was hardly worth them working. There are still people caught in that trap, which the Opposition have collectively forgotten about.

The Labour party has also collectively forgotten that companies have been disadvantaged by the regulations it put in place. For example, Bombardier could not competitively tender because of the regulations that Labour put in print, which resulted in job losses. Unfortunately, it also presided over the lowest number of social house starts for decades. I read with interest that it now proposes building 25,000 affordable homes—again using the bankers’ bonuses—but with no new funding of the sort that my right hon. Friend the Minister for Housing and Local Government has rolled out. At least this Government are making new funding available, rather than relying on the ever-flexible bankers’ bonus.

Albert Owen Portrait Albert Owen
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Will the hon. Lady give way?

Anne Main Portrait Mrs Main
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No, I shall not give way.

I am also amazed that the Labour party, while talking about wanting to attack bankers’ bonuses, was so lacking in its support for what our Prime Minister had to do last week, which was to defend London against being raided by the European Union. They do not seem to want to do that either. I can tell Opposition Members that many bankers and wealth generators in the City would otherwise have upped sticks and gone, and there would be no bonuses for them to use in this flexible way.

Labour Members are asking us today to believe their statistics—this from a party that spectacularly underestimated the number of people who would come to the UK through its failed immigration policy at only 5,000. If they looked back at the figures, they would see that they completely underestimated the number of people who chose to come to Britain to work, so I have little faith in the statistics they regularly wheel out. They left us with the highest number of workless households in Europe and only now are coming up with ideas on how to fix that. It bears no credibility. They propose spending bankers’ bonuses multiple times and have few other ideas on how to fix the failed and broken economy that we inherited. They left this Government the note stating that they had spent all the money, but they had in fact mortgaged it. They mortgaged the future of many young people in this country.

I have only a few seconds remaining. If the Government were not taking these tough choices, more and more young people would be looking forward to a fruitless future without hope of social housing or affordable housing, because, unlike this Government, the Opposition had no appetite when in government to tackle the problems, and now they carp from the sidelines and apparently come up with solutions to fix the problems they created.

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Fiona O'Donnell Portrait Fiona O’Donnell (East Lothian) (Lab)
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I want to begin by answering some of the accusations made by the hon. Member for Elmet and Rothwell (Alec Shelbrooke). I do not think that it is a price worth paying to see the failure of this Government just so that we can get any kind of political advantage. He should have withdrawn his remarks—Members were not laughing, we were saying that the Government’s plan is not working.

Jobs and employment are the biggest issue in my constituency and the latest figures now show that just under 2,000 people are claiming jobseeker’s allowance and chasing 191 vacancies in East Lothian. That means that if every Member sitting on the Government Benches went for a job, only one would stand a chance of getting one.

I also want to address the comments made by the hon. Member for Cardiff Central (Jenny Willott). She spoke about the voluntary sector and her contribution contained a lot of sense and value. I concede that Government Members care about unemployment. I have no doubt that when the Secretary of State for Work and Pensions went to Glasgow East and saw what poverty and deprivation did that he was genuinely moved, but I think there is a real gap when it comes to introducing policies and systems that help and support people in getting out of poverty and long-term unemployment. The Government talk about the voluntary sector playing a role when they are cutting the public sector, but the voluntary sector, which played such an important role in the future jobs fund, is now less able to respond to people’s needs.

The hon. Member for St Albans (Mrs Main) made the most unhelpful remark in the entire debate when she said that the Prime Minister went to Europe to stand up for London. I remind her—even the Prime Minister knew this—that there are financial services sector jobs across the United Kingdom, not only in London.

Anne Main Portrait Mrs Main
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rose

Fiona O'Donnell Portrait Fiona O’Donnell
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I will give way, but I am going to try to be disciplined and not take the extra time.

Anne Main Portrait Mrs Main
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I thank the hon. Lady for giving way and I completely agree with her. That is why I am sure that she is as surprised as I am that those on the Opposition Benches did not agree with the Prime Minister.

Fiona O'Donnell Portrait Fiona O’Donnell
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What I had really hoped for was a little humility. We have been preached to about humility, but the hon. Lady completely failed to recognise that there are financial services sector jobs in other parts of the country. My constituency is heavily dependent on the financial services sector in Edinburgh, and we will see what happens. The signs since this Government came into office have not been good.

The Government offer us the Work programme. I have been to visit the providers in my constituency. A woman opened up a spreadsheet and said she was not sure whether she was meant to show me it. It was, in effect, a profit and loss account showing at each quarter how many people the providers need to help into work to get a return on the payments from the Government. The most depressing thing was seeing the percentage they expected not to find their way in to work at the end of the two years.

My fear is that providers will not invest the resources in supporting that percentage, whom we could probably all identify when they walk in the door, when they are the very people who need more help and support to take them back into work. This is where the Government do not get it.

I remember during the 1997 general election knocking on a door and meeting a woman who was still in her pyjamas in the early afternoon and trying to convince her that she could get out, vote Labour and make a difference. She did not even have a reason to get dressed. When Government Members hear of a case like that, they think in terms of a drain on resources, and resentment and a grudging feeling come over them. They do not think about how to support someone like that and what it might mean for someone to have reached that low point in their life when they do not think that they have any contribution to make to society.

I am also particularly concerned about the increase of 55% in the number of young people in my constituency who have faced no prospect of finding work since this Government came into power. The future jobs fund gave them hope. Government Members keep yelling that it did not lead to real jobs, but the hon. Member for Cardiff Central, to give her credit again for bringing some reason into the debate, talked about the elements of the fund. She described eloquently how it helped young people to break the habit of not getting up in the morning, to gain self-esteem and to feel not only supported but understood.

We take no joy in the Government’s failure to address the needs of people who are seeking work, or to create the jobs that could lift them out of poverty. It is not a price worth paying for the political advantage that we are benefiting from.