State Pension: Working-class Women

Caroline Nokes Excerpts

Thursday 9th February 2017 Westminster Hall

[The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)]

It is a pleasure to serve under your chairmanship, Mr Flello. I congratulate you on having chaired this debate in a fair and exemplary manner, and for allowing those Members who were busy elsewhere in the House this afternoon the opportunity to speak, even if just briefly in an intervention. Important debates have been taking place this afternoon, and important work has been done in Bill Committees.

It is only right that I should take this opportunity to thank the hon. Members for Ross, Skye and Lochaber (Ian Blackford) and for Swansea East (Carolyn Harris) for being here. I know that they have been much occupied with the Under-Secretary of State for Pensions, my hon. Friend the Member for Watford (Richard Harrington) in the Pension Schemes Bill Committee, which explains why I am here instead of him. I thank the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) for opening the debate and hon. Members from all parties—and all parts of the British Isles, with the exception of Northern Ireland—who have contributed. It is most unusual for the hon. Member for Strangford (Jim Shannon) not to be present.

In recent decades, there has been a huge shift in how people spend later life. We are living longer, staying healthier for longer and leading far more active lifestyles, regardless of our age. More and more people are proving that age need not be a barrier to achieving great things. Some of the Olympians whom we sent out to Rio last summer were among the oldest athletes on record. I, for one, celebrate the fact that age increasingly places no bounds on those wishing to achieve new goals, try new things and play an active part in society.

The new state pension was introduced as a key reform to the UK pension system. The Government recognised that the pension system needed to change in response to the demographic and behavioural shifts of recent decades. For most people, we know that work is beneficial. It not only provides an income and a bedrock for saving, giving people greater control over their lives but crucially, the evidence shows that for most people, being in work can be immensely beneficial for both physical and mental health. The social and cultural benefits of remaining in work are sorely under-recognised. This Government’s pensions strategy does not focus only on the benefits to people. We know that the skills, experience and talents that older workers bring to organisations are invaluable. Older workers still have an incredible amount to offer.

It is also true that the living standards of pensioners have risen significantly, but we must remember that not all pensioners are in the same position. More than 1 million pensioners rely solely on the state for their income. That is why we introduced the triple lock in 2011 and have committed to continuing it over this Parliament. As well as guaranteeing increases to the state pension, we have fundamentally reformed it. Under our reforms, people will have a much better idea of what their pension will be, bringing more certainty and clarity where previously there was confusion. That design is integral to the Government’s ambition to provide a better foundation on which people can plan and build for a secure retirement. We want to make life easier and more comfortable for people in retirement.

[Ian Blackford]

How can people plan and build for retirement with 15 months’ notice of an increase in their retirement age?

[Caroline Nokes]

The hon. Gentleman will of course know that I am referring to the new state pension. That is exactly why we are introducing it, so that people have more certainty and clarity than previously. As well as being simpler, the new state pension will give more to many of those traditionally less well served in the past. By 2030, around three quarters of new pensioners will get a higher state pension than if the old system had continued. More than 3 million women will get around £550 more each year. It is estimated that women reaching state pension age in 2016-17 will receive more state pension on average over their lifetime than women ever have before. We have also created new pension freedoms that mean that savers have more control over their money and can use it in ways that suit them. In the new pensions marketplace, we are helping people make the right decisions for them through things such as Pension Wise, which provides free, impartial information.

I am pleased that Members from all parties agree that it is right that we have equalised the state pension age for men and women. It is part of the DWP’s wider objective of eliminating gender inequalities in social security provision.

[Patricia Gibson]

Does the Minister believe that the women whom we are debating were given sufficient notice to make correct and proper plans for their retirement?

[Caroline Nokes]

If the hon. Lady will give me time, I will come to exactly that point later in my contribution.

It is important that we all recognise that the age at which we receive the state pension must rise. Life expectancy continues to rise, and it is a key priority for this Government to ensure the long-term sustainability of the pension system. For that reason, the Government have introduced regular reviews of the state pension age. The issue is also likely to feature heavily in the Cridland review, which will be published in the coming months.

We recognise that employment prospects for women have changed dramatically since the state pension age was first set in 1940, especially for the women affected by the acceleration of the state pension age. Alongside the age increases under the new state pension, we have made huge progress in opening up employment opportunities for women and older workers. Since the 1970s, women have seen repeated increases in employment rates in later life compared with their male counterparts. The number of older women aged 50 to 64 who were in work in 2016 stood at more than 4 million, which is a record high. Approximately 150,000 more older women are in work than this time last year.

[Carolyn Harris]

Does the Minister acknowledge that women who are currently in work may be there not because they want to be, but because they have to be?

[Caroline Nokes]

The hon. Lady makes a valid point, but I would argue that there are also many men, and indeed many younger people, who have to be in work. We want to encourage more people to be in work and to play their part in society. As I said earlier, work is an important part of wellbeing. Work in itself provides emotional, physical and mental wellbeing effects.

The rate of employment for women aged between 60 and 64 is more than 40%—another record high. [Interruption.]

[Chi Onwurah]

Will the Minister give way?

[Caroline Nokes]

Well, I might if there were not a little private chat going on at the front of the Chamber. Still, I acknowledge that the hon. Lady is no part of that, so I give way.

[Chi Onwurah]

So far, the Minister’s contribution has not really reflected what this debate is about. I remind her that I asked her five specific questions and that I observed that this is a debate about working-class women. She has yet to use the word “working-class”; I hope she will before she sits down.

[Caroline Nokes]

I draw the hon. Lady’s attention to the specific title of the debate, which I believe I am covering: “That this House has considered the effect of state pension changes”. I have dealt with the new state pension thoroughly, and I hope that we will all acknowledge that we have indeed had a significant change with the introduction of the new state pension.

[Ian Blackford]

On a point of order, Mr Flello. I suggest, with regret, that we have not actually discussed the motion in front of us today. Unless the Minister does that in the short time that she has available, when we come to the appropriate point in the debate I will have no option but to move that we have not considered this matter.

[Robert Flello (in the Chair)]

I am not totally convinced that that was a point of order. Let us see how the debate continues.

[Caroline Nokes]

I hope you will forgive me, Mr Flello, if I take the opportunity to ask you for some advice. Do I have another 18 minutes or so? I certainly have several pages still to get through.

[Robert Flello (in the Chair)]

Indeed, although I would like to be able to call the mover of the motion for a minute or so at the end.

[Caroline Nokes]

Sixteen minutes, then.

In addition, independent research by the Institute for Fiscal Studies has shown that employment rates for women aged 60 and 61 have increased as a direct result of the changes in state pension age.

[Ian Blackford]

I must respectfully ask the Minister whether she has any idea of the disrespect that she is showing to the WASPI women by refusing to directly address the point that we are discussing. It has been pointed out that women have not been given effective notice. What are the Government going to do about it?

[Caroline Nokes]

I thank the hon. Gentleman for making another intervention, but he will be aware that I have 15 minutes in which to come to that point, and I have really only just begun.

The Government recognise the particular barriers that women face to remaining in the workplace and we have been quite clear that more action is needed to address them. For instance, we know that women with more children tend to take longer career breaks, which can impact on their retirement income. We also know that giving women the opportunities they need to continue working in later life, whether in a full-time or part-time role, is the best way in which we can help mitigate some of that impact, while of course making provision for those who may be unable to work or may have difficulty working. It is interesting to note that someone who draws on their pension pot at 65 instead of 55 and continues to receive average earnings for those extra years of working could increase their pension pot by half as much again. That is why we plan to do everything we can to change attitudes towards employing older female workers.

On a recent visit to the jobcentre in Eastbourne, I was struck by something that was said to me by a work coach who I met there. It was her view that women aged over 50 and seeking work were the most optimistic of the people she worked with and tried to place into jobs. It was that cohort who were the most open-minded and enthusiastic about trying new roles and learning new skills. My hon. Friend—and, indeed, neighbour—the Member for Eastleigh (Mims Davies), who is no longer in her place, raised absolutely that point. Actually, older women have the most flexibility and, as work coaches have said to me, the most open-minded attitude to trying new roles and being prepared to take on new challenges regardless of age. That is immensely encouraging. It tells me that what the Government are doing through the fuller working lives strategy, which the hon. Member for Newcastle upon Tyne Central mentioned earlier and which was published last week, is the right course of action.

I have seen at first hand the value that offering older workers a new opportunity can have; it can truly transform their lives. I am proud of the commitment that I have witnessed from work coaches up and down the country. The hon. Lady might also recognise that the claimant count in Newcastle, which she referenced earlier, is down by 28% since 2010. The female employment rate in the UK now stands at 69.9%—a near-record high.

[Ian Blackford]

On a point of order, Mr Flello. May I ask for your guidance on whether what we are hearing from the Government is indeed in order, given the subject of this debate?

[Robert Flello (in the Chair)]

Again, I do not think that that is a point of order; it is a matter for the debate.

[Caroline Nokes]

Hon. Members raised the increase in life expectancy. It has been experienced by all over the last few years, but it differs by occupation type—the hon. Member for Newcastle upon Tyne Central was certainly right to point that out. Women aged 65 who worked in higher managerial and professional occupations are expected to live more than three years longer than those in routine or manual roles; for men, that difference is greater, at four years. However, women in manual occupations have a similar life expectancy at 65 to men in professional occupations. Life expectancy also varies across regions—the hon. Lady was correct to point that out—but it would be wholly impractical to vary state pension age across the country.

The fuller working lives strategy aims to increase the retention, retraining and recruitment of older workers by bringing about a change in the perceptions and attitudes of employers and by challenging views of working in later life and retirement among individuals. As part of the strategy, the Government are taking account of the fact that people change jobs over their lifetimes. It is now extremely unusual for people to stay in one career throughout their entire working life.

[Patricia Gibson]

Does the Minister have anything to say to the women who are watching today, in the Gallery or at home, about the lack of notice that they were given and about how that has upset their retirement plans and put them in dire financial straits?

[Caroline Nokes]

I reassure that the hon. Lady that I will come to that point.

The fuller working lives strategy adopts a very new approach: it is led by employers, who rightly see themselves as the ones who understand the business case and can drive change. Specifically to support older claimants, the Department for Work and Pensions has introduced older claimant champions from April 2015 across each of its seven Jobcentre Plus groups. It plans to roll the initiative out to each of the 34 districts. These champions will work with work coaches and employers to raise the profile of that age group and highlight the benefits of employing older jobseekers. In addition, the Government Equalities Office continues to work with the Women’s Business Council to tackle the outdated assumptions that some employers make about women, particularly mothers.

In “Building our Industrial Strategy”, our Green Paper published last month, the Government set out how we will test ambitious new approaches to encourage lifelong learning to help adults who want to upskill or move around the labour market during their career. However, we recognise that some women may wish to continue to work and are unable to do so, so we continue to spend £90 billion a year on working-age benefits in this country. The welfare system provides a safety net for those of working age, and there are a range of benefits tailored to individual circumstances. The system is designed to deal with the problems, such as unemployment, disability and coping with caring responsibilities, that affect those who are unable to work and are therefore in most need as they approach their state pension age.

[Ian Blackford]

I suggest to the Minister that she should stop wasting everybody’s time and concede that she is not going to do anything, so that the WASPI women can get on with legal action and take the Government to court.

[Caroline Nokes]

I am sorry that the hon. Gentleman has become so frustrated. He will be conscious that I could still fill another nine or 10 minutes or so. There are some very important points that I would like to make and I am sure that people will want to hear them. If he continues to chunter—[Interruption.]

[Robert Flello (in the Chair)]

Order. Continue, Minister.

[Caroline Nokes]

Thank you, Mr Flello.

As I was saying, that is why we continue to spend £90 billion a year on working-age benefits to assist those in this country who are unable to work. For those seeking work, people in receipt of working-age benefits can access a range of support from Jobcentre Plus and tailored support from the Work programme.

Specifically, the evidence is clear, and we as a Government are clear, that work is the best route out of poverty. That is why this Government’s approach has been about recognising the value and importance of work, to make work pay and to support people into work, while protecting the most vulnerable in society.

Our reforms are transforming lives. Today’s labour market statistics show that we continue to have a record number of people in work—over 2.7 million more than in 2010. The number of workless households is down by 865,000, and the percentage of households in the social sector where no one works has fallen from 49% to 38%, which is a decrease of nearly 350,000 households.

We have made a real difference for women, with more than 1 million more women in work since 2010 and the highest rate of female employment on record. The gender pay gap is also at its lowest level since records began, and there are now 1.2 million women-led small and medium-sized enterprises, which is more than ever before. We are rightly proud of our record but recognise that there is more to do.

We had to equalise state pension age to eliminate gender inequalities in social security provision—it is the right thing to do—and we had to accelerate this process due to increases in longevity, in order to protect the long-term sustainability of state pension provision in this country.

We know that whenever things change, there have to be dividing lines, and I understand that the changes are most stark for those closest to the line. That is no different in this case. We understand that and the Government listened to the concerns expressed at the time. Therefore, a concession worth more than £1 billion was introduced, despite the fiscal situation, to lessen the impact of the changes on those worst affected. The concession reduced the delay that anyone would experience in claiming their state pension and benefited almost a quarter of a million women.

However, going further than that simply cannot be justified, given that the underlying imperative must be to focus public resources on those most in need. I have listened to Opposition Members, and I have heard and understood their concerns. However, let me be clear—we are making no further concessions on this issue. As well as being unaffordable, reversing the Pensions Act 1995 would create an anomaly, whereby women would be expected to work for less time than they work now, and it would be discriminatory to men. It is not practical to implement.

John Cridland’s independent report on state pension age will consider wider factors that should—

[Chi Onwurah]

I certainly thank the Minister for finally coming to matters that are relevant to this debate and the people here. However, does she recognise the point that because the women we are discussing today started work earlier—at the age of 15, which is long before she or I started work—they are the generation who are working longer than any other generation? When she says that giving a further “concession” would mean that they ended up working for less time than other women, does she not recognise that they have worked, and are working, for longer?

[Robert Flello (in the Chair)]

Just before I call the Minister to continue, may I suggest that she perhaps speaks for only a couple more minutes?

[Caroline Nokes]

The hon. Lady also needs to reflect that these women are also living longer; we are all living longer.

As I was saying, the Cridland independent report is coming forward and will be published in March. It is part of the Government’s review of state pension age, which is due in early 2017.

[Patricia Gibson]

rose—

[Caroline Nokes]

I will not give way again; the Chairman has made it very clear that he wants me to conclude my remarks.

A number of points have been made today about communications; in particular, the hon. Member for Ross, Skye and Lochaber has been quite forceful on this subject. He made the point that there were about 14 years between the decision being made and letters starting to go out. When he refers to “this Government”, I remind him that for the bulk of that time my party was not in Government, and if he wishes to lay the blame for a lack of communication, he might do well to direct it somewhere else.

We have continued this country’s long record of raising the living standards of pensioners, through our commitment to the triple lock and our reforms of the state pension, and we are revolutionising the world of private pensions through auto-enrolment, which is for everyone. However, we want continue our work aimed at providing older workers with greater choice and greater security in retirement, which is at the heart of our fuller working lives strategy. The results speak for themselves. We not only continue to increase the employment prospects for women above the age of 60 drastically, but the new state pension provides people with greater freedom and greater choice, and dignity in retirement.

[Robert Flello (in the Chair)]

I call Chi Onwurah to wind up the debate.

Marriage Week

Caroline Nokes Excerpts

Wednesday 1st February 2017 Westminster Hall

[The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)]

It is a pleasure to serve under your chairmanship, Mrs Moon, and to be able to respond to this very important debate today.

I do not intend to start by being facetious, but the comments of my hon. Friend the Member for Congleton (Fiona Bruce) have left me fearing for my own future good health. Nevertheless, I welcome the comments that many Members have made about the importance of lone parents in our society and the very, very hard work that they put in to bringing up their children.

Of course, I congratulate my hon. Friend the Member for Enfield, Southgate (Mr Burrowes) on securing this important debate on Marriage Week, although not quite during Marriage Week, which I understand runs from 7 February to 14 February, coinciding very nicely with St Valentine’s day, which is coming up very soon indeed. I acknowledge his keen interest in social justice issues and that of the many other Members who have spoken. It demonstrates the importance that the House places on the subject that so many Members, from all parties, are here today for what is just a 30-minute debate, and have sought to make their contributions.

[Mike Freer (Finchley and Golders Green) (Con)]

I also congratulate my hon. Friend the Member for Enfield, Southgate (Mr Burrowes) on securing this debate. Does my hon. Friend the Minister agree that the fact that marriage is now open to all helps to embed social justice in our society?

[Caroline Nokes]

I very much thank my hon. Friend the Member for Finchley and Golders Green (Mike Freer) for that comment. I congratulate my hon. Friend the Member for Enfield, Southgate on his 21 years of marriage to Janet, but I understand that my hon. Friend the Member for Finchley and Golders Green has recently also celebrated his wedding anniversary. Although he has only been married for two years, he has actually been with his husband for a quarter of a century. That is something that we can all be very impressed by and I extend my congratulations to them.

Of course, Marriage Week provides us with a very good opportunity to celebrate the commitment and connectedness that a stable relationship brings to a family. The Government view the role of families as fundamental in shaping individuals, and in having an overwhelmingly positive effect on wider society. We know that growing up in families where parents are collaborative and communicative gives children the skills they need to develop into happy and successful adults, and the vital institution of marriage is a strong symbol of wider society’s desire to celebrate commitment between partners.

The institution of marriage can indeed be the basis of a successful family life and many people make this very important commitment every year. As we have heard, marriage can lay the foundations for parenthood, and is emblematic of the love and security that parents need to give their children.

A stable family that provides a nurturing environment for children is something that the Government will continue to champion and encourage. That is why we are focused on helping families and children, to enhance the educational and employment opportunities available to the young, and to reinforce the benefits that parental collaboration undoubtedly has.

[Catherine McKinnell]

Since 2015, Marriage Care in Tyneside has provided counselling services to 54 couples and 48 couples have received relationship education, undoubtedly helping those couples to form healthier marriages and stronger family units. Does the Minister agree that the Department for Work and Pensions should continue to fund face-to-face marriage and relationship counselling services?

[Caroline Nokes]

I thank the hon. Lady for that comment, and I have written the name of her constituency on my speech so I remember to mention specifically the point she has made about Newcastle upon Tyne.

The importance of marriage is reflected in the Government’s introduction of the marriage tax allowance. Furthermore, our commitment to supporting different types of family means that we have extended that tax allowance to include civil partnerships and, of course, same-sex marriages, which were introduced in 2014 and have been taking place since.

[Jim Shannon]

I understand that the take-up of the marriage tax allowance has not been as great as the Government had hoped. May I gently suggest to the Minister that the take-up would increase dramatically if she and her Department were able to make it a more serious allowance? Perhaps that is something the Government can consider.

[Caroline Nokes]

I am sure that is also a matter for Her Majesty’s Revenue and Customs, and recently it has been a subject that my own constituents have raised with me, following some publicity about take-up of the marriage tax allowance.

This debate is an opportunity for us to celebrate the diversity and vibrancy of marriage as the basis for family life across the United Kingdom, and we recognise that supportive families can come in many different shapes and sizes.

When it comes to the critical issue of improving children’s outcomes, the evidence shows that it is not the structure of a family that is important but the quality of the relationship between the parents. Recent research by the Early Intervention Foundation has shown that children exposed to frequent, intense and poorly resolved inter-parental conflict have poorer outcomes in later life. We also know that an improvement in parenting skills does not mitigate the worst effects if relationship issues are not addressed.

It is an unfortunate fact of life that marriages can and do break down, but the Government have been clear that, even when a family has separated, both parents still have a positive role to play in the lives of their children. Evidence shows that parental collaboration has a direct and positive impact on child outcomes. As we have heard, children tend to have better health, emotional wellbeing and higher academic attainment if they grow up with parents who have a good relationship and who are able to manage conflict well. That is why we are committed to supporting healthy relationships between parents—whether married or cohabiting, together or separated—in the best interests of children.

[Andrew Selous]

I just wonder whether the Minister could reflect on the statistic that 93% of couples who are still together when their children reach the age of 15 are married. Does that not speak very powerfully, notwithstanding what she said about the recent research by the Early Intervention Foundation?

[Caroline Nokes]

I thank my hon. Friend for that comment and I will shortly make some very specific points about marriage that I know will make everybody very happy.

Over 48,000 couples have participated in counselling and more than 17,000 practitioners have been trained to help families in difficulty in the last four years, during which we have invested more than £30 million in services offering support to couples, to reduce parental conflict. In total, 160,000 people have been given access to support, to reduce that conflict. Alongside that, our ongoing child maintenance reforms are delivering a new programme designed to increase collaboration and reduce conflict between separated parents.

Our current programme was designed without the benefit of the latest evidence about the importance of good inter-parental relationships, while a focus on national commissioning of services makes it hard to establish effective referral mechanisms from local services. This means that, in some areas, take-up remains low, despite the prevalence of relationship distress. The hon. Member for Newcastle upon Tyne North (Catherine McKinnell) made an important intervention earlier and we will soon announce plans to procure new services to help disadvantaged parents, and others, to address parental conflict.

[Catherine McKinnell]

Will the Minister give way?

[Caroline Nokes]

I am really sorry, but I am now left with only three and a half minutes and I still have quite a lot that I would like to say.

The importance of both parents to children’s future outcomes is well known to all of us. Only around half of children in separated families see their non-resident parent every fortnight or more. Through both our programme to reduce parental conflict and our child maintenance reforms, we are specifically supporting fathers, as my hon. Friend the Member for Enfield, Southgate mentioned, in both intact and separated families, to form more collaborative co-parenting relationships and hence improve their children’s outcomes. We know that some fathers feel that they are not recognised by public services as having responsibilities for their children and we want to explore how to give them the same chance to engage in their children’s lives as mothers.

Of course, we are aware that different organisations offer classes specifically aimed at preparing a couple for marriage, and those classes can offer very real benefits to people in those circumstances. We want to support programmes that have the biggest impact possible, which is why our new programme will offer support to all family types.

I acknowledge the great work of the community of organisations that advise my Department on family and parental conflict issues. I recognise the great breadth and depth of experience they have in this area. In seeking to draw on their valuable experience, on 23 January I met members of the Relationships Alliance—Relate, Marriage Care, OnePlusOne and Tavistock Relationships. We enjoyed a really productive and informative discussion about the challenges involved in addressing parental conflict, including in the most disadvantaged families, and the new national development of this important work.

The Relationships Alliance is an important organisation that plays a key role in promoting the many benefits of healthy adult relationships, and our objectives are very closely aligned. Members of the alliance have been long-standing partners of the Department, both in their capacity as subject matter experts, and as contract-holders for our current and past delivery programmes. They have given their time and expertise to policy development, and I thank them for that support. In particular, they have supported our efforts to create a new programme targeted at reducing parental conflict. We will continue to engage with the Relationships Alliance, and a wide range of stakeholders, in the future.

The Green Paper that we will bring forward shortly is a listening exercise as much as a tool to express our policy intentions. It will provide an excellent opportunity to hear from stakeholders to garner their views and expertise, and I look forward to exploring the outcomes in more depth. Disadvantaged children are a priority for Government support, and as such will also be a priority for our parental conflict contracts.

In conclusion, let me assure hon. Members that this Government are clear on the importance of the family and of marriage, in all the different forms that it can take, and we are continuing to work to drive up outcomes for children by increasing collaboration between parents, which we know is so crucially important.

I reiterate my thanks to all Members who have expressed their views and their particular enthusiasm and support for marriage. I welcome that, I acknowledge that and I reassure them that the Department intends to continue to work very hard to ensure that marriage gets the support it needs to continue being a strong bedrock for the families and the children for whom we want to secure the best possible outcomes in the future.

Question put and agreed to.

Jobcentre Plus Offices: Closure

Caroline Nokes Excerpts

Monday 30th January 2017 Commons Chamber

[Ronnie Cowan (Inverclyde) (SNP)]

(Urgent Question): To ask the Minister for Work and Pensions if she will make a statement on the proposed closure of Jobcentre Plus offices throughout the United Kingdom.

[The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)]

On Thursday 26 January, the Department for Work and Pensions published proposals for the future of its estate, including jobcentres and back-office sites.

The Government are committed to helping people who can work to get back into work. Since 2010, the claimant count has dropped from almost 1.5 million to about 800,000, and employment has risen by 2.7 million to near record levels.

Old office contracts that are held by our jobcentres and benefits centres are now coming up for renewal, and in the 20 years since those contracts were signed the welfare system has undergone large-scale reform.

The roll-out of universal credit and our reforms of Jobcentre Plus have increased the number of digital interactions that claimants now have with us. Eight out of 10 claims for jobseeker’s allowance are now made online, and 99.6% of applicants for universal credit full service submitted their claim online. That has resulted in the DWP buildings being used much less: 20% of the DWP estate is currently underutilised.

As we renegotiate our out-of-date contracts, we are merging some smaller jobcentres with larger ones and co-locating others with local government premises. That will help the DWP to offer a better service to people looking for work, while delivering a better deal for the taxpayer, saving about £180 million a year for the next 10 years. That means that we can bolster the support that we offer jobseekers, with a recruitment drive to hire 2,500 new work coaches.

Of course, DWP staff will be consulted on those changes and the vast majority will have the option to relocate or be offered alternative roles. For any vulnerable claimants that may be affected, we will put in place robust procedures, such as offering home visits or maintaining a claim by post, to make sure that they get the support they need.

[Ronnie Cowan]

The UK Government’s proposal to drastically cut the number of jobcentres and DWP offices across Scotland and, indeed, the UK, including in my constituency of Inverclyde, will have a profound impact on thousands of people desperately seeking work and the support to which they are entitled. It is an insult that there has been a distinct lack of consultation with the communities affected and with our Government in Scotland. That lack of consultation is against the principles of the Smith agreement. Can the Minister explain to me why no consultation took place before the announcement of the closures?

In my constituency, the proposal is to close Port Glasgow jobcentre and make people from Kilmacolm, Port Glasgow and the east of Greenock travel miles to access DWP services. Disappointingly, this model has been replicated across the UK. That is an utter disgrace and it could push vulnerable people further into crisis, what with the added travel distance and cost placed upon individuals, many of whom have little or no readily available funds to pay for that commute. What assurances can the Minister provide to my constituents that they will still have ready access to Jobcentre Plus and DWP services?

This should be far more than a spreadsheet exercise. I ask the Minister to put people first. Many Jobcentre Plus staff work hard to build good working relationships with service users, and they are aware of specific issues and needs. Can the Minister guarantee service users the continuity and quality of those working relationships? If the Minister is so certain that the measures are required, will she at least halt their implementation until a full equality impact assessment has been conducted and a full consultation of all sites has taken place; and if not, why not?

[Caroline Nokes]

There are lots of points to reflect on. Most importantly, we want to see service delivery to claimants, and the hon. Gentleman was right to focus on claimants in his constituency. As he will be aware, the claimant count in his constituency is down by 39%. I believe it is critical that we seek to maintain the relationship between work coaches and the claimants they have been working with, which is why we will seek to replicate that when work coaches are moved to a new jobcentre.

Claimants will be able not just to go to the jobcentre that falls in the catchment allocated by us, but to choose the one that works best for them. We are very conscious of the fact that many people in employment already travel significant distances to work. We are making sure that when changes fall outside the ministerial criteria, there is a public consultation, and we will use that to reflect on our public sector equality duty, which we take very seriously indeed.

[Several hon. Members rose—]

[Mr Peter Bone (Wellingborough) (Con)]

Does the Minister agree that the Government’s success in reducing unemployment leads to the need to look at reducing the number of Jobcentre Plus offices?

[Caroline Nokes]

As my hon. Friend will have heard me say, the jobcentres that we are looking at are, in some cases, 20% under-occupied. It is absolutely critical and appropriate that we look at how we use our estate, and that we reflect on providing not only the best service that we can to jobseekers, but value for money to the taxpayer.

[Margaret Greenwood (Wirral West) (Lab)]

The Opposition strongly oppose the Government’s latest plans for the closure of one in 10 jobcentres in the UK. What assessment has the Department made of the impact of these closures on claimants, in terms of travel times and additional costs? Will the Department consider issuing guidance to staff to take into account increased travel times when issuing sanctions? Accessibility is a major issue for many disabled people. The Government have said that they aim to halve the disability employment gap in the lifetime of this Parliament. How do the planned closures fit with that aim?

From this April, lone parents will be obliged to prepare for work through interviews with work coaches once a child is three years old, rather than five years old as is currently the case. We are particularly concerned about the impact on women, children and people with disabilities. Will the Government publish an assessment of the impact of these proposals on equality issues?

The Government continue to roll out universal credit, and, for the first time, people who are actually in work will have to attend interviews at jobcentres. Will the Government delay their plans to reduce their estate until they have a clearer idea of what the demands on jobcentres and staff will be under universal credit? The Government’s hope seems to be that universal credit claims will be made and managed online, but many people are not confident using IT and they may not have access to a PC, laptop or tablet. What provision will be made for claimants who have difficulty using PCs and the internet in areas where jobcentres are earmarked for closure?

These plans have simply not been thought through, and they will have a damaging impact on the way in which vital employment support is provided. The Government should think again.

[Caroline Nokes]

As the hon. Lady will have heard me say, the vast majority of our UC claimants now access services online, and we welcome and encourage such a relationship. We have made it very clear that vulnerable claimants will be able to make claims by post in some circumstances, particularly where they find it difficult to access a jobcentre or have childcare responsibilities, and it is very important to make that distinction. The hon. Lady talked about accessibility. Where there is a difference under the ministerial criteria of more than 3 miles or of 20 minutes by public transport, we will seek to hold a public consultation, which will then feed in to our equality analysis so that we can best understand the impact on claimants.

[Stephen Crabb (Preseli Pembrokeshire) (Con)]

One of the things that really impressed me during my spell at the DWP was the quality of the work coaches and their capacity for supporting real, positive change in people’s lives. If there is an opportunity to spend less on near-empty bricks and mortar and to invest more in a greater number of work coaches, is that not exactly the right thing to do?

[Caroline Nokes]

My right hon. Friend is of course right. Our work coaches are on the frontline of delivering services to claimants, not just helping them into work but helping those who are in work into more and better-paid work. That is why we are recruiting more work coaches and looking to make sure that our DWP estate both best reflects value for money for taxpayers and provides the services we need for claimants.

[Chris Stephens (Glasgow South West) (SNP)]

I refer the House to my entry in the Register of Members’ Financial Interests.

May I tell the Minister that the Government appear to be making exactly the same errors as they did with the announcement of the Glasgow closure programme? Will the Minister tell us why the Scottish Government were not consulted, as per the Smith agreement? Why did she say in answer to my hon. Friend the Member for Inverclyde (Ronnie Cowan) that jobcentres have catchment areas, when written answers to Members of the House have suggested that there are no catchment areas for jobcentres? Will she also tell us why the written ministerial statement indicated that redundancies may be required, and may we have further detail on that? Finally, what support, if any, will be available to claimants, particularly those with caring responsibilities, who have to travel greater distances?

[Caroline Nokes]

The hon. Gentleman will of course be conscious that, as an employer, the DWP has sought to put its staff first and to make sure that they are informed first about the proposals. It is important to reflect that we need to make sure we have good working relations with the Scottish Government, and he will be aware that my hon. Friend the Minister for Employment travelled to the Musselburgh jobcentre the week before last. It does matter to us that people get to go to the jobcentre most convenient for them. That need not be the one allocated to them by the jobcentre, but could be one they choose for themselves. In every instance, we are seeking to make sure that claimants can work with their work coach and go to the jobcentre that is most appropriate for them.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

I received notice on 26 January of a proposal to relocate the jobcentre from Red Lion Street in Chesham to Chesham library on Elgiva Lane. Will the Minister say what consultation has taken place with the 14 members of staff, and will she confirm that there will be no reduction in services for my constituents in the surrounding areas? We all want to see value for money, but will she send me the detailed analysis of the costs and savings that derive from this move, because it is just around the corner and we need to ensure that it makes sense and provides the value for money that she is rightly seeking?

[Caroline Nokes]

In many instances, co-location provides the best solution, exactly as my right hon. Friend has described, for claimants and indeed for our own staff. She will be aware that we have consulted jobcentre staff closely and looked at how we can best make sure that the new location for their roles fits with what they want, or, where essential, that they can be redeployed to other DWP roles.

[Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)]

In 2010, I had three jobcentres in my constituency. Old Swan was closed by the Minister’s Department at the start of 2010, and now she wants to close the other two, in Edge Hill and Wavertree. My constituency has the 39th highest level of unemployment in our country. Why does she want to make it harder for the 2,950 people who want to access support but will have to pay £8.80 every month to do so?

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[Caroline Nokes]

It is important to reflect that we are trying to make it easier for claimants who interact with the DWP online to do so. We are looking at instances where we can get involved in outreach projects, as has happened in various places around the country. When there are special circumstances and when people are vulnerable, we are trying to ensure that they can be given assistance with travel to jobcentres.

[Philip Davies (Shipley) (Con)]

Shipley jobcentre has an excellent local rapport with the Salvation Army, which is situated next door and provides additional help and support for many of the people who go to the jobcentre. Will the Minister look again at such local circumstances before she goes ahead with her closure programme? In doing so, will she tell me what consultation will take place with the local community and staff at the Shipley jobcentre to ensure that any decisions taken are the right ones for my constituents and the people in the surrounding areas?

[Caroline Nokes]

We are seeking to ensure that we consult our staff, local stakeholders and claimants to understand what is best for them. This is part of a process brought about because the prime contract expires in March 2018. It would be grossly irresponsible of us not to reflect on how we make best use of our DWP estate, particularly when up to 20% of it is underutilised.

[Chris Leslie (Nottingham East) (Lab/Co-op)]

Will the Minister give it a rest with the jargon about relocating or co-locating, because she is actually closing jobcentres? Hyson Green jobcentre in Nottingham, where we have twice the national average unemployment and are in the 5% least employed, was opened by Lord Heseltine after civil disturbances in the city. It has been important in matching people with vacancies. Please will she think again?

[Caroline Nokes]

It is important to match people with vacancies, but it is also important to reflect on making the best use of our estate. This is an opportunity to reflect on the fact that 20% of our space is underutilised. I am sure the hon. Gentleman would agree that this comes at a time when we should not be wasting taxpayers’ money.

[Craig Whittaker (Calder Valley) (Con)]

I support the rationalisation and modernisation of any service, but Brighouse is the largest township within the Calder Valley, so relocating our jobcentre uphill and down dale out of the constituency will be a disaster to the long-term unemployed who rely on it for job advice and training. Will my hon. Friend assure me that those who have put forward the proposals have visited places such as the Calder Valley to understand the demographics and geography, or have they just sat in their offices in Whitehall using Google Maps?

[Caroline Nokes]

This is not an exercise using Google Maps. We have engaged in the exercise over very many months to make the best use of our DWP estate. When we are not using the space we have but are paying for it, it is critical that we think very hard about how we can best provide services to our claimants.

[Stewart Malcolm McDonald (Glasgow South) (SNP)]

Has the Minister done another Glasgow? Before Christmas, her Department announced the closures of eight out of 16 jobcentres in Glasgow, calculated using Google Maps. Has she done the same again?

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[Caroline Nokes]

The hon. Gentleman and I discussed this matter in Westminster Hall just a few weeks ago. It is important that we reflect not only on geographic location, but on travel patterns so that people can get to the jobcentre that is most convenient for them. We should not simply allocate them to the jobcentre that we want them to go to. They should have the ability to choose and work with their work coaches to ensure they have the best access to facilities.

[Graham Evans (Weaver Vale) (Con)]

In 2013, I sat on the Work and Pensions Committee when we produced a report on jobcentres. Overwhelmingly, we found that it is more important to have quality over quantity. Does my hon. Friend agree that it is more important to have modern and efficient services in our jobcentres, such as disabled access? At the end of the day, it is all about outcomes. We have more jobs than ever in our country, and it is all about getting the long-term unemployed into work.

[Caroline Nokes]

My hon. Friend is absolutely right. The Government have done a great job in getting people into work, but it is important that we do so through our work coaches, whom I have visited in many jobcentres up and down the country. They are working as hard as they can to help individual claimants. We must focus on those relationships.

[Mr Dennis Skinner (Bolsover) (Lab)]

Is there not a more sinister reason as well as some of the ones discussed earlier—namely, the operation of agency workers in most of the ex-mining areas, where people do not use the jobcentre, principally because as many as 500 people at a time can be brought in to work on zero-hours contracts? As a result, they do not go to the jobcentre at all. That is one of the reasons.

[Caroline Nokes]

I would like to reassure the hon. Gentleman that this is not about anything sinister. This is about us looking at the best use of the DWP estate, value for money for taxpayers, and the unemployment rate, which is down significantly since 2010.

[Mr David Nuttall (Bury North) (Con)]

The staff and users of the Bury Jobcentre Plus office will be delighted that it will remain open, but will my hon. Friend say when her Department next plans to review the number of Jobcentre Plus offices?

[Caroline Nokes]

As I indicated, this review is part of the prime contract established in 1998. It is nearly 20 years old and expires next year. All the proposals are a part of our making the best use of that contract and looking forward to what we need to provide now and in the future.

[Kate Hoey (Vauxhall) (Lab)]

Two jobcentres in my constituency are being relocated to another jobcentre in my constituency. I need to understand why that decision was taken. We have no evidence or anything on our equality duty. I am very concerned that in Lambeth there is still a problem with gang culture, and young people in particular do not want to move from one area to another. Will the Minister please look at this again and talk to people in Lambeth before the decision is taken?

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[Caroline Nokes]

The hon. Lady makes a really important point. We want people to be able to access the jobcentres they feel most comfortable with. In some circumstances, for example where people feel sufficiently vulnerable that they do not wish to go to a jobcentre, we send the DWP visiting. I have seen that at first hand, with claimants accessing services by telephone—perhaps in instances of domestic violence—where they feel vulnerable about having to go to a public building. I absolutely take on board her points about our public sector equality duty, which we take very seriously. That is why we are carrying out an equality analysis and talking to our claimants to understand how this will impact on them.

[Bob Blackman (Harrow East) (Con)]

In my constituency over the past seven years, unemployment has more than halved. That is good news, but it means that the people who are still unemployed are the more difficult people to place and they need more intensive work. The good people of Edgware will be wondering what they have done to upset their public services, with the closure of two libraries and the jobcentre. Will my hon. Friend consider the potential for not only home visits but satellite visits using commercial premises so that job organisations can run them and workplace coaches can coach a number of people together?

[Caroline Nokes]

I reassure my hon. Friend that the DWP is doing exactly that. Outreach is an important part of our suite of products to enable claimants to be get back into work. We will continue to look at the best ways to deliver that in the best locations across the country.

[Stephen Timms (East Ham) (Lab)]

Closure of the last jobcentre in my constituency will require those who sign on fortnightly to pay an extra £6 a month in bus fares to get to a more distant jobcentre. Can the Minister reassure me that Jobcentre Plus will reimburse claimants with those additional costs?

[Caroline Nokes]

Where claimants are required to sign on more frequently than fortnightly we will look to reimburse costs, but I remind the right hon. Gentleman that across London the claimant count is down 24.6% since 2010. There are fewer people claiming and we are trying to work with them more intensively.

[Jake Berry (Rossendale and Darwen) (Con)]

It is all very well to talk about jobcentres in London, but in rural Lancashire my constituents in Edgworth will have to travel for over an hour to get to Blackburn if we close the Darwen jobcentre. They are supremely hardworking and supremely successful, and anyone who thinks they can get from Darwen to Blackburn in 23 minutes is living in la-la land.

[Caroline Nokes]

Like me, my hon. Friend represents a rural constituency. Our constituents are used to having to travel long distances to access services. Where claimants will have to travel for over an hour by public transport, we are considering what arrangements we can put in place, including claiming by post.

[John Cryer (Leyton and Wanstead) (Lab)]

Leytonstone jobcentre, which is bang in the middle of my constituency, is due to close. I deal with vulnerable people week in, week out for whom that centre is highly important. They will have to travel to either Walthamstow or Stratford to receive advice and sign on. What impact assessment was made before the announcement on the effects across north-east London?

[Caroline Nokes]

The consultation that we are carrying out with both our staff and claimants will feed into the equality analysis that we are carrying out.

[Mr Philip Hollobone (Kettering) (Con)]

The good news in Kettering is that the number of unemployed people has fallen from more than 2,000 in May 2010 to just over 900 today, and record numbers of local people are in employment. Does my hon. Friend agree that one of the key achievements of hard-working jobcentre staff is to get many people online for the first time, thus improving their employability?

[Caroline Nokes]

My hon. Friend is exactly right. We should celebrate not only the high number of people in Kettering in work, but the additional skills with which they have been helped by our hard-working work coaches.

[Sarah Olney (Richmond Park) (LD)]

Unemployment may be falling now, but numerous forecasts suggest that the effects of Brexit might reverse or stagnate this decline. What assessment have the Government made of the ability to scale up support in the already overstretched jobcentre pluses if, as many expect, unemployment begins to increase in the future if the cuts go ahead?

[Caroline Nokes]

I would like to direct the hon. Lady’s attention to the National Audit Office report of 2005, which says:

“One of the Department’s main needs is flexibility in the amount of accommodation it uses.”

I reassure the hon. Lady that we are ensuring that we retain enough flexibility within the system to be able to cope with future changes in the jobs market.

[Richard Graham (Gloucester) (Con)]

For those out of work or in other difficulties, it could be incredibly useful if citizens rights bureaux, jobcentre plus offices, council offices, local law centres and possibly agencies for those with disabilities were found in the same place—more or less co-located. Will the Minister update us on the extent to which regional Jobcentre Plus managers are discussing that with local authorities?

[Caroline Nokes]

I do not intend to give a blow-by-blow account of the sensitive commercial negotiations, but my hon. Friend will be aware that we are working very closely with local authorities, the voluntary sector and the education sector to make sure that we can put co-location in place. I direct him to the co-location that has taken place in Lincoln, which has proved to be a beacon of how we can best deliver services.

[Tracy Brabin (Batley and Spen) (Lab)]

Some of my constituents do not use the internet, and they use jobcentre resources to complete their job searches. With the closure of Batley jobcentre, will the Minister confirm that she will reimburse those who wish to travel to use Dewsbury jobcentre for visits which, while not mandatory, are absolutely and utterly essential?

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[Caroline Nokes]

What we are looking at is how best to support the vulnerable. The hon. Lady makes a really important point about those who are not able to deal with their claims online. It is crucial to continue to look at how our work coaches can work with those people to make sure that provision, whether it be in the shape of outreach or at a different location, is best tailored to their needs.

[Mark Pritchard (The Wrekin) (Con)]

Wellington Jobcentre Plus office is due to relocate to Telford later this year, and Telford is 4 miles away. While we have record employment in Shropshire and in my constituency, which is most welcome, what can the Minister do to mitigate the increased costs for those who are long-term unemployed to get from Wellington to Telford to seek work?

[Caroline Nokes]

Many jobseekers will already travel more than 4 miles to access their nearest jobcentre, and it is important that we remember not just that, but that people in employment will also be travelling significant distances in their daily commute. We are seeking the best solutions for individuals by looking at outreach and co-location—to find ways that people can access services online so that where possible we can minimise the disruption to their looking for work.

[Mhairi Black (Paisley and Renfrewshire South) (SNP)]

The DWP administration centre in my constituency is closing, and 300 jobs will be transferred out of Paisley. Has there been any assessment or consideration of the economic impact on the area? Has there been any consultation whatever; and if not, why not?

[Caroline Nokes]

The most important aspect when it comes to relocations such as that one is, of course, the staff. That is why we have been working closely with all our DWP staff to make sure that we find roles for them elsewhere and give them the assistance they need, should we choose to relocate them.

[James Berry (Kingston and Surbiton) (Con)]

Many of my constituents use the jobcentre or the council’s housing services, so I welcome the decision to move Kingston jobcentre to the council offices when the lease expires in a few months’ time. It will be much more convenient for my constituents.

[Caroline Nokes]

Co-location is an important part of our strategy, and I am glad that my hon. Friend welcomes it. We need to identify the ways in which our claimants can best gain access not only to DWP services, but to the services of other organisations such as, in this instance, the local authority.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

The Minister has refused to answer this question, so I am going to give her another chance. Is she saying that she will repay the bus fares of my constituents who will now have to travel from the west end of Newcastle into the centre, or is she seriously proposing to make the most vulnerable people in Newcastle pay the cost of her failure?

[Caroline Nokes]

One of my first visits as a DWP Minister was to the jobcentre in Newcastle, and it was a great opportunity to see the universal credit full service being delivered at first hand. It is important to reflect on the specific criteria, and I am happy to answer the hon. Lady’s question. When people have to attend a jobcentre more than once a fortnight, we will reimburse them. As for those who are vulnerable and have childcare responsibilities, we are considering various ways in which we can deliver the service, which include allowing them to claim by post. We are very conscious that many people already travel much further than the distances that the hon. Lady has mentioned, either to go to work or to gain access to jobcentre services.

[Tom Pursglove (Corby) (Con)]

In Corby and east Northamptonshire unemployment has also fallen by more than 50% since 2010, but what assessment has my hon. Friend made of the actual outcomes for jobseekers when Jobcentre Plus facilities are co-located with other services?

[Caroline Nokes]

We should reflect on some of our successful co-locations. For instance, as I mentioned earlier, we have worked closely with the local authority in Lincoln. The outcomes for jobseekers who are able to gain access to many services in the same place are as good as, or better than, the outcomes at individual jobcentres. It is important for us not to get hung up on the bricks and mortar, but to focus on the services that our work coaches provide for people who are looking for work.

[Carol Monaghan (Glasgow North West) (SNP)]

On 23 January, in a written question, I asked the Secretary of State what the criteria were for the equality analysis. I was told:

“The criteria for equality analysis requires us to pay due regard to the requirements of the Equality Act 2010… We will be undertaking an equality analysis…This will include feedback from public consultation”.

As the only promotion of that public consultation has been carried out by my colleagues and me, how can the Minister ensure that due regard has been given to the Equality Act?

[Caroline Nokes]

In fact, there are also notices in all the Jobcentre Pluses indicating that the consultation is ongoing. We have communicated with our claimants, and it is very important that it is their views that feed into this process.

[Ian Murray (Edinburgh South) (Lab)]

Does the Minister or her Department think that there is any correlation between ease of access to jobcentre facilities and those who are seeking work? Can she give a cast-iron guarantee that no one will be sanctioned as a result of the closure of jobcentres in a locality?

[Caroline Nokes]

What we do know is that those who are on universal credit full service are spending more time looking for work. We also know that the vast majority of those job searches are conducted online, and that they are more successful.

It is important for individual claimants to have a relationship with their work coaches, because circumstances may change. That was emphasised to me in a Westminster Hall debate relatively recently. What is someone misses a bus? What if missing a connection means that a person is late for an appointment with the work coach? We want people to have a good relationship with their work coaches, so that they give them the necessary information. It is critical that if people miss appointments, they tell us why.

[Dr Lisa Cameron (East Kilbride, Strathaven and Lesmahagow) (SNP)]

As chair of the all-party parliamentary group for disability, I am extremely worried that closing jobcentres will make employment even less accessible to disabled claimants. Will the intensive support that needs to be given in person—not online or by post—be afforded to that group, and will home visits be afforded to all disabled constituents?

[Caroline Nokes]

Of course, many disabled claimants access our services very successfully online, but, as I have said, the DWP has a home visiting service which we can extend to all disabled claimants who ask for it when their circumstances make it difficult for them to go to a jobcentre. We want our work coaches to provide tailored support for each of their claimants, to have a relationship with them, and to understand their specific needs.

[Andy Slaughter (Hammersmith) (Lab)]

It is difficult to square the Minister’s claim that she is merging smaller jobcentres into larger ones with her plan to close Hammersmith, our busiest jobcentre in our main town centre. Coming on top of the closure of courts, post offices and police stations, is this not the hollowing out of vital public services from our towns and cities?

[Caroline Nokes]

No, it is not the hollowing out of public services; it is finding the best way to deliver services to our jobseekers at the most cost-effective price for the taxpayer.

[Alison Thewliss (Glasgow Central) (SNP)]

The proposal to cut the back-office functions at Corunna House and Portcullis House in my constituency came on the back of the proposal to shut the Jobcentre Plus office in Bridgeton, one of eight being closed in the city of Glasgow—and before the consultation which closes tomorrow had even concluded. This proposal is a bolt from the blue, with no consultation with agencies in the city or with the Scottish Government. What do this Government have against the people of Glasgow?

[Caroline Nokes]

The hon. Lady will have heard me say earlier that my hon. Friend the Minister for Employment was in Musselburgh just two weeks ago, and she will remember that the claimant count in her constituency is down 42% since 2010.

[Paul Blomfield (Sheffield Central) (Lab)]

The Minister has talked a lot about jobseekers choosing the jobcentre that works best for them. For many of my constituents, that is the one on Eastern Avenue, which she is proposing to close. She has talked about claimants who have to attend more than fortnightly, but does she not recognise that, even for claimants who have to attend fortnightly, she is imposing huge additional travel costs on those who can least afford them?

[Caroline Nokes]

The hon. Gentleman will, of course, be aware that we expect claimants to be prepared to travel for up to an hour to seek work, and it is important that we get feedback from claimants and talk to our staff and understand the impacts. As I have said, we are looking at outreach options, we can do DWP home visiting, and many claimants will be able to conduct their claims either online or by post.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

One of the “super co-location” proposals we have heard about applies to Ayr jobcentre: Russell House, a medical centre, is going to close down and be relocated to the jobcentre. The medical centre has a car park with disabled parking spaces and a bus stop that my constituents can use, but it will be moved to a jobcentre with no parking that is half a mile from the nearest bus stop. How does that meet an equality impact assessment?

[Caroline Nokes]

As the hon. Gentleman will have heard me say, we are very concerned that disabled claimants make us aware of their circumstances so that they can nominate the jobcentre that is most convenient for them, benefit from DWP home visiting or conduct their claims online.

[Chris Bryant (Rhondda) (Lab)]

Rhondda has one of the highest unemployment rates in this country, so how on earth does it make sense to close the debt management service—the only one in Wales, at Oldway House in Porth in the Rhondda—taking the 93 jobs and sending them somewhere else? For that matter, why on earth are they closing the office in Llanelli as well? Is the plan just to put everything in Cardiff, because I simply say, like the Prime Minister said last week, yes, Cardiff is in Wales, but not all Wales is in Cardiff?

[Caroline Nokes]

No, of course the plan is not to put all services in Cardiff. As the hon. Gentleman will have heard me say many times, what we are seeking to do is make the best use of our estate, learn from what claimants and our Jobcentre Plus staff are telling us about these proposals, and make sure we get value for money for the taxpayer.

[Patrick Grady (Glasgow North) (SNP)]

The DWP said that it wants to reduce its estate by 20%, but in Glasgow it is closing 50% of the estate, and in Inverness, where I grew up and my father once worked at the jobcentre, it is reducing locations by two thirds. Why is Glasgow losing out disproportionately?

[Caroline Nokes]

The hon. Gentleman will, of course, be conscious that the Jobcentre Plus estate in Glasgow has grown up historically and has many more smaller jobcentres than other parts of the country. This is about making best use of the premises we have and making sure we do not have empty desk space in our buildings.

[Heidi Alexander (Lewisham East) (Lab)]

Lewisham has a higher than average unemployment rate, yet the Government are proposing to close the main jobcentre in Rushey Green. They want to squash it into an alternative, less accessible premises in Forest Hill. That defies common sense, to be honest. Will the Minister confirm that she will seek to find alternative premises in Lewisham town centre?

[Caroline Nokes]

This is not about squashing anything; it is about making sure that we have full desks in buildings, not empty desks. In some instances, we have jobcentres where more than 20% of the desks are unused. The hon. Lady will be aware that unemployment is down nearly 5% across London since 2015, and it is very important that we make the best use of the facilities we have and get the best value for taxpayers.

[Hannah Bardell (Livingston) (SNP)]

The DWP guidance says that it is a reasonable expectation that claimants should have access to an office within 3 miles or 20 minutes’ travelling time. The Minister is planning to close the Broxburn centre in my constituency, which will result in claimants travelling 6 miles or 30 minutes. Given that that closure is in breach of her own guidelines, will she reverse the decision? If not, will she put on a free, accessible bus for my constituents and others so that they will not be left out in the cold?

[Caroline Nokes]

The circumstances that the hon. Lady has outlined are outside the ministerial criteria, and that is exactly why we are having a consultation with the public on the matter.

[Mr Jim Cunningham (Coventry South) (Lab)]

The Torrington Avenue office in my constituency is due to be closed and its claimants sent into the centre of the city. Does the Minister not realise that this will cause great inconvenience and great cost to my constituents, who live in one of the least well-off areas of Coventry? What is she going to do about that?

[Caroline Nokes]

The hon. Gentleman will be aware that we expect jobseekers to be prepared to travel for up to an hour for work. This is about making the best use of the DWP’s estate and making sure that there are no empty desks in jobcentres up and down the country.

[Natalie McGarry (Glasgow East) (Ind)]

Contrary to the Minister’s assertion, it was confirmed to Glasgow’s MPs at meetings with DWP Ministers and representatives before Christmas that the Department used Google Maps. The Government have stated that they are consulting in areas where service users would be forced to travel more than 3 miles or for more than 20 minutes on public transport. I have checked, and it takes 23 minutes to travel the 3 miles from Easterhouse to Shettleston. Given that I made the Minister aware of this fact in last week’s Westminster Hall debate, will she tell my constituents why Easterhouse was not included in the consultation, either initially or subsequently?

[Caroline Nokes]

As I have said several times this afternoon, we expect people who are looking for work to be prepared to travel for a great deal longer than 23 minutes to get to the workplace. The hon. Lady makes an important point about the consultation, which I will raise with the Minister for Employment, my hon. Friend the Member for East Hampshire (Damian Hinds).

[John Woodcock (Barrow and Furness) (Lab/Co-op)]

The industrial injuries team in Barrow has accumulated many years of experience, and that expertise has enabled the team to take the claimant handling time for one of the nation’s most complex benefits down from 175 days to 33 days. That reduction has meant that some of the most vulnerable people in the country, with terminal conditions such as asbestosis, have been able to receive their benefit before they died. Will she listen to the concern that if that expertise is dissipated when a new team comes in, the waiting times will go back up and many people will die before they receive their benefit?

[Caroline Nokes]

The hon. Gentleman makes a really important point. It is crucial that we do not lose expertise, which is why we will be listening to all DWP staff to see how we can best use that resource in future.

[Margaret Ferrier (Rutherglen and Hamilton West) (SNP)]

rose—

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[Margaret Ferrier]

Thank you, Mr Speaker. I have been out on the streets of Halfway and Rutherglen in my constituency over the past two wet weekends, collecting signatures for the petition to keep the Cambuslang jobcentre open. Collecting the signatures has not been a difficult task; people are outraged by the DWP’s decision and they want to make their views known. Will the Minister please allow them to do that by doing the right thing and opening up the consultation process to all DWP sites marked for closure?

[Caroline Nokes]

I am sure that my hon. Friend the Minister for Employment will be delighted to receive the petition from the hon. Lady’s constituency and that he will reflect on the views expressed.

[Martin Docherty-Hughes]

Does the Minister agree with those of us losing local services, such as the Alexandria jobcentre in my constituency, that the Prime Minister’s vision of a shared society is nothing other than this Government’s camouflage for attacking the most vulnerable in our communities and putting them at risk?

[Caroline Nokes]

We are talking about a shared society in the hon. Gentleman’s constituency, where unemployment has gone down by 56% since 2010. It is really important that we ensure that our DWP estate and our work coaches are in the right locations to provide the best service to claimants and value for money to the taxpayer.

[Mr Speaker]

I am most grateful to all colleagues, and I thank the Minister for her splendidly succinct replies. Perhaps she should send a copy of her textbook to all her ministerial colleagues.

DWP Estate

Caroline Nokes Excerpts

Wednesday 18th January 2017 Westminster Hall

[The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)]

It is, as always, a pleasure to serve under your chairmanship, Ms Dorries. I add my congratulations to the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) on securing this debate and to all hon. Members who have contributed to it. We have had quite a geographic spread—obviously, the majority of hon. Members who have spoken are from Scotland, but the south-west, the north-west and of course Northern Ireland have been represented. I thank those hon. Members for their comments.

Our network of jobcentres is absolutely at the heart of Department for Work and Pensions services. Across the country, jobcentre staff work hard to help people to access the support and assistance they need to move into employment and into better and more employment—and it is working. The claimant count has dropped from almost 1.5 million in 2010 to around 800,000 now. Unemployment is down by more than 900,000 since 2010, as the economy has grown. We are at near record levels of employment across the country.

As the needs of our claimants have changed, so have our jobcentres, and rightly so. The way that the Department is delivering its services is changing in response to significant societal trends. The Department continues to make the most of the opportunity technology brings and more services are moving online, reflecting that increase in digital capability and accessibility. Eight out of 10 claims for jobseeker’s allowance are made using digital channels and almost 90% of universal credit claims are currently made online.

There are several examples where the Department is working in shared Government facilities or with local authorities and other local partners. The hon. Member for Glasgow North East (Anne McLaughlin) and my hon. Friend the Member for North Swindon (Justin Tomlinson) both mentioned co-location and talked about hubs where we can bring services together and make local arrangements that bring—

[Chris Stephens]

rose—

[Natalie McGarry]

rose—

[Caroline Nokes]

Everyone wishes to intervene at once. I give way to the hon. Lady.

[Natalie McGarry]

At a meeting we had before Christmas with members of the DWP, we were told that co-location would not happen in some of these cases because the jobcentre was a “toxic brand”. I wonder whether the Minister can answer that.

[Caroline Nokes]

When I have been visiting jobcentres up and down the country, I do not recognise a toxic brand. In fact, I recognise very hard-working staff who champion the successes that they have had and the jobs that they have helped people into.

[Chris Stephens]

If co-location is such a good thing, why was there no consultation with the local authorities and other public bodies in Glasgow before the announcement of the jobcentre closures? Co-location could have been a solution to the issue.

[Caroline Nokes]

I thank the hon. Gentleman for his intervention. Of course the DWP works hard with the Scottish Government and other local authorities to ensure that we investigate opportunities. I am conscious that, in Glasgow, outreach and co-location services are already provided at Anniesland College. I want to see more of that. Outreach provides one of the solutions to helping jobseekers where they are, rather than expecting them to travel to centres. The working environments are good, more of the services that customers use when there is co-location are in one place and it can cost considerably less to run services. We are building on partnerships with local organisations to expand that range. As I mentioned, in Glasgow, we work closely with Anniesland College to offer services, including helping claimants with their job searches and offering benefit advice.

[Carol Monaghan]

Of course, Anniesland College no longer exists—it is Glasgow Clyde College and has been for a number of years.

[Caroline Nokes]

I thank the hon. Lady for pointing that out to me.

A key ambition of the DWP is to enable claimants to access our services in ways that suit them. At the heart of our reforms is a digitally-focused approach, which is more secure, more accessible and more efficient. We need to have a modern welfare system that is fair while providing good value to the taxpayer—a welfare system that ensures we are not under-utilising space in our buildings. That is the best way of making sure that the Department is delivering value for money, both for those using its services and the taxpayer.

We need a modern welfare system that is not only fair but simple to use and takes full advantage of the opportunities modern technology and communication channels afford us. Universal credit is absolutely at the heart of that, allowing claimants to manage their claims online. It is the key that unlocks the flexibility and the modern support that we want for people, not just to help them into jobs but to help them progress in work, too. They can manage claims online and receive the personalised support they need in order to find more work and better paid work.

Since coming into this role, I have seen the positive impact of personalised work coach support for myself. I have been struck by how work coaches are committed to helping the individual claimants they work with to find more hours of work and better paid work. At the heart of that is the principle of ensuring easy online access, which allows households to make claims and report changes securely, without necessarily having to travel to a jobcentre. It is right that the future of the DWP estate reflects not only the fundamental changes in the welfare system but the near record levels of employment across the country.

[Ronnie Cowan (Inverclyde) (SNP)]

rose—

[Margaret Greenwood]

rose—

[Caroline Nokes]

I will give way to the Opposition spokesperson, but this really must be the last time.

[Margaret Greenwood]

I may be pre-empting what the Minister is going to say. She has talked about online access several times. I would appreciate it if she could answer my question about the assessment that she has made of the difficulties that people who are not IT-literate have in accessing things online and the kind of support that is provided for them.

[Caroline Nokes]

As I said at the outset, 90% of UC claims are now successfully managed by our claimants.

[Ronnie Cowan]

rose—

--- Later in debate ---

[Caroline Nokes]

I am sorry; I am not going to give way.

After 20 years, the private finance initiative contract that covers many DWP offices is nearing an end—it expires on 31 March next year—which provides us with the opportunity to review which offices we will need in the future and to save the taxpayer money, while ensuring all our claimants are able to access the support they need.

There was a question earlier about planning permission. Under a PFI contract, we are not the leaseholder. Planning issues are entirely separate to the contract that we hold on the buildings. In every case, we are seeking to minimise disruption, moving existing jobcentres into nearby sites and co-locating wherever possible. The UK labour market is in the strongest position it has been in for years, but we cannot predict the future. The hon. Member for Rutherglen and Hamilton West was right to mention Brexit. That is one of the reasons that we continue to ensure that we retain sufficient flexibility and spare capacity in the system. Our aim is to reduce floor space, not the workforce, who are so important in supporting claimants back into work. Indeed, there are now 11,000 work coaches across the country, and we are planning to hire 3,000 more staff.

When a jobcentre closes, the Department will consider what outreach services we can expand and what facilities may be suitable to provide those services. Outreach is about ensuring services are flexible and accessible for the people who need them. For claimants who are unable to attend a jobcentre owing to their vulnerability or who have difficulty completing the process required by the Department to claim a particular benefit, we have robust procedures in place. DWP Visiting undertakes home visits or occasionally visits to an alternative agreed address if that is more appropriate. Travel expenses are refundable under certain circumstances, including where claimants are required to attend a jobcentre more frequently than every two weeks. Under some conditions claimants are able to maintain their claim by post, including where they have caring responsibilities for a child and it is not possible to make arrangements for short-term childcare. The hon. Member for Glasgow North West (Carol Monaghan) mentioned catchment areas. Claimants can also choose to attend an alternative jobcentre to the one allocated to them if it is more convenient, easier and less costly to travel to.

A number of Members mentioned the equality analysis, which is part of the detailed planning for service reconfiguration. That will include the feedback from the public consultation process, which is still ongoing. We are committed to complying with our public sector equality duty, and we take account of the feedback from our public consultations. The equality analysis will help to establish any impacts that additional travel will have on customers and inform decisions about additional provision, such as outreach services.

[Stewart Malcolm McDonald]

Will the Minister give way on that point?

[Caroline Nokes]

I am sorry, I will not.

Equality analysis involves us considering the likely or actual effects of proposals on people with protected characteristics as part of our decision-making processes. Employment is, of course, the joint responsibility of the UK and Scottish Governments. As hon. Members mentioned today, my hon. Friend the Minister for Employment is travelling to Scotland, where he is meeting members of the Scottish Government. We welcome the chance to work with them. Indeed, DWP officials have been working closely with them on this process.

We are building contingency into the system, building on lessons learned in 2008. More flexible arrangements and new contracts are being brought forward. Last night, we debated DWP policies in the main Chamber. It was a wide-ranging debate, which included the question of Glasgow jobcentres. My hon. Friend the Member for South Ribble (Seema Kennedy) stated, and I cannot disagree with her,

“There is too much clinging on to bricks and mortar when the real questions should be what works and what will get more people into work.”—[Official Report, 17 January 2017; Vol. 619, c. 888.]

Hon. Members would do well to reflect on that. It is about the service we deliver—[Interruption.]

[Nadine Dorries (in the Chair)]

Order. Please allow the Minister to speak.

[Caroline Nokes]

The claimants must come first in the service we deliver to them. We must also deliver value to taxpayers in Scotland and across the rest of the UK.

The Department’s services always have and always will adapt to social trends, and it is right that we reflect the digital revolution. These proposals are the result of careful analysis and planning. I appreciate the concerns of the hon. Member for Rutherglen and Hamilton West about the proposed closures, and I thank her again for securing the debate. I think the rationale for the proposals is clear. The overall number of people claiming the main out-of-work benefits has fallen by more than 1.1 million. The changes are about reducing floor space, not the number of dedicated frontline staff helping claimants back into work.

[Alison Thewliss]

There are six minutes left.

DWP Policies and Low-income Households

Caroline Nokes Excerpts

Tuesday 17th January 2017 Commons Chamber

[The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)]

I wish to reiterate the thanks of the Minister for Employment, my hon. Friend the Member for East Hampshire (Damian Hinds), to those Members who secured today’s important and interesting debate. I also wish to thank all Members who have contributed. I am very conscious that I am somewhat short of time, so if I do not have the opportunity to respond to every point that Members have made in this debate, I will certainly seek to do so in writing.

For Scottish Members present, I am aware that there is another debate tomorrow in Westminster Hall in which we are discussing the DWP estate. I am sure that that will be an opportunity for us to discuss in more detail the proposals in Glasgow.

This Government are committed to building a country that works for everyone, which means taking action to help the most disadvantaged. We know—many Members have mentioned this today—that our approaches need to be joined up across Government to enable us effectively to support and transform the lives of the most vulnerable. That is why we have committed to bringing forward a social justice Green Paper this year, which will identify and address the root causes of poverty and build on the two new statutory indicators brought in through the Welfare Reform and Work Act 2016. That will drive real action on workless households and educational attainment—the two areas that can make the biggest difference to disadvantaged children and their families.

The Green Paper on social justice will demonstrate our commitment to the Prime Minister’s ambition of tackling poverty and disadvantage and delivering real social reform. As my right hon. Friend the Prime Minister said on the steps of Downing Street, she will fight against the injustices that we see in our society. In doing that, we will do everything we can to give people more control over their lives. That is why the Prime Minister has established a new Social Reform Cabinet Committee, bringing together the majority of Government Departments to deliver social reform. The Prime Minister has made it very clear that tackling poverty and disadvantage will be a priority for this Government.

The evidence is clear and we as a Government have been clear that work is the best route out of poverty. Working age adults in non-working families are almost four times more likely to be living on a low income than those who work, which is why the Government’s approach has been about recognising the value and importance of work, making work pay and supporting people into work while protecting the most vulnerable in society. Our reforms are working and transforming lives. The most recent labour market statistics show that we have a near record number of people in work: more than 2.7 million more than in 2010. In the past year we have seen nearly 250,000 more disabled people in work, more than 200,000 more women and more than 150,000 more BME people. That is a record of which we are rightly proud, but we know that there is more to do to realise our ambition of an economy that works for everyone.

I reiterate the comments of my hon. Friend the Minister for Employment: it is vital that universal credit roll-out is delivered safely and securely so that claimants receive the support they need. As he mentioned, reforms such as universal credit are revolutionising relationships between claimants and work coaches, ensuring that the support we offer is more personalised and better suited to the needs of claimants.

There is no doubt that universal credit has been a large and complex programme, which is why we have rolled it out slowly, starting small to begin with and enabling our own DWP staff to be involved in the roll-out through a test-and-learn programme so that we could ensure that as the programme expanded mistakes were ironed out. Our DWP staff are also absolutely crucial to the role of universal credit in encouraging people not just into work but into more work once they have found employment. That is an entirely different relationship.

I have spent the past six months as a Minister visiting Jobcentre Plus centres around the country and speaking with work coaches. Whether in Newcastle, which saw the initial roll-out of full service UC, or in coastal towns such as Eastbourne, I have seen at first hand the value of this approach in transforming lives and I am immensely proud of the commitment I have witnessed from work coaches up and down the country. Indeed, in Oldham I saw some of the most enthusiastic and inspired job coaches that I have seen anywhere in the country, who were absolutely enthusiastic about meeting the claimants and helping them through the journey into more work

The SNP’s call to suspend universal credit, which demonstrates a complete misunderstanding of its transformational benefits, arguably shows a lack of concern for the millions of working households that will benefit from a system that helps people into work, empowering them to transform their own lives rather than leaving them trapped in benefit dependency. As some Members might know, my hon. Friend the Minister for Employment is travelling to Scotland this week to meet MSPs and Ministers in the Scottish Government to discuss with them the issues of the jobcentres in Glasgow.

We have had a lot of discussion about the impact on disability employment, and I am very clear that when a jobcentre closes, that can provide opportunities to enable DWP staff to respond to the personal circumstance of claimants. Work coaches can personalise and tailor the support they provide and can visit claimants in their own home. Claimants do not have to travel to specific jobcentres but can nominate the ones they wish to use. We want a flexible and dynamic welfare state that embraces the new opportunities of technology and the expertise and joined-up services that our local partnership organisations have.

This Government are clear that the best way to help people to pay the rent and live independent lives is to help them into work. With my noble Friend Lord Freud, the former Minister for Welfare Reform, I met arm’s length management organisations to talk about UC and the issues that they raised with us about rent arrears. Our research shows that the majority of UC claimants are comfortable managing their budgets and after four months the proportion of UC claimants we surveyed who were in arrears at the start of their claim had fallen by a third.

To conclude, let me reiterate that the Government’s commitment to an economy and society that works for all is beyond doubt. I want to reassure hon. Members that the Government are committed to fighting against the injustices of society and ensuring that everyone has the right opportunities to fulfil their potential. Households in the lowest income bracket are now much more likely to be in employment than they were at the start of the previous Parliament. In the bottom half of the income distribution, the percentage of families who were in work increased from 60.3% in 2010-11 to 65.7% in 2014-15—

[Mike Weir (Angus) (SNP)]

claimed to move the closure (Standing Order No. 36).

Question put forthwith, That the Question be now put.

Question agreed to.

Question put accordingly (Standing Order No. 31(2)), That the original words stand part of the Question.

Bereavement Support Payment Regulations

Caroline Nokes Excerpts

Thursday 12th January 2017 Written Statements

[The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)]

I am pleased to announce that today I intend to lay regulations to provide some of the detail of the new bereavement support payment. These are affirmative regulations which will be debated in Parliament shortly. It is intended that the changes detailed in these regulations will come into force on 6 April this year.

Bereavement support payment is a new benefit which replaces the current suite of bereavement benefits (bereavement payment, bereavement allowance and widowed parent’s allowance) for those whose spouse or civil partner dies on or after 6 April this year. These changes will not affect those already in receipt of bereavement benefits. These people will continue to receive their current benefit for the natural lifetime of the award.

The design of bereavement support payment reaffirms the Government’s commitment to provide financial support to people whose spouse or civil partner has died. The new benefit modernises and simplifies the current complex system of bereavement benefits.

It shifts the focus of bereavement benefits from replacing the deceased spouse or civil partner’s earnings to helping with the additional and more immediate costs of bereavement.

Bereavement support payment will not be taxable, will not be included in the assessment of benefit income which will be subject to the household benefit cap, and will also be subject to a disregard in the calculation of income-based benefits. Additionally, bereavement support payment will not affect the bereaved person’s concurrent entitlement to contribution-based jobseeker’s allowance or contributory employment and support allowance, where appropriate. Also, unlike the current bereavement benefits, a bereaved person who remarries or re-partners will be able to keep their bereavement support payment.

To allow people to better understand their entitlements and plan accordingly, the new benefit is simpler, introducing a uniform payment structure with a single national insurance contribution condition. There is a higher rate of payment for pregnant women and people with dependent children in recognition of the greater costs borne by these families.

Having considered representations from the Social Security Advisory Committee, the Work and Pensions Select Committee and groups supporting bereaved people, we have decided to extend the duration of the benefit from 12 months to 18 months.

Recipients with children can receive an initial larger payment of £3,500 and up to 18 subsequent monthly payments of £350, and those without children can receive an initial payment of £2,500 and up to 18 monthly instalments of £100.

[HCWS409]

Oral Answers to Questions

Caroline Nokes Excerpts

Monday 9th January 2017 Commons Chamber

[Ben Howlett (Bath) (Con)]

I welcome the fact that more than 1 million more women are in employment now than in 2010, but will the Minister confirm what the Government are doing to support women with children who might find it difficult to return to work because of childcare responsibilities?

[The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)]

Our aim is to help parents to get into a job that fits around their caring responsibilities, which is why we are doubling the amount of free childcare offered to working parents to 30 hours a week. Last year, we spent a record £5 billion supporting parents with the costs of childcare and the figure will rise to more than £6 billion by 2020.

[Ronnie Cowan (Inverclyde) (SNP)]

T6. Finland has become the first country in Europe to pay its unemployed citizens unconditional monthly sums with the aim of boosting employment and reducing poverty. When will the UK Government fund research into similar schemes such as a universal basic income?

--- Later in debate ---

[Callum McCaig (Aberdeen South) (SNP)]

For many young people, staying in the family home is not an option, so housing benefit is a lifeline not a lifestyle choice. When will the Government finally clarify how their scheme will not see these people lose vital support?

[Caroline Nokes]

The regulations regarding the removal of housing benefit from 18 to 21-year-olds have yet to be published. We will provide full details, particularly of the exemptions that will be involved, in March.

[Tom Pursglove (Corby) (Con)]

I would like to say thank you to the scores of businesses in Corby and east Northamptonshire that provide important work experience opportunities for our young people. These introductions to the world of work are crucial, so will Ministers continue to make sure they remain at the forefront of cross-departmental discussions?

Welfare Cap

Caroline Nokes Excerpts

Monday 12th December 2016 Commons Chamber

[The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)]

I beg to move,

That pursuant to the Charter for Budget Responsibility: Autumn 2015 update, which was approved by this House on 14 October 2015, under Section 1 of the Budget Responsibility and National Audit Act 2011, this House agrees that the breach of the Welfare Cap in 2019-20 and 2020-21, due to higher forecast inflation and spend on disability benefits, is justified and that no further debate will be required in relation to this specific breach.

Today’s motion is about Government accountability for welfare spending before the House and, indeed, before the public. This debate is about the welfare cap. I hope right hon. and hon. Members on both sides of the House will agree that our welfare system is about more than just the numbers. We have a set of principles to build a welfare system that works for everyone. We need to look beyond just benefits, and to work with employers, health professionals and the voluntary sector. We need to ensure the system supports people to get into work, to stay in work and to progress in work. We must also offer care for the minority of people who cannot work, whether through sickness, disability or personal circumstances.

We introduced the welfare cap in 2013 to strengthen control of welfare spending and improve parliamentary accountability for that level of spending. The welfare cap is an important part of our fiscal framework, and it plays a crucial role in delivering our commitment to a sustainable and affordable welfare system. Our welfare reforms are creating a system that makes sure that work always pays and that is fair to those who receive welfare but also to those who pay for it.

The independent Office for Budget Responsibility assessed performance against the welfare cap at autumn statement, and it is now forecast that the current cap will not be met in each year until 2020-21. A similar debate was held in the House on 16 December 2015 on the breach of the welfare cap in the years 2017-18 and 2018-19, resulting from the decision not to pursue the tax credits measure proposed at summer Budget 2015. The House agreed that the breach of the cap in the earlier years of the forecast period was justified and that no further debate would be required on that specific matter. Therefore, the motion we are putting before the House today seeks agreement on the justification of the breach of the cap in the later years of the forecast period—2019-20 and 2020-21.

I would now like to outline the reasons why the cap is forecast not to be met in those years. This is due to increased forecast inflation and spend on disability benefits, partly due to the decision not to pursue the personal independence payment measure proposed at Budget 2016. As with our decision not to pursue the tax credits measure, the Government have once more listened and responded to public concerns, and we have decided not to pursue the changes to the personal independence payment. Higher forecast inflation is another factor contributing to the cap not being met in 2019-20 and 2020-21. In view of the uncertainty facing the economy, inflation is now forecast to be higher than when the cap was set at summer Budget 2015.

I would like to reassure the House that the latest forecasts do not mean that welfare spending is out of control. As my right hon. Friend the Chancellor announced at autumn statement, we will deliver the welfare savings we have already announced and legislated for. I would also like to repeat that the Government have no plans for further welfare savings in this Parliament.

The Government believe that work is the best route out of poverty. That is why we want a welfare system that helps people who can work to get back into work, but that also supports those in most need. Our welfare reforms are working. Employment has risen by 2.8 million since 2010, and is now at a record high of 74.5%. Unemployment is at an 11-year low. Universal credit is revolutionising the welfare system, enshrining the principle that working more always pays more. Through the benefit cap, we are restoring fairness to the system, while ensuring there is a clear incentive to work.

There are now over 1 million fewer people on out-of-work benefits. Some 3.5 million disabled people are now in employment, and in the last three years, the number of disabled people in work has increased by nearly 600,000. We also want a welfare system that is a strong safety net for those who need it—

[Neil Gray (Airdrie and Shotts) (SNP)]

Could the Minister confirm whether it is still the Government’s commitment to halve the disability employment gap by 2020?

[Caroline Nokes]

The hon. Gentleman will have heard my hon. Friend the Minister for Disabled People, Health and Work at her recent Select Committee appearance. She has made the point repeatedly that we are determined to reduce the disability employment gap, and we are working incredibly hard to do that, but we acknowledge that more needs to be done.

The welfare cap plays an important role in ensuring that the welfare bill is sustainable and affordable. We introduced the cap to allow us to bring welfare spending under control, and we have done so. The system we inherited was unaffordable and unsustainable. Under Labour, welfare spending increased by almost 60% in real terms. The number of households where no member had ever worked nearly doubled, and unemployment went up by 457,000.

As part of our continuous commitment to a sustainable welfare system, my right hon. Friend the Chancellor announced at autumn statement the introduction of a new welfare cap, alongside a new fiscal framework. The Government are firmly committed to returning the public finances to balance as soon as is practicable. Given the uncertainty we face, it is important to allow for enough flexibility to support the economy. That is why we are changing the fiscal framework, and why we are introducing a new welfare cap as part of that.

The new cap sets a target for welfare spending in 2021-22, with a pathway for welfare spending in all the years before that. The new cap is set in line with the latest autumn statement forecast. The scope of the new cap remains unchanged. The Office for Budget Responsibility will continue to assess performance against the new cap, and if the cap is assessed as breached, Ministers will still need to hold a debate and justify the breach in the House, or to propose steps to bring spending within the level of the cap.

The House will have the opportunity in due course to debate and agree the new fiscal framework, including the new welfare cap, which was put forward by my right hon. Friend the Chancellor at autumn statement. I commend the motion to the House.

Supported Housing

Caroline Nokes Excerpts

Tuesday 29th November 2016 Westminster Hall

[The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)]

It is a pleasure to serve under your chairmanship, Mr Howarth. I add my congratulations to those offered to the hon. Member for Bermondsey and Old Southwark (Neil Coyle) on securing this important debate. Prior to his election, the hon. Gentleman worked in the field of disability and he continues to be an important campaigner for disabled people in his role as a Member of Parliament. He will know from his experience—we have heard a little of it this morning—how broad the supported housing sector is. He therefore has an excellent insight into the challenges of finding a proposal that will work across the whole sector.

As we have heard, supported housing is vital for many vulnerable groups. Whether additional support is needed for a short time to help someone recover from difficulties or setbacks in life, or whether it represents a longer-term arrangement, the valuable role that such accommodation plays is clear. Last week we published our evidence review of the supported housing sector, which we commissioned jointly with the Department for Communities and Local Government. The review has given us an important indication of the scale, scope and, indeed, cost of the sector across Great Britain. It estimates that there are about 651,500 supported housing units, predominantly provided by housing associations, local authorities and charities. The majority of the units—about 71%—are for older people, and the remainder for those of working age. It is estimated that at the end of 2015, just over £4 billion of housing benefit was being spent annually on the sector in Great Britain. That amounts to 17% of the total departmental expenditure on housing support. The review also provides an indicative estimate of just over £2 billion per annum for additional funding from other sources in addition to housing benefit in Great Britain. That was largely made up of local authority spending.

The focus of debate today is specifically the effect of the Government’s proposals on supported housing. The Government are committed not only to protecting but to boosting the supply of such housing, and ensuring that it provides value for money and works for those who use it, as well as those who pay for it. As Members will be aware, we have announced that a new funding model will be introduced for supported housing when the local housing allowance rates are extended to the social rented sector from April 2019. In future, housing costs up to the level of the relevant LHA rate will be met through either housing benefit or universal credit. Funding for the additional costs of providing supported housing in excess of that amount will be met through local funding, which is to be devolved to local authorities in England and to the devolved Administrations.

[Neil Coyle]

I think three different Members have asked about the potential for a pilot of the new funding model. Will the Minister clarify whether there will be one?

[Caroline Nokes]

The hon. Gentleman must not fret; I will come to that later. Many comments were made by hon. Members and I will try to respond to most of them, but I am conscious that time may not allow for all. I will allow the hon. Gentleman time to come in at the end as well.

As hon. Members have heard, the Department for Communities and Local Government and my Department last week jointly launched a consultation on the detail and implementation of the new sustainable funding model. I welcome this debate as an important opportunity to draw Members’ attention to that. I will turn to the specific points raised by hon. Members in order. I hope to get to every point, but if time does not permit, I will write to hon. Members to clarify a few points.

My hon. Friend the Member for Taunton Deane (Rebecca Pow) and the hon. Members for South Down (Ms Ritchie) and for Bermondsey and Old Southwark mentioned local funding and why it is important that local authorities and devolved Administrations are going to be involved. I absolutely believe that local authorities are best placed to make decisions about how to support vulnerable people in their own areas. We heard about location from my hon. Friend the Member for Waveney (Peter Aldous) and the hon. Member for South Down, and they are right that it is important. However, it is also about understanding local need and being able to reflect that in the most appropriate type of provision.

The hon. Member for Bermondsey and Old Southwark mentioned disabled people, and he was right to do so. As he will know, disability spending will be higher every year to 2020 than it was in 2010. He also spoke of the types of people living in supported accommodation and, like me, he celebrates the numbers of young disabled people who are both living longer and wishing, quite understandably, to live more independently. He is right to point out that that is also a challenge, but it is one that we are determined to rise to.

Likewise, we have a growing elderly population. At the start of the debate, the hon. Gentleman outlined some percentages of individuals living in supported accommodation and what their particular needs might be. I emphasise that people do not necessarily have single needs. We have an ageing population, and as people grow older, their needs tend to become more acute and they tend to have more of them. It is important that we have a system that enables those with really quite intense needs to live independently for as long as they can and, indeed, for as long as they wish to.

Under the Care Act 2014, local authorities have a general duty to promote an individual’s wellbeing when carrying out their care and support functions. Through the consultation, we will be seeking views on whether further protections may be required to ensure that all relevant client groups can gain appropriate access to funding, including those without existing statutory duties.

I can reassure the hon. Gentleman that Departments across Government have worked closely together on the proposals and will continue to do so. They include the Department for Work and Pensions, the Department for Communities and Local Government, the Department of Health, the Ministry of Justice, the Department for Education and the Home Office. We are also working with colleagues in the devolved Administrations.

We have to make it clear that this is not about targeting individuals but about ensuring that we have a system in which the quality of services is central and there is a clear focus on outcomes for individuals. Under the current system, effective oversight of quality and value for money is not strong enough. Through the consultation, we will consider new approaches to transparency and oversight. Our aim should be consistent standards for everyone living in supported housing, alongside a clear demonstration to the taxpayer of value for money.

We want to ensure simplicity and a streamlined process, in line with the principles of universal credit, which a number of hon. Members have mentioned. We have a solid foundation of universal credit delivery in every Jobcentre Plus, and people who are moved from housing benefit to universal credit by the Department after April 2019, and whose overall benefit entitlement will be lower, will be protected in cash terms under transitional arrangements.

As I have said, we recognise the diversity of the supported housing sector, in terms of both the groups of people who live in such provision and the range of support needs that they may have. Officials and Ministers from across the DWP and DCLG have held extensive meetings with representatives from across the sector to understand the nuances of what a new model needs to deliver. They have asked specifically about additions in the consultation document, including what potential role additional statutory provisions or duties for local authorities in England could play, particularly in terms of protecting provision for specific vulnerable groups. The task and finish groups we are setting up to consider a number of detailed aspects of the model are being carefully put together to ensure that the breadth of the sector is represented. I think three hon. Members asked whether the Government would commit to piloting the new funding model. There will be shadow-year arrangements in place on the detail and allocation of funding, to allow for the full transition to the new model from April 2018.

During the last two financial years, the majority of local authorities spent less than 100% of their allocation of discretionary housing payment from central Government. The hon. Member for Bermondsey and Old Southwark has urged me not to dwell on DHP—this will be one of my few references to it—but we provided local authorities with £560 million in DHP funding in the last Parliament, and we have committed to a further £870 million over the next five years. The amount of top-up funding will be set on the basis of current projections for future need. Budgets for years beyond those already set will be determined in the usual way: at future spending reviews. I emphasise again that we want to work with the sector, through the consultation, to consider the wider strategic goals, such as responding to expected future growth in demand.

We see an opportunity here to do things differently, and to create a new strategic approach to commissioning supported housing. My hon. Friend the Member for St Ives (Derek Thomas) made a number of important points about doing better. He also raised the issue of the YMCA. I have been pleased to visit a number of projects since coming into this role in July, and I have long been a supporter of the work of the YMCA and have welcomed the input it has made to this process so far. I also visited a foyer in St Ives, and I absolutely agree with my hon. Friend on the importance, particularly for young people in the supported housing sector, of having move-on accommodation and increasing their level of education and training so that they have a better opportunity of employment.

The hon. Member for Linlithgow and East Falkirk (Martyn Day) spoke of Open Door in his constituency and its supported flat service. He made the valid point that there are very different accommodation landscapes across Scotland. We recognise that challenge, which is one of the reasons why we are devolving this responsibility to local authorities and to the Scottish Parliament.

The hon. Member for Banff and Buchan (Dr Whiteford) asked what contact I had had with Scottish members of the sector. In one of my roundtable meetings, I was pleased to have representatives from Scottish housing associations who came down to London to put their point of view across. I pay particular tribute to Scottish Women’s Aid, along with Women’s Aid nationally, which has been really constructive and engaged throughout this process, both with myself and with my noble Friend Lord Freud, who is the Minister for Welfare Reform. My hon. Friend the Member for St Ives mentioned a specific case in his constituency about students. I will be happy to meet him later to discuss that.

As we know, the Scottish and Welsh Governments have devolved responsibility for housing policy and already determine their own priorities. We anticipate that the Treasury will advise those Governments of their allocations at around the same time as the local authorities in England, which we expect will be in autumn 2017.

[Jim Shannon]

Will the Minister give way?

[Caroline Nokes]

I am sorry, but I really have no time left and I would like to leave a couple of minutes for the hon. Member for Bermondsey and Old Southwark to wind up—it will probably be 90 seconds now.

There is a specific point in the consultation about working with the sector to design an alternative model for refuges, which was raised by the hon. Member for Kilmarnock and Loudoun (Alan Brown), and the hon. Member for Strangford (Jim Shannon) said we should get that right. He is absolutely correct to say so. That is why we are not rushing this, and it is why I am pleased to be here today. My first debate as a Minister was on supported housing and that is the issue again today. Getting this right and ensuring that the consultation is as full and thorough as possible is an important part of my role, so that when we move forward with the new funding model, it works for those groups who hon. Members have rightly identified.

Social Security Benefit and Pension Up-rating 2017-18

Caroline Nokes Excerpts

Monday 28th November 2016 Written Statements

[The Parliamentary Under-Secretary of State for Welfare Delivery (Caroline Nokes)]

Today I am announcing the proposed social security benefit and pension rates for 2017-18.1 have attached the table of rates to this statement and I will place a copy of the proposed benefit and pension rates 2017-18 in the House Library. The annual up-rating of benefits will take place for state pensions and most other benefits in the first full week of the tax year. In 2017, this will be the week beginning 10 April. A corresponding provision will be made in Northern Ireland.

The annual up-rating process takes into account a variety of measures:

The basic and new state pension will be increased by the Government’s ‘triple lock’ manifesto commitment, meaning that they will be up-rated in line with the highest of prices, earnings or 2.5%.

The pension credit standard minimum guarantee will be up-rated in line with the annual rise in earnings, as reflected in average weekly earnings (AWE).

Benefits linked to the additional costs of disability, and for carers, are increased by the annual rise in prices, as reflected in the consumer price index (CPI). A number of other elements—including non-dependant deductions (NDDs)—will also be up-rated in line with prices. The majority of working-age benefits have been frozen at their 2015-16 levels for four years under the Welfare Reform and Work Act 2016.

The list of proposed benefit and pension rates also includes a change to the carer’s allowance earnings rule, which will be increased for 2017-18 from £110 to £116 a week.

[HCWS287]