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As we renegotiate our out-of-date contracts, we are merging some smaller jobcentres with larger ones and co-locating others with local government premises.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—

--- Later in debate ---

[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]

Oral Answers to Questions

Caroline Nokes Excerpts

Monday 21st November 2016 Commons Chamber

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

10. What steps the Government are taking to mitigate the effect of projected levels of inflation on the spending power of frozen benefits.

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

The Government are committed to the creation of jobs and making work pay. We know that work is the best route out of poverty, and that is why our welfare reforms are focused on supporting people into work, rather than leaving them to rely on benefits.

[Mr Carmichael]

It is interesting that that answer does not necessarily address the question that I asked.

Last week, the Institute for Fiscal Studies highlighted the impact that weaker sterling will have on the cost of many of the essentials for which welfare benefits pay—clothing and food. It estimates that inflation for those items could be 2.7% next year. These circumstances were neither known nor anticipated when the decision was made to freeze benefits, so should they not themselves be the catalyst for a review of the decision?

[Caroline Nokes]

The right hon. Gentleman will be aware that inflation was in fact down last month. What is really important is that we support people who can work into jobs, and into better jobs—that is the whole premise behind universal credit. We know that getting people into work lifts them out of poverty. Our reforms include increasing the national living wage to £9 an hour by 2020, cutting income tax for more than 30 million people and, of course, the roll-out of universal credit.

[Kerry McCarthy (Bristol East) (Lab)]

13. What assessment his Department has made of the potential merits of improving co-operation between Jobcentre Plus and food banks.

--- Later in debate ---

[Daniel Zeichner (Cambridge) (Lab)]

20. What plans his Department has to help ensure long-term, sustainable and predictable funding for the supported housing sector.

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

In his written ministerial statement to the House of Commons on 15 September, the Secretary of State confirmed that from 2019-20 we will be introducing a new funding model for supported housing. I can also confirm that the Department for Work and Pensions, along with the Department for Communities and Local Government, will today publish a consultation document to develop the details that will underpin the new funding model, and the evidence review of supported housing in Great Britain.

[Daniel Zeichner]

One in five people affected by severe mental illness rely on supported housing. What discussions has the Minister had with the Department of Health about the effect that these policy changes have had on those who suffer from a mental illness?

[Caroline Nokes]

Colleagues from the DCLG and I have had extensive discussions with the supported housing sector since 15 September, and those conversations will continue now that the consultation document has been published.

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

24. What steps the Government are taking to ensure that people have the opportunity to save into a reliable workplace pension.

--- Later in debate ---

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

With around £4 billion of child support debts still outstanding and DWP’s own figures to March this year showing that 90,000 non-resident parents have not paid child support in full, will the Secretary of State tell the House where extra resources can be found to ensure that those parents who are due child maintenance for the care of their children receive it in full and on time?

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

We encourage paying parents to pay their maintenance on time and in full and to avoid the accrual of arrears. However, if a paying parent fails to pay on time, we aim to take immediate action to recover the debt and re-establish compliance. We have a range of strong enforcement powers, including seizing property and commitment to prison. We attempt to re-establish compliance initially through a one-off card payment, or negotiated agreement, deduction from the paying parent’s earnings, or deduction directly from an individual’s bank account. We are currently in the process of responding to a consultation run earlier this year on using powers to deduct from joint bank accounts.

[Mr Steve Baker (Wycombe) (Con)]

T10. Will the Minister allow alternative payment arrangements for universal credit claimants with complex needs to begin right at the start of their tenancies, and will the Government take steps to ensure that such arrangements are delivered swiftly?

[Caroline Nokes]

The DWP has long recognised the challenges that some claimants, particularly those with multiple or complex needs, may face in the transition to universal credit. That is why we have developed the personal budgeting strategy to ensure that claimants have access to suitable financial products and money advice. For the small minority who need them, alternative payment arrangements can be set up. All APA cases are dealt with urgently and the majority of cases are processed within the first assessment period and within a five-day average clearance time.

[Greg Mulholland (Leeds North West) (LD)]

It was a long overdue victory for common sense that those people with chronic illnesses and long-term conditions will no longer be subject to the work capability assessment, but what about our brave veterans in receipt of war pensions? Why are they still subject to work capability assessments?

Fireworks: Licensing of Premises

Caroline Nokes Excerpts

Friday 18th November 2016 Commons Chamber

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

First, I extend my heartfelt sympathy to the families of Simon Hillier and Stewart Staples, whose lives were taken in the terrible incident at SP Plastics in the constituency of my hon. Friend the Member for Stafford (Jeremy Lefroy) on 30 October 2014. He will acknowledge that, as there is an ongoing police-led investigation, I will not be able to comment further on it in my response today. However, Health and Safety Executive officials would welcome the opportunity to meet my hon. Friend once the coroner’s inquest has concluded. That would provide an opportunity to consider the findings in full and whether any further work is needed to help reduce the risk of similar incidents happening again.

The prevention of accidents with the potential to cause extensive harm to workers, members of the public and the environment remains a key Government priority. In the past 10 years, there have tragically been three significant incidents involving firework-licensed sites where people have died. Although that is a relatively low number, the consequences can clearly be catastrophic and, as in the case of the incident in my hon. Friend’s constituency, devastating to the families involved. There is, therefore, no room for complacency.

I reassure my hon. Friend that the Government are committed to making sure that the health and safety requirements in this area are robust, to enable businesses to effectively control their risks. Businesses in Great Britain must have a licence to manufacture or store quantities or types of fireworks that are considered to be of higher hazard. That is in line with their potential for harm. As my hon. Friend has said, in Great Britain the responsibility for issuing licences to business that wish to store fireworks or, indeed, other explosives is split between the local licensing authorities, which can issue storage licences for 2 tonnes or less, and HSE, which issues storage licences for more than 2 tonnes as well as licences to manufacture.

I shall talk first about the role of local licensing authorities. If any business wishes to store 2 tonnes or less of fireworks, or of other explosives, it must apply for a licence from the appropriate local licensing authority. The authorities require applicants to be “fit people”, and for them to supply accurate details of the types of activities being carried out; the types of fireworks or other explosives being manufactured or stored; and plans of the site. That helps to ensure that the authorities have a clear picture of what businesses are requesting the licences for and whether there are any issues that need further consideration.

Local authorities can grant licences only where predetermined legal separation distances between explosives and people are met, making sure that potentially higher-hazard licensing requests are referred to the explosive specialists at HSE. The licensing authority can revoke a licence if there is a change in circumstances that means that the person holding the licence is no longer considered fit, or if the site is no longer suitable. In addition, to acquire, or acquire and keep, certain types of explosives, the licence holder must have an explosives certificate from the police.

My hon. Friend has asked whether it would be more appropriate for the fire service to issue licences for larger traders. Licences to store smaller quantities of fireworks are issued by local licensing authorities, which include local council trading standards, fire authorities and the police. Local authorities are best placed to make decisions about licensing, as they understand, and are able to reflect, local concerns and requirements. HSE offers guidance to local authorities to support them in their assessments, and works closely with partner licensing authorities to ensure that the licensing framework is applied appropriately.

In Great Britain, if any business wishes to manufacture explosives or to store more than 2 tonnes of fireworks or other explosives, it must apply for a licence from HSE, which requires details of the types of activities being carried out; the fireworks or explosives being manufactured or stored; plans of the site; and the proposed distances between the fireworks or other explosives and people. HSE’s explosives inspectorate considers the suitability of the applicant and of the site and whether the application can be progressed. HSE-issued licences must have the agreement of local authorities. That enables local communities to highlight local factors and make sure that specific information regarding location and proximities is considered.

My hon. Friend raises an interesting point about whether the levels of scrutiny are appropriate for the risks, and queries whether the 2-tonne threshold for HSE-issued licensing is correct. I am reminded, given the time of year, that the amount of explosive to be used in the gunpowder plot was 2.5 tonnes.

The thresholds for licensing come from a long-standing historical approach first introduced under the Explosives Act 1875. The thresholds were reviewed in 2002 and were considered still to be valid. I have extended to my hon. Friend the offer to meet the Health and Safety Executive to discuss such concerns, and I encourage him to do so. That will provide him with the opportunity to raise the issue of the 2-tonne threshold directly with the HSE.

My hon. Friend expressed concerns that business insurance policies for companies storing or manufacturing fireworks are not sufficient. Specifically, he suggested a requirement to protect third-party businesses from damages caused by any firework-related incident. Over the years, Parliament has legislated to require compulsory insurance for specific categories of risk, such as liabilities incurred by those using a motor vehicle on a road or in a public space. Businesses that employ staff are legally required to have employer liability compulsory insurance to provide redress for employees against bodily injury, illness or disease sustained in the course of employment. In addition to those requirements, businesses such as a firework display operator must have valid liability insurance.

The explosives and fireworks licensing framework focuses on the health, safety and security of the licensed premises and the impact on the surrounding community. Consequently, that health and safety legislation does not extend to cover business insurance requirements for licensed premises. However, I have already made the commitment that HSE officials would welcome the opportunity to meet my hon. Friend once the coroner’s inquest into the SP Fireworks incident has concluded to consider the findings in full.

My hon. Friend suggested that we should introduce a requirement for licensed businesses to inform neighbouring businesses of, and display, the fact that fireworks are stored on their premises. The HSE licence approval process requires businesses to notify local communities that they are applying for a licence. Applicants must publish a notice in a local paper stating: they are applying for a licence; they are inviting any representations on the application; and how the application may be inspected. Applicants should also write to or leaflet those affected. That helps to inform neighbouring businesses, communities and residential properties.

I note carefully the specific impacts that my hon. Friend described on companies in his constituency, including River Canal Rescue. He made some cogent arguments about what can go wrong when there is a lack of adequate information or separation from other businesses. I congratulate River Canal Rescue on its success in continuing to employ apprentices, which is such an important part of ensuring that our young people can go on to fulfilling careers. However, I have noted carefully what he said about the difficulties it has faced, which indeed many companies can face in emergency situations.

The Government strategy for regulators is set out in the regulators’ code, which requires regulators to ensure that they take proportionate approaches to regulation in line with the level of risk. The principles of the regulators’ code are applied by HSE’s explosives licensing team, with sites undergoing targeted interventions, including inspection. HSE has an effective enforcement policy statement and has developed an enforcement management model that aligns to the Government’s better regulation principles. Similarly, local licensing authorities also adopt a risk-based approach to targeting health and safety interventions. This principle-based framework is set out in the published local authority national code.

My hon. Friend has suggested that bodies responsible for licensing should conduct unannounced checks on premises and receive specific training in fireworks. As I have mentioned, the HSE works closely with local authorities and the industry to ensure that the licensing framework is applied appropriately. Licensing authorities use a number of intervention approaches to regulate and influence businesses, including the provision of advice and guidance, and both proactive and reactive inspection.

The Government fully recognise the importance of ensuring suitable licensing requirements for fireworks and other explosives. The Health and Safety Executive works extensively with explosives and fireworks industries to support compliance with the law. The HSE regularly engages with industry stakeholders and has developed guidance with the industry. The existing licensing framework aims to make sure that, where businesses comply with the licence conditions, the risks of an uncontrolled explosion occurring are greatly reduced. Where businesses fail to meet these requirements or harm occurs, regulatory action is swift.

As I have already mentioned, the Health and Safety Executive is undertaking a review of explosives licensing as part its ongoing commitment to continual business improvement, and to ensure that the framework is fit for purpose. The review will look at how the HSE’s licensing approach can be improved and whether any possible burdens on business can be reduced while maintaining standards of safety. It will involve input from industry, other Departments and other regulators, including local authorities, which will provide my hon. Friend and other hon. Members with an opportunity to feed into the process.

We have heard my hon. Friend’s specific areas of concern, but there may well be others. The review is certainly a chance to scrutinise the current system. The concerns he has raised include those about the 2-tonne limit on local authority, as opposed to HSE, licensing and about the categories of fireworks, which is very important. However, there may also be other areas, such as the secondary manufacture or fusing of fireworks, which often takes place in companies seeking to put on professional displays.

My hon. Friend raised the concern that licensing should be required for any business in Great Britain manufacturing or storing hazardous quantities or types of fireworks. I hope he is reassured by my response that this is already the case. I thank him for bringing these important issues to our attention. Again, I would like to extend my sincerest condolences to the families of Simon Hillier and Stewart Staples. My officials would welcome the opportunity to meet my hon. Friend to discuss the coroner’s findings once the inquest has been concluded, and to consider any areas of further work.

Question put and agreed to.