Labour Market Activity

Charlotte Nichols Excerpts

Tuesday 28th February 2023 Commons Chamber

[Mel Stride]

I think the main point—I do not know the specific example to which the hon. Gentleman refers—is that under UC the whole driving principle is that work always pays. As someone gets into work, the benefit is tapered away, but none the less work always pays. That is why we are looking, in part at least, at these very low levels of unemployment and very high levels of paid employment.

[Charlotte Nichols (Warrington North) (Lab)]

The Secretary of State says that work always pays, so why is the clawback rate for universal credit so high? The effective rate of tax for every pound someone earns when on universal credit is about 73%—far beyond what any of us pay in here, and we are in the top 5% of earners in this country. Why does he think it is fair that someone on universal credit should be paying an effective rate that is so high, given the clawback?

[Mel Stride]

It is true that at certain levels of income, marginal tax rates are very high. To improve that situation, we have reduced the taper from 63% to 55%. I would like us to go still further, and if we had the finances we would almost reduce it altogether, but that is not the reality of where we are. None the less, a substantive point remains that people are always better off under UC if they are in work, within the UC benefit environment.

--- Later in debate ---

[Mel Stride]

If the hon. Lady would drop me a line about the point she raises, I would be very happy to raise that specifically and to consider it myself as well.

Could I turn to economic inactivity, and to disability and sickness? This Government have been acting, and we will come forward with further measures very shortly, which I am sure will be of interest to the right hon. Member for Leicester South (Jonathan Ashworth). For example, our Work and Health programme has now been extended to September 2024, bringing an extra 100,000 people into support. We have rolled out health adjustment passports to facilitate more structured conversations between those seeking work, those seeking to employ them and employees in jobcentres. We have been co-locating employment advisers alongside therapists in NHS talking therapies. For those with autism, which is often a very considerable barrier to employment, we have funded no less than 28 different initiatives across local authorities.

[Charlotte Nichols]

I am very interested in what the Secretary of State says about the links between poor mental health and economic inactivity, but one thing I find particularly surprising in this context is the fact that the Government—the Home Office in particular—are specifically blocking research into new therapies and new medicines. Would he perhaps have a word with the Home Office, and get it to reschedule the drugs that we could be looking at for curing people with such conditions?

[Mel Stride]

The hon. Lady is tempting me to plunge into the Department of Health. I certainly hear what she has to say, but let me make a general point about mental health. The most important thing—and, to be fair, the right hon. Member for Leicester South made this point—is that we intervene at the point in the health journey that is as close to the labour market as possible and that we do so as early as possible. What we know is that the longer we allow those conditions to develop and persist, the more difficult it becomes to bring those individuals back into the workforce. That is very much at the heart of the approach I am taking in the work I am carrying out at the moment.

We are also providing more support to those who are waiting in the work capability assessment queue, promoting Disability Confident among employers and promoting Access to Work with disability employment advisers up and down the country. All of that has led to 1 million more disabled people in work since 2017, meeting our 1 million target five years early.

Looking to the future, the White Paper probably contains lots of ideas on health and disability that the right hon. Member for Leicester South has pre-empted and pre-judged—perhaps he has come to similar conclusions to those that we have already come to but are unable to speak about at the moment—so he should be a little patient.

On those in early retirement, who have increased significantly in recent times, we have taken action: with a £20 million fund we substantially increased the number of one-on-one sessions in jobcentres; we focused on skills, rolling out 50-plus champions across jobcentres up and down the country; our midlife guarantee ensured that those in that age group are confident in seeking work, understand their potential skills gaps and, critically, have looked closely at finances so that they know whether they can survive comfortably through to the end of their lives or perhaps would benefit from taking on some work. I will have more to say about the over-50s in time.

--- Later in debate ---

[Charlotte Nichols (Warrington North) (Lab)]

The Business, Energy and Industrial Strategy Committee, of which I am a member, took evidence on supporting people into work only last week. A few issues stand out, which I want to raise. We need to address people’s opportunity to work, their ability to work, and their prospects for work. For all the hand-wringing about the challenges of getting over-50s into employment, the barriers are widely known. Caring responsibilities dominate the lives of many people who simply do not have the option to take up a full-time job or longer hours. Indeed, many people in their 50s are caregivers in both directions: to their children or grandchildren, and to older relatives.

Only the Government can address this issue by finally tackling the two areas they have so long claimed to have answers for: childcare and social care. A number of right hon. and hon. Members have forcefully made the case for tackling those areas today, but the Government have not yet acted, despite 13 years in office. With one in four adults experiencing mental illness, long-term mental health conditions and chronic pain conditions keep far too many people from reaching their potential. They are burnt out and, in many cases, unable to contribute.

There is so much more we can do to support people and give them the tools to overcome their health challenges, such as the exciting international research into the potential benefits that psilocybin can bring to people suffering mental ill health, including treatment-resistant depression. We are stuck behind the curve, and I call once again for the Government and the Minister to make representations to the Home Office to that effect—to reschedule psilocybin, so that our universities and scientists can bring the UK to the forefront of this research that can offer hope of ending people’s enduring misery. Similarly, much chronic physical pain may be addressed through cannabinoids, and it is in the power of Ministers to make those more available in order to improve the conditions of people’s lives and enable them back into work.

But what jobs are available for people to begin, move into, or return to work in? One in six new jobs are in the hospitality sector, which offers flexible opportunities and is welcoming for marginalised groups, including former prisoners and people with learning disabilities. However, that sector has struggled to return to pre-pandemic levels, and soaring energy bills remain a terrifying prospect, not least for our pubs. Without a sector deal for hospitality to maintain those businesses and the millions of jobs within them—without people having the ability to take those jobs up—all these debates about increasing the workforce will be hollow. I call on the Government to address those three challenges, and to look at what they can do to restore the union learning grant, so that we can actually have lifelong learning in this country again.

[Madam Deputy Speaker (Dame Rosie Winterton)]

I call the shadow Minister.