Oral Answers to Questions

Lord Grayling Excerpts

Monday 18th July 2011 Commons Chamber

[Jeremy Lefroy (Stafford) (Con)]

5. What recent progress he has made on delivering the Work programme.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

The Department for Work and Pensions completed the launch of the Work programme by the end of June and it is now operational in all parts of the country. I have now visited a number of the providers and their centres and I am pleased to see the progress they are making.

[Karl MᶜCartney]

I welcome the Government’s measures to help unemployed people in my Lincoln constituency, but what assurances can my right hon. Friend give me that the Work programme will provide my constituents with sustainable, meaningful and long-term employment?

[Chris Grayling]

There are two things about the Work programme that will help my hon. Friend and his constituents. First, the providers are free to deliver whatever solution works for the individuals—a crucial difference to past programmes—and, secondly, they are rewarded not simply for getting people into work but for sustaining them in work for periods that can be as long as two years and three months. I hope that will deal with the challenges in the labour market in my hon. Friend’s constituency.

[Jeremy Lefroy]

On Friday, we welcomed the Minister to the Stafford jobs fair and the Shaw Trust in the Stafford constituency. How extensive is the role he foresees for the voluntary sector in providing the Work programme?

[Chris Grayling]

The voluntary sector has a crucial role to play in two ways. First, we have a wide range of voluntary sector organisations contractually involved in the Work programme, delivering support to the long-term unemployed. I also believe that a local community activity such as the excellent jobs fair that my hon. Friend organised in his constituency, together with Stafford Works, is an ideal example of how Work programme providers and the local community can work together to deliver real back-to-work support for the unemployed.

[Dame Anne Begg (Aberdeen South) (Lab)]

Early indications would suggest that the numbers being referred to the Work programme are much higher than many of the providers expected under the contracts they signed. What guarantee does the Minister have that people will not sit on the Work programme without any intervention for some time until the providers gear up to have the staff to deal with the numbers they face?

[Chris Grayling]

The hon. Lady is absolutely right. It is a marked contrast to the start of the flexible new deal under the previous Government when providers went for weeks and weeks without people being referred. I am very encouraged by the start of the Work programme and by the response of providers, which are contractually obliged to provide minimum levels of support to people who are referred. As far as I can see, that is precisely what is happening: support is starting and is working well. There are courses, support and learning taking place up and down the country.

[Mr Frank Field (Birkenhead) (Lab)]

Should we hold out much hope for the Government’s Work programme if the Government are not successful in meeting their immigration target?

[Chris Grayling]

The right hon. Gentleman has raised the issue of migrant labour on many occasions. It is a challenge for Work programme providers to make sure they can deliver a work-ready work force to potential employers in areas such as his constituency to take advantage of the excellent opportunities that exist in companies such as the Contact Company, for example, which I visited recently. I strongly believe that if providers get local workers ready for the work force, they will be taken up eagerly by local employers.

[Robert Halfon (Harlow) (Con)]

Does my right hon. Friend agree that one of the best ways of getting people back into work is through apprenticeships? Will he ensure that the Work programme is linked carefully into the Government’s apprenticeships scheme?

[Chris Grayling]

I absolutely agree. One of the most important steps the Government have taken has been significantly to increase the number of apprenticeships available, particularly for young people. It is absolutely clear under the Work programme agreement that a successful placement in an apprenticeship counts as a job outcome under the Work programme. I hope that will mean there is a clear link between the two.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

Steve Kerr of the London Voluntary Service Council has questioned whether the Work programme

“will succeed…or simply make matters worse through sidelining the voluntary sector.”

What action is the Minister taking so that the voluntary sector does not continue to feel sidelined through the Work programme?

[Chris Grayling]

The hon. Lady is absolutely wrong. The voluntary sector is not being sidelined. On Friday in Stafford I visited the Shaw Trust—a major voluntary sector organisation that is already delivering support to people under the Work programme. There are many other organisations such as Groundwork delivering support right across the spectrum and there is specialist help available from some of the specialist groups. The Work programme has been designed to attract best practice, of which there is much in the voluntary sector. That is why it is such an important part of the Work programme.

[Stuart Andrew (Pudsey) (Con)]

6. What recent steps he has taken to increase employment opportunities for disabled people.

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[Duncan Hames (Chippenham) (LD)]

9. What plans he has to issue guidance to prospective applicants on the evidence required from them to receive employment and support allowance.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

ESA claims are normally made by phone. A statement is then sent to the claimant setting out any additional evidence necessary to support the claim. If claims are made using a clerical form, notes are provided about evidence that may be required. There are no current plans to issue further guidance, but this is constantly kept under review.

[Duncan Hames]

I thank the Minister for that answer and am pleased to know that this is under review. Answers to my written parliamentary questions show that in Chippenham nearly half of all unsuccessful applicants who appeal win their cases at tribunal, in some cases by presenting evidence that they did not know they were to produce when they first made their application. Does the Minister recognise that these successful appeals are a costly process that do not represent value for money for the taxpayer and cause unnecessary heartache and hardship for the people concerned?

[Chris Grayling]

I absolutely agree with my hon. Friend and want to see fewer cases going to appeal. This is one reason why we have stepped up the reconsideration process in Jobcentre Plus, so after the initial decision is made we actively seek out further evidence, if such evidence exists, and use it to reconsider our decision. I hope and expect to see the number of successful appeals reduce significantly as a result.

[Ms Karen Buck (Westminster North) (Lab)]

Local Jobcentre Plus officials have advised me that there is already a significant delay in the work capability assessment test in my local area because the assessments are taking around twice as long as was originally predicted. Can the Minister reassure the House that this is not the situation across the whole country and that there is no backlog in the work capability assessments, with all that that would imply for claimants and for the service?

[Chris Grayling]

We have remained on schedule to start the process for individuals. It is not the case that assessments are taking twice as long. There is an early element of bedding in for the personalised statement, as was recommended by Professor Harrington, but we are not aware of any long-term factors that would change the timetable for the whole reconsideration process.

[Mike Crockart (Edinburgh West) (LD)]

10. What assessment he has made of the effectiveness of user groups in assisting people with disabilities to obtain work through the Work Programme.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

I regard the role of specialist organisations and specialist user groups as extremely important for the delivery of the Work programme. They, above all others involved, will be able to provide the specialist support that individuals with particularly serious challenges in their lives face in trying to get into the workplace.

[Mike Crockart]

I thank the Minister for his answer. However, given that only 230 disabled people secured work through residential training colleges last year, at an average cost of £78,000 per person, will the Secretary of State commit to implementing the recommendations as set out in last week’s Sayce review on allowing such colleges to develop as centres of excellence and to adapt their provision to operate directly in provider markets—for instance, as subcontractors in the Work programme?

[Chris Grayling]

We are considering the Sayce recommendations and have not yet formally responded about our decisions on whether to adopt most of them. However, my hon. Friend makes a sensible point. I have visited the Queen Elizabeth Foundation for Disabled People near my constituency in Surrey, where I said to people that I would encourage them to look to see whether they can enter the Work programme to provide specialist support as subcontractors. I hope that all the colleges will consider taking such an approach.

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

11. Whether key suppliers to his Department are required to consult him on any planned relocation of jobs abroad.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

Let me start by saying that we will not offshore any DWP jobs. I share the hon. Lady’s concerns regarding work being done offshore by suppliers. Many of the Department’s subcontractors began using some offshore staff under the previous Government. The Department is exploring how future offshoring can be minimised and whether jobs currently offshored could potentially be moved back to the UK in future.

[Chi Onwurah]

I welcome the Minister’s reply. As he no doubt knows, the north-east has some of the highest unemployment rates in the country. Hewlett Packard’s decision to offshore jobs in Newcastle supplying his Department with IT will not help matters. Santander recently announced that it is bringing all its call centres back to the UK following pressure from customers. As Hewlett Packard’s customer, what concrete steps is the Minister taking to achieve the same result?

[Chris Grayling]

I have already had a meeting with Hewlett Packard to discuss the issue, and I expect to have another such meeting shortly. The hon. Lady refers to call centres. All the Department’s call centres are sited in the UK. We have the biggest virtual contact centre in Europe, and it is very good, I believe; I applaud the professionalism of the staff who work in it. I would expect to see many similar offshore centres return to the UK in future, because, in my view, British-based staff are the best contact centre staff.

[Jessica Morden (Newport East) (Lab)]

12. When he plans to publish proposals for supporting childcare through universal credit.

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[Brandon Lewis (Great Yarmouth) (Con)]

16. What steps he is taking to support young people into work.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

We are doing three things to help young people into work. Our work experience scheme will provide an opportunity for up to 100,000 young people to get their first taste of the workplace over the next two years. We have launched tens of thousands of new apprenticeships that are designed to build a career for young people. Through the Work programme, we are providing specialist back-to-work support for those who are struggling to get into work, the longer-term unemployed and those who come from the most challenging backgrounds.

[Brandon Lewis]

In an area like Great Yarmouth, which has above average unemployment and in some cases third generation unemployment, those projects are hugely important in getting young people back into work. To help promote the opportunities for businesses, will the Minister outline how many people have undertaken and will undertake work experience this year?

[Chris Grayling]

The latest figures show that at the end of the first quarter, give or take, about 10,000 young people had so far benefited from our work experience scheme. Employers have so far committed to provide about 35,000 places. I am very optimistic that the scheme will deliver real opportunities for young people, some of whom have started to get into work through the placements.

[Julie Hilling (Bolton West) (Lab)]

Unemployment in the ’80s and ’90s was devastating for young people and gave us a generation with no jobs, no hope and no future. Has the Minister evaluated how much long periods of unemployment for a young person cost the UK economy?

[Chris Grayling]

There is no doubt that long periods of unemployment for young people are damaging both economically and to them personally. The hon. Lady will therefore welcome the fact that youth unemployment is lower today than it was at the time of the general election. I hope and believe that the specialist support that we are providing through the Work programme, the placements that we are providing through our work experience scheme and the extra apprenticeships for young people will make further inroads into that total.

[Jason McCartney (Colne Valley) (Con)]

I had the pleasure of visiting a small engineering business in Meltham a week ago. It has a big contract for making the suspension for the Ocelot Land Rover, and it is going to employ an extra 50 people over the coming 12 months. Can we learn lessons from the previous Government, who left power with 250,000 more young people unemployed, so that we can ensure that as private companies expand and take on workers, they give real emphasis to employing young people?

[Chris Grayling]

My hon. Friend is absolutely right, and that is why the extra apprenticeships that we have launched are so important. His experience is the same as that of my hon. Friend the Member for Stafford (Jeremy Lefroy)—who is no longer in his place—at whose jobs fair several leading engineering companies were looking for young people. If we deliver the apprenticeship opportunities, the private sector is out there ready to create the jobs for young people.

[John Robertson (Glasgow North West) (Lab)]

With people living longer and being employed in jobs longer, with people coming in from outside this country and taking up the cheap labour jobs, and with there being no law in effect that means that anyone taking up an apprenticeship has to be below a certain age, what is the right hon. Gentleman going to do in the years ahead to ensure that young people get employed?

[Chris Grayling]

The hon. Gentleman is, of course, describing some of the failings of the previous Government. What we have to do is ensure that we have a work-ready, well-trained work force of all ages, ready to take advantage of the opportunities that arise, when they arise. We can do that through more apprenticeships, through the specialist support in the Work programme, and through work experience placements that give young people their first taste of the workplace. I am delighted to say that youth unemployment is lower today than it was when his party left office.

[Gavin Barwell (Croydon Central) (Con)]

17. How many people have entered employment as a result of the Work programme.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

The Work programme was launched last month and has long-term goals. Sustained jobs, not quick fixes, are what will change people’s prospects, particularly for those who are long-term unemployed. That is what the Work programme will pay for. The Department expects to release statistics on referrals to the Work programme from spring 2012, and on job outcomes lasting three or six months from autumn 2012.

[Gavin Barwell]

During the last recess I spent several days in my local Jobcentre Plus office and saw for myself the contribution that a number of small voluntary organisations are making to getting unemployed people back into work in my constituency. Can my right hon. Friend assure me that, as part of the Work programme, there will still be a role for such small local voluntary organisations?

[Chris Grayling]

I absolutely can give my hon. Friend that assurance. There are about 500 organisations from the voluntary sector involved, large and small, ranging from the Prince’s Trust and similar-sized organisations through to local projects such as a walled garden project in Yorkshire. There is space for any organisation that delivers excellence in getting people back to work, and those that are really good at doing it have every reason to become involved in a payment by results approach.

[Hywel Williams (Arfon) (PC)]

What steps are the Government taking to respond to the local variability in job opportunities, so that people are not penalised in the benefits system merely because jobs are not available in their area?

[Chris Grayling]

One of the things that we expect the Work programme providers to do is match individuals to vacancies. Even in Wales, as we know from the debate that the hon. Gentleman and I had last week, there are a significant number of vacancies. There has been private sector growth in the past few months, and unemployment has fallen. We have to ensure, through the work of Jobcentre Plus and the Work programme providers, that people on benefits take advantage of opportunities when they arise.

[Richard Harrington (Watford) (Con)]

Several Members have mentioned jobs fairs in their constituencies. We had one in Watford two weeks ago, to which 5,000 people came and at which more than 600 jobs and apprenticeships were on offer. As we speak, three weeks later, 50 jobs and 30 apprenticeships have been offered, predominantly to young people. As the fair was organised with Jobcentre Plus and seems to be a formula that helps, at no cost whatever to the taxpayer, is the Minister prepared to circulate the idea to other Jobcentre Plus offices and assist in organising such events?

[Chris Grayling]

Absolutely, and I pay tribute to my hon. Friend for his work. There have been a series of successful jobs fairs in Enfield North, in Stafford, in Reading East and now in his constituency. I would say to Members on both sides of the House that they are a really good way of bringing together local employers, local unemployed people and others who can help them, and Jobcentre Plus and the Department will help any Member of Parliament who seeks to get such a fair up and running.

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

18. Whether he plans to review his proposal to extend the personal independence payment qualifying period from three to six months.

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[Bill Esterson (Sefton Central) (Lab)]

20. What estimate he has made of the number of people diagnosed with cancer who are in the work-related activity group of employment and support allowance and have claimed it for over one year.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

In November 2010, the latest month for which we have figures available, there were 1,730 people receiving employment and support allowance for over one year in the work-related activity group where the primary condition was recorded as neoplasms—that is, people diagnosed with cancer.

[Bill Esterson]

Many cancer patients receive treatment for more than a year, and face losing their employment and support allowance while still receiving treatment. How many people receive cancer treatment for more than a year, and would therefore lose ESA under the Government’s plans?

[Chris Grayling]

Under the changes that we have introduced, more people suffering from cancer will be in the support group receiving ongoing unconditional support than was the case under the previous Government. The changes that we have made to contributory ESA are a direct consequence of the previous Government’s financial mismanagement. We have had to take some tough decisions on budgets, and this is one of them. We have formed the view that if people have other financial means available we cannot continue to pay them ESA indefinitely. That is a natural consequence of the failings of the hon. Gentleman’s party, not a choice we would have wished to have to make.

[George Hollingbery (Meon Valley) (Con)]

Will the Minister reconfirm his commitment to examine whether people on oral chemotherapies should automatically be placed in the support group, rather than in the work-related activity group as they currently are?

[Chris Grayling]

I am pleased to tell my hon. Friend that we have now received proposals from Macmillan Cancer Relief and Professor Harrington that contain some valuable suggestions and ideas. We have not finished our consideration, but we hope to make an announcement shortly.

[Caroline Nokes (Romsey and Southampton North) (Con)]

21. What steps he is taking to prevent disagreements between parents in their dealings with the Child Support Agency.

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[Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)]

On 11 July the Minister of State, Department for Work and Pensions, the right hon. Member for Epsom and Ewell (Chris Grayling), confirmed that his Secretary of State had seen analysis by the Department for Communities and Local Government suggesting that his benefit cap could make 40,000 people homeless, and actually cost more than it saved. I do not mind who answers this question, but will someone please confirm whether the Minister himself also saw that analysis?

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

No.

[Mr Byrne]

This was a piece of analysis with enormous implications for the way in which the policy was implemented. This piece of work was so important that it was sent to the Prime Minister, the Chancellor of the Exchequer, the Deputy Prime Minister, the Chief Secretary to the Treasury and the Secretary of State. What was it that was so important about that analysis that it was not given to the Minister actually putting the legislation through this House? Will he now ensure that the analysis is produced before the House of Lords reaches the relevant debate?

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[Yvonne Fovargue (Makerfield) (Lab)]

T4. In 2010-11 there was an increase in incapacity benefit and employment and support allowance appeals of 167% on 2008-09 figures, and 50% of incapacity benefit appeals were decided in favour of the appellant. What steps is the Minister taking to ensure that independent welfare benefit advice is available equally across the country, so that the figures do not reduce simply because claimants have no access to advice?

[Chris Grayling]

I hope that the figures will reduce because the quality of decision making within Jobcentre Plus improves as a result of the recommendations made to us by Professor Malcolm Harrington. As the hon. Lady will be aware, we have strengthened the reconsideration process and are telephoning rather than writing to claimants, particularly to ensure that we get better medical evidence. I do not want cases going to appeal; I want them resolved properly, satisfactorily and accurately within Jobcentre Plus.

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[Mr Rob Wilson (Reading East) (Con)]

T5. In April I held a successful jobs fair in Reading, with nearly 2,000 people in attendance and 40 companies offering 1,500 jobs. I will be repeating it in September. What specific improvements in the service offered to them will my unemployed constituents get from the Work programme?

[Chris Grayling]

I congratulate my hon. Friend on being another author of a successful jobs fair project. The Work programme will offer the long-term unemployed in his constituency, including those from the most challenged backgrounds, much more tailored and specialised support, as well as infill training and other support, which will enable them to get into work on a scale and of a quality not seen before. Not only that, but they will be supported to stay in work too.

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[Amber Rudd (Hastings and Rye) (Con)]

I recently led a competition in Hastings to find a young entrepreneur to set up in business, and was amazed and delighted at the quality of the young applicants. Can the Minister assure me that the new enterprise allowance providers will also focus on young people who might not consider themselves to be entrepreneurs, but who often have the energy, commitment and ideas to set up in business?

[Chris Grayling]

I congratulate my hon. Friend on the support that she has been providing to young entrepreneurs in her constituency. It is not simply the new enterprise allowance that will provide support for young people on benefits to set up businesses; many of the Work programme providers are also introducing specialist support, including one that is setting up a microfinance fund for new entrepreneurs. Self-employment is an important route out of unemployment, and we will continue to do what we can to support it.

[Naomi Long (Belfast East) (Alliance)]

Over the last 15 months I have been dealing with a constituent who has raised a complaint against the Child Support Agency about a flawed calculation that it made of payments due. Can the Minister say what the Government will do to address both the opaqueness of the CSA’s processes for dealing with such complaints and the length of time that they take?

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

Unlike prisoners, those detained under the Mental Health Act 1983, including Ian Brady and Peter Sutcliffe, are entitled to receive incapacity benefit. Will the Minister tell the House what the Government intend to do about that?

[Chris Grayling]

I agree with my hon. Friend that that is an anomaly. It is also something that the Department is reviewing as we speak, and we will give more details in due course.

[Mrs Madeleine Moon (Bridgend) (Lab)]

Incapacity benefit reassessments have been causing great distress, and even suicides, among those with mental health problems. Some 95% of those polled said that they did not believe that they could trust the assessment to take their mental health condition into account. What changes will be made to ensure that people with mental health problems will have them taken into account in the work capacity assessment?

[Chris Grayling]

As the hon. Lady will be aware, that was one of the key questions that we put to Professor Malcolm Harrington last year. As a result of his recommendations we have introduced a number of mental and cognitive champions among the providers in the assessment network. We are also considering a range of further recommendations from mental health charities, and we have instructed our decision makers to take careful account of evidence of mental health problems when reaching their decisions.

[Robert Flello (Stoke-on-Trent South) (Lab)]

North Staffs Remploy in my constituency is so successful that it has had to put on an additional shift to meet demand. Indeed, if it were not for the layers of senior management drawing funds out of Remploy like some leech, it would be very profitable indeed. Will the Minister look carefully again at the Sayce report, and at what happens during the consultation, so as to ensure that my constituents who use Remploy, and who say that it is definitely fit for the 21st century, can continue working for it?