Oral Answers to Questions

Lord Grayling Excerpts

Monday 23rd January 2012 Commons Chamber

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

1. For what reasons Work programme contractors are not permitted to publish their performance data.

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

I thought that this afternoon we might have been extensively debating the benefits cap, but no Labour Members have been brave enough to raise the issue; I cannot think why.

The Department is following guidance issued by the national statistician in order to comply with the code of practice for official statistics and to protect the integrity and accuracy of data. However, we propose to allow providers to publish data that do not compromise the official statistics and will issue guidance to providers shortly.

[John Woodcock]

As the Minister knows, under the flexible new deal, providers were allowed to publish their data if they wanted to. If he is confident in his Work programme and knows that he has got the contracting incentives right, about which there is some doubt, why on earth is he refusing to let these providers publish their data if they want to?

[Chris Grayling]

It is precisely because I am keen to get information out there that we are looking at ways to ensure that that can happen, despite the rules about national statistics, which we have to obey very carefully. If the hon. Gentleman wants some statistics about employment programmes, let me share a set with him. The flexible new deal, to which he referred, cost the taxpayer £770 million and delivered 50,000 six-month job outcomes. He can do the maths on that—it amounts to approximately £14,000 per six-month job outcome. That is one failure of the welfare-to-work programmes we inherited, and that is why the welfare-to-work package that we have put together through the Work programme will be better value for the taxpayer and do a better job for the unemployed.

[Mr Julian Brazier (Canterbury) (Con)]

Following that robust answer, does my right hon. Friend agree that when we are able to publish these data, they are likely to show the success of putting work out to contract when we see that organisations such as the Shaw Trust are much better at providing work for disabled people than the work done in-house by the Benefits Agency?

[Chris Grayling]

When I visit Work programme providers —I have now visited most of them—I certainly find a great deal of enthusiasm, a sense of purpose and successful progress. I hope that that will show through in the official statistics when the time arises. I am not in the business of burying good news, and I very much hope that we will be getting the good news about the Work programme out there as soon as we possibly can.

[Stephen Timms (East Ham) (Lab)]

I welcome the U-turn on the publication of data that the Minister has just announced. The White Paper, “Open Public Services”, which was published only last summer, included the following commitment:

“Providers of public services from all sectors will need to publish information on performance”.

So why did he write into the Work programme contract a ban on the publication of performance data by those providers?

[Chris Grayling]

As we can all see, one of the challenges that Labour Members face at the moment is that they are all over the place on policy. On Friday, they were attacking me for allegedly misusing statistics; today they are asking why I am not going round the rules set out for us by the Office for National Statistics. They need to make up their minds about what they really stand for, because at the moment they have no idea.

[Stephen Timms]

The Minister has signally failed to answer the question. We know that he did not ask the UK Statistics Authority, whose rules he regularly quotes, before he imposed this absurd ban. I welcome the fact that he has finally announced a climbdown today, but he cannot blame anyone for asking him what he was trying to hide.

[Chris Grayling]

I have absolutely nothing to hide. I have to say to the right hon. Gentleman, as I have been saying to him for weeks, that I am not in the business of burying bad news. None the less, the statisticians expect us to make sure that we have robust and clear statistics before we publish them. As the Work programme has been going for only six months, and we have barely started to make payments for providers’ success in getting people into work, he is, I am afraid, not portraying the reality of the situation. I am glad that he is pleased that we are going to try to get the good news out there as quickly as possible, but we have to stick by the rules.

[Charlie Elphicke (Dover) (Con)]

Is not the key point that statistics must be first approved by the UK Statistics Authority? Will Ministers ensure that when statistics are available, the success of the benefits cap is also published, with the approval of the UK Statistics Authority?

[Chris Grayling]

I will absolutely do that because, as my hon. Friend knows, we are all about trying to help people out of poverty by getting them back into work. The benefits cap is one part of a portfolio of policies—including universal credit, the Work programme and the migration of people off incapacity benefit—that will deliver the kind of change to our welfare state that we so desperately need and was so desperately lacking in 13 years under Labour.

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

The Minister will be aware that it is expected that the number of claimants on employment and support allowance who are routed to the Work programme will be about 150,000 lower than was expected when the contracts were let. What assessment has he made of the impact on their viability?

[Chris Grayling]

Overall, as the hon. Lady will have seen from the figures that we published before Christmas about expected numbers in the Work programme, we are likely to see more people in the harder-to-help groups go into the programme than was previously expected. However, she will also have seen from the previous sets of statistics on ESA that we have a larger than expected support group, which is partly because of policy changes that we have made in areas such as cancer, addiction and mental health in which we are trying to provide better long-term protection for people who are genuinely vulnerable.

[Nadine Dorries (Mid Bedfordshire) (Con)]

2. What steps he took to consult disabled people and representative organisations on the development of the personal independence payment.

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[David Rutley (Macclesfield) (Con)]

8. What steps he has taken to reduce the level of health and safety regulation affecting business.

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

Britain has the best record in Europe for the prevention of death and serious injury in the workplace. We should be proud of that, and we will seek to retain it under the Government. We also have one of the worst records in Europe for unnecessary health and safety red tape. The Löfstedt report, which we published in November, recommends significant changes to our regulatory regime. We accepted the recommendations and, with other planned changes, we aim to reduce the total number of health and safety regulations by 50% by 2014.

[Jessica Lee]

My right hon. Friend referred to the Löfstedt review. Does he agree that, by returning to a common-sense approach to health and safety legislation, businesses such as mine in Erewash can concentrate on positively contributing to the local economy rather than fearing unnecessary prosecution?

[Chris Grayling]

Absolutely. That is very much our hope. We have already implemented one of the key recommendations of the Löfstedt review. On 1 January, we established the first challenge panel, which will allow businesses that believe that they are on the wrong end of a wrong decision as a result of a health and safety inspection to have a quick, easy and simple way of challenging and, if necessary, overturning it.

[Mr Ellwood]

Is it not the case that a culture of hesitancy, leading to paranoia, developed under the previous Government? That culture saw the term “health and safety” justify bizarre decision making, such as cutting down trees in school playgrounds in case children climbed them, or council office light bulbs being replaced only by those who had completed the “how to use a six-foot ladder” course. I hope that we will see some change from this Government on those issues.

[Chris Grayling]

We hope that a simpler regulatory structure will contribute to that. If we take the example of schools, we have already shortened the forms that need to be filled in for a school trip from more than 120 pages to eight. I encourage every Member of the House, including you, Mr Speaker, to challenge daft health and safety decisions when you come up against them in your constituency. There is almost certainly no basis for them in health and safety law.

[David Rutley]

The average annual cost of compliance with health and safety regulations is more than £4,000 for businesses of fewer than 50 employees. What steps are being taken to reduce further the burden of health and safety regulations on our start-ups?

[Chris Grayling]

That is particularly important. One of the Löfstedt review’s key recommendations was that we should exclude altogether from health and safety rules self-employed people who do not endanger the lives of others in the course of their activities. We have accepted that recommendation and will introduce it shortly.

[Andrew Miller (Ellesmere Port and Neston) (Lab)]

As a member of the Löfstedt review, I can confirm that there is a recommendation that has the potential to reduce significantly the net number of regulations. Will the Minister confirm that the review actually recommends consolidating lots of statutory instruments? It would not remove health and safety regulations and, more importantly, it is not a short, quick fix, but a very long-term systematic study that is needed.

[Chris Grayling]

Let me pay tribute to the hon. Gentleman for his work on that committee—his contribution was much appreciated and greatly valued. He is absolutely right, though I emphasise that there is a mix. Today, we have begun a consultation on scrapping the first seven regulations that we have identified as superfluous or duplicating other provisions. As I said at the start of my remarks, our approach is not about undermining health and safety, which protects people from death and serious injury in the workplace, but about creating a streamlined and simple system that businesses can understand quickly, easily and cost effectively.

[Katy Clark (North Ayrshire and Arran) (Lab)]

The Minister will know that the Health and Safety Executive estimates that, each year, £22 billion is lost in the UK economy because of health and safety failures. Surely any reduction in health and safety regulation risks increasing that figure.

[Chris Grayling]

That does not follow because the Löfstedt review—and the hon. Member for Ellesmere Port and Neston (Andrew Miller)—identified many areas in which the rules and codes of conduct are too complicated and difficult for businesses to understand. We need to get back to a simple regime that is easy to understand and does what it is supposed to do: protect people from death and serious injury in the workplace.

[Sheila Gilmore (Edinburgh East) (Lab)]

Given that the Löfstedt report does not say that our health and safety legislation is either excessive or wrong, will the Minister also say that and stop peddling the myths on health and safety legislation—the Löfstedt report says that they are myths—that some of his colleagues keep peddling?

[Chris Grayling]

The hon. Lady misunderstands the challenge we face. It is not Members of the House peddling myths; they are peddled all around the country, by local authority inspectors and middle managers in organisations who blame health and safety for things that have no basis in health and safety law. If we have a simplified regime that everyone can understand, it is much less likely that they can get away with doing that.

[Stuart Andrew (Pudsey) (Con)]

4. What plans he has to support residential training colleges for disabled people.

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[Grahame M. Morris (Easington) (Lab)]

11. What recent progress he has made on the introduction of the workfare scheme.

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

We do not operate a workfare scheme. I think the hon. Gentleman might be referring to mandatory activity; in which case, I can confirm that we have schemes in place as part of people’s job search. They include mandatory work activity and the community action programme, which is being tested as part of supporting the very long-term unemployed.

[Grahame M. Morris]

May I press the Minister to give a fuller answer to the question that my hon. Friend the Member for Barrow and Furness (John Woodcock) asked a little earlier? Profits at Poundland soared by 34% in 2011, with people on workfare forced to work for free in Poundland stores and being told at the beginning of their placement that there is no prospect of permanent employment, while they carry out the same duties as paid employees. Who is the real beneficiary of workfare: the taxpayer or the shareholder?

[Chris Grayling]

The hon. Gentleman is telling a lot of complete nonsense to the House. The reality is that Poundland is one of many major retailers taking part in our work experience scheme, which is providing young people who are out of work with their first opportunity to get into the workplace so that they can show a potential employer what they can do. More than 50% of young people who go through the scheme move quickly into employment afterwards, including, in some places, with Poundland.

[Nick de Bois (Enfield North) (Con)]

There is a lot of noisy criticism from those on the left about asking people to work in return for benefits. Does the Minister think that they are right?

[Chris Grayling]

My hon. Friend is right; those people keep harking back to the future jobs fund. Let me give the House a simple comparison. The future jobs fund resulted in about half the participants getting into work, at a cost of between £5,000 and £6,000 per placement. The work experience scheme is resulting in more than half the participants coming off benefit and going into work at a cost of about £300 per placement. Which one do you think is better value for the taxpayer, Mr Speaker?

[Mr David Hamilton (Midlothian) (Lab)]

12. What estimate he has made of the number of children who will be living in poverty in 2015.

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[Mr Marcus Jones (Nuneaton) (Con)]

16. What recent progress he has made on the youth contract.

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

Since the launch of the youth contract, we have been engaging with employers, providers and stakeholders to give them an active role in shaping the delivery of the new offer. As a result, employers are now starting to sign up to support the delivery of the youth contract and we remain on track to implement it in April as planned. Let me pay tribute to all the employers that are currently and have committed in the future to offering places in our work experience programme and in sector-based work academies and to offering in other ways to support what we are trying to achieve.

[Mr Jones]

I thank the Minister for his response. I welcome the youth contract and I am sure it will help many of our young people into employment, but having spoken recently to a number of local business people, particularly from small businesses, I have concerns about the general level of awareness of the policy. Will my right hon. Friend assure me that he is doing all he can to raise awareness of this crucial policy with employers?

[Chris Grayling]

I can indeed. I met representatives of the major business representative groups a few weeks ago. Communicating with individual businesses is certainly a challenge but we aim to do everything we can to ensure that employers are taking up the wage subsidies available from April. It is worth noting that later this evening we will debate the Opposition’s plans to create 100,000 supported jobs, but that through the wage subsidies in the youth contract we are offering a similar opportunity to 170,000 young people.

[Jack Lopresti (Filton and Bradley Stoke) (Con)]

17. What progress he has made in assisting members of troubled families into employment through the use of payment-by-results programmes.

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

We launched the programme before Christmas, funded by European social fund money. This is the second major foray that this Government have made into payment by results, and I am confident that the payment-by-results approach, combined with the support that is available to those families if they move into the Work programme, will provide a transformational level of support in the lives of some of our most challenged families.

[Jack Lopresti]

I thank my right hon. Friend for his answer. Given that past Governments have not had great success at helping certain families get back into work, why does he think his approach will be more successful?

[Chris Grayling]

The big difference is that we are adopting the payment-by-results approach. The organisations taking part in the programme can be paid only at certain points—first, when they agree an action plan with one of the individuals in a problem household; secondly when they deliver that action plan, which might mean the person completing a training course or something similar; and thirdly when that person gets into employment. The taxpayer does not pay the bill unless that happens, and that is a much better deal than ever happened under the previous Government.

[Kerry McCarthy (Bristol East) (Lab)]

In Bristol, we had the pilots for family intervention projects that involved working with families who had a multitude of problems to tackle some of these issues. Does the Minister accept that this is not just about working through one Department such as his own? Other Departments such as the Department of Health and the Department for Education, as well as drugs funding, will need to be supported if we are to succeed in tackling these problems.

[Chris Grayling]

I absolutely do that. Two points regarding the contracting of this support are crucial to what the hon. Lady says. The first is that referrals come from local authorities so that they know they are taking people from their problem family register and are not duplicating effort. Secondly, the contracting was based very much around the effectiveness of the firms in the bidding process at showing they could form the kind of partnerships that she rightly says are so important.

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[Mr Andrew Turner (Isle of Wight) (Con)]

T4. Will my right hon. Friend tell me what the Government are doing about migrants who live in the UK and claim benefits without working or paying tax? Will the Government consider recording the nationality of benefit claimants?

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

I can confirm that we will record the nationality of benefit claimants when universal credit is introduced in 2013. I also confirm to my hon. Friend that where we have identified people who have a question mark over their benefits and immigration status, investigations are already under way. For 27% of the people whom we looked at in our data matching process, we are not yet able to make a match between benefit claimant status and immigration status. We will continue to do detailed work to make sure that there is not a hidden problem, left behind by the previous Government, relating to benefit tourism and inappropriate claims.

[Several hon. Members]

rose—

[Hugh Bayley (York Central) (Lab)]

T2. The benefits bill this year will be some £15 billion higher than in the last year of the Labour Government, and that costs about £600 per family per year. What will the Government do to cut unemployment, which is what is pushing up the benefits bill so fast?

[Chris Grayling]

Of course, we will debate this again tonight, but as I keep saying to the House, we will sort out the problems in our public finances to deliver stability in our economy. We will deliver the best possible support to business through the various measures that we have introduced, including enterprise zones and changes to the tax system. Through the Work programme, our work experience scheme, and the youth contract, we will deliver the best possible support to get the unemployed back into the workplace.

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

T9. My constituent, Dr Christine Davies, has contacted me with examples exposing the unfairness of Child Support Agency arrangements, which often fail to take into account the living costs of the non-resident parent. These are parents who are trying to engage with their children and do the right thing, but who are left to live on as little as £30 a week. What are Ministers doing to deal with this unfairness?

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[Katy Clark (North Ayrshire and Arran) (Lab)]

T7. The disability advocacy group Black Triangle has said that 11 disabled people have committed suicide in circumstances in which the coroner said that it was as a result of assessments as part of the work capability assessment. Is that figure right? Can the Minister advise whether he has looked into what legal liability the Government may have and, in particular, whether there is exposure under the corporate manslaughter legislation?

[Chris Grayling]

It is always a matter of regret when any person on benefits or indeed any person at all commits suicide. We always look carefully at reports that suggest any link between anything we do and people finding themselves in such a position. Let us be clear: the principle of trying to help back into work people who have been on benefits long-term is very important in supporting people who have mental health problems. If we do not reassess people, we will never be able to identify those who can benefit from that help.

[Margot James (Stourbridge) (Con)]

Average earnings in my constituency, Stourbridge, are £23,700 a year, on which there is a tax liability of some £5,000. Does my right hon. Friend agree that to oppose or to equivocate on the policy of a cap on benefits is an outrageous insult to all hard-working people in this country?