Oral Answers to Questions

Damian Green Excerpts

Monday 20th February 2017 Commons Chamber

[Peter Grant (Glenrothes) (SNP)]

23. What assessment he has made of the effect of the benefit cap on households in Scotland.

[The Secretary of State for Work and Pensions (Damian Green)]

Work is the best route out of poverty, and the benefit cap has been successful in encouraging people into work. Since its introduction, almost 62% of households in Scotland have found work, reduced their housing benefit claim or no longer claim housing benefit at all after having their benefits capped.

[Martyn Day]

Does the Minister agree with paragraph 90 of the fiscal framework, which states:

“The Governments have also agreed that the UK government’s Benefit Cap will be adjusted to accommodate any additional benefit payments introduced by the Scottish Government.”?

[Damian Green]

Of course we agree with the fiscal framework—the Government drew it up, in conjunction with the Scottish Government. The Scottish Government already have extensive benefits powers if they wish to introduce them, but the fact that they do not is a matter for the hon. Gentleman to take up with his colleagues in that Government.

[Peter Grant]

Writing in today’s Daily Record, Scotland’s First Minister has commented that the Scottish Government have yet to receive “confirmation” from the UK Government that when we abolish the bedroom tax the benefit cap will not be applied. Will the Secretary of State take this opportunity to guarantee that there will be no clawback of social security funding when Scotland abolishes the hated bedroom tax?

[Damian Green]

I can only refer the hon. Gentleman to the answer I gave the hon. Member for Linlithgow and East Falkirk (Martyn Day), because it is for the Scottish Government to take these decisions. They have the power to give benefits, increase benefits and make supplementary payments beyond the benefits available throughout the UK. It is noteworthy that they fail to exercise those powers and Scottish National party Members come to this House to complain about benefits in Scotland, despite having the power to do something about it themselves.

[Frank Field (Birkenhead) (Lab)]

I support the Government’s strategy in this area, but does the Secretary of State accept that those who support it have concerns about what might be happening, certainly in the short run, to families so affected? What research is he carrying out to make sure that those who can move into work do so and that those who cannot do so are looked at sympathetically?

[Damian Green]

The right hon. Gentleman makes a characteristically reasonable point, to which I make two responses. The first is that those who are put into hardship have available to them discretionary housing payments, which have been extensively used by local authorities throughout the country precisely to avoid the problem that he suggests. Secondly, on the other point he makes, some of the research we have done shows that households that have been capped are 41% more likely to go into work than similar, uncapped households. So the policy is very successful in encouraging people to get back to work, which of course is the best thing for them in the long run.

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

During the passage of the Scotland Bill, UK Ministers gave me and others clear assurances that any income derived from new benefits or top-ups introduced by the Scottish Government using new powers would not simply be clawed back from claimants through the benefit cap or other forms of means-testing, and those commitments were reflected in the fiscal framework. Will the Secretary of State therefore give a cast-iron assurance that that is still the UK Government’s position?

[Damian Green]

The UK Government’s position has not changed at all and nor, so far, has the Scottish Government’s, which is that they are not prepared to take or exercise the powers that they have.

[Dr Whiteford]

With respect, that is just nonsense; the Scottish Government are working towards the already-published timetable. But there should be absolutely no ambiguity here, so will the Secretary of State now commit that he, his Ministers and his officials will engage positively with Scottish Ministers as they use those new powers to abolish the bedroom tax in Scotland?

[Damian Green]

I, along with both my Ministers and my officials, engage positively with the Scottish Government all the time. I know that because I go to the meetings, and I have engaged positively with them on this and all the other important issues that we have to discuss in this field.

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[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

3. What assessment his Department has made of recent trends in the number of young people in work.

[The Secretary of State for Work and Pensions (Damian Green)]

The number of young people in work has increased by 235,000 since 2010, and is up 38,000 in the past three months. Nearly nine in 10 young people are in education or work, and youth unemployment is the lowest it has been since 2005.

[Michael Tomlinson]

I am very grateful to the Secretary of State for his answer. I warmly welcome the fact that the youth employment jobs figures are at near record levels. Will he join me in welcoming the work of the Dorset Young Chamber, which helps to match individual businesses in and around my constituency with particular schools and to bridge the gap between education and employment?

[Damian Green]

I am happy to join my hon. Friend in welcoming the work of the Dorset Young Chamber. I have seen the great work that my local chamber of commerce, Kent Invicta, does in schools. My hon. Friend chairs the all-party parliamentary group for youth employment, so he will be pleased to know that the youth claimant count in his constituency has gone down by 74% since 2010 and by 7% in the past year alone.

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

More young people are claiming benefits in Newcastle Central this year than they were last year, and the north-east has the overall highest unemployment rate in the country. Too many of our young people have to leave the region to find good jobs, so when will the Secretary of State make the northern powerhouse a reality for the north-east?

[Damian Green]

We are determined to make the northern powerhouse a reality. As the hon. Lady says, youth unemployment is higher in certain areas than it is in others, but I hope she recognises that youth unemployment as a whole has come down markedly in recent years in her region, as in all others. Some 86% of 16 to 24-year-olds are now in full-time study or work, which is a record high, and the employment rate for 16 to 24-year-olds who have left full-time education is up by 0.4 percentage points in the past year.

[Nusrat Ghani (Wealden) (Con)]

Apprenticeships are solid routes for young people to secure work. What work is the Secretary of State doing with his counterparts in the Department for Education to ensure that all our young people have access to apprenticeships?

[Damian Green]

We work closely with colleagues in the Department for Education to ensure that the Government meet their commitment to having 3 million new apprentices during this Parliament. We are on target for that. In particular, we wish to ensure that apprenticeships are available not only to young people leaving school for the first time, but throughout the age range so that we can make a reality of the phrase “lifelong learning.”

[Mr David Hanson (Delyn) (Lab)]

What would the Secretary of State say to areas such as mine, where youth unemployment has actually risen in the past month? Will he please look at working with colleagues in the northern powerhouse to ensure that the benefits of Government investment are shared across the north-west and north Wales as a whole?

[Damian Green]

I am happy to listen to the right hon. Gentleman’s latter point. One purpose of the northern powerhouse and, indeed—more widely—of the Government’s consultation on the industrial strategy is to ensure that the success of the economy is spread to all regions of the country. I am more than happy to talk to the right hon. Gentleman about any specific points he wants to make on his region.

[Bob Blackman (Harrow East) (Con)]

4. What assessment his Department has made of recent trends in the number of people saving into a pension scheme as a result of auto-enrolment.

[Royston Smith (Southampton, Itchen) (Con)]

6. What assessment his Department has made of recent trends in the number of people saving into a pension scheme as a result of auto-enrolment.

[The Secretary of State for Work and Pensions (Damian Green)]

Almost 7.3 million eligible workers have been enrolled into a workplace pension because of automatic enrolment. This is an unseen revolution; the way people are now saving will lead to more freedom, more choice and more security for the pensioners of tomorrow.

[Bob Blackman]

Does the Secretary of State agree that it is quite clear that many people who would otherwise not save into a private pension will now have a pension for their futures, and that young people, who often do not save for a pension now, will have a secure future in retirement?

[Damian Green]

I agree with my hon. Friend, particularly on his point about young people. The Institute for Fiscal Studies has done some research showing that participation in auto-enrolment among those aged 22 to 29 increased from 28% in 2012 to 85% in 2016. That is a very impressive improvement.

[Royston Smith]

Auto-enrolment has been hugely successful. However, a number of people are still opting out. A business in my Southampton, Itchen constituency suggested that up to 50% of its staff may be opting out. What steps is the Secretary of State taking to encourage people to continue to save for their retirement in a workplace pension?

[Damian Green]

I am happy to tell my hon. Friend that his example is an exception. When the Turner commission reported and suggested this kind of scheme in 2005, it estimated that about 25% of people would opt out, but the opt-out rate is about 10% at the moment. There is always more to do, as my hon. Friend’s example suggests, which is why we are currently conducting a review to ensure that such schemes are even better in the future in order to work for all kinds of individuals, particularly those in small businesses.

[Rob Marris (Wolverhampton South West) (Lab)]

The Library is not able to supply me with any evidence that tax relief on pension contributions—costing £30 billion a year or more—encourages savings. Can the Secretary of State supply me with such evidence?

[Damian Green]

I can supply the hon. Gentleman with evidence that we have transformed saving over the past few years. People have often said that young people in particular do not want to save, but the facts I have just put before the House suggest that that is no longer the case. If the hon. Gentleman is advocating taking away all tax relief for pensions, I would be interested in his ideas—as, I am sure, would his own Front Benchers.

[Alex Cunningham (Stockton North) (Lab)]

Ministers have been clear on the need for transparency in the pensions industry, including in master trusts dealing with auto-enrolment. In his Second Reading speech on the Pension Schemes Bill, the Secretary of State spoke of it. In a speech to the TUC, the Pensions Minister said:

“We have to get transparency. It’s not an option to do nothing.”

On Report in the Lords, Lord Freud said:

“We want pension scheme members to have sight of all costs and charges”.—[Official Report, House of Lords, 19 December 2016; Vol. 777, c. 1528.]

Despite those fine words, all the attempts to deliver on transparency in the Bill Committee were dismissed by the Government, so can the Minister tell the House what they mean by transparency in the pensions industry?

[Damian Green]

The Bill—I note the Labour party did not vote against it on Second or Third Reading, so the hon. Gentleman cannot have objected to it that strongly—actually set up a new system of regulation, particularly of master trusts, that deals with not just transparency but a whole range of aspects, so this relatively new form of financial body is now much better regulated than it was before. I would have thought that the hon. Gentleman welcomed it—actually, he did welcome it.

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

7. What steps the Government are taking to ensure that people with learning difficulties are supported into work.

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[Seema Kennedy (South Ribble) (Con)]

17. What assessment his Department has made of recent trends in the number of people in work.

[The Secretary of State for Work and Pensions (Damian Green)]

The UK labour market is the strongest it has been for years. Over the past year, the number of people in employment has increased by 302,000. The employment rate stands at a new record high of 74.6%. The unemployment rate remains at 4.8%—the lowest rate in over 10 years.

[Seema Kennedy]

I thank my right hon. Friend for that answer. He will agree that long-term unemployment is particularly damaging for a young person. What steps is his Department taking to ensure that no young person falls through the cracks?

[Damian Green]

My hon. Friend is right: long-term unemployment can significantly damage anyone, particularly young people. I welcome the recent employment statistics, which show that 3 million 16 to 24-year-olds are full-time students, and another 3 million have left full-time education and are working. Together they account for 86% of all young people in the UK, the joint highest on record. She is right that there is always more to do, which is why, in April, we are introducing the youth obligation to ensure that young people are fully supported as they progress into work and while they are at work.

[Holly Lynch (Halifax) (Lab)]

20. What steps his Department is taking to ensure that personal independence payment assessments are undertaken fairly and efficiently.

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[Justin Madders (Ellesmere Port and Neston) (Lab)]

T1. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Work and Pensions (Damian Green)]

Today, we published our Green Paper on defined benefit pension schemes. The schemes provide an important source of income in the retirement plans of millions of people. The majority of the nearly 6,000 defined benefit pension schemes are run effectively. We are fortunate to have a robust and flexible system of pension protection in the UK. However, it is clear that experiences differ from scheme to scheme. Some employers are clearly struggling and the system may not be working optimally in all circumstances. The Green Paper is an opportunity to look at the schemes to ensure the system remains sustainable, while still ensuring members’ benefits are protected.

[Justin Madders]

Further to the question from my hon. Friend the Member for Stretford and Urmston (Kate Green) on universal credit inquiries on behalf of constituents, does the Secretary of State not accept that putting in this extra hurdle is disadvantaging people who are in a very vulnerable situation and flies in the face of Information Commissioner guidance?

[Damian Green]

As my hon. Friend the Minister for Employment explained, the data are now held in a different way. They are entirely owned by the claimants, who can and should give any Member of Parliament permission to act on their behalf. With that permission, all of us can do our job, as we traditionally have, on behalf of our constituents.

[Mary Robinson (Cheadle) (Con)]

T5. Last October, the Secretary of State announced that people with severe lifelong conditions would be exempt from reassessments for employment and support allowance. This was welcomed by leading charities in the sector. Will motor neurone disease fall within the exemptions?

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

In April, the Government’s two-child policy will mean that a woman who has a third child after being raped will have to prove that fact if they are to get child tax support. At the same time, the Government are cutting widowed parent’s allowance by an average of £17,000 for each bereaved family. In 2015, that benefited 40,000 children who had lost at least one parent. Will the Secretary of State please think again about these punitive measures?

[Damian Green]

I do not agree with the hon. Lady that the measures are punitive. To take just one of the two that she brought up—bereavement payments—as she knows, this measure is bringing three payments into one. The original system was devised for a world in which women often would not work at all and so needed lifelong support, rather than the extra support that they will be offered after such a tragic event. I think she will find that the new system is much fairer and more effective at providing support when it is most wanted.

[Mr Speaker]

Andrew Rosindell—not here.

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[Naz Shah (Bradford West) (Lab)]

T4. Of the 17,000 sanctions on benefit claimants in Bradford West in the past six and a half years, how many could have been avoided if the Government had the yellow card warning system in place? Why has it not been rolled out nationally, following a successful trial in 2016, and when are this Government going to get it done?

[Damian Green]

We are looking at the early warning system trial that took place in Scotland. We are still evaluating it. We will publish the results of the evaluation shortly. Obviously, we will have to do the evaluation first before we decide what to do next.

[Tom Pursglove (Corby) (Con)]

Last week, I attended two excellent business breakfasts in my constituency—one organised by the Rockingham Forest hotel and the other organised by Corby Business Group. There was a lot of expertise and experience there. In what ways does the Minister think we can use that experience to support young people entering the world of work through mentoring?

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[Mr Peter Bone (Wellingborough) (Con)]

Last week, I visited a number of successful factories in my constituency that were taking on additional employment. Does the Secretary of State agree that our long-term economic plan has worked and that the Opposition Members who opposed it should now be contrite? Does he also agree with me that it is rather surprising that until two minutes ago there has not been a single Liberal Democrat Member in the Chamber?

[Damian Green]

I am not remotely surprised—

[Mr Speaker]

The Minister is not responsible for the presence of Liberal Democrat Members. [Interruption.] If the right hon. Gentleman wants to ventilate, I am sure he will do so.

[Damian Green]

I am grateful for your advice, Mr Speaker, because I would be horrified if I were responsible for the attendance record of Liberal Democrats. I am happy to agree completely with my hon. Friend about the long-term economic plan. Our labour market is in its strongest position for years, which is a tribute to a successful economic policy for the past seven years.

[Siobhain McDonagh (Mitcham and Morden) (Lab)]

On behalf of my constituent, Miss Leslie, may I ask the Secretary of State to get personally involved in her case? The victim of a house fire when she was 12 weeks old, she has no hands and has multiple physical problems. In the migration from DLA to PIP, she could not open the envelope telling her to go for her assessment. On 1 February, all her benefits ceased, and on 10 February, her Motability car was taken away. This cannot be right; please help.

[Damian Green]

If the hon. Lady wishes to contact me directly and urgently about that case, we will take it up.

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

Does my right hon. Friend agree that there is no evidence to suggest that we are going to lose 3 million jobs, as we were so often warned would happen if we left the European Union? Given the recent announcements that thousands of new jobs would be located in this country by the likes of Google and Amazon, does he agree that this country remains a very attractive place in which to do business?

[Damian Green]

It is perfectly clear that this country is an extremely attractive place in which to do business. I am delighted at the number of big companies—particularly in the tech sector, but in others as well—that have decided to move jobs to this country in recent months, and the Government will do all they can to ensure that that economic success continues.

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

Leytonstone jobcentre, in my constituency, is threatened with closure, which has spread alarm and despondency among some of the most vulnerable people whom I represent. The nearest jobcentre, in Walthamstow, is more than 3 miles away, which breaks the Minister’s own guidelines. Will he undertake a proper impact assessment and publish the results?

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[Alison Thewliss (Glasgow Central) (SNP)]

I am astonished that the Secretary of State said that the rape clause was not punitive, given that, in their response to the consultation, the Government said that many respondents considered it

“unacceptable for Government to ask women to re-live the ordeal of a rape just in order to make a claim for benefit.”

Will the Minister and the Government accept that the policy is simply unworkable, and absolutely despicable?

[Damian Green]

I do not accept that, and I do not think the hon. Lady’s description of the exemptions to that clause accord with reality. The system that we are proposing is not remotely punitive; it is entirely sensible and workable.

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

What plans has the Secretary of State to reduce the cost of telephone calls to his Department, which can now cost up to 55p a minute? Is he still having discussions with the Social Security Advisory Committee, which believes that all telephone calls to the Department should be at no cost to claimants?

[Damian Green]

I am, obviously, in constant contact with the Social Security Advisory Committee. People who phone the Department always have an opportunity to ask to be called back if they do not wish to continue their own calls.