Oral Answers to Questions

Damian Green Excerpts

Monday 27th March 2017 Commons Chamber

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

2. What assessment he has made of recent trends in the level of self-employment.

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

This Government support those who aspire to be their own boss. Self-employment grew by 148,000—3.2%—in the last year to reach a record level of 4.8 million. Self-employment has contributed 30% of the rise in employment since 2010 to the current record levels.

[Justin Madders]

It seems that not a week goes by without another story emerging of the outrageous treatment of the self-employed. This is exploitation. The Deane review of self-employment reported back to the Government over a year ago, and one recommendation it made was that there should be equal treatment for the self-employed, but all we have is yet another review from the Government. When will they actually take some action?

[Damian Green]

As the hon. Gentleman knows, the Government have commissioned Matthew Taylor to review the rights and protections available to self-employed workers. He asked what we have already done. The self-employed now have access to the new state pension, worth an extra £1,800 a year in retirement. We have doubled the amount of free childcare, which is particularly useful for the self-employed and worth up to £5,000 per child per year. We have also increased the personal allowance, worth £1,000, to the typical basic rate taxpayer.

[Mr Peter Bone (Wellingborough) (Con)]

The Secretary of State is right: we have definitely helped the self-employed. However, it was put to me at my listening campaign this weekend by self-employed people that they actually want the Government out of their business. They do not want to pay higher taxes, and they do not want more benefits; they just want to get on with their business. Is that something the Secretary of State could support?

[Damian Green]

I do, and the Government, of course, support that more widely. We are looking all the time at regulations that might hinder the growth of entrepreneurship and self-employment. The actions taken by my Department—for instance, the new enterprise allowance—actively encourage people into self-employment. Some 96,000 new businesses have been set up as a result of the NEA.

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

The Government’s proposed increase to national insurance contributions for self-employed workers in this month’s Budget showed a scandalous detachment from the reality of the majority of self-employed workers’ lives, a failure to understand the boom in self-employment and a lack of the will to address the issues self-employed workers face, including the fact that one in three is concerned about becoming sick or being injured during their work. What discussions did the Secretary of State have with the Chancellor on this before the Budget, and is he concerned about the reliability of the minimum income floor calculation, given the Office for Budget Responsibility’s comment?

[Damian Green]

I am confident in the minimum income floor calculation. As the hon. Lady would expect, we have discussions all the time with the Treasury on a wide range of matters. My right hon. Friend the Chancellor said in his letter subsequent to the Budget:

“It is very important…that we are compliant not just with the letter, but also the spirit, of the commitments that were made.”

That is why he decided not to proceed with the class 4 NIC measures set out in the Budget. Also—this is important—all the spending measures set out in the Budget, including on social care, technical education and new schools, will be delivered in full.

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

My right hon. Friend is right to note that 96,000 new businesses have been started by jobseekers, but many jobseekers still do not know what help is provided under the universal credit system and the new enterprise allowance. Will he say what his Department is doing to increase awareness of these measures?

[Damian Green]

My hon. Friend makes a good point. Obviously, universal credit is still a relatively new benefit, and many of the self-employed may not be fully aware of the many benefits that arise from it for them specifically. Under UC, self-employed claimants will, for the first time, be offered help to increase their earnings. We will be testing the offer of work coach support to self-employed tax credit claimants. Also, there is an assured level of earnings, but new self-employed claimants will be exempt from this for up to 12 months following their application, which people thinking of setting up their own business will find extremely helpful.

[Lilian Greenwood (Nottingham South) (Lab)]

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

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[Helen Whately (Faversham and Mid Kent) (Con)]

6. What steps the Government are taking to ensure that employers are encouraged to recruit and retain people with mental health conditions.

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

We are making progress on the independent mental health and employers review, which is led by Lord Stevenson and Paul Farmer. We are also taking forward an internal review of discrimination law in relation to mental health and work. We continue to look at how we can improve employment support for people with mental health conditions, and this approach is reflected in the work and health Green Paper.

[Helen Whately]

I recently trained as a mental health first-aider. Such training helps people to support others with mental health problems, as well as to look after their own mental health. Will my right hon. Friend encourage more employers to take part in initiatives such as mental health first aid to create a culture in which everyone feels able to seek mental health support in the workplace?

[Damian Green]

I congratulate my hon. Friend on taking that training, which is very important. She is right that more employers should act. We are now providing a range of support to help employers to recruit and retain people with mental health conditions, including the Disability Confident campaign and the mental health support service in the Access to Work scheme, which many firms and those who suffer from mental health conditions find useful.

[Helen Goodman (Bishop Auckland) (Lab)]

The Secretary of State should beware of being so enthusiastic that he ignores the real needs of people who cannot go to work. I had an email this morning from one of my constituents saying that her husband had taken his life on Friday. He first came to us in 2016 when his award of employment and support allowance was under review. Despite his doctor’s protest, he was made to have a face-to-face assessment. We sought an extension of the six-month award; that was refused. At that point, he was so stressed that he attempted suicide. The PIP award was reviewed again in January. Will the Secretary of State please ensure that when doctors say that people with mental health conditions should not have face-to-face assessments, they do not have face-to-face assessments?

[Damian Green]

The case that the hon. Lady raises is clearly dreadful. I am sure that the whole House will want to send condolences to the family and friends of her constituent, particularly his widow. We are, of course, not just investing more in mental health than ever before—£11 billion this year—but succeeding specifically in improving clinical assessments. More clinical expertise is now available to the assessors who look at individual cases. As she will know, we have now ended reassessment for those who have conditions that can only stay the same or get worse. We are taking steps to try to minimise those effects.

[John Howell (Henley) (Con)]

22. Ensuring that people with mental health conditions are able to start businesses and also remain in business is very important. What is the Minister doing to encourage employers to make that a possibility?

[Damian Green]

My hon. Friend is right. We are taking action through Access to Work and Disability Confident, which I mentioned in response to my hon. Friend the Member for Faversham and Mid Kent (Helen Whately), but this needs to be part of a much wider programme of education specifically for employers. We have set up a Disability Confident business leaders group because I suspect that employers will listen more to other business people than they necessarily will to politicians.

[Dame Rosie Winterton (Doncaster Central) (Lab)]

Is not the main issue to make sure that people have good access to occupational health services—particularly so that preventive action can be taken if an individual feels that they are suffering from a mental health problem—meaning that they can get to an occupational health service quickly and easily to get proper advice?

[Damian Green]

I completely agree with the right hon. Lady. She will have seen that the work and health Green Paper lays great stress on occupational health services. We have more than doubled the number of employment advisers in talking therapies to make sure that we can help people with the necessary support that will enable them to stay in work. We will need to do more of this important job in the future.

[Lucy Powell (Manchester Central) (Lab/Co-op)]

7. What progress the Government have made on the roll-out of universal credit.

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[Kirsten Oswald (East Renfrewshire) (SNP)]

23. What assessment he has made of the policy implications for his Department of the UK leaving the EU.

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

Every Government Department is preparing for a smooth and orderly exit from the European Union. We are confident that we will be able to secure a deal that works in the mutual interests of both the UK and the rest of the EU. We are considering various policy options.

[Steven Paterson]

Some 472,000 people who have retired to the EU currently get automatic increases in the state pension, but it is unclear whether this Government will strike a deal on that after departure from the EU, if they manage to do so. Can the Minister guarantee today that elderly EU expats will not join the 550,000 retirees whose payments no longer increase in line with the state pension triple lock?

[Damian Green]

The Prime Minister has been clear that she wants to protect the rights of British citizens currently living in European member states, in the way that we want to protect the status of EU nationals already living here. That will clearly be an important matter for negotiation in the months ahead.

[Gavin Newlands]

Does the Secretary of State agree that his Government have form on failing to protect workers’ rights? Any illusion about ability to deliver social justice for workers went up in smoke with the Dickensian Trade Union Act 2016. How can we trust his Department to guarantee workers’ rights after article 50 is triggered?

[Damian Green]

I am glad that the hon. Gentleman has drawn the House’s attention to the fact that the Government have pledged to maintain workers’ rights in the course of the negotiations. I am happy also that he gives me the chance to remind the House that the greatest workers’ right is the right to a job, and that employment is at its highest ever level in this country.

[Kirsten Oswald]

Reports at the weekend suggest that the UK Government intend that EU migrants currently living here will retain access to benefits, but those who arrive after the triggering of article 50 will be denied access. Does the Secretary of State agree that that is actually dependent on the will of the EU member states, and his Government cannot guarantee any of those rights as they press ahead, dragging us into the unknown without any credible plan?

[Damian Green]

I am sure the hon. Lady knows that no one standing at this Dispatch Box would ever comment on speculative leaks. She will know as well that we are about to enter a negotiation. We are confident that we will get a good result for the people of Britain, and that is what we will be doing.

[David Mackintosh (Northampton South) (Con)]

13. What assessment he has made of whether the benefit cap encourages people into work.

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

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

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

I would like to draw the attention of the House to the more generous universal credit taper rate coming into effect over the Easter recess, on 10 April. It demonstrates our commitment to helping people to gain independence in their own lives by getting on and progressing in work. The new taper rate of 63% will boost the incomes of about 3 million families by £700 million a year; a couple with two children could benefit by as much as £425 a year. When combined with the introduction of the national living wage and increases in the personal tax allowance, those changes equate to the biggest pay rise for the lowest earners in a generation.

[Chi Onwurah]

Newcastle has paid a high price for being the first city to go full service with universal credit, with claims routinely lost, delayed or repeatedly deleted. However, the six-week wait period is doing the most to drive so many into destitution and cause people to lose their home. With 80% of Newcastle council house tenants on universal credit now in rent arrears, will the Minister end the wait period, or will he explain how they are supposed to keep a roof over their head with no money?

[Damian Green]

I have two points for the hon. Lady. First, the National Federation of ALMOs—social housing providers—calculates that some 75% of tenants are in arrears under the legacy benefits, so she is not right in her suggestion.

[Alex Cunningham (Stockton North) (Lab)]

Just 75%!

[Damian Green]

Yes, quite; this has been happening for a long time. The idea that universal credit causes housing arrears is just nonsense.

Secondly, the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) will know that my Department is working on a pathfinder arrangement with Newcastle City Council precisely to address the problems that may be there now and have been there for many, many years.

[Mrs Sheryll Murray (South East Cornwall) (Con)]

T2. I warmly welcome the latest fall in unemployment, particularly the 52% reduction since 2010 in my constituency. Will the Minister please endorse the work of Motiv-8 South West, which supports young people into employment and training, and continue to do all that he can to help those who are still struggling to find employment?

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

We heard earlier about the cuts to PIP support for people with mental health conditions that were brought in 10 days ago. The Government estimate that they will affect 160,000 people. This time next week, half a million sick or disabled people who have been found not fit for work and have been placed in the employment and support allowance work-related activity group will start to see a cut in support of £1,500 a year. Given that disabled people are twice as likely to live in poverty as non-disabled people and the recent analysis showing that that has increased significantly, how does the Secretary of State justify the cumulative cuts to disabled people?

[Damian Green]

First, when the hon. Lady talks about cuts to 160,000 people, she is of course wrong. Nobody’s original DWP award will receive a cut. She also asked me how I justify the changes to ESA, but disabled people and people with health conditions deserve better than the current system, under which only one in 100 ESA WRAG claimants leave benefit each month. I hope that the hon. Member for Stockton North (Alex Cunningham), who is cheering from a sedentary position, agrees with me that we need to change the system. That is why we are proposing a huge number of different types of help across the board, including financial help and advice, which will help them into work.

[Lucy Allan (Telford) (Con)]

T5. Some of my constituents have also raised concerns about changes to their personal independence payments. Will the Minister assure me that claimants will not see any reduction in their PIPs and that the changes are to ensure that help is targeted to those most in need?

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[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

T4. My constituent obtained a court order granting him custody of his two sons, and they were handed over to his care. He informed the DWP but was denied tax credits because, although a letter had been sent to his former wife, she had not responded. During that time, the tax credits were still being paid to her, and it took four months and my intervention to ensure that my constituent received the tax credits to which both he and his young sons are entitled. Will the Minister review the process to ensure that that does not happen any longer so that people do not have to depend on food banks and the kindness of relatives?

[Damian Green]

rose—

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

The hon. Lady will of course be aware that tax credits fall within the remit of Her Majesty’s Treasury, and I will be happy to ensure that that is raised with the relevant Minister.

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[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

T8. The Secretary of State spoke earlier about workers’ rights. Surely workers’ rights should also include the right to some certainty. Will he talk to his fellow Ministers in the Home Office about the fact that many European nationals have lived here for years, have British spouses and British children but are now told that they will have to have comprehensive health insurance in order to stay here?

[Damian Green]

The hon. Gentleman has made his point very forcefully. I am, of course, in constant discussion with ministerial colleagues in the Home Office about a wide range of issues involving the labour market.

[Maggie Throup (Erewash) (Con)]

T10. When it comes to women in work, Erewash leads from the front, with 83% of working-age women in full-time or part-time employment. What steps is my right hon. Friend taking to help more women in other parts of the country to return to employment and follow the example set by my constituents in Erewash?