Oral Answers to Questions

Damian Hinds Excerpts

Monday 20th February 2017 Commons Chamber

[Mr Virendra Sharma (Ealing, Southall) (Lab)]

10. What estimate his Department has made of the number of households in which a person in work will receive less income in universal credit than they would have received in tax credits.

[The Minister for Employment (Damian Hinds)]

It is not meaningful to compare against an unchanged tax credits system, but the national living wage, help with childcare and the straightforward taper in universal credit all mean that people can earn more, and a higher income tax allowance means that they can keep more of it.

[Mr Sharma]

A single parent working full time on universal credit will be up to £3,000 worse off than someone in the same situation on tax credits, as a result of this Government’s cuts. Does the Minister accept that those cuts are creating an unjustified disparity in the in-work support received by people in similar circumstances?

[Damian Hinds]

Anybody who changes from tax credits to universal credit as a result of managed migration can get transitional protection. For those who are coming into it with a new claim, it is a wholly different system with a completely different support set, including much more child care support. There are various other reforms from which the individual to whom the hon. Gentleman refers would also benefit.

[Sir Julian Brazier (Canterbury) (Con)]

Does my hon. Friend accept that universal credit, which now reaches almost a third of the unemployed people in my constituency, is a much simpler system and the first major new benefit introduced in my political lifetime that has not resulted in a whole string of correspondence from people with difficulties?

[Damian Hinds]

It is indeed a dramatic and critical reform for our welfare system. I will highlight just one statistic: for every 100 people who moved into work under the old jobseeker’s allowance system, 113 do so under universal credit.

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

Last week, DWP informed Members of Parliament that our constituents would have to give specific and precise explicit consent if we are to help them with full universal credit claims with which they have difficulty. I think that that will significantly inhibit our ability to assist our constituents. Will the Minister reassure the House that measures will be put in place to ensure that MPs can support our constituents effectively?

[Damian Hinds]

Of course we want hon. Members to be able to support their constituents, but the universal credit full service system is different because the online account allows the user to access a greater breadth of their data. The claimant holds the key to those data, and implied consent cannot be assumed. A claimant can give their consent via their journal, and that is what has to be done to enable a Member to act on their behalf.

[Margaret Greenwood (Wirral West) (Lab)]

Currently, families have to wait at least six weeks to receive universal credit after they have made a claim, which is leading to some people being in rent arrears and at risk of eviction. Research by the Child Poverty Action Group and the Trussell Trust found that about 30% of food bank users were waiting for the outcome of a benefit claim. What urgent action will the Government take to cut the delay at the start of universal credit claims?

[Damian Hinds]

Universal credit, as the hon. Lady knows, is a monthly benefit, but benefit advances are available where people cannot make it through to the first pay day. The fundamental point is that universal credit is helping more people into work, and once they are there, it is helping more people progress in work, and that is what is putting down the better foundation for their future.

[Margaret Greenwood]

Many families on tax credits and universal credit will lose out when the two-child limit comes into force in April. The Institute for Fiscal Studies projects a 50% rise in child poverty by 2020—the biggest in a generation—and it says that a key reason will be the impact of tax and benefit changes on families with three or more children. Do the Government think that some children matter more than others?

[Damian Hinds]

The policy to which the hon. Lady refers relates to new cases. I remind her that relative poverty is down by 100,000 children since 2010.

[Mary Robinson (Cheadle) (Con)]

11. What steps the Government are taking to ensure that people have accurate and clear information to inform decisions on the use of their pension investments.

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[Louise Haigh (Sheffield, Heeley) (Lab)]

13. For what reason his Department did not carry out an impact assessment prior to the announcement of the proposed closure of Jobcentre Plus estates on 26 January 2017.

[The Minister for Employment (Damian Hinds)]

We have been mindful throughout of the impact on staff and customers. Analysis and local knowledge have informed the proposals, which are all subject to consultation with staff and, where appropriate, the public. A full equality impact assessment will be carried out.

[Louise Haigh]

Following the Minister’s advice, I went to see the regional manager of my jobcentres last week, but she had absolutely no information on the number of employment and support allowance or income support claimants that will be affected by the proposed closure in my constituency; the plans for outreach in relation to what will replace my jobcentre after its closure; the amount saved by that closure; the necessary spend on increased capacity at the alternative centre; or projections of footfall at the centre destined for closure. I hope that such work has been undertaken internally, so will the Minister commit to publishing all that information not only before a decision has to made, but preferably before the end of the consultation period?

[Damian Hinds]

First, ESA and IS claimants are not required regularly to attend the jobcentre in the same way that JSA claimants are. We want to look at outreach and other opportunities in working with partners. As the hon. Lady will know, the consultation closes on 28 February. On the overall approach for the city of Sheffield, this is about consolidating the amount of available space and using that space better to get a better deal for the taxpayer, while being able to provide enhanced services for customers. It will raise utilisation across Sheffield from 51% to 69%.

[Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)]

In 2010, there were three jobcentres in my constituency. The coalition closed one in 2012, and now the Minister’s Government want to close the remaining two. Just under 3,000 people—not an insignificant number—have to access the jobcentre in my constituency at least every two weeks Why did his Department not conduct and carry out the full equality impact assessment before the closure of the consultation?

[Damian Hinds]

The proposals will raise utilisation across the city of Liverpool from 66% to 95%, which will make better use of buildings. Where movement from one jobcentre to another involves travelling less than three miles or 20 minutes by public transport, we consider it is reasonable to ask people to make such a move.

[Peter Aldous (Waveney) (Con)]

14. What steps the Government are taking to ensure that employers are encouraged to recruit and retain disabled people.

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[Stewart Malcolm McDonald (Glasgow South) (SNP)]

16. What support his Department is providing to staff and service users before the proposed jobcentre closures announced in January 2017 take place.

[The Minister for Employment (Damian Hinds)]

The proposals are subject to consultation with staff and, where appropriate, the public. Should they proceed, the Department will support customers through any change of jobcentre. Staff will continue to offer the same support and services to customers and to maintain the relationships they have built up over time.

[Stewart Malcolm McDonald]

Now that the Glasgow consultation is closed, can the Minister tell us the following: when will the consultation responses be published; when will the equality impact assessment be published; and when will the decision be announced? On the announcement, will he assure the House that it will not be slipped out in a press release or a written statement, but that he will make it from the Dispatch Box?

[Damian Hinds]

As the hon. Gentleman mentioned, the consultation on the jobcentres in Glasgow has closed. We are working through a number of responses and will do so within the timeframe. I anticipate making announcements in April.

[Helen Goodman (Bishop Auckland) (Lab)]

I have met the 83 people who work at Vinovium House in my constituency—another office that is scheduled for closure. Will the Minister explain what the impact of the closure of that child maintenance back office will be and how it can possibly be efficient to close an office in one of the most low-rent towns in the entire nation?

[Damian Hinds]

The entire estates review has come about because a 20-year private finance initiative contract comes to an end at the end of March 2018. That has presented the opportunity—indeed, the requirement—to review almost the entire DWP estate. We are trying to consolidate it into less space to save money for the taxpayer and to do things more efficiently. We do not want the people who work in those places, particularly in back-of-house locations, to be made redundant. We are trying extremely hard to find other opportunities for them elsewhere in DWP or in the public sector.

[Seema Kennedy (South Ribble) (Con)]

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

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[Victoria Prentis (Banbury) (Con)]

21. What steps the Government are taking to support the self-employed.

[The Minister for Employment (Damian Hinds)]

We are building on the success of the new enterprise allowance. From April 2017, eligibility will be extended to include universal credit claimants who are already self-employed.

[Victoria Prentis]

There are 40 new businesses in Banbury currently supported by the new enterprise allowance, with about 100 more going through the developmental stage. Can the Minister reassure us that the programme is not just there to set up new businesses, but to enable them to grow?

[Damian Hinds]

Absolutely. The 40 new businesses in Banbury are a great example of what the NEA can do. In phase 2, we are introducing additional features to continue to promote sustained success in self-employment, including extending the mentoring period and ensuring there is a pre-workshop to outline the responsibilities and realities of being self-employed.

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

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

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[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?

[The Minister for Employment (Damian Hinds)]

Mentoring has a critical role to play, and I would encourage those employers in my hon. Friend’s constituency, if they are not already doing so, to get in touch with local schools and colleges and to seek out more opportunities.

[Julie Elliott (Sunderland Central) (Lab)]

T7. Will the Minister look at the assessment of people with long-term progressive conditions who are applying for PIP, in the light of some of the issues that have been raised? Would she consider removing the need for continued assessment of people with long-term progressive conditions when, by the nature of those conditions, they are getting worse and not improving day by day?

[Sir Desmond Swayne (New Forest West) (Con)]

Have Ministers identified the critical difference that makes a recipient of universal credit so much more likely to get into work than someone on jobseeker’s allowance?

[Damian Hinds]

There are multiple features of universal credit that make that so much more likely. The critical thing is to remove the barriers that create differences between being out of work and being in work. Having the rent paid directly to the individual is one thing; there is also the additional support that people get from the work coach in the jobcentre; then there is the fact that people know how much they will retain for every extra hour worked and extra pound earned.

[Helen Hayes (Dulwich and West Norwood) (Lab)]

T8. Brixton jobcentre, which serves many of my constituents, is situated in one of the most deprived areas of London. How can the Minister justify deciding to close Brixton jobcentre and dozens of others across the country before any assessment of the equalities impact has been undertaken and without any consultation with the public?

[Damian Hinds]

We are very mindful of our duties under section 149 of the Equality Act 2010, and we do indeed carry out the equality impact assessments that the hon. Lady mentions. She and I have had a chance to talk about the specific jobcentre. What we are doing is making sure that we have a good spread of jobcentres across the country that are accessible to the people who need to use them, but also utilising space better.

[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?

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[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?

[Damian Hinds]

Of course I will look into the position, but the criterion is that consultation takes place if a jobcentre is both more than 3 miles away and more than 20 minutes away by public transport. Within that, if either of those conditions is met, it is reasonable to ask people to move.

[Philip Davies (Shipley) (Con)]

On Friday I visited Shipley jobcentre to hear at first hand the concerns of staff about its closure, and their concerns for its clients. Will the Minister agree to meet me so that I can go through that list of concerns and, hopefully, he can find a way of addressing them?

[Damian Hinds]

Of course I shall be happy to meet my hon. Friend, just as I have been happy to meet other Members on both sides of the House to discuss such concerns.

[Several hon. Members rose—]