Oral Answers to Questions

Damian Hinds Excerpts

Monday 27th March 2017 Commons Chamber

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

5. What recent assessment he has made of trends in the number of young people in work.

[The Minister for Employment (Damian Hinds)]

The number of 16 to 24-year-olds in work is 3.94 million, which is up 28,000 on the quarter and 225,000 on 2010.

[James Berry]

At the last count, there were 145 jobseeker’s allowance claimants aged 18 to 24 in Kingston, yet when I go to businesses such as New England Seafood, Genuine Solutions and Meeting Point, they tell me that they have vacancies, particularly for young people. What can my hon. Friend do to ensure that young people are matched up with the many opportunities that businesses in my constituency and others have for them?

[Damian Hinds]

The number of young people in my hon. Friend’s constituency claiming out-of-work benefits has fallen by more than half in the past four years, and he is right to highlight the large number of vacancies—over three quarters of a million nationwide. Alongside promoting work experience and apprenticeships, the Government will soon be rolling out the youth obligation, providing additional intensive support for young people from day one.

[Jenny Chapman (Darlington) (Lab)]

The Minister can highlight what he likes, but long-term youth unemployment in Darlington and the Tees valley is completely stagnant: the situation has not improved at all. What is he going to do to make sure that in six months’ time the picture has improved?

[Damian Hinds]

Long-term youth unemployment is down 111,000 overall since 2010, and it is down 30,000 on the year. We put particular resource into and focus on the individual areas around the country that need additional support. I encourage more firms to come forward and join the work experience programme, because we know that the experience of actual work is one of the most fundamental things to help young people to move into a regular job.

[Mrs Cheryl Gillan (Chesham and Amersham) (Con)]

Young autistic people have a great contribution to make to our economy and society, yet a recent survey by the National Autistic Society reckons that only 16% are in full-time work, and that trend has not changed during the past 10 years. In World Autism Awareness Week, will the Minister tell us how the Government could help? Not only are our employers missing out on the skills and potential of this group of people, but we are wasting an awful lot of talent. How can the Minister help to highlight their plight?

[Damian Hinds]

May I first acknowledge and recognise my right hon. Friend’s particular expertise in this area? I met the National Autistic Society at the party conference, as a number of colleagues did, and some of the statistics she mentions are indeed very striking. The Minister for Disabled People, Health and Work is bringing forward, through the Green Paper process, a particular focus on the talents, abilities and potential of people with autism, which will be key.

[Greg Mulholland (Leeds North West) (LD)]

Research just published shows that the forthcoming apprenticeship levy will make the north-south divide worse, because investment will be focused on the south-east, not where it is needed in the north. What will the Minister do to address that?

[Damian Hinds]

This is a generational shift in investment in the skills base. The levy is an important part of ensuring that all firms of a particular size are incentivised to take part, and the new Institute for Apprenticeships will guarantee the quality of apprenticeships. I think that that will benefit the entire country.

[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.

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

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

[The Minister for Employment (Damian Hinds)]

The roll-out of universal credit continues to roll out to plan—[Laughter.] About a million claims have now been taken, and the full universal credit service for all claimant types is available in 53 jobcentres.

[Lucy Powell]

I shall not mention hon. Members’ ridicule of the Minister’s answer, but I want to raise another point about universal credit: the interaction between passported benefits and universal credit, and the progress on this that the Government are making. My constituents tell me that as they get into work and move through universal credit, they lose free school meals, bus passes for their children and entitlement to a free uniform, so they are much worse off in work than they would be if they were not in work.

[Damian Hinds]

We continue to work closely with partners and stakeholders to ensure that this service is a success. There are some questions about passported benefits and we continue to work through them.

[Sir Julian Brazier (Canterbury) (Con)]

I thank my right hon. Friend the Secretary of State for coming down to see the successful roll-out of universal credit in Canterbury, where nearly a third of the unemployed now enjoy universal credit. That has not only pushed down the level of unemployment, but resulted in remarkably few cases coming to my surgeries.

[Damian Hinds]

Universal credit is a transformational benefit. It converts six benefits into one, which means working with one organisation and not three. It supports people into work and makes sure not only that work pays, but that it is visible to the individual that work pays. It is indeed transformational in our system.

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

In just a few days’ time, austerity cuts to universal credit come into effect that will further cut the incomes of millions of working families, including families with disabled children, who could lose about £1,600 a year, while single parents in full-time, low-paid work could lose almost £200 a month. Was the intention of universal credit to drive up poverty among disadvantaged children? If not, why will Ministers not accept that the system is failing those whom it was designed to help?

[Damian Hinds]

No such cuts are about to happen in universal credit. The taper change from 65% to 63% will eventually benefit 3 million households.

[Dr Whiteford]

Mounting evidence from the full service roll-out areas exposes the fact that the universal credit system is beset with failure. It is simply not working. Rent arrears are soaring, claimants are waiting up to three months to have their claims processed and some people have even lost their homes. The Government need to get their head out of the sand, so will Ministers call a halt to the full service roll-out while they conduct an immediate review?

[Damian Hinds]

We will not call a halt to the roll-out, because it would be unfair and wrong to deprive people in Scotland or elsewhere of the advantages that the universal credit system brings. We continue to work on improving processes and accelerating delivery, including with respect to housing, and a number of improvements have already been made, with more in train.

[Margaret Greenwood (Wirral West) (Lab)]

Last week’s report by the Equality Trust illustrates just how extreme inequality is in the UK, with the average pay of chief executive officers of FTSE 100 companies standing at £5 million a year. From this April, families on low incomes who are claiming tax credits or universal credit will not receive support for the third and subsequent children in a family, except when the child is disabled. In that instance, however, the money will be withdrawn from one of the other children. Will the Government address this injustice and scrap the two-child limit?

[Damian Hinds]

The purpose of the limit on support through universal credit or tax credits to the first two children, in the case of new claims and new births, is to reduce our welfare spending and to target it in a particular way—[Interruption.] In some 85% of families that include children, there are one or two children. When it came to determining where necessary reductions must be made, this was the correct way of doing that.

The hon. Lady talks about rising inequality. I simply mention to her that inequality is down, and that household incomes are at a record level.

[Mr Clive Betts (Sheffield South East) (Lab)]

8. What assessment his Department has made of the potential effect of the proposed closure of Jobcentre Plus offices on claimants’ travel times and costs.

[The Minister for Employment (Damian Hinds)]

The Department has sought to maintain the services that it offers claimants while minimising the impact on claimants as far as possible. These proposals may mean slightly longer and slightly shorter journeys for some individual claimants, and that has been taken into account in the setting of the criteria.

[Mr Betts]

I congratulate my hon. Friend the Member for Sheffield, Heeley (Louise Haigh) on the campaign that she has run with the Public and Commercial Services Union and local residents to keep open the Eastern Avenue jobcentre, which serves both our constituencies. Will the Minister confirm that the only reason for closing Eastern Avenue is to save money, and that if it closes, extra capacity will be needed at Cavendish Court and Woodhouse jobcentres? In the light of that need for extra capacity, will he produce figures showing whether there will actually be any net saving as a result of the closure of Eastern Avenue?

[Mr Speaker]

It is very cheeky to ask three questions even when asked with the skill and confidence of the Chair of the Select Committee.

[Damian Hinds]

I hope that I can provide the hon. Gentleman with some comfort. First, let me say that saving money is not a bad thing in itself; it is a good thing, and this overall programme will save some £180 million nationwide. That means that we can reinvest in frontline staff, which will have the biggest effect on helping people to return to work. As for the specific case of Sheffield, the changes will increase the utilisation of the entire estate from 51% to 69% when some of the business moves, as the hon. Gentleman rightly said, to the other two sites.

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

I congratulate the Minister on surviving a recent grilling from young ambassadors at a meeting of the all-party group on youth employment. I welcome the news that fewer young people are unemployed to start with but, at 554,000, the figure is still too high. Will the Minister read the all-party group’s report with a view to ensuring that there are fewer young claimants in the first place?

[Damian Hinds]

I look forward very much to reading the report. We know that any day spent unemployed can have a lasting effect on people, especially at the start of their careers when they are young, and it is therefore particularly important for us to redouble our efforts.

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

It is clear from the Minister’s answer to the question asked by my hon. Friend the Member for Sheffield South East (Mr Betts) that he does not know how much the closure of East Avenue jobcentre will save. We do not know how much rent is being spent there, and we do not know how much needs to be spent on Woodhouse or Cavendish Court to increase capacity for the additional claimants whom they will have to serve. Will the Minister commit himself to giving the House those figures before he makes his final decision and final statement to the House?

[Damian Hinds]

All the staff and services from Eastern Avenue will move to Bailey Court in West Street and Cavendish Court in Bank Street. I can reassure the hon. Lady that we have, of course, taken account in our projections and modelling of the exact space that will be required for those people and that level of workload.

[Mike Freer (Finchley and Golders Green) (Con)]

The proposed closure of the Jobcentre Plus at Finchley Central, which is a major transport hub, will mean moving the jobcentre to High Barnet, which is on the periphery of London. That will mean a 40-minute journey and a £3 bus ride for my constituents. Will the Minister agree to revisit these proposals?

[Damian Hinds]

We have embarked on a programme of change which comes at the end of a 20-year private finance initiative contract. There is both an opportunity and a requirement to review what is needed on the estate. Rents are particularly high in London, and are therefore particularly challenging in the commercial market. We have sought to minimise the effect on claimants, to ensure that there is a good coverage of services within reach, and to run a consultation when a new jobcentre is more than 3 miles away and a journey on public transport takes more than 20 minutes.

[Heidi Alexander (Lewisham East) (Lab)]

10. When his Department plans to publish its equality impact assessment on the proposed closure of Jobcentre Plus offices.

[The Minister for Employment (Damian Hinds)]

Throughout the development of these proposals, we have been mindful at every turn of the impact on staff and customers. Both statistical analysis and local knowledge have informed the proposals, which are still subject to consultation with staff and, when appropriate, with the public.

[Heidi Alexander]

Nearly a quarter of the jobcentres earmarked for closure are in London, and, as the Minister will know, both the disability and the black and minority ethnic unemployment rates are higher in the capital than elsewhere. Is the reason for the delay in the equality impact assessment the fact that it will show a disproportionate impact on the groups that typically need the most support to gain access to employment?

[Damian Hinds]

No, we have been mindful throughout of our duties under section 149 of the Equality Act 2010. Equality analysis will help to inform the final decision-making process, and it is an integral part of the thinking and process throughout.

[Ben Howlett (Bath) (Con)]

Following the publication of the Women and Equalities Committee report on Muslim women in the workplace, what work is the Minister doing to ensure that minority groups in which unemployment remains stubbornly high are prioritised at jobcentres across the UK?

[Damian Hinds]

There are a number of very good local projects working with local organisations. I do not have the list in front of me, but there is some good work going on, and we seek to find where best practice exists and see how far it can be replicated.

[Rosie Cooper (West Lancashire) (Lab)]

11. What recent discussions he has had with the Chancellor of the Exchequer on improving pension transition arrangements for women born in the 1950s.

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[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?

[The Minister for Employment (Damian Hinds)]

I welcome the news from my hon. Friend’s constituency, which has seen such a strong fall in unemployment. I certainly acknowledge the key role played by third sector organisations. We continue to work with outside organisations and on programmes such as work experience, sector-based work academies, the new youth obligation and, of course, the roll-out of universal credit.

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[Owen Thompson (Midlothian) (SNP)]

T3. Last week, the Scottish Government wrote to the UK Government to express concern over how universal credit is pushing people into more hardship and debt. I also understand that the SNP-led Midlothian Council has written to the Minister to ask for a complete and immediate halt to the full service roll-out of universal credit, which is having an appalling impact on people across my constituency and a further knock-on impact on council resources. When will the Minister realise that the changes being pushed through are punishing some of the most vulnerable people in society? Will he heed warnings from the Scottish Government and others across Scotland that the process should be stopped now?

[Damian Hinds]

Universal credit is a massive reform. I know of no other country with a comparable system that stays with people from being out of work to supporting them in work. Are there challenges in implementing that? Yes, of course there are, but the transformational benefits in sight are immense.

[Sir Henry Bellingham (North West Norfolk) (Con)]

T6. I put it to my hon. Friend the Minister that, although no MP wants a DWP office closure, there may nevertheless be significant advantages if the King’s Lynn DWP office were to co-locate with the borough council, as there would be synergies, for example, on housing benefit. We could then create a public service centre of excellence for the borough council, the clinical commissioning group and the DWP.

[Damian Hinds]

I take that point on board, and we are embarking on a number of co-locations as part of the current programme. Co-location can be good both for claimants and for the taxpayer: for claimants because more of the services they need to access are in one place, and, of course, for the taxpayer by making better use of the public estate.

[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?

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[Mr David Hanson (Delyn) (Lab)]

T7. Has any of the team seen today’s news about the one-hour-a-month contract offered by Santander bank? Will the Minister guarantee that under no circumstances will any job like that ever be advertised in a jobcentre in this country?

[Damian Hinds]

I cannot comment on an individual case, but I can say that, in general, we know that less than 3% of people report that they rely on a zero-hours contract. We know that, on average, those people get 25 hours a week and actually have above-average levels of job satisfaction. Zero-hours contracts are certainly not for everybody, but they do work for some people.

[Huw Merriman (Bexhill and Battle) (Con)]

T9. Some 17% of the working-age population suffer from a disability. With labour shortage an issue in my constituency, I have committed to signing up 30 employers to be Disability Confident organisations. Given that I am meeting my chamber of commerce this week, does the Minister have a recruitment message for its members?

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[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?

[Damian Hinds]

We have female employment at a near record rate, which is to be celebrated. We have seen the gender pay gap come down, but there is more work to do. A number of things have to fall into place for that to happen, but one of the key things happening this year is, of course, the extension of childcare to 30 hours a week for three and four-year-olds. Parents on universal credit get 85% reimbursement, rather than 70%, and we have tax-free childcare, too.

[Thangam Debbonaire (Bristol West) (Lab)]

The Fawcett Society found last year that 25% of women over 30 are saving nothing for retirement, compared with 15% of men. What does the Secretary of State think is responsible for that, and what is he doing to change it?

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[Melanie Onn (Great Grimsby) (Lab)]

What does the Minister say to the private landlord who came to see me with his tenant with concerns about future eviction rates if there is no option under universal credit for rent to be paid directly to landlords?

[Damian Hinds]

There is, of course, the facility for rent to be paid directly to landlords where necessary, and we are streamlining the process for doing that. However, we think that the general principle is right that most people in receipt of universal credit should know what their housing liabilities are and pay their rent when they are out of work and when they are in work.

[Stephen Timms (East Ham) (Lab)]

We have been reminded that new claimants of employment and support allowance will get a much lower rate of benefit, starting in about 10 days. Some of those people will find themselves in serious difficulty. Do Ministers have any new proposals to help?

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

Let me return to the issue of the DWP estate and travel times. Given that this information has been gathered via Google Maps, which has been shown to be inaccurate as some bus services are no longer operational, will the Minister tell me what tests have been carried out to check the accuracy of the information? If there is a possibility of the ministerial guidance being breached, will any further proposed closures will go to public consultation?

[Damian Hinds]

The hon. Gentleman and I, and many of his colleagues and others from across the House, have had a number of opportunities to debate these matters and to go through individual cases, on individual locations, one by one. We used a variety of sources to determine travel times and “reasonableness” of travel. The ministerial criteria say that if somewhere is within 3 miles or 20 minutes by public transport, it is reasonable to ask somebody to make that journey; otherwise, we have a public consultation.

[Several hon. Members rose—]

[Tracy Brabin (Batley and Spen) (Lab)]

Thank you, Mr Speaker.

A constituent of mine, whom I have spoken of before, lost her job on Christmas eve. She is denied universal credit because she is over 60 and she is denied jobseeker’s allowance because her husband has a small private pension. This couple’s lives have been thrown into financial turmoil. Does the Minister agree that it is time the Government paid some compensation to this constituent, as she has paid in all her life?

[Damian Hinds]

Jobseeker’s allowance or universal credit should be available to people of working age. I will have to look at the details of the case the hon. Lady mentioned, if she would like to get in contact.