DWP Estates
Damian Hinds Excerpts(7 years, 4 months ago)
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The Minister for Employment (Damian Hinds)
DWP is today confirming the future of its estate, including jobcentres and back-office sites.
On 26 January 2017 DWP tabled a statement outlining proposals for changes to its estate, which will come into effect from 31 March 2018 when the current PFI contract with Telereal Trillium expires.
Today’s announcement confirms that the majority of those proposals will go ahead. Some smaller jobcentres will merge with larger ones, and others will be co-located with local government premises. It will mean that DWP will be able to offer a more efficient service, while delivering good value for the taxpayer, saving over £140 million a year for the next 10 years.
The support provided to jobseekers will be further strengthened this year as more work coaches are recruited in every nation and region of the UK.
The plans reflect the fact that eight out of 10 claims for jobseeker’s allowance and 99% of applications for universal credit full service claims are now made online. This means that DWP buildings are used much less with 20% of the estate currently underutilised.
Following more detailed planning work and further discussions with staff, public consultations and feedback from stakeholders, the outcomes for some sites have been revised. The list in the online attachment (DWP Estates Announcements 5 July 2017) details where such a revision has been made. There are a small number of sites where commercial negotiations are ongoing. The Department is unable to announce these plans until this process is complete. These sites are also in the list.
In January, we were unable to announce our proposals for some offices because negotiations with landlords had not been concluded. We are now in a position to provide an update on proposals for these offices and they are listed in the online attachment.
For the vast majority of DWP offices there will be no change in location. Where we are closing a site, we will take all possible precautions to minimise disruption for customers. Vulnerable people will continue to receive home visits and postal claims where it is appropriate to do so.
The attachment can be viewed online at:
http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2017-07-05/HCWS30/.
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Employment, Social Policy, Health and Consumer Affairs Council: 15 June 2017
Damian Hinds Excerpts(7 years, 4 months ago)
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The Minister for Employment (Damian Hinds)
The Employment, Social Policy, Health and Consumer Affairs Council met on 15th June 2017 in Luxembourg. I represented the UK.
The Council concluded the annual European semester process; Ministers approved the Council recommendation on the National Reform programmes, endorsed the Country specific recommendations and endorsed the Employment Committee opinion on the labour market integration of refugees. In the table round, in line with all Ministers, the UK welcomed the continuous improvements in the semester process.
The Council received a progress report on revisions to the posting of workers directive. The common theme in interventions was the need for European unity and to build citizens’ confidence in the EU. However, member states expressed different views for achieving that, reflecting a broader debate on the balance between the social dimension of the EU and the single market.
Ministers discussed the European Pillar of social rights over lunch. The presidency provided an oral report to Council afterwards, citing agreement that there should be flexibility about the process for the proposed joint proclamation on the Pillar.
The Council took note of a progress report on the revision of EU Social Security Co-ordination Regulation 883. The presidency outlined how close they thought the Council was to agreement. The European Commission reiterated that this whole file should be concluded in this European Parliament. Supported by Germany, the UK stressed the importance of full codification of case law and of striking a balance on applicable legislation.
Progress reports on the anti-discrimination directive, women on boards and the European Accessibility Act were noted without comment from delegations. The Council also adopted Council conclusions on making work pay and the European Court of Auditors’ report on the youth guarantee and youth employment initiative.
The Council agreed a general approach on the carcinogens and mutagens directive (second batch of substances). Alongside other member states, the UK emphasised the importance of protecting workers and that the revision should therefore be based on scientific and social partner advice. On polycyclic aromatic hydrocarbons, the presidency’s text strayed from that advice, such that the UK abstained.
Under any other business, Sweden raised pharmaceuticals and the environment. The Commission stated it will publish policy options on these in early 2018, including a new Antimicrobial Resistance (AMR) Action Plan. The UK spoke on the importance of action on AMR in different sectors and following up on progress made through other global fora. The UK also welcomed work through the G7 and G20 particularly with regard to research into new antibiotics, vaccines and diagnostics. Estonia outlined the priorities for its upcoming presidency, to include tackling harmful use of alcohol; opportunities through digital innovation in health; and tackling AMR.
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Universal Credit: Lowestoft
Damian Hinds Excerpts(7 years, 4 months ago)
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The Minister for Employment (Damian Hinds)
I congratulate my hon. Friend the Member for Waveney (Peter Aldous) on securing a debate on this important issue. I know he joins me in supporting the aims of universal credit. I also know that the insight he brings, and the amount of thought and work he has put in, will prove a great asset as we strive collectively to make universal credit the best it can be.
I also recognise the concerns that have been raised, and I reassure my hon. Friend and parliamentary colleagues that work is under way to improve delivery. This debate provides a chance to show how the Department has removed obstacles to this flagship welfare reform. More than 1 million people have claimed universal credit, and 530,000 are currently on universal credit, of whom 6,067 are in his constituency. There are now more people claiming universal credit than jobseeker’s allowance, which is an important milestone.
Ruth George
The Minister says that more than 1 million people have claimed universal credit and that currently 530,000 are receiving it. Does that mean that nearly half a million people have put in a claim and are yet to receive universal credit? If so, those are frightening figures.
Damian Hinds
No, it does not mean that. Obviously, people come into the benefits system and may be receiving benefits for a period of time but then go into work that is sufficiently remunerative to mean that they do not fall within the universal credit system. As the hon. Lady will know, people’s circumstances change, and can do so often.
As I was saying, the digital take-up of universal credit is a great success story, with 99% of UC new claims made online, which will mean that in the long run the service is more expedient and more user-friendly. Overall, 82% of universal credit customers reported they were satisfied or very satisfied with the service, and figures show that it is working. Claimants are spending twice as much time looking for a job as under the old system and they are moving into work faster, with 113 people moving into work under universal credit for every 100 who were doing so under the pre-existing system.
One result of the roll-out of universal credit full service in my hon. Friend’s constituency—I grant that this may seem paradoxical—is that the claimant count has risen since the full service went live in May 2016. As he rightly acknowledged, that is because under universal credit the count is extended—it is broader—to cover a wider group of claimants than under the old jobseeker’s allowance benefit. This is part of universal credit’s design and ambition to encourage and support more people into work.
My hon. Friend has deep roots in the constituency and community he represents, and I am very aware that he works closely with the local authorities in his constituency to make sure the voice of East Anglia is always heard. I was very pleased to have the chance to visit Lowestoft jobcentre earlier this year—he mentioned that—accompanied by the leaders of the Waveney and Great Yarmouth councils. I am also aware that he has made subsequent visits to the jobcentre, which I hope he also found useful. That visit was a great opportunity for me to see how we are delivering universal credit in his constituency and to hear at first hand some of the concerns people have had.
I also want to join my hon. Friend in expressing condolences following the death of Colin Law, the leader of Waveney District Council, in May. Councillor Law was a long-standing public servant who made a big contribution to the community he represented, as was manifested in the example my hon. Friend gave of his commitment even into his ill health. He will be missed by those on all sides of the political divide.
Given the ambition and scale of change that universal credit introduces, there are bound to be issues that arise as the service is rolled out. In particular, there are clearly concerns over the challenges some claimants face when managing a monthly budget for the first time, but let me assure Members that the Department has already been making inroads on this issue and there are many good reasons to feel positive about the future.
I take the opportunity to highlight how universal credit helps people looking for work in my hon. Friend’s constituency. There is a high level of seasonal work in the Lowestoft area. Before the introduction of universal credit, many people could have been reluctant to take up short-term or irregular work because of the old 16-hour limit with some of the legacy benefits. Since the launch of universal credit, jobcentre staff have contacted the large local employers, leisure parks and holiday resorts, to help generate job opportunities for claimants. We have run popular job fairs, attended by more than 1,700 claimants, promoting these openings. I know that my hon. Friend has had a lot of personal involvement in running job fairs, and other employability and opportunity events.
Universal credit claimants can now take up work, which may initially be just at the weekend and in school holidays, that builds up to extra hours as the season progresses. Claimants have the flexibility to take on extra hours without worrying about having to stop and then restart multiple benefit claims. Under universal credit, employers in Lowestoft and Great Yarmouth are able to offer extra work at short notice to a workforce that can make the most of those opportunities without the additional administrative burden.
Lowestoft and Great Yarmouth jobcentres were among the first to roll out the universal credit service to all claimant types, which has given us invaluable insight into what works and what we can do better. From my visits and from the correspondence that I have had with my hon. Friend and with the local authorities in his constituency it became clear that we needed to be better at gathering information and improving the speed and accuracy of payments to claimants. It was also clear that we needed to do a better job of speaking with landlords in both the private and social sector about the changes that universal credit would bring.
I am pleased to report that this valuable feedback has helped us introduce real improvements to the way we do things: we have removed delays and data verification that were causing some of the payments to go out late; and we have introduced a “Housing Confident” scheme to ensure that universal credit work coaches talk to claimants about housing and that work coaches are alert to the support that claimants might need. It is about properly understanding the claimant’s needs, and this can extend to providing budgeting advice or, when needed, arranging for direct payments to landlords.
We have made improvements to the service that we offer private and social landlords. Thanks to feedback from landlords, we have made improvements to the way we set up direct payments of rent to landlords with an easier to use application form. That means that we are getting those payments out to landlords more quickly. We are also exploring how we can make it easier for landlords to find out the status of the application for a direct payment and we will be making an announcement about that soon.
Universal credit also brings big improvements for private landlords whose tenants get into arrears. Under the old system, landlords would need to apply for recovery of arrears via a third party deduction, often at a low repayment rate, which could mean a long wait before landlords got back their rent. In universal credit, it is easier and quicker to set up an arrears payment for landlords. In addition, under universal credit, repayment for private landlords can be at a higher rate—up to 20% where claimants can afford it. That means that claimants can get on top of their finances and landlords can get the money they are owed more quickly.
These actions are having results. Our internal figures show that far more claimants are getting the right money on time. We aim to make this information public in the near future. I know that my hon. Friend has acknowledged these improvements in performance.
Jim Shannon
In my previous intervention, I suggested that perhaps a dedicated helpline would be one way of addressing the issues. The hon. Member for Waveney (Peter Aldous) responded by saying that some more frontline staff would also be of help. Would the Minister consider both of those suggestions?
Damian Hinds
In response to the points raised by my hon. Friend about the roll-out of universal credit in Lowestoft, I said that I would come on to some of the questions around our customers and claimants—people with particular needs and complex needs. The essential point is that, in jobcentres, our staff see the full range of society and of course we must have the wherewithal to help those people as best we can. That does involve being responsive to different types of people and their different needs. I am confident that our staff do that in the correct way, but can we learn more? Of course we can.
I do appreciate the concern that exists around rent arrears. It is an issue that matters to many people. We have had a chance to debate that matter in a recent Adjournment debate in this House. As I said at that time, there are many complex and overlapping factors at play, and the role of universal credit is by no means the sole factor contributing to rent arrears. Our research shows that the majority of universal credit claimants are comfortable managing their own budget. Furthermore, we know that, after four months, the proportion of universal credit claimants who were in arrears at the start of their claim fell by a third.
Let me reassure the House that there are safeguards in place for claimants. We can advance up to half of a universal credit payment at the start of the claim. Our work coaches talk to claimants about their financial situation and can also refer claimants for support to help them manage their budget.
If claimants do not want to talk about their finances face to face, our new “Money Manager” website, developed in co-operation with the Money Advice Service, gives claimants practical support and advice. There are a number of alternative payment arrangements available, which include paying rent costs directly to landlords but also making more frequent payments to claimants and splitting universal credit payments in cases of domestic abuse. Our research shows that over time, claimants successfully reduce their arrears.
I want to turn to a couple of the other specifics mentioned by my hon. Friend the Member for Waveney. On emergency and temporary accommodation, we are aware that the transitory nature of universal credit temporary accommodation claims can cause problems to do with the timing of when people will be in temporary accommodation, the assessment period and when the payments are made. We also recognise that this has resulted in some difficulties for local authorities and tenants in emergency or short-term accommodation. Our consultation on supported accommodation, which closed on 13 February, asked whether devolving shared accommodation to local authorities might also work as an approach for temporary accommodation. We are considering the responses to that consultation and the joint Select Committee on Communities and Local Government and Select Committee on Work and Pensions report, and we will work with colleagues across Government and in the devolved Administrations to set out further details of our plans as soon as we can.
On the question of claimants with complex needs, we make sure that our work coaches have the flexibility to shape support for individuals in difficult and different circumstances. Work coaches can adjust work search requirements to allow claimants to prioritise solutions to their issues, such as homelessness or addiction. We are also working with our partners to target resources most effectively. Hon. Members will be aware of the range of third-party services and partnership arrangements in place in a large number of jobcentres. We have also appointed vulnerable people officers in jobcentres to deal with claimants who face significant challenges. These officers work closely with the universal credit service centre to identify and resolve issues quickly.
The DWP’s response to the Public Accounts Committee’s report in February 2017 made a commitment to write to the Committee in spring 2017 to set out the impact of the changes to the programme on operational costs, staff and claimants. As a result of the general election, we will now send our response once the Committee has been reinstated. We also plan to publish a range of management information on universal credit later this year.
I recognise, of course, that there are areas for improvement in our service, but with every release of new software and every office that goes live with the full digital service, enhancements are made that improve the experience of using the service for staff, for claimants, for landlords and for our delivery partners. My hon. Friend the Member for Waveney has seen for himself the drive, commitment and passion that so many of our staff, stakeholders and people across the programme have. They want to see this revolutionary welfare reform through, and I am confident that they will.
Question put and agreed to.
Telephone Calls to the DWP
Damian Hinds Excerpts(7 years, 4 months ago)
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The Minister for Employment (Damian Hinds)
I congratulate the hon. Member for Glasgow South West (Chris Stephens) on securing this debate on the cost of calling the Department for Work and Pensions. I also thank him for his continued interest in these important matters.
At the DWP we seek to ensure the correct balance between delivering high levels of customer service and experience and balancing the demands on the public purse and therefore protecting the taxpayer. The DWP’s policy is that calls to claim benefit should be free, so it uses 0800 telephone numbers for such calls. The Department uses 0345 telephone numbers where customers call for other reasons. These are calls that typically take less time to resolve. The exception to this is universal credit, as the service is designed to be accessed online and telephony services are used as a fall-back.
Drew Hendry
The Minister says that those services are supposed to be online. Does he realise that accessing them online is not always an option for people in rural areas? That is why phone calls are so important for people in rural constituencies, as well as others who cannot access them online.
Damian Hinds
Yes, of course I recognise that. I represent a rural constituency myself, and it is important to have other options available where necessary. It is also the case that when we are dealing with people seeking work, for example, being able to get online is vital for that purpose. That is one of the reasons why we also ensure IT provision inside jobcentres.
It would not be an effective use of public money to build universal credit around a freephone telephone number, but where customers need to call DWP regarding their claim, it is through an 0345 number. The costs of calling an 0345 telephone number are set by individual providers, but they are never more than the cost of calling geographic numbers, which have 01 and 02 dialling codes. Calls to 0345 telephone numbers are typically included in any free or inclusive minutes in a caller’s landline or mobile telephone contract. Although there are a multitude of service providers and tariffs, I can confirm that calls to 0345 telephone numbers are included in bundled minutes for mobile services by the biggest providers—EE, 02 and Vodafone—as well as most of the others.
I know that in the past the hon. Gentleman has raised the use of more expensive 0845 telephone numbers. I am pleased to be able to confirm that the DWP does not use 0845 telephone numbers in any of its communication channels. We replaced 0845 numbers with 0345 numbers during 2014 and 2015. That process was completed before the Ofcom changes in call charges came into effect in 2015, making calls to 0845 numbers more expensive. After the DWP 0345 numbers were introduced, customers calling an old DWP 0845 telephone number would receive a recorded message informing them that they should dial the correct 0345 number. There was no charge for the call to the old 0845 telephone number.
I appreciate, of course, that some of the most vulnerable people in society have to contact DWP services, which is why, if callers express concern about the cost of a call, we offer to call them back. The Department provides controlled access to telephones for claimants in jobcentres, when required, to help with any benefit inquiries. It has also expanded its “once and done” service centre approach across its working-age, disability and specialist sites, so that it can meet a claimant’s needs during the first call whenever possible. It continues to review and identify opportunities for integrating telephony and benefit-processing activity further to improve the service it delivers.
The Department is proactive in considering how further to reduce any potential cost impact on customers when they need to transact business. As Members will know, in delivering welfare reform, universal credit is designed to be accessed online, with telephony services used as a back-up. The universal credit experience is delivering an effective channel shift away from the use of telephony, with over 90% of new claims made through digital interfaces and away from the telephone.
Damian Hinds
If the hon. Gentleman will forgive me, we will see how the time goes.
A telephony option is always available to people who may not have internet access, or who are experiencing difficulties in accessing the service online.
The DWP is also seeking to exploit new and emerging technology to keep in touch with claimants. We have introduced SMS text messaging for a number of service lines to confirm to customers receipt of their claims, information or documents, or to let them know when they can expect an outcome. Those changes reduce contact from claimants chasing updates, while increasing the overall customer service experience. The service operates for new claims for employment and support allowance and jobseeker’s allowance, and was introduced more recently to acknowledge receipt of fit notes.
The Department is developing a strategy across all the services it delivers, which will allow us to carry out a safe transition of our key telephony platforms and consider how to make best use of new technologies and contact channels. Given the complexity of the services that the Department delivers and the range of customers with whom we interact, it is vital to ensure that we really understand the range of services that citizens need in order to interact with us. I am sure Members appreciate that a “one size fits all” approach would not be successful. The Department has to strike the right balance between the cost to callers and the cost to taxpayers, which is why a mixture of freephone and paid—but never premium-rate—telephone numbers is available to citizens. As the hon. Gentleman said, if the 0800 numbering range were extended to all service lines, it would cost the taxpayer an additional £7 million per year.
Chris Stephens
According to the gov.uk website, telephone calls to 0345 numbers can cost up to 55p a minute. Can the Minister confirm that that information is correct?
Damian Hinds
I have here the print-out of that page. It lists a number of different telephone number prefixes. Members will be aware that these days there are more telephone number prefixes than when we were growing up. The service on the Government website is to help people to understand what it means if they see an 03, an 0845, or an 07 number. It lists a range of costs for geographic numbers—the numbers we have for our homes; the 01 and 02 numbers—and a range for 03 numbers, which is the same as the range for the geographic numbers. That is what the tariff reflects. I am happy to confirm to the hon. Gentleman that we have been through that information today. There are a couple of minor points on the gov.uk information site that need to be updated, but they do not relate to any of the number prefixes that are in use at present by the DWP.
Chris Stephens
We will take that as a yes, so may I ask the Minister the following? He talked about a range of services and using different telephone lines and numbers for those services. Will he seriously consider setting up a free phone line for those who have received benefit late—for example, someone who should have had money on the Friday and who had to chase that up on the Monday?
Damian Hinds
Obviously, we want the system to be as accurate as possible. We want to reduce the requirement for people to be in touch with the Department for those reasons. When they have to, we want that to be done as quickly and as efficiently as possible. I have outlined the Department’s policy. There is a range of 0800 numbers. The rest are 0345 numbers, which are equivalent to a normal, geographic land call. Typically, in a mobile phone contract or bundles on pay as you go, that would be included in the minutes that one has. We think that that is a fair and reasonable approach. There is still the option to request a call-back, too.
I want to come on to some of the other issues that the hon. Gentleman raised. He alluded to the fact that he and I have exchanged correspondence on the issue of third parties seeking to make a profit out of calls to the DWP. As he rightly mentioned, that can happen with other services, too. I would like to take the opportunity of this debate to update Members on that important issue.
I can confirm that my Department does not make any revenue out of calls to our publicised telephone numbers. We know that there is a small number of companies that seek to make money by providing an alternative, and usually more expensive, telephone number that then routes callers through to the Government helplines. Although that practice may be considered unethical, it is not illegal, provided the company does not pretend to be the Government and does not state that it is officially affiliated. The DWP is aware of a small number of sites that advertise that type of service, primarily owned by the same individual.
I strongly encourage internet search-engine providers actively to police and manage advertisers and subscribers who may look to profit from some vulnerable members of our society by advertising expensive or premium rate telephone lines as a route to access DWP services that are accessible directly through either freephone 0800 or local rate 0345 telephone numbers. The specific activity known as vishing, where a voicemail is left for the citizen to call back an unofficial number, is generally not widespread within the DWP— only one occurrence has been identified.
The DWP does everything it can to stop customers being caught out and, in that instance, the same number was identified as appearing as an “infobox” on a search engine for universal credit alongside the genuine UC number. The DWP complained to that search-engine provider and the incorrect entry was removed.
We have covered the question of the gov.uk tariff ranges. The hon. Gentleman also asked about steps being taken to improve access to, and people’s capability and confidence in using, IT equipment. As he will know from his visits to our jobcentres, we provide lobby equipment and encourage people to use it. There is often facility for people to bring their own device and be helped to use that, because we do absolutely see digital capability—digital empowerment—as being vital, not just in the claiming of benefits, but in applying for work, and, of course, when getting into work, as there are few jobs these days that do not require some level of IT literacy.
In conclusion, let me reassure hon. Members that the Department is absolutely committed to ensuring that costs for customers are kept to a minimum and that safeguards are in place for those who need them. The Department is in the process of transforming the way in which citizens interact with us, which I am sure hon. Members can appreciate will take us some time to deliver, given the range of services the Department delivers and the number of people we transact with every day. The hon. Gentleman asked about the Social Security Advisory Committee’s recommendation. These things are technology-dependent. The review of our systems is current and we are committed to looking at that closely.
Our telephony policy will be kept under review throughout this process and the Department will continue to seek to strike the right balance between the cost to citizens and the cost to the taxpayer.
Question put and agreed to.
Employment, Social Policy, Health and Consumer Affairs Council: Informal Meeting
Damian Hinds Excerpts(7 years, 6 months ago)
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The Minister for Employment (Damian Hinds)
The Employment, Social Policy, Health and Consumer Affairs Council met for the informal meeting of Ministers on 3 and 4 April 2017 in Valletta, Malta; I represented the UK. The informal meeting does not tend to include legislative matters, but provides an opportunity for in-depth policy debates. The subjects for discussion are determined by the presidency, who hosts the meeting.
The European Commission presented an EU road map for “making work pay”, which was the theme of the informal meeting. The Commission set out details of the White Paper on the future of Europe as well as an update on expected proposals for the European pillar of social rights.
The presidency led a discussion on skills, emphasising how poor skills lead to social exclusion. Member state interventions highlighted the importance of investing to raise skill levels and improve the quality of jobs.
A plenary discussion was held on the subject of addressing inequalities in the labour market, with a focus on the challenges of responding to digitalisation, the rise in self-employment, new types of employment, and demographic change.
The presidency gave a presentation on “moving away from benefit dependency—a Maltese perspective”, setting out how work has to be incentivised over benefits and how activation is critical. The Social Protection Committee chair outlined a framework of six key themes, including the balance between activation and income support; the provision of individualised support; and the availability of affordable services.
The final plenary of the informal meeting considered the labour market as a vehicle for social inclusion. Member states emphasised the importance of activation for the long-term unemployed, as well as the role of access to child and social care.
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Universal Credit
Damian Hinds Excerpts(7 years, 6 months ago)
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
This information is provided by Parallel Parliament and does not comprise part of the offical record
The Minister for Employment (Damian Hinds)
It is a pleasure to serve under your chairmanship, Mr Nuttall. I echo what the hon. Members for Newcastle upon Tyne North (Catherine McKinnell) and for Wirral West (Margaret Greenwood) said about PC Keith Palmer and all the victims on that terrible day when last this debate was convened. I congratulate the hon. Member for Newcastle upon Tyne North on securing this important debate. We have had a wide-ranging debate today.
Let me be clear at the outset that the roll-out of universal credit continues to plan. As Members are aware, universal credit is now in every jobcentre in the country. The programme has just passed an important milestone of more than 1 million claims. The service has been deliberately rolled out in a steady way, as alluded to by some of my hon. Friends, using a test-and-learn approach to allow us to user-test the service and get immediate feedback.
In such a large system and organisation, with so many branches and so complex a set of data, I admit that sometimes things go wrong. That is not unique to universal credit, but happens and has happened on occasion for many years throughout such systems. Of course we very much regret that when it does happen, but it does not change the fundamentals of what the universal credit programme is achieving.
The longest-standing senior responsible owner and programme director in the programme’s history are in place, and both have been in post for well over two years. In that time the programme has stabilised and delivered all its key milestones on time and on budget. When last scrutinised by the Major Projects Authority, the programme was moved to an amber rating, which is rare for a project of this size.
Even having the best team in charge is not necessarily enough: it has to be combined with the right project disciplines and the proper oversight to ensure success. That is why the team is implementing a fully developed, agile approach to delivery, explicitly designed to ensure that the service is continuously improved, based on the user feedback that I talked about, and is flexible enough to adapt to changing circumstances or new information. The programme is also subject to comprehensive and rigorous review internally and externally.
All that combines to create the safest, most secure programme delivery achievable. We are working quickly, and will continue to do so, to deal with any challenges, which will of course emerge, to ensure that universal credit is delivered safely and securely. I recognise that there are concerns, and I welcome another opportunity today to discuss and address them.
As part of the UC full service implementation process, we had a full external stakeholder plan to ensure that those stakeholders have a proper introduction to the full service before it goes live in their area. The full service was launched at the Newcastle West jobcentre on 15 March 2017, making Newcastle one of the first core cities to transition fully to the service. I am also aware that the hon. Member for Newcastle upon Tyne North has been in contact with the local district manager for Jobcentre Plus on more than one occasion and that she has been invited for a visit.
A couple of hon. Members asked about the changes being made in the DWP estate. I reassure them that in the planning and modelling we of course account for all the changes to welfare systems and our support for claimants. An important point to make is that although we are changing some of the physical estate, which involves some jobcentres merging with others, we are not cutting back on our frontline people—in fact, we expect to have more work coaches working with and supporting people into and in work at the end of this process than we do at the beginning.
The scale and nature of the change represented by universal credit is bound to cause some anxiety, but the benefits it brings are many, going far beyond the £7 billion in annual economic benefits and even beyond the advantages to claimants of simplicity, stronger work incentives and personalised support. UC represents a generation-changing culture shift in how welfare is delivered and how people are helped, creating a system that allows people to break free from being dependent on welfare, to take control of their lives and to move into work. That will have an impact on a large number of people: we estimate that by the time UC is fully rolled out, about 7 million recipients will benefit from the advantages of universal credit.
We must remember that universal credit picks up from a flawed pre-existing system and strives to solve a number of problems that have for some time been thought to be near intractable. In the old system, complexity and bureaucracy had often served to stifle the independence, to limit the choices and to constrain the outlook of its recipients. With UC, we are untangling the bureaucracy, strengthening the incentives and simplifying the system and the signals it gives.
The behavioural effects we are seeing are strong. Claimants are responding to the clear incentives to work and, as my hon. Friend the Member for North Swindon (Justin Tomlinson) said, spending twice as much time looking for a job as they did under the legacy system: 113 people are moving into work under the new system for 100 under the old system. People throughout the country are therefore already benefiting from universal credit, and more will do so.
The design and structure of UC is transformational in its focus on replicating the world of work. UC encourages claimants to take greater responsibility for their finances and incentivises them to earn more and to make progress once in work. A flexible, clear and tailored claimant commitment helps claimants to understand fully their responsibilities, and a work coach provides personalised support, helping people to stay close to the labour market and to overcome whatever barriers they have to work.
Critically, universal credit removes the hours rules and the cliff edges that have long been a feature of our systems, plaguing legacy benefits and tax credits. UC removes the need to switch between different benefits as people move into and progress in work, simplifying the system and ensuring continuity. It provides a consistent taper for claimants as they move into and through work. The recent taper reduction will benefit 3 million claimants once UC is fully rolled out, providing further tangible and visible benefits to making progress in work.
Thanks to the real-time information link, immediate adjustments can be made to the UC award, which is far beyond the blunt mechanism of annual reconciliation. That also means that people can quickly see the effect of the changes they are making. For the first time we now have simple levers to optimise the system, creating a fully dynamic and adaptable welfare system fit for the modern world. Digital is at the heart of the new system. The majority of jobs these days require some computer capability and competency, so it is also right that the system to help people into work is digital, too, as well as more efficient as a result.
Damian Hinds
If the right hon. Gentleman will forgive me, I will not, or I will run out of time.
Let me assure the House that I recognise what a complex and important issue housing arrears are. Many different factors are at play. As colleagues know, UC pays housing costs directly to the claimants and they pay rent to their landlord. That mirrors the world of work, which is an important part of the fundamental culture change I mentioned. That of course has been the case for some time, since the Labour Government rolled out the local housing allowance in the private rented sector in April 2008.
Damian Hinds
I will give way to the hon. Lady, because it is her debate, but I am also conscious that I am running out of time and will not be able to cover everything.
Catherine McKinnell
The Minister made reference to housing payments mirroring the world of work, but I am aware of no workplace in which the employee is expected to wait six weeks or more for payment.
Damian Hinds
I am grateful to the hon. Lady for making the important point about the timing of payments to individuals. No one should wait more than 45 days for their first UC payments, unless they are exempt from waiting days, which the hon. Member for Strangford (Jim Shannon) mentioned. Various exemptions include those for prison leavers and for people coming across from other benefits, such as income-related JSA or ESA. For those exempt from the waiting days, the wait is no more than 38 days. A claimant who cannot wait that long, however, may apply for an advance of up to 50% of the total award to provide support through to the UC payment being made. That is an important facility, and we continue to work on raising awareness of its availability.
There have been some delays in the payment of the UC housing element, largely because of, for example, mismatches between what claimants tell us and what landlords tell us is the rent due. We continue to work on process improvements around that. The pre-existing system was itself far from perfect, and we believe the processing times for the UC housing element are about the same as those for local authorities paying housing benefit. According to research by the national organisation for ALMOs—arm’s length management organisations—three quarters of tenants on universal credit were already in arrears before coming on to UC. Nevertheless, we continue to address those issues and we recognise that further improvements can still be made. That includes a dedicated team to handle the processing of rental information for both claimants and landlords.
In Newcastle upon Tyne North, the claimant count has come down by 36% since 2010, but of course we have to continue to support more and more people into work as they fulfil their potential and ambitions. Colleagues will know that implicit consent has been restored to MPs. There are particular sensitivities and difficulties about the breadth with which implicit consent can be granted, given the depth of personal and sensitive information within universal credit to which the individual claimant holds the key, but claimants are able to give explicit consent to advice agencies and so on as appropriate.
I fear that I am out of time. I conclude by saying that we must continue to work together to resolve issues as they arise and ensure a successful roll-out. We are standing on the cusp of historic change in our welfare state—a dynamic and fundamental change that is already transforming lives for the better and will improve many more. This is welfare reform in action—changing the dynamics in the system, making things simpler and ensuring that work always pays, to the benefit of millions.
Oral Answers to Questions
Damian Hinds Excerpts(7 years, 7 months ago)
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James Berry (Kingston and Surbiton) (Con)
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)
Lucy Powell (Manchester Central) (Lab/Co-op)
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)
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)
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)
Mrs Sheryll Murray (South East Cornwall) (Con)
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.
Owen Thompson (Midlothian) (SNP)
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)
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)
Mr David Hanson (Delyn) (Lab)
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)
Maggie Throup (Erewash) (Con)
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?
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?
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.
Universal Credit: Highlands
Damian Hinds Excerpts(7 years, 7 months ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Minister for Employment (Damian Hinds)
I congratulate the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) on securing a debate on this important matter and bringing his feedback and critique to the Floor of the House today.
I recognise the concerns that have been raised, and I want to reassure the hon. Gentleman that work is already well under way to improve delivery. Today’s debate presents an opportunity to share some of the ways in which the Department has sought, and is seeking, to resolve obstacles to this ground-breaking project.
There are now 470,000 people on universal credit, 2,400 of whom are in the hon. Gentleman’s constituency. As we would expect of a full-scale reform programme of this magnitude, there have been challenges along the way, but I assure hon. Members that we are working quickly to deal with them to ensure that UC is delivered safely and securely. I recognise specifically that the hon. Gentleman has encountered a number of universal credit claimants who have had issues with the service, and I am aware that he has already been in discussion with the Department for Work and Pensions district manager for the north of Scotland, who has invited him into the local jobcentre to assist in mutual understanding of the issues. I also acknowledge what the hon. Gentleman says in outlining occasions where things have gone wrong—if something has been mislaid and so on—and, of course, for those occasions I am sorry.
I commend what the hon. Gentleman is doing both for and with local organisations and his constituents. Bringing together local stakeholders, trying to address the details, and helping people to solve problems is important to ensuring the safe delivery of this historic reform. The hon. Gentleman has spoken, too, of the diligence, commitment and work ethic of our key stakeholders, local partners and staff, and I echo that.
Looking ahead to other highland areas that are due to roll out the universal credit full service, our implementation strategy is under way and we will soon be having conversations at a more local level. The remaining jobcentre sites aligned to the Highland Council area will roll out in July 2017 and, as part of the implementation activities, we have an external plan to ensure that all involved have a proper overview of universal credit before it arrives at the jobcentres.
Drew Hendry
I welcome the Minister’s words in recognising the issue, and I think that is the right thing to do. Before the roll-out continues into the rest of the highlands, will he take up my offer of coming to visit, to speak to the organisations locally and understand directly what is happening to claimants in my constituency?
Damian Hinds
Let me thank the hon. Gentleman for that offer. I welcome the opportunity to speak to local organisations throughout the country. My most recent visit to a jobcentre was this morning, and I plan to make another on Thursday. There are several hundred jobcentres throughout the country, and my aim is to get representative feedback and critiques to help our understanding of these issues. I also welcome the communication that I have had from and with the hon. Gentleman in that regard.
Damian Hinds
I will not, if the hon. Gentleman will forgive me.
We have established a dedicated team of employer and partnership staff, who are deployed to engage directly with stakeholders, including local authorities and landlords, to ensure that there is a joined-up approach to supporting universal credit claimants.
I know that housing arrears are an area of concern, which is why that is a regular subject of discussion in our Highland operational forum. Discussing the issues in this way has led to the introduction of some effective troubleshooting measures. To begin with, we are embarking on a specific piece of work to monitor Highland Council cases involving housing costs, to try to establish the root causes of any delays in the process. I appreciate the concerns over rent arrears. I know that it is an issue that matters to a lot of people, but the reality is that a lot of complex, overlapping factors are at play. The roll-out of universal credit is by no means the sole factor contributing to arrears. Let us consider for a moment that, according to the latest report published by the National Federation for Arm’s-Length Management Organisations, over three quarters of its ALMO tenants who have fallen into arrears were already behind with their rent before commencing their universal credit claim.
Some of the rent arrears are clearly attributable to the charging policies of landlords that can create book arrears from the outset of a tenancy. This is a simple definitional point. A landlord who previously charged rent on a weekly basis will of course appear to be missing rent payments under the new system, which pays claimants’ housing costs on a monthly cycle in arrears. We have been clear about the reasons for this change. The key motivation is to create a welfare system that more closely mirrors the world of work. Our research shows that the majority of UC claimants are comfortable managing their own budgets. Furthermore, we know that after four months, the proportion of UC claimants who were in arrears at the start of their claim fell by a third.
Damian Hinds
If the hon. Gentleman will forgive me, I want to make sure that I cover all the points, but if there is still time afterwards, I will of course give way.
Ultimately, the fact that many people are coming on to universal credit with pre-existing arrears is contributing to the overall rent arrears issue. Please let me reassure the House that there are safeguards in place for claimants, including advances, budgeting support and alternative payment arrangements, and research shows that claimants successfully reduce their arrears over time.
This work goes hand in hand with our work on improving the number of claims put in payment by the end of the first assessment period. This includes refining the customer journey, improving the payment of housing costs, improving communications to landlords and local authorities, and streamlining the way in which information is verified. Those in the project team regularly monitor the timeliness of payments, and if they identify delays, they quickly take action. I can confirm that there is a positive trend in the hon. Gentleman’s constituency, with significant improvements in timeliness month on month.
I recognise that rural areas such as the Highlands might face particular challenges. Indeed, concerns were raised by colleagues regarding the pace of roll-out. We listened to those concerns and, in tandem with a buoyant local labour market, we made the decision to adjust the roll-out schedule at remaining Highlands sites. We have moved the target roll-out date for remaining Highlands sites—Dingwall, Fort William, Invergordon, Portree and Wick—back from November 2016 to July 2017.
I am also aware that some claimants have reported that they face increased travel times to meet their work coach and hand over documentation. In response to that, we have made changes to the design of the universal credit digital service so that, before the end of this year, claimants will be able to upload certain evidence to the online system. I should also mention that claimants can deliver evidence at any time during the monthly assessment period. This gives claimants valuable leeway to find a convenient time to visit their local office or to make use of the postal service to deliver evidence. Although universal credit is oriented around claimants making use of the online service, claimants can also telephone their service centre for help and support or to exchange information. I reiterate that the service does not involve claimants having to dial a premium rate number. Ofcom regulations require all phone providers to treat calls to 03 numbers the same as a call to a normal home or business landline. If claimants remain concerned about the costs of calling, they can, as the hon. Gentleman acknowledged, ask to be called back.
I appreciate that the hon. Gentleman’s constituents have also reported excessive wait times on such calls. We recognise that improvements can be made in that area, which is why we have committed additional resources to reducing waiting times. The latest data show that claimants are now waiting a maximum of eight to nine minutes before their call is answered. With even more resource being invested throughout March to support telephony service levels, I feel confident that the long wait times reported in the local area will become a thing of the past.
I was also pleased to know that an agreement has been reached at a local level—I believe to the satisfaction of the hon. Gentleman—in connection with the case of one of his constituents experiencing particular problems with delivering evidence to the Department about childcare costs, involving that constituent posting verification direct to Inverness jobcentre and also sending things by email.
Several hon. Members have previously expressed concern about the procedures under universal credit that determine whether a Member of Parliament can access the personal details of their constituents. If they are not already aware of it, I draw hon. Members’ attention to the statement made by my right hon. Friend the Secretary of State for Work and Pensions on 13 March, in which he agreed that the implicit consent arrangements that exist in legacy benefits can continue for MPs within universal credit. That will ensure that MPs are able to act quickly on the behalf of their constituents. I hope that hon. Members will also feel reassured about that helpful change.
Drew Hendry
First, on the subject of avoiding arrears, I have given a couple of examples of where debt by default, not digital by default, is happening with universal credit. What is the Minister going to do to tackle that? Secondly, on the ability of Members to contact somebody on behalf of a constituent, that may be what has been said in this Chamber, but the reality is that that message has not reached the people on the ground. There is confusion every day about who can access what information at what stage.
Damian Hinds
Of course I recognise what the hon. Gentleman says about the need to continue working on the housing issues that we have been discussing. That is a matter of ongoing work. The change on implicit and explicit consent is quite recent, but I will endeavour to ensure that it is clearly understood in the Inverness jobcentre.
The hon. Gentleman also referred to the freedoms afforded to the Scottish Government under our devolution arrangements. We continue to work closely together with Scottish Government colleagues to implement the Scottish flexibilities that have been agreed. We have listened to Scottish Government colleagues who said that they needed action earlier and, in response, we introduced the alternative payment arrangements easement in April 2016, which pushed back the APA claimant review date to 24 months. Discussions with the Scottish Government are progressing well, and DWP officials continue to work positively, openly, and collaboratively on the detail of the administrative flexibilities.
Let me be clear, though: under the universal credit Scottish flexibilities, the Scottish Government have the power to pay the UC award fortnightly instead of monthly, to implement alternative payment arrangements for 100% of cases, and to pay the housing element of universal credit direct to the landlord. Although we do not think that is the best approach, we fully accept their right to do so and look forward to them actioning these matters quickly. We further acknowledge that they have the powers to create new benefits, to top up existing benefits, and to provide discretionary payments in any area of welfare. Again, we look forward to them speedily delivering on and making full use of those powers.
I recognise that there are areas for improvement in the service, but with every release of new software and every new office that goes live with the full digital service, enhancements are made that improve the experience of using the service for staff, claimants, landlords and our delivery partners. The hon. Gentleman has seen for himself the drive, commitment and passion that so many of our staff, stakeholders and people across the programme have. They want to see this revolutionary welfare reform through, and I am certain that they will.
Question put and agreed to.
Backbench Business
Damian Hinds Excerpts(7 years, 7 months ago)
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Louise Haigh (Sheffield, Heeley) (Lab)
It is a pleasure to serve under your chairmanship, Mr Walker. I, too, offer thanks and congratulations to the hon. Member for Glasgow South West (Chris Stephens).
When I first saw the announcement about the closure of the Eastern Avenue jobcentre in my constituency I was relatively agnostic about it. Given that there were to be no compulsory redundancies and it is a relatively short distance into town, I did not think it would be that much of a problem. If the Government could make a case that centres needed to be closed and services improved in certain areas, I was prepared to listen to it. However, having read the further announcement, followed the plan’s progress and, as the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) said, participated in several debates, I have been horrified that no justification has been given for the decisions at all. None of the work—the assessments or gathering and publication of evidence—that one would expect ahead of a decision of this kind has been done; no such work informed the pitiful consultation process that has taken place so far.
It is claimed on the Government website that the decisions are due to the claimant count reducing and the number of digital interactions increasing, and the fact that 20% of the DWP estate is underutilised. To take those one by one, it may be the case that the claimant count is falling, but I do not think that anyone could tell jobcentre staff anywhere in the UK that their workload has reduced in the past seven years and is likely to continue to reduce—not least because of the roll-out of universal credit, which is incredibly complex. As has been mentioned, universal credit will require more interactions than in the past, including face-to-face interactions. For the first time, working people will have to attend interviews at jobcentres; and from April lone parents will be obliged to see work coaches once their child reaches three years old, rather than five, which is the current threshold. It is highly unlikely that interactions and workload will fall in the coming years.
As to digital interactions, the ward in which Eastern Avenue jobcentre is to close is one of the most deprived in the country; 74% of people there are in the 10% most deprived in the country. Many of them do not use the internet at all, let alone have the capacity to apply online—there are very high levels of digital exclusion. Ironically, the council is currently doing some work on digital inclusion, commissioned by the DWP, around Eastern Avenue jobcentre; that work will have to be halted. Again, there does not seem to have been any recognition or cognisance of the impact that the cuts will have on that work.
Whether or not the estate is underutilised at Eastern Avenue—or indeed at Cavendish Court, where the Government are expecting claimants to move to—is open to question. I have been to both jobcentres and there certainly does not seem to be any underutilised space—Cavendish Court in particular is bursting at the seams—but we do not know, because the Government have not published any of the evidence and do not seem to have done any of the work behind it. I met the manager for my region, North, East Yorkshire and the Humber, after the Minister advised me that that was the best way to proceed. It was not her fault, but I am afraid the manager had absolutely nothing to add to what the Government had already published.
As other Members have said, there has clearly been no equality impact assessment. Nor has there been any assessment of how many employment and support allowance or income support claimants are currently using Eastern Avenue and will therefore now have to go to the city centre. The Government do not know how many claimants the closure is going to affect, which is basic information that we would expect to inform the consultation process. There was no information on how much the Government would save by closing Eastern Avenue. That is important, because the regional manager admitted that money would have to be spent on the city centre jobcentre to increase its capacity and accommodate all the extra claimants, so we do not know whether the closure will actually save the taxpayer a single penny.
No plans have been put in place and no work has been done on whether claimants who currently come under Woodhouse jobcentre, but are looked after by Eastern Avenue if they need group sessions or screened appointments, can be accommodated by Cavendish Court, or whether more money will have to spent to develop the space at Woodhouse to conduct those sessions. Eastern Avenue currently conducts 17 screened appointments a week. That is a considerable amount of time to dedicate to claimants, and we have absolutely no idea whether Cavendish Court can accommodate them.
There was a paltry four-week consultation, although we were lucky to get even that in Sheffield; as we have heard today, many jobcentres throughout the country did not. The Government have treated Parliament and, worse, the public with disdain by refusing to justify their decision and publish the evidential basis behind it. How can Ministers possibly ask us to support the decision if the information is not available? Now that the consultation has closed, before the Government publish their final decision I ask the Minister to publish the DWP’s people and estates programme and any of the other impact assessments that were presumably conducted internally. I really hope that the Government have not taken the approach, which they seem to have taken in the past, of just pointing to jobcentres on Google Maps and deciding, seemingly haphazardly and arbitrarily, which centres to close.
I particularly want to press the Minister on why the Government have rowed back on their original commitment not to close jobcentres in particularly deprived areas. Finally, I urge him not to rely solely on Google Maps for travel times, as he recently admitted to doing in answer to a written question from me. [Interruption.] He is looking confused, but he confirmed to me that his Department used Google Maps for travel times.
Louise Haigh
Yes. The Department’s introduction to the announcement confidently asserted that the travel time between Eastern Avenue and the city centre would be 24 minutes. That analysis was based on Google Maps. A claimant who currently goes to Eastern Avenue did a travel journal for me of his journeys from Eastern Avenue to Cavendish Court on eight separate occasions, and not one of them took 24 minutes. The average journey time between the two jobcentres is 44 minutes.
The Minister for Employment (Damian Hinds)
As always, it is a great pleasure to see you chairing the debate, Mr Walker. I congratulate the hon. Member for Glasgow South West (Chris Stephens) on securing it and giving us the chance to debate these matters again. I think at one point he suggested that this was the first chance that we had had to debate—
Chris Stephens
For clarity, this is the first time we have had a chance to debate the issue since the UK-wide announcement, not just the Glasgow announcement.
Damian Hinds
I am pleased with that clarification, although we had the urgent question on 30 January, after the UK-wide announcement on 26 January, and the Westminster Hall debate in this Chamber on 20 December, as well as a number of oral and written questions—the hon. Gentleman’s colleague, the hon. Member for Glasgow South (Stewart Malcolm McDonald), suggested more than 100. I have not been counting, but I confirm that it is a substantial number. Of course, we have had the opportunity to meet one to one and with groups as well. I am grateful for this further opportunity to debate these important matters.
On 31 March next year, the DWP’s 20-year private finance initiative contract, which covers the majority of the Department’s property portfolio of more than 900 sites, will expire. The Department for Work and Pensions currently occupies about 1.5 million square metres of office space, and these days at least 20% of it is under-occupied. The falling claimant count and the increased use of our online services in recent years means that 20% of the taxpayers’ money that the Department is spending on rent is going towards space that is not being used. By paying only for the space we do need and the services required to operate from that, we anticipate saving about £180 million a year for the next 10 years.
The expiry of that contract at the end of March 2018 presents both a unique opportunity and a specific requirement to review the estate. In response to changing demands facing the Department, we have redesigned the estate in a way that delivers better value for the taxpayer. I need to be clear that this is not about reducing services; it is about taking the opportunity to stop spending taxpayers’ money on unused space so that we can target money effectively on supporting those in need. We have carefully considered the challenges that we anticipate the Department is likely to face in the future, but the jobs landscape and the way people work has changed significantly in the past 20 years.
As has been mentioned, some 90% of universal credit claims are made online and with more of our services moving online, in common with other organisations, we want to continue making the most of the opportunities that new technologies present to help best meet our claimants’ needs.
Louise Haigh
On the roll-out of universal credit, in Sheffield it has been rolled out only to lone individuals with no children. As it expands to cover other types of benefits, the rate will decrease dramatically and, as has been mentioned, the number of interactions is only going in one direction. It is therefore misleading to use that statistic.
Damian Hinds
I am certainly not trying to mislead and I do not think I am misleading. I reassure the hon. Lady that the Department for Work and Pensions, in common with others, does staff and resource planning that takes into account all the different demands that will be made on our services, and that includes the fact that, as a number of Members have mentioned, in universal credit there is the opportunity to work more closely with people, with the workload that that will involve, to encourage more people into work. Of course, that is all part of the plans and not something additional that has not been considered.
The hon. Lady mentioned work with, for example, lone mums on income support. There is also work with partners, as the hon. Member for Wirral West (Margaret Greenwood) mentioned, and then work with people in work, the self-employed and so on. I should add that some of those offers are in development, and we will adjust and evolve the operation of the offer to optimise it as time goes on. However, of course the assumptions on the amount of workload involved are reflected in the plans.
It is right that we reflect not only the impact of the digital revolution in meeting our claimants’ needs but the realities of a more flexible labour market and significant falls in unemployment since 2010. The employment rate is at a new record high: there are more people in work than ever before. We had the statistics on the unemployment rate come out just yesterday: they have hit a 12-year low. In fact, the last time the unemployment rate was lower than what was announced yesterday was in the mid-1970s. Of course, we always have to consider that things in the world will change. That is also considered in the planning assumptions made by the Department.
Chris Stephens
In terms of employment rates, does the Minister not concede that one result of that is that those who are not in work at the moment have specific circumstances and challenges to overcome? On that basis, that should result in more face-to-face, rather than online, contact.
Damian Hinds
The hon. Gentleman makes a characteristically important and insightful point. Of course, what he says is true. There is a distinction to be made between different claimants and clients in different circumstances, in receipt of different types or benefits—for example, people who are on employment and support allowance are not required to attend jobcentres fortnightly or weekly in the same way as people who are in receipt of jobseeker’s allowance.
We want to maximise the opportunities available to all those groups of people, of course. Some of that is about stuff that happens in jobcentres; some of it is not. There are some things that could be done more effectively not in jobcentres than in them, particularly with some people who are further away from the jobs market, as I am sure the hon. Gentleman will recognise.
Heidi Alexander
The claimant count in my constituency went up by 50 in the last month. Although that may be a monthly blip, I am concerned about the overall strength of the London economy moving forward. The Minister talked about the space being under-occupied by a fifth, yet in London he is proposing to close a third of jobcentres. Will he explain that for me?
Damian Hinds
I can. I was going to come on to Lewisham and some of the points that the hon. Lady raised on London, but I will address it now. Overall, the estate is 20% under-utilised, but that does not mean to say that in every individual jobcentre there is exactly 20% of unused space. In terms of the utilisation rates, there is a wide range in individual jobcentres and between cities, when we take the total estate in that city into account. There is no complacency at all about the strength of the labour market in London, Sheffield or Glasgow, or in any other place. In all of the locations that we operate from throughout the United Kingdom, jobcentre staff are focused night and day on helping people to get into work.
In the case of Lewisham, the landlord did not want to re-lease and we believe that 2.1 miles to the Forest Hill location is a reasonable distance to ask people to travel additionally. As the hon. Lady will realise, the London property market is an expensive place to have real estate and there are particular challenges with finding premises in London. We think that the estate we have across London is reasonable in terms of asking people to get around.
Heidi Alexander
The DWP is exploring the possibility of taking on space in Eros House, which is an accessible, central location. If that costs a little bit more, would the Minister commit to exploring that option, given the additional benefits it can bring?
Damian Hinds
The hon. Lady will understand that I am not going to stand up in Westminster Hall—nor should I—and talk about detailed proposals and plans for sites that she or others may put forward, but we are always open to talking about the range of opportunities. I am happy to follow up with her on the specific points she raises.
In every case where change is proposed, we have sought to minimise disruption and listen carefully to those who might be affected, but as a result of modernisation, the Department’s services are demanding fewer people to deliver. It is only right that we consider our options going forward. Delivering a modern and dynamic service to claimants requires modern and dynamic working environments, and that is what we are striving towards as part of our vision for DWP in 2020. Our aim is to maintain and improve the services offered across the country.
We recognise, of course, how important the DWP’s staff are to achieving that aim. They are our most valuable resource. It is as a result of their immense effort that the Department is able to provide such a high level of service to our customers. My colleagues and I have been clear that the proposals for the DWP’s redesigned estate do not mean a reduction in the number of frontline staff. In fact, we are recruiting and we expect to have more work coaches in every nation and region of the United Kingdom at the end of this process in March 2018 than we do today.
For staff across the DWP network who may be affected by the estate changes, we are currently working through options with each individual, identifying relocation opportunities in the event of closure, but most of all we are listening carefully to understand fully the impact on staff.
John Woodcock
If the Minister is going to answer this, great, but does he recognise the particular issue of the unfeasibility of Barrow staff relocating, and has he had a chance to examine the proposal that I made when we met to find a cheaper lease on a smaller property in Barrow than Phoenix House?
Damian Hinds
I recognise, of course, the difficult position that staff in Barrow are in and I join the hon. Gentleman in the tribute that he paid to the immensely valuable work that they do. I fully recognise, as he does, the accumulated experience that that group of dedicated staff has. One-to-one conversations will be going on in Barrow and, indeed, in all other locations where there are affected staff. There will be some limited opportunities for staff in Barrow jobcentre, but I am not suggesting that that covers everybody.
The industrial injuries work rightly raised by the hon. Gentleman is moving to Barnsley, which is an existing centre with experience and expertise. Overall for that work, reducing volume demand is projected over the next five years, and we do not expect an impact on service to the customer.
The Department has already made a commitment to support anyone who chooses to relocate in the event of a site closure. That would include the payment of additional travel expenses for up to three years. However, the fact remains that the Department has significantly more capacity across its network than is needed to serve the needs of our customers, even allowing, of course, for a sensible margin. It is imperative that we strive towards more modern and dynamic delivery methods.
Although there is no statutory requirement for consultation on the estate changes to jobcentres, we are conducting consultation on all proposed closures of jobcentres that fall outside what are known as the ministerial criteria. It is not unreasonable to expect claimants to travel to an office that is within 3 miles, or 20 minutes by public transport, of their existing jobcentre. Where a proposed move is outside those criteria, we have chosen to consult publicly both stakeholders and claimants to ensure that the full implications of the closure are considered before we make a final decision. To enhance the profile of such consultations, we have written to local stakeholders and have distributed leaflets and put up posters at affected sites. We have undertaken public consultation where we think the proposals may have a significant effect on claimants. The objective is to ensure that the effects of our proposals are fully considered before any final decisions are made, and I welcome the engagement and responses that we have had from local stakeholders.
We have had a total of 290 responses from across the three sites in Glasgow. Those include responses from claimants, Members of Parliament, including some present here, interested third-party organisations and the wider public. Alongside taking into account the views of a range of stakeholders via consultation, I have met a number of fellow Members of Parliament to discuss how proposed changes to the estate will impact at local level. I will be considering the feedback to all the public consultations and I reiterate to hon. Members that these are genuinely proposals at this stage. When we make final decisions on the design of our estate, we will do so with all the feedback that we have had in mind. That may include considering additional options for outreach or indeed something wider—nothing is off the table at this stage.
Damian Hinds
To allow two minutes for the hon. Gentleman’s colleague, the hon. Member for Glasgow South West, I had better not.
When a jobcentre closes, the Department has a comprehensive set of outreach and support measures in place to support claimants in accessing the services they need. We embrace closer working with local organisations and support outreach activity at community and partner facilities, including local authorities across the country. That allows work coaches and partner organisations to support the shared needs of claimants. By working with a range of partners, including local authorities, we are able to expand the range and offer of our services.
We respond to personal circumstances. For claimants who are unable to attend a jobcentre due to their vulnerability or the complexity of the transaction required with the Department, we have robust procedures in place, including home visits and maintaining a claim by post. Travel expenses are refundable under certain circumstances, including where claimants are required to attend a jobcentre more frequently than fortnightly. Claimants can also choose to attend an alternative jobcentre to the one allocated to them if the jobcentre they have been allocated is not the closest or least costly for them.
I touched briefly on Lewisham. On Sheffield, there has been a consultation. The proposal is that Sheffield would better utilise space at Cavendish Court, which is currently only 45% utilised. Eastern Avenue is 74% utilised, but the move would not work in reverse because of the different configurations and sizes of the buildings, and Cavendish Court and Bailey Court are respectively 4.4 miles and 4.7 miles away.
The Scottish National party spokesman, the hon. Member for West Dunbartonshire (Martin Docherty-Hughes), spoke about partnership and outreach. I entirely agree about the need for partnership and for continuing to enhance it; the West Dunbartonshire employability hub is a particularly good example of that. As I mentioned, we are always keen to do more and to discover such opportunities, and that includes close working with Skills Development Scotland and others.
The proposed changes are the result of careful analysis and planning. While I appreciate hon. Members’ concerns about the proposed closures, and again thank the hon. Member for Glasgow South West for securing this debate, the rationale for the proposals is clear. We are working towards a more modern, dynamic estate. This will ensure that we continue to have sufficient flexible capacity to deliver the best services we can to our customers. It is important to stress again that all the specific changes to the estate that have been raised in this debate are still only a set of proposals, and we are continuing the consultation process with our staff to assess how each might be affected. I want to reiterate that in the event that co-location or closures are required, we expect that to have no impact on the excellent services we continue to provide to customers across the country.
Employment, Social Policy, Health and Consumer Affairs Council: 3 March 2017
Damian Hinds Excerpts(7 years, 7 months ago)
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The Minister for Employment (Damian Hinds)
The Employment, Social Policy, Health and Consumer Affairs Council met on 3 March 2017 in Brussels. I represented the UK.
The Council held an orientation debate on the proposal for a regulation of the European Parliament and of the Council, amending regulation 883 on the co-ordination of social security systems, and regulation 987 laying down the procedure for implementing regulation 883. The Council also held a policy debate on the European semester, including on the implementation of country-specific recommendations.
The Council adopted Council conclusions on the 2017 annual growth survey and joint employment report, and adopted the joint employment reports. As part of this, the Commission presented the 2017 country reports, which had been published on 22 February 2017. The Council adopted Council conclusions on enhancing the skills of women and men in the EU labour market. The Commission and the presidency gave a joint presentation on the tripartite social summit.
Under any other business, the Commission presented a communication on modernisation of the EU occupational safety and health legislation and policy, and information in follow-up to their recent communication on investing in Europe’s youth. The presidency presented the state of play of the legislative proposal on posting of workers and a number of member states intervened to set out their views on the proposal.
The Chairs of the Employment Committee (EMCO) and the Social Protection Committee (SPC) detailed their respective work programmes for 2017. The European Institute for Gender Equality set out the key findings of their study titled “Economic benefits of gender equality in the EU”. Finally, the Portuguese delegation gave information on the upcoming UNECE International Conference “A sustainable society for all ages: Realising the potential of living longer”, which will take place in Lisbon on 21-22 September 2017.
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