(7 years, 5 months ago)
Written StatementsThe Employment, Social Policy, Health and Consumer Affairs Council will take place on 3 March in Brussels. I will be representing the UK.
The Council will be invited to 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 will also be invited to a policy debate on the European semester and the implementation of country-specific recommendations.
The Council will be invited to adopt draft Council conclusions on the 2017 annual growth survey and joint employment report, and to adopt the draft joint employment reports. As part of this, the Commission will also present the 2017 country reports, published 22 February. The Council will be invited to adopt the draft Council conclusions on enhancing the skills of women and men in the EU labour market.
There will be a joint presentation by the Commission and the presidency on the tripartite social summit.
Under any other business, there will be information from the Commission about the 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. There will be information from the presidency on the state of play of the legislative proposal on posting of workers. The Chairs of the Employment Committee (EMCO) and the Social Protection Committee (SPC) will provide information on their respective work programmes for 2017. There will be information from the European Institute for Gender Equality on the key findings of their study titled “Economic benefits of gender equality in the EU”. The Portuguese delegation will provide information on the upcoming UNECE international conference “A sustainable society for all ages: Realising the potential of living longer” (Lisbon, 21 and 22 September 2017).
[HCWS512]
(7 years, 5 months ago)
Westminster HallWestminster 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
It is a great pleasure to see you in the Chair again, Mr Howarth. I congratulate the hon. Member for Liverpool, Walton (Steve Rotheram) on securing a debate on this most important issue, and congratulate everyone who has contributed to it. These are very serious matters. They are not new, I am sad to say. There have been income disparities and health inequalities in our country for a very long time. The alleviation of poverty and the spreading of opportunity are key aims that have brought hon. Members on both sides of the House into this line of work and into public policy. We may have different approaches to some of the issues, but they are no less important to Members, whichever political party they represent.
I particularly want to join the hon. Members for Liverpool, Walton, for Garston and Halewood (Maria Eagle) and for Liverpool, Wavertree (Luciana Berger) and the right hon. Member for Birkenhead (Frank Field) in commending the great work of the voluntary sector in this area. Again, that is not new. Over many decades—centuries, in the case of some organisations—great support has been given to the neediest people in our communities.
I want to set out, in the time that I have, some of what the Government are doing or seeking to do to make further progress, what has already been achieved and what more we believe can be. As a number of hon. Members said, my right hon. Friend the Prime Minister has made it clear that the Government are committed to building a country that works for everyone, not just a privileged few. That includes building strong economies in every part of the country, ensuring that everyone can benefit from our strong record on the economy.
There is clear evidence that the best route out of poverty is through work. We know that because working-age adults in non-working families are almost four times more likely to be on a low income. According to the “Child poverty transitions” report published in June 2015, 74% of poor children in workless families who moved into full employment exited poverty. I would therefore like to draw hon. Members’ attention to our record on employment and set out what we are doing to help to get even more people into work.
The latest employment figures, as you will know, Mr Howarth, show that the employment rate is at the record high of 74.6%. The number of people in employment is also at a record high—31.84 million. Those trends are being seen broadly across our country. Since 2010, more than 60% of the rise in private sector employment has taken place outside London and the south-east. The employment rate for the Liverpool city region, at 67.7%, is 2.7 percentage points up on 2010. The unemployment rate in the region is now 5.4%, down from 10.4% in 2010.
The hon. Member for Liverpool, Walton suggested that there were particular issues, with people being able to find only part-time work. Of course I acknowledge that there are people working part time who would prefer to be working full time. I am pleased that that number has come down and that less than 14% of part-time workers are now in that position and would prefer to be working more hours. In the last year, more than 70% of the growth in employment has been in full-time work.
Pay is also up, by 6.2% on the year. The people right at the bottom of the income scale—the bottom 5%—have just seen, according to the latest annual figures, the highest rise in their average income since that data series began, in 1997. Income inequality is down.
Our welfare reforms are at the heart of our approach to increasing employment.
Given the rosy picture that the Minister is painting of employment and opportunity, can he explain why the number of people having to resort to food banks in my constituency is going up?
I do not seek to put any tint or rosiness on the situation. I was merely going through the facts, both at national level and at the level of the Liverpool city region. It is the case that more people are in work and we are now seeing incomes rising. Of course there is more to do; I never dispute that. My colleagues in jobcentres are working night and day on exactly that, and of course the overall stewardship of the economy remains central to people’s prospects.
We are delivering a modern and effective welfare system that ensures that work, and progressing in work, will always pay. Alongside that, we are taking action against child poverty and disadvantage, addressing the complex barriers that face some families and hold them back. Of course, we continue to protect and support those for whom work is not and cannot be an option. We have had to make difficult decisions on welfare spending, but we have never lost sight of that mission. Universal credit lies at the heart of it, transforming the welfare system to ensure that it always pays to work and to progress. That is in contrast to the pre-2010 system, under which in-work poverty increased by 20% between 1998 and 2010, despite, as is well known and as was discussed, welfare spending on those in work increasing by £28 billion.
We are building a fairer system that will mirror the world of work, we are eradicating the complexities and disincentives of the old system, and it is working. There are 828,000 fewer workless families now than in 2010, putting the workless household rate at its lowest since records began. Unemployment is down 894,000 since 2010 as the economy has grown. The employment rate, as I mentioned, is at a record high. In the last year, we have seen nearly 300,000 more people with disabilities, over 200,000 more women and over 150,000 more people from ethnic minority communities moving into work. Almost 1 million households have made a claim for universal credit, and there are nearly half a million current claimants. We began rolling out the full universal credit service on Merseyside in July and will have completed the full service roll-out to all Jobcentre Plus offices on Merseyside by September 2017.
I am grateful to the Minister for giving way again; he is being very generous. Given that he is still painting a rosy picture and that the number of people who are hungry and having to resort to food banks and food assistance in my constituency is going up, will he undertake now to go back and persuade the Government to start collecting statistics about food bank use and why people use food banks, so that we can get a better picture, using official statistics, of what is causing that increasing and distressing problem?
The reasons that people use food banks are complex and overlapping, as the hon. Lady knows. Assistance provided by voluntary sector organisations can take a number of different forms. She will know that the Trussell Trust, an umbrella group for food banks, does in fact produce statistics on a regular basis.
Once universal credit is fully rolled out, we estimate that it will generate around £7 billion in economic benefit every year and boost employment by up to 300,000. We believe that making work pay and opening up opportunity for people to realise their potential are central to building an economy that works for all. By reducing the universal credit taper rate to 63%, we will further improve the incentive to progress in work, helping up to 3 million households to earn their way out of requiring welfare support.
Jobcentres across the city region were mentioned. Our jobcentres have an absolutely key role to play in supporting people out of poverty across the country, and I am proud of what our staff—our work coaches and others—do. Day in, day out, they help people to access both the financial and practical support they need to move into employment. As society has changed, so have our jobcentres; the offer in a jobcentre today is unrecognisable compared with what people would have seen in the 1970s. Reforms such as universal credit are revolutionising the relationship between our clients—our claimants—and work coaches, ensuring that the support we offer is more personalised and better suited to their needs. That includes enabling claimants to access our services in different ways that suit them.
It is right that the future of the estate reflects not only those fundamental changes, but the record levels in employment across the country, while always allowing a margin of flexibility for potentially unforeseen circumstances. In 2006, DWP employed 113,000 staff. Today that figure is 79,000, but on the same estate—because we have been locked into a 20-year private finance initiative contract that was signed in 1998. That means money is being spent on space that is not being fully utilised. That contract comes to its end, after 20 years, at the end of March 2018, which is an opportunity to review which offices we need in the future across the country, saving the taxpayer money while ensuring our customers are able to access the support they need.
On PFI contracts, and personal to my constituency, could the Minister look at the Hoylake jobcentre? I understand that there is a different arrangement there. This is not just about the ending of a PFI contract; I think there is something else going on here. Could he give us a picture as to what percentage of the jobcentres are about PFI and what are about something else?
I am happy to, although I also want to make sure I respond to points raised by colleagues. It is the fact of the end of the PFI contract, which covers most of the estate, that gives the opportunity and indeed creates the imperative to review the entire estate because we see the estate all as one. The Telereal Trillium contract does cover most buildings, but of course there is a knock-on effect both ways through buildings that are not covered by that contract.
In Liverpool, we currently use just 66% of the space that we are paying rent for. Even if we go ahead with the changes we propose, Liverpool will still have one of the highest concentrations of jobcentres relative to other conurbations. When considering this question, our overriding priority has been the future service that we will offer our claimants. In every case in Liverpool, as elsewhere, we have sought to minimise disruption, moving existing jobcentres into nearby sites and co-locating with other services wherever possible.
Does the Minister not accept the point I made about Liverpool being disproportionately hit compared with any other city in England, with 40% of our jobcentres now earmarked for closure according to his plan? A not insignificant number of people are affected. In my constituency alone, 3,000 people will have to go to a new centre at least every two weeks. Thousands more have to access those two jobcentres. At least 3,000 people will have to do that. On that basis, does he accept that there is a disproportionate impact on the people of Liverpool? People not only in my constituency, but in others will be affected, as Members have said in this debate.
There are, of course, public consultations being run for both Edge Hill and Wavertree. As I was saying, even with the effect of these changes, there will still be a significant concentration of jobcentres in Liverpool compared with other major cities.
Given that I sprung my questions on the Minister, might he write to us so that he does not have to turn so many pages over?
I will be delighted to write to the right hon. Gentleman.
Looking at our benefit reforms alone fails to appreciate the wider work on support for those on low incomes. I mentioned the increases that we have recently seen in pay. I do not have time to list all the other advances, but they include the national living wage, the changes in the personal tax allowance and the triple lock on pensions—the hon. Member for Liverpool, Walton brought up the link with pensions, but it was in 2010 that the triple lock came in. We have frozen fuel duty, helped to keep mortgage rates low and are cutting stamp duty—all of those are things to help people with their incomes.
Like many other areas, as the hon. Gentleman knows, Liverpool is benefiting from radical devolution. The city region devolution deal involves £900 million going to the city region, and that is just part of the picture. The regional growth deals involve £333 million from the local growth fund from 2015-21, bringing forward at least £249 million of additional investment from local partners and the private sector. We do think that devolution has an important role to play in helping to promote and push forward economic prosperity.
Since 2010, we have seen income inequality and the proportion of people on relative low-incomes falling to nearly their lowest levels since the 1980s. Official statistics show that, in Liverpool, the rate of relative low-income has fallen since 2010, and there has been a similar reduction nationally.
I want to turn quickly to some of the points raised in the debate. The rate of sanctions in Liverpool is down by 50% in the year to 2016. We are looking at the results from the Scottish pilot that the hon. Member for Wirral West (Margaret Greenwood) referred to. We have taken on the recommendations of the Oakley review and, indeed, a number of recommendations from the Work and Pensions Committee. Debt was mentioned a number of times. I am proud of this Government’s commitment to the credit union sector, the action that has been taken on payday loans, the introduction of the help to save programme and that budgeting support is at the heart of universal credit.
The hon. Gentleman asked, “Why not more devolution?” He talked about schools. I would argue that free schools and the academies programme are the ultimate in devolution, giving power and accountability right down to individual schools. In terms of all these matters, we are always open to further proposals. The Government will of course be keen to work with whoever is elected as Mayor of Liverpool on employability and other things. The hon. Gentleman asked specifically about work in community locations. Edge Hill jobcentre—somewhere I visited recently—does exactly that, for example in its programme with refugees. Mr Howarth, I am out of time and I know that the hon. Gentleman would like to speak.
(7 years, 6 months ago)
Commons ChamberIt is not meaningful to compare against an unchanged tax credits system, but the national living wage, help with childcare and the straightforward taper in universal credit all mean that people can earn more, and a higher income tax allowance means that they can keep more of it.
A single parent working full time on universal credit will be up to £3,000 worse off than someone in the same situation on tax credits, as a result of this Government’s cuts. Does the Minister accept that those cuts are creating an unjustified disparity in the in-work support received by people in similar circumstances?
Anybody who changes from tax credits to universal credit as a result of managed migration can get transitional protection. For those who are coming into it with a new claim, it is a wholly different system with a completely different support set, including much more child care support. There are various other reforms from which the individual to whom the hon. Gentleman refers would also benefit.
Does my hon. Friend accept that universal credit, which now reaches almost a third of the unemployed people in my constituency, is a much simpler system and the first major new benefit introduced in my political lifetime that has not resulted in a whole string of correspondence from people with difficulties?
It is indeed a dramatic and critical reform for our welfare system. I will highlight just one statistic: for every 100 people who moved into work under the old jobseeker’s allowance system, 113 do so under universal credit.
Last week, DWP informed Members of Parliament that our constituents would have to give specific and precise explicit consent if we are to help them with full universal credit claims with which they have difficulty. I think that that will significantly inhibit our ability to assist our constituents. Will the Minister reassure the House that measures will be put in place to ensure that MPs can support our constituents effectively?
Of course we want hon. Members to be able to support their constituents, but the universal credit full service system is different because the online account allows the user to access a greater breadth of their data. The claimant holds the key to those data, and implied consent cannot be assumed. A claimant can give their consent via their journal, and that is what has to be done to enable a Member to act on their behalf.
Currently, families have to wait at least six weeks to receive universal credit after they have made a claim, which is leading to some people being in rent arrears and at risk of eviction. Research by the Child Poverty Action Group and the Trussell Trust found that about 30% of food bank users were waiting for the outcome of a benefit claim. What urgent action will the Government take to cut the delay at the start of universal credit claims?
Universal credit, as the hon. Lady knows, is a monthly benefit, but benefit advances are available where people cannot make it through to the first pay day. The fundamental point is that universal credit is helping more people into work, and once they are there, it is helping more people progress in work, and that is what is putting down the better foundation for their future.
Many families on tax credits and universal credit will lose out when the two-child limit comes into force in April. The Institute for Fiscal Studies projects a 50% rise in child poverty by 2020—the biggest in a generation—and it says that a key reason will be the impact of tax and benefit changes on families with three or more children. Do the Government think that some children matter more than others?
The policy to which the hon. Lady refers relates to new cases. I remind her that relative poverty is down by 100,000 children since 2010.
We have been mindful throughout of the impact on staff and customers. Analysis and local knowledge have informed the proposals, which are all subject to consultation with staff and, where appropriate, the public. A full equality impact assessment will be carried out.
Following the Minister’s advice, I went to see the regional manager of my jobcentres last week, but she had absolutely no information on the number of employment and support allowance or income support claimants that will be affected by the proposed closure in my constituency; the plans for outreach in relation to what will replace my jobcentre after its closure; the amount saved by that closure; the necessary spend on increased capacity at the alternative centre; or projections of footfall at the centre destined for closure. I hope that such work has been undertaken internally, so will the Minister commit to publishing all that information not only before a decision has to made, but preferably before the end of the consultation period?
First, ESA and IS claimants are not required regularly to attend the jobcentre in the same way that JSA claimants are. We want to look at outreach and other opportunities in working with partners. As the hon. Lady will know, the consultation closes on 28 February. On the overall approach for the city of Sheffield, this is about consolidating the amount of available space and using that space better to get a better deal for the taxpayer, while being able to provide enhanced services for customers. It will raise utilisation across Sheffield from 51% to 69%.
In 2010, there were three jobcentres in my constituency. The coalition closed one in 2012, and now the Minister’s Government want to close the remaining two. Just under 3,000 people—not an insignificant number—have to access the jobcentre in my constituency at least every two weeks Why did his Department not conduct and carry out the full equality impact assessment before the closure of the consultation?
The proposals will raise utilisation across the city of Liverpool from 66% to 95%, which will make better use of buildings. Where movement from one jobcentre to another involves travelling less than three miles or 20 minutes by public transport, we consider it is reasonable to ask people to make such a move.
The proposals are subject to consultation with staff and, where appropriate, the public. Should they proceed, the Department will support customers through any change of jobcentre. Staff will continue to offer the same support and services to customers and to maintain the relationships they have built up over time.
Now that the Glasgow consultation is closed, can the Minister tell us the following: when will the consultation responses be published; when will the equality impact assessment be published; and when will the decision be announced? On the announcement, will he assure the House that it will not be slipped out in a press release or a written statement, but that he will make it from the Dispatch Box?
As the hon. Gentleman mentioned, the consultation on the jobcentres in Glasgow has closed. We are working through a number of responses and will do so within the timeframe. I anticipate making announcements in April.
I have met the 83 people who work at Vinovium House in my constituency—another office that is scheduled for closure. Will the Minister explain what the impact of the closure of that child maintenance back office will be and how it can possibly be efficient to close an office in one of the most low-rent towns in the entire nation?
The entire estates review has come about because a 20-year private finance initiative contract comes to an end at the end of March 2018. That has presented the opportunity—indeed, the requirement—to review almost the entire DWP estate. We are trying to consolidate it into less space to save money for the taxpayer and to do things more efficiently. We do not want the people who work in those places, particularly in back-of-house locations, to be made redundant. We are trying extremely hard to find other opportunities for them elsewhere in DWP or in the public sector.
We are building on the success of the new enterprise allowance. From April 2017, eligibility will be extended to include universal credit claimants who are already self-employed.
There are 40 new businesses in Banbury currently supported by the new enterprise allowance, with about 100 more going through the developmental stage. Can the Minister reassure us that the programme is not just there to set up new businesses, but to enable them to grow?
Absolutely. The 40 new businesses in Banbury are a great example of what the NEA can do. In phase 2, we are introducing additional features to continue to promote sustained success in self-employment, including extending the mentoring period and ensuring there is a pre-workshop to outline the responsibilities and realities of being self-employed.
Last week, I attended two excellent business breakfasts in my constituency—one organised by the Rockingham Forest hotel and the other organised by Corby Business Group. There was a lot of expertise and experience there. In what ways does the Minister think we can use that experience to support young people entering the world of work through mentoring?
Mentoring has a critical role to play, and I would encourage those employers in my hon. Friend’s constituency, if they are not already doing so, to get in touch with local schools and colleges and to seek out more opportunities.
Have Ministers identified the critical difference that makes a recipient of universal credit so much more likely to get into work than someone on jobseeker’s allowance?
There are multiple features of universal credit that make that so much more likely. The critical thing is to remove the barriers that create differences between being out of work and being in work. Having the rent paid directly to the individual is one thing; there is also the additional support that people get from the work coach in the jobcentre; then there is the fact that people know how much they will retain for every extra hour worked and extra pound earned.
We are very mindful of our duties under section 149 of the Equality Act 2010, and we do indeed carry out the equality impact assessments that the hon. Lady mentions. She and I have had a chance to talk about the specific jobcentre. What we are doing is making sure that we have a good spread of jobcentres across the country that are accessible to the people who need to use them, but also utilising space better.
Last week, I visited a number of successful factories in my constituency that were taking on additional employment. Does the Secretary of State agree that our long-term economic plan has worked and that the Opposition Members who opposed it should now be contrite? Does he also agree with me that it is rather surprising that until two minutes ago there has not been a single Liberal Democrat Member in the Chamber?
Leytonstone jobcentre, in my constituency, is threatened with closure, which has spread alarm and despondency among some of the most vulnerable people whom I represent. The nearest jobcentre, in Walthamstow, is more than 3 miles away, which breaks the Minister’s own guidelines. Will he undertake a proper impact assessment and publish the results?
Of course I will look into the position, but the criterion is that consultation takes place if a jobcentre is both more than 3 miles away and more than 20 minutes away by public transport. Within that, if either of those conditions is met, it is reasonable to ask people to move.
On Friday I visited Shipley jobcentre to hear at first hand the concerns of staff about its closure, and their concerns for its clients. Will the Minister agree to meet me so that I can go through that list of concerns and, hopefully, he can find a way of addressing them?
Of course I shall be happy to meet my hon. Friend, just as I have been happy to meet other Members on both sides of the House to discuss such concerns.
(7 years, 7 months ago)
Written StatementsThe Department for Work and Pensions (DWP) is today publishing its proposals for the future of its estate, including Jobcentres and back-office sites.
On 31 March 2018 DWP’s PFI PRIME (private resource initiative for the management of the estate) contract with Telereal Trillium expires. This 20-year contract covers the majority of DWP’s current property portfolio of over 900 sites. This gives us an opportunity to review which offices we will need in the future, taking account of the increased use of our online services, the impact of universal credit and the anticipated demand on our services.
The roll out of universal credit and our reforms of Jobcentre Plus have increased the number of interactions claimants now have with us online. For example, eight out of 10 claims for jobseeker’s allowance are now made online and 99.6% of applicants for universal credit full service submitted their claim online.
As a result we only need 80% of the space we currently occupy to continue to deliver our services and make sure that people will always be able to access the support they need to get back to work. Moreover, we are recruiting and expect to have 2,500 more work coaches in post by March 2018 compared to today.
For the vast majority of offices there will be no change in location, although the purpose of the building may change. Where we are proposing closing a site we will take all possible precautions to minimise disruption for claimants, and vulnerable people will receive home visits and postal claims.
All of the planned changes will be made in consultation with staff, taking into account the impact on benefit claimants and DWP staff. We will do everything we can to offer staff affected alternative roles and want to avoid any redundancies wherever possible. However we do recognise that in a small number of cases relocation will not be reasonable or achievable for individuals working in our back-office functions and exits may be required.
We have already announced proposals for around 93 sites. A full list of our proposals for all of our remaining Jobcentre and back-of-house sites is available as an attachment online. There are a small number of sites which we are still negotiating with landlords. I have indicated these on the list and will update the House when I am able to. I will be writing directly to those hon. Members whose constituencies will be affected by the proposed closures or moves of DWP services announced today. I will also be writing to my counterparts in the Scottish and Welsh Governments.
Attachments can be viewed online at: http://www.parliament.uk/business/publications/written-questions-answers-statements/written-statement/Commons/2017-01-26/HCWS439/.
[HCWS439]
(7 years, 7 months ago)
Commons ChamberI beg to move an amendment, to leave out from “House” to the end of the Question and add:
“welcomes last week’s Official Statistics showing that the poorest households saw the biggest income growth of £700 in the last year; further welcomes the impact of this Government’s welfare reforms in supporting low-income households to find work, with over 2.7 million more people in work and 865,000 fewer workless households than in 2010; recognises the role of Universal Credit in supporting people into work and increasing their earnings in work by ensuring it always pays to work; welcomes the recent announcement of a reduction in the taper rate to 63 per cent; believes that the Government’s reforms have given taxpayers confidence in an affordable and sustainable welfare system that ensures value for money and responds to the needs of claimants, with 86.6 per cent of Universal Credit claims currently being made online; and notes that the Scottish Government has asked for an extended timetable for the full transfer of the extensive welfare powers devolved under the Scotland Act 2016.”
As the Prime Minister has made clear, this Government are committed to building a country that works for everyone, not just the privileged few. The support that the Department for Work and Pensions offers through universal credit and Jobcentre Plus has a key role to play in delivering this.
Since 2010, we have made great progress in delivering a modern and effective welfare system. Our work coaches are providing professional and tailored support, exploiting the opportunities offered by digital channels, and for those hundreds of thousands of people already in receipt of universal credit we have ensured that work and progressing in work will always pay. Although we have had to make difficult decisions on welfare spending, we have never lost sight of the fact that the most sustainable routes out of poverty and just managing are to get into work and to progress in work, and universal credit lies at the heart of that, transforming the welfare system to ensure that work always pays—that it pays to participate, that it pays to progress. This is in contrast to the pre-2010 system; in-work poverty increased by 20% between 1998 and 2010, despite welfare spending on those in work increasing by some £28 billion.
We are building a fairer system that will mirror the world of work and we are eradicating the complexities and disincentives of the old system. There are no hours rules or cliff edges in universal credit, as there are in tax credits and other legacy benefits and which have historically, on occasion, provided the disincentive to work or to earn more. Universal credit also removes the need to switch between benefits as claimants move into and on in work, simplifying the system and ensuring continuity for claimants.
Our approach is working. The claimant count has dropped from almost 1.5 million in 2010 to about 800,000 now. Unemployment is down 894,000 since 2010, with near record levels of employment around the country. Once it is fully rolled out, we estimate that universal credit will generate about £7 billion in economic benefit every year and boost employment by up to 300,000, but we are not done yet. We believe that making work pay and opening up opportunities for people to realise their potential are central to building an economy that works for all. By reducing the universal credit taper rate to 63% we will further improve the incentive, helping up to 3 million households.
It is clear that for many disabled people the barriers to entering work are still too high. We need to continue to review and reform our support based on what we know works. We will build on the success of universal credit and provide more personalised employment support by consulting on further reform of the work capability assessment. Our Green Paper on health and work makes proposals that go further, marking a new era in joint working between the welfare and health systems.
Our change to the work-related activity component is designed to encourage and support claimants to return to work. We have allocated a total of £330 million for new employment support for people with limited capability for work over four years, starting from April 2017, and an extra £15 million for a top-up to the flexible support fund in both 2017-18 and 2018-19. It is also important to note that it will apply only to new claims and there will be no cash losers among those already in receipt of ESA.
However, looking at our benefit reforms in isolation fails to appreciate the Government’s wider work in providing support for those on low incomes. The single most important thing has been our stewardship of the economy and the strong growth that it has facilitated. People are sharing in the proceeds. Average household incomes are at an all-time high, income inequality has fallen and pay for the bottom 5% in society is up by 6.2% year on year, the highest rise since the series began in 1997.
I do not have time to list all the other advances we have made—the hour is late, time is short and many colleagues wish to speak—but it is important to acknowledge some of the most transformational. We have introduced the national living wage. We have increased the personal tax allowance to £11,000, so the typical taxpayer now pays £905 less tax per annum than they did in 2010. We have introduced the triple lock so that pensioners with a full basic state pension receive over £1,100 a year more than they did at the start of the last Parliament. We are extending free childcare—it will be interesting to hear what SNP Members feel about this—for three and four-year-olds from 15 hours to 30 hours, as well as introducing 15 hours of free childcare for disadvantaged two-year-olds and free school meals for all infants.
Tackling child poverty and disadvantage, delivering real social reform, is the key priority for this Government. Only by tackling the root causes of poverty, not just the symptoms, will we make a meaningful difference to the lives of society’s most disadvantaged children and families. It is for that reason that we introduced two new statutory measures, to drive real action on parental worklessness and children’s educational attainment, the two areas that we know can make the biggest difference to disadvantaged children. The forthcoming social justice Green Paper will build on those measures and set out how we identify and tackle the root causes of poverty.
Alongside our policies targeted at helping people to progress in work and fulfil their potential, we are also committed to continuing to modernise and professionalise the services and support that our jobcentres offer. If we are to deliver a service fit for the 21st century, we must make the most of the opportunities offered by new technology and recent shifts in demand. I am pleased that the motion refers to our plans for the jobcentre estate, as they are one of the best examples of how we are in fact doing that. After 20 years, Labour’s private finance initiative contract, which covers many DWP offices, is nearing an end—it expires at the end of March 2018. That gives us an opportunity to review how the Department delivers modern services and ensure that it gets the best deal. As I have already mentioned, reforms such as universal credit are revolutionising the relationship between claimants and work coaches, ensuring that the support we offer is more personalised and better suited to the needs of claimants.
Will the Minister comment on the disability employment gap? Surely closing jobcentres will make attaining employment less accessible for people with a disability and increase the hurdles they face in doing so.
As the House knows, narrowing the disability employment gap is an absolutely priority for this Government, and I am pleased to say that we are now making progress on that, but there is a great deal more to be done—nobody denies that. We must ensure that there are more opportunities available to people with disabilities, including through our jobcentre network, but part of that is making sure that the right services are available and that we have the resources in place to be able to afford the people, facilities and courses that can help support those people.
The claimant count has dropped from almost 1.5 million in 2010 to around 800,000 now. In some cases we are using only 25% of the floor space in sites we are renting. That is 25% of the value for 100% of the rent. Every penny that we spend on space under Labour’s PFI is money that could be going back into the public purse, helping to protect vital services.
I am going to have to ask the hon. Gentleman for his forgiveness.
Those services and support include our own, because we are expanding what we do. In fact, we expect to have over 2,000 more work coaches in 2018 than we have today. In deciding what changes it is reasonable to make to the estate, we have carefully considered the impact on claimants, including travel times. We think that it is reasonable to ask somebody to attend a new jobcentre that is either less than three miles away from their existing jobcentre, or 20 minutes away by public transport. Of course, many claimants, including constituents of many Members on the Opposition Benches, travel considerably further than that, as of course do many people in work.
The UK Government have devolved powers for existing benefits worth some £2.7 billion to the Scottish Government. Scotland can also top up benefits and create new benefits. With that, of course, comes the corresponding responsibility and accountability. I was interested to note that the Scottish Government are returning to fortnightly payments and direct payments to landlords. We firmly believe that we should minimise the difference between the out-of-work welfare support system and the world of work to facilitate people’s transition into work. Few employers pay fortnightly and even fewer have a direct relationship with their employees’ landlords. We believe that our system, which still allows for alternative payment arrangements when required for vulnerable customers, is the right approach, but we appreciate that the Scottish Government have a different view. It will be interesting to see how the two approaches deliver. We shall see.
This Government’s record speaks for itself. Poverty is down, child poverty is down and the deficit is down. We had the fastest-growing G7 economy in 2016 and 2.8 million more people are now in work. We are all about a strong economy and a supportive, effective welfare system with work for those who can, help for those who could and care for those who cannot. Taken together, universal credit and our continued reform of Jobcentre Plus will provide the modern, effective and compassionate welfare system we need to continue to deliver on this promise: an economy and a society that work for all.
Just before I call the Labour spokesperson, I inform the House formally, as colleagues who are due to speak have been notified privately, that there will be a time limit of three minutes on Back-Bench speeches in my attempt to ensure—[Interruption.] Order. If the hon. Member for Glasgow South (Stewart Malcolm McDonald) listens, he will learn. The time limit is my attempt to ensure that everybody who sought to speak has the opportunity to do so. Fairness and equality, Mr McDonald.
(7 years, 7 months ago)
Commons ChamberThere is a huge premium on helping ex-offenders into work for them, their families and their children’s life chances, and for reducing costs to society. Jobcentre Plus now has a dedicated resource of 150 prison work coaches who are helping to support prisoners nationwide.
I am grateful to the Minister for his response. He will know from his own experience, and from the excellent report on supporting offenders by the Work and Pensions Committee, which my own Select Committee would endorse, that getting a job is one of the best means of preventing reoffending. As well as the work that is being done, will he consider what can be done jointly with the Ministry of Justice to ensure there is better collaboration between job centres and community rehabilitation companies so that they are joined up, given that people currently risk the cliff edge to which the report refers?
We work closely with the Ministry of Justice on numerous joint initiatives locally and nationally, and we are supporting the development of the MOJ’s new offender employment strategy, but I recognise that we need to improve opportunities for ex-offenders, so I welcome the continued attention of my hon. Friend and his Committee, as well as the Work and Pensions Committee report, to which we will respond in due course.
Her Majesty’s inspectorates of prisons and probation found that not a single prisoner had been helped into employment by the Through the Gate provision, which is the Government’s flagship programme for achieving a step change in rehabilitation. Did that surprise the Minister, and what is his response?
First of all, my response is that this has been a challenge for successive Governments for many years. We do need to do better, but there is good work going on. Ultimately, to improve the situation, we need more prisoners to be work-ready, and we need more employers to be willing to take the plunge and take on a prisoner. Having governors controlling skills provision in prisons will have a beneficial effect on work-readiness, but we all need to encourage more employers to step forward. Initiatives such as the See Potential programme can play an important part in that, as can Ban the Box and the Employers’ Forum for Reducing Re-offending, but of course we need to do more.
The Minister will be aware that people on the autistic spectrum are disproportionately represented in the criminal justice system and that people with autism have great difficulty in finding jobs. Can he reassure me that when he looks at the consultation on the health and disability Green Paper, he will look specifically at people with autism and ex-offenders with autism, as only 16% of people with autism are currently in employment?
My right hon. Friend highlights an important point. I know my hon. Friend the Minister for Disabled People, Health and Work will be looking very closely at the issue of people with autism. This also highlights that one of the key determinants for post-release employment is what happened with the individual before they were convicted, and it highlights again the importance of making sure nobody is left behind. In our work, we pay particular attention to all these groups who face particularly difficult barriers in getting into work.
Our Work and Pensions Committee report found that reoffending costs £15 billion to the public purse, yet fewer than one in four ex-offenders goes on to find work. Alarmingly, Westminster Council’s report on rough sleeping that was published before Christmas found that one in three of its rough sleepers had come directly from prison. Why is the Department unable to provide proper transitional support for people leaving prison to make sure that they are not on the streets and that they are assisted into employment?
It is vital that ex-offenders and people on release from prison have help with finances, employment and housing. Among the things we have done to help on housing is to ensure that there are no waiting days in relation to universal credit and to keep the housing element in universal credit open for 26 weeks rather than 13 for certain types of prisoner in order to ensure that we can enhance their support.
The number of people in employment in the north of England has increased by 112,000 over the past year. The national living wage has already given 1 million people a pay rise, helping to build an economy that works for all.
I thank the Minister for his reply, but has he considered the implications of the national living wage coming in so quickly for small and medium-sized businesses, particularly those in the manufacturing sector? What would he say to those businesses that will not be able to adjust in time, or that simply will not be profitable because the national living wage is being introduced so quickly?
Everybody should benefit from a strong economy, but as well as introducing the national living wage the Government have announced plans to reduce corporation tax further to 17% and to increase the employment allowance, which could be worth up to £3,000 a year.
Is it not perverse of the Government to have reduced work allowances and universal credit at the same time as we have seen increases in the national living wage, meaning that the overall benefit to individuals in work is actually reduced?
The Government have done a range of things. Universal credit is completely different from the legacy benefits it replaced, so it does not make sense to make a direct comparison with tax credits. We have to see it in the context of greater help with childcare and the introduction of the national living wage. Of course, the increased income tax personal allowance also means that people get to keep more of what they earn.
When my right hon. Friend the Member for Tatton (Mr Osborne) introduced the national living wage, the Office for Budget Responsibility said that it would cost 60,000 jobs. Does the Minister think that that is a price worth paying, or is that another forecast from expert economists that we should ignore?
My hon. Friend is entirely correct about the OBR’s projection at that time, but he will have noticed that that came in the context of considerably larger projected employment growth.
I would like to say thank you to the scores of businesses in Corby and east Northamptonshire that provide important work experience opportunities for our young people. These introductions to the world of work are crucial, so will Ministers continue to make sure they remain at the forefront of cross-departmental discussions?
We know that one of the most important things in being able to get a job is to have had a job and to have demonstrated employability skills. Specifically on the work experience placements we do through Jobcentre Plus, people spend 49 days longer on average in employment as a result of having done one, so the answer to my hon. Friend’s question is yes.
May I urge the Secretary of State personally to review what is happening to the Motability scheme? Some 41,000 people have had their cars taken away as a result of PIP assessments, including a severely disabled Castleford constituent who now cannot get to work and may be about to lose her job, and a Pontefract constituent with metal rods in her joints who now cannot get out of the house and is at risk of slipping into depression as a result. On the day when the Prime Minister rightly raised the issue of mental health injustice, will he take seriously the serious impact on people’s mental health of being isolated in this way?
It is now four weeks since the Employment Minister promised Members of Parliament from Glasgow data on the new boundaries by which he wants to close half the city’s jobcentres—so where is that information?
I met the hon. Gentleman and his colleagues, and we had a Westminster Hall debate as well. I committed to a number of things, one of which was that we would have an online consultation, and that is indeed proceeding. As I said to him and his colleagues when we met, if there is other information that they want to bring forward, I am absolutely sure that they will do so.
(7 years, 8 months ago)
Westminster HallWestminster 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
It is a pleasure to see you in the Chair, Mr Hollobone. I congratulate the hon. Member for Glasgow South (Stewart Malcolm McDonald) on securing this debate. I also congratulate his colleagues who contributed: the hon. Members for Glasgow East (Natalie McGarry), for Glasgow Central (Alison Thewliss), for Glasgow North (Patrick Grady), for Glasgow North West (Carol Monaghan), for Rutherglen and Hamilton West (Margaret Ferrier)—I am glad that she has her voice back—and for Glasgow South West (Chris Stephens), who not only represents his Glasgow constituency but speaks for the Scottish National party from the Front Bench.
The Department for Work and Pensions delivers critical services and support to tens of thousands of customers across Scotland, England, and Wales every day, and our network of jobcentres is at the very heart of that. In all our constituencies, jobcentre staff are hard at work helping people to access the support they need and move into employment. As society has changed, so have our jobcentres. We have moved a long way from the caricature of jobcentres and the welfare system that was presented 20 years ago in films such as “The Full Monty” and “Trainspotting”.
Reforms such as universal credit are revolutionising the relationship between claimants and work coaches, ensuring that the support we offer is more personalised and better suited to claimants’ needs. That includes enabling claimants to access our services in ways that suit them. At the heart of reforms such as universal credit is a digitally focused approach that is more secure, more accessible and more efficient. The claimant count has dropped from almost 1.5 million in 2010 to around 800,000 now.
The background to this set of changes to the DWP jobcentre estate is that after 20 years, the private finance initiative contract that covers many DWP offices is nearing an end: it will expire at the end of March 2018. That provides us with an opportunity to review which offices we will need in the future, saving the taxpayer money while ensuring that our clients are able to access the support they need. When considering that question, our overriding priority has been the future services we will offer our claimants. In every case, we have sought to minimise disruption, moving existing jobcentres into nearby sites and co-locating with other services wherever possible.
The UK labour market is in the strongest position it has been in for years, but we cannot predict the exact path that it will take in the future. I reassure hon. Members that these changes will continue to ensure that we retain sufficient flexibility and spare capacity in the system. Let me be clear: our aim is to reduce floor space, not to reduce the workforce who are so important in supporting claimants back into work. Staff and services in jobcentres that are being closed are being transferred into nearby sites. In answer to the question asked by the Opposition spokesperson, the hon. Member for Wirral West (Margaret Greenwood), there are no planned job losses among jobcentre staff as a result of these closures.
When a jobcentre closes, the Department will consider what outreach services we can expand and what facilities may be suitable. The Department supports outreach activity at community and partner facilities right across the country, which allows our 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. In Glasgow we work closely with organisations such as Anniesland College to offer such services, including helping claimants with their job search and offering benefit advice.
The Minister mentioned co-location and working with public sector partners. Now that we know that there was some discussion with Glasgow City Council about the Anniesland site, will he tell us whether there were any discussions with the council about the other seven sites earmarked for closure?
Through the course of this process, there have been many, many discussions about many, many potential options and permutations of site movements, co-locations and different sorts of arrangements. As we enter the consultation period, there is a further opportunity to talk about outreach facilities; no doubt some of those discussions will include consideration of local authority-run premises and so on. The process involves having lots of discussions about lots of potential ways of organising things.
For those claimants who are unable to attend a jobcentre because of their vulnerability, or because of the complexity of the transaction required with the Department, we have in place robust procedures. DWP Visiting undertakes home visits, or occasionally visits at an alternative agreed address, if appropriate. Travel expenses are refundable in certain circumstances, including when claimants are required to attend a jobcentre more frequently than every two weeks.
Will impact assessments be undertaken for people in the affected constituencies who have disabilities and may not be able to travel the further distance to the new jobcentre locations?
The hon. Lady asked about that in an earlier intervention, and I was coming on to address it, but as she has asked again I will answer now. Yes of course the consultation will consider the entire client population, including the particular needs and requirements of people with disabilities.
In certain circumstances, claimants are able to maintain their claim by post, including if they live more than an hour from the jobcentre, door to door, by public transport—I should say that right now I am speaking not specifically about Glasgow but about the general arrangements—or if they have caring responsibilities for a child and it is not possible for them to make arrangements for short-term childcare. Claimants can also chose to attend an alternative jobcentre to the one allocated to them if the one they have been allocated is not the easiest or least costly to attend.
Our jobcentres in the quarters of Glasgow have built up over time, primarily within large housing estates. If we look at employment trends, we can see that the claimant count in Glasgow has fallen from 24,200 in 2010 to around 13,500 today. The hon. Member for Glasgow East mentioned unemployment statistics from her constituency; she will know that the claimant count in Glasgow East is down 47% since 2010. As the count has dropped across the city, so has the use of some of the smaller jobcentres. In some cases, the change has been so dramatic that we are now using only 25% of the space we are paying for under the Private Finance Initiative contract that was agreed by the then Government back in 1998.
Our proposals seek to bring the smaller jobcentres together into larger existing sites in the same area, thereby reducing our rents and freeing up funding for our services while still ensuring that our claimants are able to access them. The reduction in sites in Glasgow is in line with our spending review 2015 announcement that we would reduce our overall estate by some 20%. The number of jobcentres proposed for closure reflects the prevalence of smaller jobcentres in Glasgow and the large amount of space we are underusing in the city. It does not reflect a cut in our investment. In fact, between April and September 2016, we recruited 122 additional work coaches in Scotland. That number is set to increase further over the coming months.
When deciding what changes to make, we have carefully considered the impact on our claimants, including travel times, about which several hon. Members asked. We feel that asking someone to attend a new jobcentre which is either less than three miles or less than 20 minutes by public transport away from their existing jobcentre is a reasonable ask. Many claimants already travel much further than that, as do many people in work to get to their place of work. There are three proposed closures in Glasgow that are outside those criteria: in Bridgeton, Castlemilk and Maryhill. In such cases, it is crucial that we fully understand the implications for our claimants before any changes are made, which is why we are holding a public consultation—as we do for all similar cases throughout the country—to seek the views of elected representatives, local authorities and community bodies.
I hope the hon. Gentleman will forgive me, but I want to respond to some of the points made by his colleagues. If it turns out that I have done so comfortably within the time remaining, I will of course give way.
Having heard the specific concerns raised by hon. Members present in the meeting we held a few days ago, I have decided to put the specific consultations we are discussing online. They were uploaded to the gov.uk website yesterday and will now run for an extended period, up until the end of January 2017. As I said, I recently had that opportunity to discuss matters with hon. Members directly, and I welcome the opportunity to take part in this debate. A number of points came up in the debate; I am not sure I will get through them all, but I shall try to get through as many as possible.
The hon. Member for Glasgow North spoke of worries that the changes may affect the positive relationships—I was encouraged that he called them that—between claimants and work coaches. I reassure him that one of the important things we are doing is to change the work-coach model to one where they have a mixed case load and can maintain contact with a client, even if the benefit they are on or their circumstances change. Making those relationships richer and longer lasting is absolutely with the grain of what we are trying to do.
The hon. Members for Glasgow East and for Rutherglen and Hamilton West mentioned having heard about this announcement through the press—we had an opportunity to speak about that last Thursday. I am sure that hon. Members understand that we are unable to share details about plans for specific sites until commercial negotiations are complete. To do otherwise would risk our negotiating position with the landlords of the sites we wish to retain. Once we have finalised our proposals, our priority is to speak to staff. As hon. Members appreciate, that can take time, because we also have to get to people who might be absent on the day. In this case, the Daily Record published the story at 9:30 in the morning, while many of our staff were still in the meetings, which had only started at 9.15 am. The Department put out a press release in response to the article—it did not initiate making an announcement before telling hon. Members—and later that day I wrote to all the MPs for affected constituencies.
Several hon. Members asked about engagement with the Scottish Government. The Department has been involved in discussions about the related issues, including co-location, with the Scottish Government, local authorities, Skills Development Scotland and others for some time. Because of the commercial sensitivities that I mentioned, it is not possible to talk about specific site proposals in advance of any announcements.
I regret that I am out of time. The rationale for the proposals is clear: we have seen a sharp fall in claimant counts in the city of Glasgow. There are no planned job losses for the jobcentre network in the city, which is important. We will continue to offer the full complement of support to help claimants back to work, and we have a clear set of outreach and support measures to be consulted on.
(7 years, 8 months ago)
Written StatementsThe 104th session of the International Labour Conference 2015 adopted recommendation 204 concerning the transition from the informal to the formal economy. International Labour Organisation (ILO) recommendations, adopted following negotiation amongst ILO member state Governments and business and union representatives, serve as non-binding guidelines. The Government welcome this recommendation and recognise its importance in its global context, as it acts as a guide for all countries in their work towards making full, decent, productive and freely chosen employment a central goal in their national development and growth strategy. The recommendation is primarily aimed at those countries with less developed social security systems. It is not envisaged that this recommendation will have any impact on the UK as it is consistent with UK Government policies.
[HCWS378]
(7 years, 8 months ago)
Written StatementsThe Employment, Social Policy, Health and Consumer Affairs Council met on 8 December 2016 in Brussels. The Minister for Employment, my hon. Friend the Member for East Hampshire (Damian Hinds), represented the UK.
The Council reached a general approach on the revision of the governing regulations of the Eurofound, EU-OSHA and CEDEFOP agencies. The UK, along with all member states and the Commission, supported the proposal.
The presidency provided a progress report on the revision of the posting of workers directive. There were interventions from 22 member states. The UK intervention stressed the importance of legal clarity so that workers understood their rights and businesses understood the rules. The presidency also provided progress reports on the European Accessibility Act and the equal treatment directive.
There was a policy debate on the European pillar of social rights. The UK intervention stressed the need to respect subsidiarity and member states’ own labour market approaches. The UK welcomed the Commission’s communication that the social pillar should include flexibility about participation for non-eurozone countries. This was followed by a lunch time discussion on social innovation where the UK outlined its experience with social investment.
The Commission presented analysis from the European Semester which was followed by an exchange of views on the European Semester. Ministers also considered the draft recommendations for the eurozone countries. The UK welcomed the Commission’s findings and the priorities identified for the year ahead.
The Council adopted draft Council conclusions on accelerating the process of Roma integration, women and poverty, and the youth guarantee and youth employment initiative. The Commission also introduced the European solidarity corps, launched earlier that week.
Under any other business, the Swedish and German delegations called on the Commission to upgrade the status of its gender equality strategy, the presidency provided an update on omnibus regulations and the new skills agenda for Europe, and the Austrian delegation provided an update on the Special Olympics world winter games. The presidency presented the outcome of conferences organised during their presidency and the Maltese delegation presented their work programme for their presidency.
[HCWS356]
(7 years, 8 months ago)
Written StatementsThe Employment, Social Policy, Health and Consumer Affairs Council will take place on 8 December 2016 in Brussels. I will be representing the UK.
The Council will be invited to reach a general approach on proposals for regulation by the European Parliament and the Council to amend legislation on: the European foundation for the improvement of living and working conditions (Eurofound), the European agency for safety and health at work (EU-OSHA), and a European centre for the development of vocational training (CEDEFOP).
The Council will receive progress reports on the proposal for a European Parliament and Council directive on the posting of workers, the proposal for a European Parliament and Council directive on the accessibility requirements of products and services, and the proposal for a Council directive on the equal treatment between persons irrespective of religion, disability, age or sexual orientation.
The European Commission will present the annual growth survey 2017, the draft joint employment report and draft recommendations on the economic policy of the eurozone, with eurozone members of the Council invited to adopt the Council contribution on the employment and social aspects of the draft recommendation of the economic policy of the euro area. The Chair of the Employment Committee will present a review of social partners’ involvement at national level in the European semester.
The Council will be invited to a policy debate on the European pillar of social rights.
The Council will be invited to adopt draft Council conclusions on the implementation on the youth guarantee and the employment initiative, draft Council conclusions on accelerating the process of Roma integration, and draft Council conclusions on women and poverty.
Under any other business, the Commission will present information on the youth initiative. There will be information from the presidency on: omnibus regulation (EaSI, EGF, FEAD), the new skills agenda, and the outcome of conferences organised by the Slovak presidency. There will be information from the Austrian delegation on the special Olympics World Winter Games, and from the Maltese delegation on the work programme of their upcoming presidency.
[HCWS326]