Blind and Partially Sighted People: Employment Support

Danny Kruger Excerpts

Wednesday 20th November 2024 Westminster Hall

[Danny Kruger (East Wiltshire) (Con)]

It is a pleasure to serve under your chairmanship, Dr Huq. I pay tribute to the hon. Member for Torbay (Steve Darling) for his powerful testimony about the enormous opportunities and barriers in this space, and particularly to the hon. Member for Battersea (Marsha De Cordova) for the work she has done on this topic during her time in Parliament. She serves her constituents and this community very well.

I was struck by the interesting speech by the hon. Member for Doncaster East and the Isle of Axholme (Lee Pitcher) about the opportunities of AI, which opened my eyes to the huge barriers that blind and partially sighted people have suffered and how technology is helping to overcome those barriers. I pay tribute to his wife: learning to ski with partial sight is a tremendous achievement, so all credit to her.

I echo the points made by other hon. Members about the imperative to overcome and reduce the barriers that blind and partially sighted people face in gaining work and progression in the workplace. Doing so is an absolutely necessary matter of justice to those people themselves; it is entirely wrong that people are discriminated against, directly or indirectly, because of their disability. We therefore have a moral imperative to act. As the hon. Member for Battersea stressed, we also need to reduce barriers to employment for blind and partially sighted people for the sake of the economy; when we exclude blind and partially sighted people from employment and progression in work, the country is denied an enormous wealth of talent.

Finally, addressing remaining barriers to employment and work progression for blind and partially sighted people is necessary for the sake of the taxpayer and the public finances. Our country’s disability benefits bill is simply unsustainable. It has risen sharply in recent years and is projected to rise to unsustainable levels over the course of this Parliament. On the current trajectory, spending on health and disability benefits will rise 56%—an additional £27 billion—over the course of this Parliament if change does not happen. Overall, spending on incapacity and disability benefits will rise from 2.4% of GDP to 3% over the course of this Parliament. If we could ensure that people who are currently excluded from the workforce can gain employment and reduce dependence on benefits, we could spend much of that money better in other spaces. I therefore support what the Government aim to do in this space and their plan to get activity back to pre-pandemic levels—a noble aspiration, which my party will support.

There are two ways to approach this question, as has been touched on in the debate so far. The first is the role of the Government themselves in getting the law, benefits system and incentives right in the fiscal, legal and welfare spaces. I am proud to say that my party led the way in ensuring that we as a country tackle discrimination against people with disabilities. The Disability Discrimination Act 1995, introduced by William Hague, required employers to make reasonable adjustments to facilitate the employment of disabled people, and it remains the great landmark and a vital step in this space. We also introduced Access to Work grants, which have been discussed today. I am pleased to say that last year saw the highest number of Access to Work grant applications awarded for over 15 years—68,000, of which 3,000, I understand, were for blind and partially sighted people. That is encouraging.

Nevertheless, we clearly need to go further with Access to Work, as we have heard today. Some innovations were introduced towards the end of the last Parliament, including health adjustment passports, which aim to reduce the time that it takes people to apply for and receive an Access to Work award, by allowing people to take the statement of their disabilities and necessary adjustments from one employer to another. As I understand it, that helpful and practical innovation is now in force. The last Government was also introducing an enhanced Access to Work package, which gave employees more support than they got under the existing scheme, as well as ensuring that employers received support if they were helping to facilitate access to work. Clearly, the process remains onerous and complex—that is a condition that applies across the benefit system with its complex, difficult application process. It only recently went online and it has just become possible for all people to apply for Access to Work digitally. Improvements clearly need to be made.

I am concerned about the extent of the backlog in the application process, which began in the previous Parliament and continues. In September 2023, 22,000 applications remained outstanding; in May 2024, there were 37,000; and in October 2024, 56,000. There are significant problems in processing these applications. I am interested to hear the Minister’s views on why that is and what can be done to reduce the backlog.

We need to ensure that the conditionality and incentives in the benefit system and employment support are robust and sensitive. I look forward to the forthcoming White Paper to see how that will be achieved. The hon. Member for Battersea recommends a review of the Equality Act and I welcome contributions there. It will be interesting to see what is suggested to improve that legislation.

I am concerned, however, about proposals that rely on tightening laws—strengthening the stick side of the arrangement, as it were. As the hon. Lady said, there have been a lot of laws and programmes introduced to support blind and partially sighted people—people with disabilities—into employment, yet there are still significant problems helping them to access and progress in work. Rules will only take us so far. Indeed, as the hon. Member for Doncaster East and the Isle of Axholme talked about the role of technology, it struck me that technology will also only take us so far.

There is a danger in looking to technical solutions, whether in the law or technology, that let us off the hook for what really needs to be done. I gently point out the phenomenon of crowding out: the danger that statutory action can diminish the voluntary action that needs to be taken, in this case by employers, to do the right thing. That is the second approach that is crucial to this space; I am pleased that that was the focus of the hon. Member for Battersea’s report and today’s debate. We need to look at the attitude and culture of employers, more than the obligations and systemic responses that Government can make. Of course, Government can significantly influence the attitude of employers but, to quote the Royal National Institute of Blind People:

“There are no hard and fast rules”

when supporting disabled people at work. We should avoid making assumptions about what blind and partially sighted people can do. That is why we need a flexible approach, in which employers use their imagination and intelligence, in consultation with employees, to develop access for blind and partially sighted people in the workplace.

The way to do that is to stress the opportunity, the benefits that employers will reap and, frankly, how easy it is. I was struck by the hon. Lady’s story of what good looks like in the workplace. It sounds like human beings being human towards each other, being genuinely inclusive, ensuring that people help their colleagues literally to navigate the workplace. One can imagine the enormous benefit to that workplace and all employees when there is a culture of inclusivity and generosity, as the hon. Lady described.

The key is awareness. Many of the changes needed to make workplaces accessible are not difficult; they just need to be done deliberately as part of the policy of the Government. I welcome the practical recommendations in the hon. Lady’s report, and I look forward to seeing what the White Paper will do to implement them. I respect the Minister and his colleagues, who are genuinely dedicated to improving employment and employability. I am pleased to see what has been trailed for the White Paper, with a focus on skills, devolution, empowering local communities and opportunities for young people.

I very much hope that the White Paper will work with employers in the spirit of the report we are debating, rather than against them, but I am concerned by the policies that the Government have announced so far with respect to employers. The national insurance rise will result in thousands of pounds of taxation on every job, and new burdens on employers are being created through the Employment Rights Bill. Those are not good portents of an employer-friendly approach. Nevertheless, on this issue we agree about the direction of travel that needs to be taken, and I very much hope that my party works with the Government to progress the very helpful recommendations that the hon. Member for Battersea has made.

Food Banks

Danny Kruger Excerpts

Tuesday 19th November 2024 Westminster Hall

[Danny Kruger (East Wiltshire) (Con)]

I congratulate the hon. Member for Aberdeenshire North and Moray East (Seamus Logan) on bringing this debate forward. I am grateful for hon. Members’ helpful contributions, and I am happy to take interventions from hon. Members who were not able to speak if there is time.

Let me first acknowledge that I agree with hon. Members who have pointed out that the existence and extent of poverty in our country is shameful. It is a source of deep shame to our country that so many people are reliant on the charity of others for essentials. Briefly, I pay tribute to the food banks in my constituency and in my former constituency of Devizes, which do such good work. I also previously worked with the Hammersmith and Fulham food bank. I echo the points made by hon. Members about the valuable work of such organisations.

[Lee Pitcher (Doncaster East and the Isle of Axholme) (Lab)]

I have seen extraordinary work and inspiring volunteers at the DN7 food bank, the Isle of Axholme Foodshare Project, Hatfield’s Pre-loved Uniform Bank and the Hygiene Bank Doncaster. Does the hon. Member agree that although their work is amazing, we do not want to see those banks grow on our high streets or even exist in the first place?

[Danny Kruger]

I am grateful for the intervention. I recognise those points and pay tribute to the hon. Member’s food banks too.

Hon. Members have cited some of the facts. It is a fact that the number of parcels handed out by the Trussell Trust doubled in the last Parliament in the light of the covid crisis and the cost of living crisis, but I emphasise that we should not take food bank use as a perfect proxy for poverty, because that data is patchy and affected by the supply of food banks. There is also an important displacement effect. It is not necessarily the case that all the need identified by food banks is new need; that need might formerly have been met by other sources, such as family and friends or other community organisations.

Nevertheless, the profile of food bank use tracks the state of the economy and the level of poverty in our country. We saw it spike during lockdowns, then decline and then spike again with the cost of living crisis. I am afraid that it has not really declined since: 1.4% of households have used a food bank in the last month and 3% in the last year, which are significant numbers.

So what is going on? I echo the point of my right hon. Friend the Member for Salisbury (John Glen) about the complexity of the causes of food bank use, but we recognise the obvious point that it is ultimately down to household income. The “Hunger in the UK” report points out that the main reasons for people having problems with their household income are difficulties with benefits, as many hon. Members have mentioned; the existence of in-work poverty; and the difficulty of gaining well-paid work, particularly for disabled people and carers.

[Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)]

A number of constituents have written to me expressing their struggle to afford food, despite being in work, and that is not an isolated issue. In mid-2022, almost 90% of those referred to food banks in Wales were in work and had such low incomes that they were living in destitution. Does the hon. Member agree that the working poor, created by the last Government, are disgracefully reminiscent of Victorian times?

[Danny Kruger]

I do recognise the extent of the problem of in-work poverty and of people reliant on benefits to sustain their incomes and on additional support from the outside. I do not accept that that was a new phenomenon; in fact, I will come to the last Government’s record in a moment.

[Antonia Bance (Tipton and Wednesbury) (Lab)]

One of the last Government’s best policies was the introduction of a £20 additional uplift to universal credit during the pandemic. It stopped poverty growing in its tracks and showed the impact of increasing access to money—not to be facile—on poverty. Does the hon. Member share my hope that the Government will bring forward their review of universal credit, as promised in the Labour manifesto?

[Danny Kruger]

Yes, indeed; I very much look forward to that review coming along soon.

Many hon. Members have mentioned the record of the last Government. I recognise the extent of low wage growth and in-work poverty that we have seen. If we look at absolute poverty, however, which is the measure that we should ultimately be looking at if we are thinking about the extent of destitution and food poverty, 1 million fewer people are in absolute poverty after housing costs in 2024 than in 2010. That includes 100,000 fewer children, 200,000 fewer pensioners, and 700,000 fewer working-age people, so the last Government made a real impact on absolute poverty. Overall, there are 1 million fewer workless households than in 2010.

Much of that impact was driven by the introduction of universal credit. Those of us who worked in the social sector before 2010 might remember the labyrinthine complexity and the perverse incentives that were created by the mess of the benefit system that we inherited in 2010, which we rationalised and improved. It is also worth mentioning the enormous £100 billion cost of living package that the last Government put together in the light of the energy shock.

Let us turn to what this Government are doing. The most significant policy that they have announced so far on poverty is the withdrawal of the winter fuel payment. Some 10 million pensioners will be denied that essential benefit, including 70% of disabled pensioners. That is surely not a record that hon. Members are proud of.

[Sam Carling]

The shadow Minister has made a point about the Government’s difficult decision to withdraw the winter fuel payment. If he feels so strongly about it, why did his party pledge to do it in 2017?

[Danny Kruger]

We did not pledge to do it and we did not do it. I think it is important to have universal entitlement to essential benefits, but if there does need to be some means testing, surely it should penalise, or withdraw the payment from, only the wealthiest pensioners, not 90% as is happening under this policy.

The other thing that the Government have done is impose a significant tax on employment through the national insurance rise, which they promised not to do in their manifesto. The cost of that will fall disproportionately on low-paid workers, who will see the impact of that tax in their wage packet.

The Joseph Rowntree Foundation, which is no friend to my party, has pointed out that poverty is due to rise because of the Budget that the Chancellor has introduced. Every household type, except pensioners, will be poorer. Single-parent families will be £1,000 poorer. An average couple with children will be £1,760 poorer. Inequality will be higher. That is all the testament of the Joseph Rowntree Foundation.

The Office for Budget Responsibility points out that real wages will fall and indeed, the Budget has caused the OBR to lower its real wage growth forecast by 0.5%. As the OBR says, the Budget shifts

“real resources out of private households’ incomes in order to devote more resources to public service provision.”

That might indeed be the policy that the Government want to pursue, but the effect will to be to reduce household income, as the OBR acknowledges.

[Alex McIntyre]

Will the shadow Minister acknowledge that the OBR actually said that 90% of households will be better off under this Budget, and it is only the wealthiest 10% of households that will feel the cost, making sure that we are spreading the cost on to those shoulders that can bear it most?

[Danny Kruger]

As I said, I do not think that withdrawing the winter fuel payment from 10 million pensioners reflects a transfer of the burden on to those who can bear it most—nor does imposing a taxation on low-paid jobs.

What shall we do about all this? I am sorry to say that I have not heard enough in the debate about what could and should be done, although I acknowledge that the hon. Member for Aberdeenshire North and Moray East made some suggestions—many of which I agree with, particularly around the importance of having an adequate safety net. I, too, look forward to the universal credit review that the Government are bringing forward, and I strongly agree with the focus on nutrition and empowering communities.

I do not agree with the need for the essentials guarantee, although I respect that campaign. I do not think that transferring responsibility for setting benefit levels to an independent body—essentially, to an unaccountable quango—is the right way to go. The Government should be responsible for that policy, and accountable to Parliament, rather than an independent body.

If we look at the drivers of food bank use as reported in “Hunger in the UK”, we need to improve the benefits system and make it quicker and easier to use. I look forward to seeing how the Government are going to improve pension credit applications to improve winter fuel payment access. We need to drive up wages again; I deprecate the introduction of taxation on wages. We need to grow our jobs market and ensure that it is easier and better for employers to take workers on and promote them—which, I am afraid to say, the Employment Rights Bill that we are anticipating will not do, given that it imposes punitive obligations on employers from day one.

I am conscious that my time is almost up, so let me finish with this point. I praise the flexibility of food banks, and the human relationship that they imply: the hon. Member for Aberdeenshire North and Moray East talked about the powerful sense of community. A quiet revolution happened during the covid pandemic that momentarily offered a better social and economic model in which remarkable innovations, particularly around food and provision to the poorest among our neighbours, were enabled to flourish.

I agree that we want food banks to be redundant, but while we have hardship they can be an important part of the mix. I pay tribute to other innovations such as social supermarkets as well. Lastly, I do not agree with the hon. Member that we need a more central strategy and direction for the household support fund. Its great value is in the innovation that it enables, and the way that it empowers local communities, which he said that he believes in, to ensure that local authorities can take responsibility for supporting their communities. That is an important innovation that was brought in by the last Government, which I supported, and I hope that it will continue.

Oral Answers to Questions

Danny Kruger Excerpts

Monday 11th November 2024 Commons Chamber

[Mr Speaker]

We come to the shadow Minister.

[Danny Kruger (East Wiltshire) (Con)]

The withdrawal of the winter fuel payment from 10 million households, including 70% of disabled pensioners, is a huge change, as is using pension credit to distribute the benefit to the minority of people who will still get it, yet the Government have rushed this change through without giving their own statutory advisory committee the chance to properly scrutinise it. Ministers have not even responded to the chair of the committee, who wrote to them several weeks ago with suggestions on how to mitigate the effect of the policy. On top of that, they have failed to provide a full impact assessment to show what the effect on poverty would be. Will they finally produce a full impact assessment of this policy, and when will the Minister respond to the chair of the advisory committee?

[Emma Reynolds]

I welcome the hon. Gentleman to his place. In answer to his questions, we have published an equality analysis, which he can find on the Government’s website. Owing to the legislation, we do not have to produce an impact assessment, but there is an equality analysis. I urge him to have a look at that. All I would say to him is that the new Leader of the Opposition argued in 2022 that winter fuel payments should be means-tested. I wonder how the hon. Gentleman might means-test the winter fuel payment, if he had the chance.

[Danny Kruger]

The Minister mentions the equality assessment. That was a high-level equality assessment that was only dragged out of the Government in response to a freedom of information request. The fact is that they are avoiding accountability for this policy and avoiding scrutiny by the House. The Government are saying that the impact of the cut on the poorest pensioners will be mitigated by pension credit, and we have heard from the Minister about the very small numbers who are taking up pension credit in response to this announcement. Their own figures predict that fully a third of eligible pensioners—that is 750,000 of the poorest people in the country—will not get pension credit and will not get the winter fuel payment.

That is what the Government are banking on. That is how they are making the savings that they predict from this policy: by cutting benefits to some of the poorest people in our country—[Interruption.] The Minister shakes her head, so she might want to put me right. Does she want all eligible pensioners to claim pension credit? [Interruption.] The Secretary of State says yes. If she does want that, does she then accept that the Government’s savings from this policy will be completely wiped out?

Budget Resolutions

Danny Kruger Excerpts

Thursday 7th March 2024 Commons Chamber

[Dame Jackie Doyle-Price]

On social care, the hon. Gentleman has a fair point, but I do not think that what he says is true as regards HGV drivers, builders, labourers or anyone else in the construction industry. It is true that we have relied on cheap migrant labour to deliver social care, but that is largely because we have not valued social care as a profession. While we have had that abundance of cheap labour in the sector, we have also been able to kick the can down the road about how we fund social care and our later stage of life, so the impact has been not just on earnings but on allowing policymakers to be lazy about grappling with these difficult issues.

[Danny Kruger (Devizes) (Con)]

My hon. Friend is making an important speech, with the authentic voice of common-sense Conservatism, which we need to hear much more of. The point she makes about the depressive effect on wages of the high immigration so far this century is incredibly important and relevant to the debate we are having about the workforce. Does she agree that at least our party has a plan to reduce legal migration substantially in the years ahead, which is more than we hear from any Opposition party?

[Dame Jackie Doyle-Price]

I do agree that we have a plan, but I say to my hon. Friend that it has to be more than words—it has to be delivered on. I am sure he would agree on that. He will have heard, as many of us have, about how many industries have lobbied us to ensure that such and such a profession is added to the skilled workforce list. Those employers do not want to pay those higher wages and we, as politicians, need to be robust about that and say, “You know what, we genuinely want to deliver a high-wage, high-skilled economy. If you want to employ HGV drivers, you are going to have to pay them the money they deserve.”. That is how we will reward aspiration and hard work by the people of this country, and, overall, we will have better growth. It is not going to be painless getting there, because some employers will have to start paying higher wages and that will filter through to higher prices. But that is how we correct our economy and become the great world leader that we should be. We should be the powerhouse of the G7; given the skills and abilities within our country, we should be leading the world. We have allowed ourselves to become impoverished by quick fixes, to be brutally frank.

I come to my final issue. I have said for a long time that the biggest challenge facing this country is the lack of affordable housing and the failure to build enough new homes. I welcome the continued emphasis by the Government on this issue, but we are still failing to deliver. Yesterday, the Chancellor mentioned new investment to facilitate new housing in Barking and Canary Wharf. If we are to learn from what can go wrong, I encourage him to travel a few miles east to my constituency, to Purfleet. It sits on the River Thames and it has a railway station that can take people to Fenchurch Street in the City of London in 45 minutes. We have been talking about building 3,500 homes in Purfleet since 2008. If they were constructed on the River Thames, 45 minutes from central London, these homes would have sold themselves. Purfleet Centre Regeneration Limited, a public-private partnership, was developed to deliver these homes. It had £70 million-worth of public land gifted to it. It was granted £5 million in 2015 to kickstart the works, and it subsequently received £70 million in housing infrastructure funding. The first house was promised to be constructed by 2018. We are now in 2024, and we do not have a single new home after all that public money.

I want the Government to register that while it is great to see capital funding being made available, with all these wonderful brochures with nice plans for new homes, nothing is being delivered. I wonder whether there is something wrong with how we approach these things. From where I am sitting, I can see consultants who have managed to earn a pretty penny over the past eight years out of Purfleet, but we have achieved nothing except the disappointment of the public. The public have supported and got behind these proposals, but have found their hopes and ambitions dashed. They deserve better. They have been seriously misled by a number of people. It is not for me to apologise to the people of Purfleet—I have done my best to call out the fact that the emperor had no clothes for a very long time—but the public gets very disillusioned when promises given by politicians come to nothing. If we really are to deliver more new homes, then we need to look at why we have not realised the ambitions from such projects in the past.

--- Later in debate ---

[Rachel Maclean]

Over my time as a Member of Parliament, I have detected many statements by many Ministers on the Treasury Bench about investing in mental health services and back to work services, nationally and in my constituency. Redditch has a brand-new local mental health hub, delivered by the Conservative Government, and the Conservative borough council led by the excellent Mr Matt Dormer.

It is worth observing that a total of 2.6 million people reporting those conditions are actually in work, and that is a credit to our mission to support people back into work, which ultimately is the best way to improve their mental health. I have a concern that following the pandemic, we have possibly seen a trend to over-medicalise some of the normal ups and downs of daily life. It is almost as though it were possible to live in a state of blissful utopia and that if there were any interruption to paradise, that is a condition requiring help. That is just not true.

The struggle of life defines us and builds our character. Taking away individuals’ opportunity and responsibility to face their fears by overprotecting them is the worst way to develop resilience, as any parent knows. The human condition is a state, mostly, of pain and fear. If we are fortunate, we will experience love and happiness in some small interludes, and we must appreciate those.

I want to be very clear, however, that I do not criticise anyone who is suffering from any mental health condition —I do not—including bad nerves, whatever that is. If we have a poorly designed system with poor labelling, it is not people’s fault if they respond to the structural incentives that we have designed, but we must not have bogus, badly defined phrases and cod psychology as a pathway to a lifetime on benefits. I really hope that the Minister will return to that in the summing up.

[Danny Kruger]

My hon. Friend is giving a very brave and eloquent speech. Does she agree that there is a real problem with overprescription in the NHS? Doctors of people who have mental health difficulties respond too quickly with a chemical response. In fact, what would often be best is to encourage them either to work or to take part in social activities, which the Government support through the social prescribing programme.

[Rachel Maclean]

I thank my hon. Friend for that observation. I hesitate to agree with him definitively, because I just do not have the evidence, but I strongly agree with the basic point that we should not reach straight for the chemical solution. We should look at other solutions that are clinically much better for people, including the social prescribing to which he refers.

I could highlight many issues in the Budget that I know would be welcomed in Redditch. I have campaigned long and hard for the Alex hospital and the Conservatives have delivered an £18.8 million operating complex, now open, ensuring that we are making progress in cutting the waiting lists. People can get operations closer to home and can get home quicker, and they can have more lifesaving surgery closer to their homes. I was glad to see the emphasis yesterday on productivity gains in the NHS, as well as pouring in money. Constituents know that healthcare is expensive and valuable. Staff time and public resources must be properly stewarded and not wasted.

Yesterday, there was an unexpected but welcome announcement—a delightful one—by the Chancellor: £5 million to spend in Redditch on cultural projects. That will be massively welcomed in our area, where the arts play a huge part in our local life. I will talk to local and community groups about how we can best use that. We have plenty of potential destinations, including the Palace theatre, Arts in Redditch, our new library complex—also boosted by Government levelling-up funding—and many more.

I am particularly proud of the record of my local council, which is led by Councillor Matt Dormer, who instigated a council house building programme that has delivered 19 council houses. I always appreciate the fact that we need to go further, but that is a significant move because they are the first true council houses built in Redditch for 29 years. For all the years that it was in control, Labour did not build a single council house, even though they are much needed.

--- Later in debate ---

[Danny Kruger (Devizes) (Con)]

I have enjoyed the debate, which has been useful; we have heard important contributions from both sides and I welcome the constructive tone. However, I do think that the comments just made by the hon. Member for Newcastle upon Tyne Central (Chi Onwurah) reflect a Labour party committed to ever-increasing public spending while simultaneously complaining about the high tax burden that the country labours under. That comes without any commitments to reduce taxes further than we are—in fact, the party just makes ever-increasing spending commitments.

[Chi Onwurah]

Will the hon. Gentleman give way?

[Danny Kruger]

I am very happy to.

[Chi Onwurah]

When did I ask for increased spending? Will he clarify that now, for the benefit of the House?

[Danny Kruger]

Well, we heard repeated complaints about the underfunding of services and the requirement for improvements. That is what the hon. Lady believes in. If she is happy to say that she does not believe in additional spending, I will be delighted to hear it.

[Chi Onwurah]

I thank the hon. Member for giving way again. As he knows, we have set out our spending commitments, and crumbling services are a consequence of the Tories’ absolute failure to give growth to our country and our fantastic businesses, which can drive economic growth across our country.

[Danny Kruger]

We have made repeated investments in public services, but I recognise that there are all sorts of problems across our country. On the subject of crumbling, there is also a major hole in the Labour party’s public finance plans following yesterday’s Budget. We look forward to seeing how it will plug the new hole in its plans.

I made the remarks because I think there is a common recognition across the House that improvements need to be made to our economy. There have been significant challenges to the UK in recent years. I was pleased to hear yesterday that significant improvements are now under way: inflation is falling, wages are rising, mortgage rates are starting to come down and debt is on track to fall. All that is welcome.

I also very much welcome the combination of the autumn statement and yesterday’s Budget, which together have seen cuts to national insurance totalling £20 billion, benefiting the average worker by over £900, and a tax cut of around £650 for the average self-employed person. I recognise the points about fiscal drag; we have to acknowledge the reality there. But given that the thresholds have not been raised, the tax reductions are welcome.

I particularly welcome the changes promised for the high-income child benefit charge by the raising of thresholds and halving of the rate at which child benefit is withdrawn. That important step will benefit some families by an average £1,260. That is welcome, as is the commitment to end the unfairness on single-earner families altogether by April 2026. I welcome those significant developments.

I particularly welcome the extension to the household support fund. I have been calling for that on behalf of Wiltshire Council, to which I pay tribute for its really good work in supporting households in need with essentials such as food and utilities. That extension is a really important development. The Chair of the Work and Pensions Committee, the right hon. Member for East Ham (Sir Stephen Timms), made the interesting suggestion that the household support fund should be made permanent. I recognise that there are voices on my side of the House who think that it is only a sticking plaster measure during these difficult times. I actually agree with the Chair of the Select Committee: it is important to ensure that local authorities have discretionary funding that they can use. They should be accountable to their local residents for how they use that money. I would like to see the money raised locally as well, but the principle of a discretionary fund for local government is important.

There are obviously still significant concerns about the state of the economy, and I am somewhat concerned by the obeisance and genuflection that the Chancellor feels obliged to make towards the Office for Budget Responsibility. I recognise that he would have liked to have done more in the Budget if the OBR had allowed him. It is the wrong way round to outsource responsibility for fiscal forecasting to an unaccountable body in this way. It is wrong that he regards the only measure of the Budget’s success to be whether the OBR gives it a green light. Fundamentally, we are restricting the reforms that we need to make in this country.

I come to a broader concern. I welcome the Budget, and all its measures are good and helpful, but there remain profound and powerful structural problems with the model of our economy, all of which started before we came into power. It is a cross-party responsibility. The Liberal Democrats, the Conservatives and Labour are all responsible for the structure of the economy under which we operate in this country, and I will describe it briefly in the following terms. We have had cheap money and decades of artificially low interest rates, followed by money printing from the Bank of England that went on too long, creating chronic asset inequality in our country. Essentially, there has been a transfer of wealth from poor to rich. We have had cheap labour, creating low wages, and we have pressure on housing, public services and community cohesion that has been caused by importing millions of people from abroad to work for low wages in our economy. We have an economy built on cheap imports: we burden our own producers with costs while we import cheap products from abroad that are made to lower standards. I regret all these conditions in our economy.

The result is huge geographic inequality, a long tail of unproductive businesses and, I am afraid, too low real-terms wage growth. I suggest that all this is endemic to the economy, which was made by Labour and the 2008 financial crisis, but which has not been sufficiently addressed over the last decade and a half by the Conservative Government. We fixed the damage that was done to the public finances under Labour—imagine what the party would have done if it had been in power after 2010—but we did not change the economic model.

I am glad the Budget indicates that the Government are committing to reforms in the right direction. I particularly welcome the recognition that debt will fall during the next Parliament if we are in charge—it is impossible to see how the Opposition will get debt falling without policies to drive growth and improve public sector output. That is a good commitment. I also welcome the commitment to improve public sector productivity, and my hon. Friend the Member for The Cotswolds (Sir Geoffrey Clifton-Brown) made some very important points about the way in which we need to improve output and efficiency in the NHS. I particularly welcome the Government’s focus on improving private saving and investment.

I want to quickly mention the Wiltshire economy. In my wonderfully beautiful, traditional and old-fashioned- looking county, we have some of the most hi-tech businesses in the UK producing really innovative products for the global economy. A highly positive story is developing in Wiltshire, led by the agritech sector. One of the great benefits of our new Brexit freedoms is that we can liberalise and enhance the opportunities for biotech and agritech, but we need more, and I will quickly run through what they are.

First, I welcome the minor uplift of £5,000 in the VAT threshold for businesses. I regret that we could not do more, and I particularly regret that the reason we could not do more is, as I understand it, due to the Windsor framework. We are effectively tied into the EU’s VAT regime, because we do not want to diverge from Northern Ireland in GB—quite rightly—but I regret that we could not raise the VAT threshold to significantly more than £90,000. We should find a way to make that possible.

Secondly—other hon. Members have made this point powerfully—we need to grow our rates of house building significantly. I would like to see more new towns being created. I would also like to see land reform to get the cost of land out of the price of housing, which seems to be the fundamental blocker, particularly on housing in rural areas. We should greatly enhance and expand community land trusts, which have such a useful role to play not just in urban settings but in rural settings, to create low-cost, affordable housing for local families.

We also need to reform the labour market. Today’s debate on enhancing the world of work is so timely and relevant to the reforms that the Government are trying to bring about. I welcome all that the Secretary of State for Work and Pensions, whom I met this week, is doing to get more people into work. We have a chronic problem with economic inactivity. Significantly, millions of people are not able to contribute to the economy and to their own prosperity. There are major disincentives to work and train, fuelled by our high-migration economy, which is simply a subsidy to employers at the expense of working people.

It is very good that the Government are focusing on GDP per capita, which is the fundamental measure, despite the poor record of GDP per capita in recent years, as Opposition Members have pointed out. There are many reasons for that poor record, but the primary reason is the high rate of migration. Low-paid workers have driven down contributions and income per capita. I welcome the work that the Government are doing to get people off benefits and into employment, particularly through the WorkWell programme.

I finish with a plea on behalf of Wiltshire and the whole country. More than anything, I regret the Budget’s slow and frankly insignificant uplift in defence spending. It is a good thing that more money is now going into the defence budget, and I welcome the commitments that have been made in recent Budgets, but the increase of less than 1% in the defence budget yesterday was disappointing, given the current global crisis and the historical underfunding of our armed forces under many Governments. I am proud to represent the British Army’s largest garrison, on Salisbury plain. It would be a great thing for the nation and for Wiltshire to see the significant investment in the Army that will be necessary for our security. It would also boost our economy.

[Several hon. Members rose—]

--- Later in debate ---

[Nigel Huddleston]

If the hon. Gentleman had not intervened and given me just one more second, I would have said that, going forward, we will also consult on moving the high-income child benefit charge to a household- based system, to be introduced by April 2026. That point was also raised by my hon. Friend the Member for Christchurch (Sir Christopher Chope), who pointed out the potential opportunities in other areas relating to household income. It is important, because our tax system is based on the principle of individual taxation, and there are many aspects of confidentiality and so on that are important in that as well. The Government will consult shortly on options to enable better targeting of economic support to households in times of crisis.

[Danny Kruger]

I, too, very much welcome that commitment to move towards a household basis for taxation. Does my hon. Friend recognise that most other countries, particularly European countries, operate on a household basis for taxation, because they recognise the obligations that families have to dependants.

[Nigel Huddleston]

Yes, I hear my hon. Friend but, as I have said, there are some challenges in moving to a household system. There will be a consultation and I am sure that he and others will participate in that, and we will have further discussion in the House.

Child Support (Enforcement) Bill

Danny Kruger Excerpts

2nd reading
Friday 9th December 2022 Commons Chamber

[Danny Kruger (Devizes) (Con)]

We are talking about the saddest thing possible, the breakdown of the relationship of a couple with children—and not just the pain of the breakdown, but an ongoing feud that often lasts for years, re-traumatising the children and embittering the parents. We must always remember that the effect of divorce or separation is usually impoverishment, both for the adults involved and for their children—and indeed for elderly parents; they should not be forgotten in this, nor the capital that is lost to them and their future care. The effect on whole families of divorce and separation and the loss of half a child’s adult world when his or her parents separate acrimoniously can often cause a lifetime of emotional damage.

I start by stating plainly that there is nothing more important we can do as a society or in this place than to help people to form stable, lasting and loving relationships, particularly in the context of bringing up children. I am conscious that we spend a lot of time in this place debating means of mitigating the effects of family breakdown, but not a lot of time debating how to prevent the breakdown in the first place. We discuss how to provide ambulances at the foot of the cliff to pick up people who are falling off, but spend very little time discussing how to put fences at the top of the cliff to prevent the damage in the first place.

Nevertheless, when the worst happens, it is right that we do what we can to ensure that the obligations of parents to support their children are upheld. That is why we have the Child Maintenance Service. I want to reflect on the work that the service does. Its work is increasing; as we have been hearing, the CMS manages over 600,000 arrangements for child maintenance, up 9% just in the six months to last December. We have also seen an increase in the collect and pay arrangements—a bad sign in itself—with 37% of the total number of CMS arrangements now managed through collect and pay, up from 30% just a few years before. Compliance is running at around two thirds, which is understandable, but sad and essentially unsatisfactory.

My hon. Friend the Member for Stroud (Siobhan Baillie) mentioned the 2012 reforms, which were partly designed to encourage voluntary and family arrangements, and have been successful in that regard. I agree with her about the success of those reforms and that those arrangements have increased, but we must recognise that the number of separated couples without an arrangement has also increased. According to the National Audit Office, it appears that there is no clear change in the number of families with an effective arrangement in place.

The fact is that only one in three separated families have arrangements that are working and in which payments are made in full. For all the progress that has been made—and I recognise my hon. Friend’s point that the CMS is dealing with very many difficult cases—we still have too many non-payments or payments not made in full. At any one moment, we are all dealing with many cases of constituents reporting their frustrations with the CMS. It is very frustrating for our offices to deal with them, too. I want to quickly pay tribute to my senior caseworker, Camilla Jequier, who is dealing with so many of these cases any one moment—I am sure that we all have a Camilla in our offices battling with the CMS on behalf of our constituents. She does tremendous work, patiently and sympathetically supporting constituents.

I will give a couple of examples on both sides of the parental dispute. A caring parent reports that the non-resident parent has another job and has increased their earnings, with that apparent to HMRC, but the CMS will not increase the payments that the non-resident parent—the father—is making. Another non-resident parent has continued his old business using cash. He is claiming universal credit fraudulently—a CMS financial investigation has confirmed that—but, because the UC claim is in place, it cannot collect the child maintenance that is due. I spoke yesterday in support of keeping cash in our economy, and I very much support that, but I recognise opportunities that that gives for such fraudulent behaviour.

On the other side, there is the case of a paying parent who has been out of work for six months. The collect and pay arrangement has continued, and the father’s home is now under threat because the CMS has not recognised the loss of earnings. There is another case where the CMS is using gross earnings from before the pandemic, not recognising the substantial loss of earnings that that parent has endured in recent years. It is not able to use up-to-date HMRC data.

I reference those as examples of the frustrations that constituents have, while also acknowledging the very good work that the CMS is doing. We do not get reports of good work from Government agencies; we just report the bad ones. However, I am afraid that there are still too many of those.

I support the Bill and pay tribute to my hon. Friend the Member for Stroud, who has been a tremendous campaigner on the issue. It is a good Bill, and I am pleased to see that the Government—and, I am sure, the Opposition—supporting it. It is an important step to ensure that we can improve compliance. I also thank the DWP for its support for this important Bill and for enabling the CMS to do its work better. I hope that we will see the same from HMRC in due course.

[Dr Luke Evans (Bosworth) (Con)]

Who would have thought when I went to conference four or five years ago and was joined by my hon. Friend the Member for Stroud (Siobhan Baillie), who is sat next to me, that we would both be here in the Chamber having this debate, almost three years to the day since our election? Actually, it was patently obvious at that point that she was going to become an MP, because she is diligent and driven. Her introducing the Bill is testament to that.

On reading my hon. Friend’s comments from her Westminster Hall debate last month, it was so sad to note that about 280,000 children see their parents separate. That is a hugely concerning statistic, and a figure that we need to closely reflect on, as my hon. Friend the Member for Devizes (Danny Kruger) pointed out. I am lucky and eternally grateful to have benefited from a being in a loving and stable family for nearly 40 years, but I appreciate that that experience is not universal.

We all have CMS cases in this House, and we have often seen the anguish and the upset that the process generates. More broadly, before I came to the House, I saw in hospitals and GP surgeries the anguish that a given mental or physical issue would bring. A medical professional’s starting point is: how can I make things better? While I often could not solve the problem, I could help inform and equip people and ensure that the process ran smoothly. This Bill gives people a real chance to try and make these things better.

I fully support this important legislation, because I believe that it sits well with the Government’s wider reforms to ensure that the work of the Child Maintenance Service is effective in preventing parents from evading their financial obligations to their children. While couples may fight and frustrate, we must keep in mind the best outcome for the children’s sake. When I was researching for the debate, I was surprised to see that more than 30 years have passed since the Thatcher’s Government critical “Children Come First” White Paper. Society has made changes since then, and methods to collect payments have certainly changed over those years. Much scrutiny and change has taken place, substantial amounts of water have passed under the bridge, and we have seen major systems redesigned.

I note the important work of the Labour and coalition Governments to encourage and support family- based arrangements, and the fact that that work, and wider policy, have progressed with, seemingly, some decent success. Changes to the Child Maintenance Service have built on earlier reforms to ensure a fairer assessment of parents’ earnings, helping to prevent them from evading their financial obligations. These powers make a real difference in compliance by closing loopholes and strengthening enforcement.

We must be thankful for this progress. We must never give up on the ideals, but we must balance them with the reality. According to a report from the National Audit Office published in March 2022, while the number of people making a family-based arrangement has increased as was intended, there has also been an increase in the number of people with no maintenance arrangement, as was pointed out by my hon. Friend the Member for Darlington (Peter Gibson). I sense that the CMS is facing a considerable workload. At the end of December 2021, it was managing more than 600,000 arrangements for 560,0900 paying parents, a 9% increase in the number of arrangements since the end of June 2021.

We must also consider those who fail to pay any amount of child support maintenance, especially when deductions from earnings are not possible. I think that enabling the DWP to make administrative liability orders is a step forward, and I also think it right that those who are subject to such orders are able to appeal. I believe I am correct in saying that they can appeal but cannot challenge the amount that has been decided by the CMS, and I think that is the right approach.

I hope the Bill is successful, and I also hope it can be seen in the wider context of the Government’s work to ensure that the child maintenance system has the legislation and the resources to enable it to manage modern Britain. No two cases in the UK are the same, and there are nuances that play out in all our constituency surgeries. We know that these have real, far-reaching consequences, but I sense that the Bill can be a key part of a wider commitment among my ministerial colleagues to ensure that, over time, everyone pays, everyone receives the right amount, and, most importantly, the child—

[Danny Kruger]

Will my hon. Friend give way?

[Dr Evans]

I will.

[Danny Kruger]

It is important for my hon. Friend to experience what it is like to be on the receiving end of an intervention.

My hon. Friend said earlier that many couples did not have an arrangement at all. What does he think we can do about not just the couples whose arrangements have broken down, but those who did not put one together in the first place?

[Dr Evans]

That is a very good question—and I am so grateful to my hon. Friend for his sword-like intervention, cutting me off with one word to go before the end of my speech!

It is important to engage with couples and ensure that they know where the resources are to enable them to have the necessary discussions, and I think that that is starting to happen as a result of signposting to, for instance, health visitors, GPs and schools, so that parents have an opportunity to speak to someone establish what their options are. Enabling them to have that dialogue is part of the work that the DWP and the Government as a whole should be doing. People need to understand fully what is available to them, and going through the court system may not be the right way for that to happen.

I am hugely grateful to my hon. Friend the Member for Stroud, and I welcome the Government’s support for the Bill. I hope that it makes much haste.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)]

It is an honour to speak in this debate, and I thank my hon. Friend the Member for Stroud (Siobhan Baillie) for introducing the Bill and raising this important issue. I am pleased to confirm that the Government intend to support the Bill.

I was going to start by providing a brief background on the purpose of the CMS, but many Members have done a brilliant job on that so I will instead turn to the context of the Bill, making a couple of points and answering some questions, of course. I also want to pay tribute to all the DWP teams that work tirelessly in this space delivering the CMS service so diligently. As a constituency MP and a friend to many single parents, I have seen cases where help from former partners is needed to support children; making sure positive arrangements are in place is crucial to youngsters in every constituency.

I must declare an interest as a single mum. I know personally how important it is for children to know, where possible, that they have the support of both parents, both financially and emotionally. I thank the Gingerbread charity for its advocacy work. I concur with many of the points made today. Our Minister in the other place, Baroness Stedman-Scott, who has day-to-day responsibility for the policy, is strident in her support for reducing parent conflict and making sure that children get the backing that they need and deserve from both parents. We are determined to ensure that the CMS process improves.

I thank all hon. Members who have contributed, including my hon. Friend the Member for Bosworth (Dr Evans), who raised the CMS process and the other private Member’s Bill, the Child Support Collection (Domestic Abuse) Bill, which will be in Committee very shortly. I am delighted to have his support. There were thoughtful contributions from my hon. Friends the Members for Newbury (Laura Farris), for Darlington (Peter Gibson) and for Bracknell (James Sunderland). My hon. Friend the Member for Devizes (Danny Kruger) rightly paid great tribute to MPs’ caseworkers, who deal with the challenges and manage both sides of this issue day in, day out. We are grateful to them. On the point made by my hon. Friend the Member for Broadland (Jerome Mayhew) about the delays in court and liability orders, it takes three to six months from the case being referred to court for a liability order to be granted. We expect that to reduce significantly.

On the wider point about the Child Support Collection (Domestic Abuse) Bill introduced by my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart), I am glad to endorse what many Members have said. The Bill will allow for cases to be moved from direct pay to the collect and pay service when one parent is a victim of domestic abuse. That is an important measure, and I am grateful to hear further support for it in the Chamber today. Its Committee stage is forthcoming.

On the point made by my hon. Friend the Member for Newbury about why compliance figures have been decreasing, the Child Maintenance Service has been experiencing falling compliance figures since March 2021 after a period of improving compliance. A key driver of falling compliance is the difficulty of deducting child maintenance from universal credit payments. Universal credit prioritises other third-party deductions ahead of child maintenance deductions. Let me reassure the House that work is ongoing with universal credit policy colleagues to identify how deductions for child maintenance can be rightly reprioritised, and to recognise that collect and pay deals often with the most difficult cases. Parents can co-operate and make their own arrangements—that is one scenario—but we are talking about the difficult scenarios.

I thank the hon. Member for Reading East (Matt Rodda) for raising concerns about backlogs. The CMS is committed to delivering service of the highest standards and has been recognised with customer service accreditation, an independent validation of achievement. It responds quickly to parents using the service. In the quarter ending June 2022, 84% of changes in circumstances had been actioned in 28 days. I say to parents that, as we heard from my hon. Friend the Member for Devizes, if something has changed, they should let the CMS know. Call handling has been improved, with calls directed to the most appropriate person.

I would like to pick up on what my hon. Friend said about why maintenance calculations changes are factored in. Parents are able to report changes of income at any time. I reiterate that to him and any of our caseworkers. Where that change is greater than 25% of the income we hold on our system, we will alter their liability. Parents can ask for a calculation decision by the CMS to be reviewed through the mandatory reconsideration process within 30 days. If they are still not satisfied, they can appeal to the tribunal service.

[Danny Kruger]

I very much appreciate that point and that is indeed the case. I just wonder why 25% is the cut-off. It is quite a large amount. If a change comes in just underneath that, why should not that be considered as well?

[Mims Davies]

I thank my hon. Friend for raising that. I do not personally know the answer, but I am happy to look at that point and write to him.

British Sign Language Bill

Danny Kruger Excerpts

Friday 28th January 2022 Commons Chamber

[Danny Kruger (Devizes) (Con)]

Debates in this place can often be fairly depressing or disappointing. On Wednesday, Mr Speaker had to reprimand the House about the bellowing that went on at Prime Minister’s questions. I have no idea how the BSL interpreter is supposed to cope with that. But sometimes it is very different, and on two other occasions this week I have had cause to think what an amazing privilege it is to listen to debates. They can be very different; we hear all sorts of things about each other. Who knew that the Chair of the Treasury Committee, my right hon. Friend the Member for Central Devon (Mel Stride), is a Blue Badge guide, or that my hon. Friend the Member for Heywood and Middleton (Chris Clarkson) speaks Farsi and Māori?

But debates can also be very serious and moving. I want to quickly mention yesterday’s debate on Holocaust Memorial Day, which I sat through. There were some incredibly powerful and very personal speeches. I was particularly struck by the hon. Member for Leeds North West (Alex Sobel) talking about his family and the effect of the holocaust there. So, sometimes we are human and we behave ourselves and speak very powerfully and well, and we have really seen that today. I pay tribute, as everybody has, to the hon. Member for West Lancashire (Rosie Cooper). She is a tribute to her parents, as everybody has said, and this Bill is a great tribute to her and her life’s work. I really congratulate her on it.

The line in the hon. Lady’s speech that struck me most powerfully was her point that we should never write people off. That is the essence of a just society—we do not write people off. It strikes me that the value of full participation is twofold. First, from the perspective of rights—particularly, in this case, those of deaf people—it is absolutely right that we make all efforts to ensure that deaf people can participate fully in all the activities of society, whether those are leisure activities, education, opportunities for work or healthcare; we heard a powerful point about the role of communication in access to healthcare and advice. The second value is the benefit to society. The hon. Lady told a powerful story about her father and his work as a plasterer, not a joiner, and the enormous benefit if we properly include all our citizens.

It has been fascinating to hear about BSL today, and to read about it. I did not know about how old it is—it has been developing for centuries—or the enormous range that the language has. Rather like English itself, it has huge flexibility and range. My hon. Friend the Member for Stourbridge (Suzanne Webb) just mentioned the beauty that the language has; we can all see that when we see people signing. I was not aware, either, that there are different accents in BSL. I wonder whether the hon. Member for West Lancashire would like to intervene and demonstrate Merseyside signing. I do not know whether Scouser signing is a thing, but I would be interested to see it. Failing that, I know that the Minister has learned BSL herself, and I look forward to her wind-up in thick Norfolk BSL. I congratulate them both on the Bill.

[Rosie Cooper]

I think everybody would be so amazed by how many dialects there are and how a single word can be so different just across this small country. As I grew up, I learned sign language as my first language. In my dad’s later years, every time I said something, he would go, [In British Sign Language: “Stop. It has all changed. Now it is this.”] I get to this old age, and I know that even I am not expert at it yet.

--- Later in debate ---

[Danny Kruger]

I think the hon. Lady lost her accent when she came to London. I offer sincere congratulations to her and the Minister. I am delighted to support the Bill.

Oral Answers to Questions

Danny Kruger Excerpts

Monday 30th November 2020 Commons Chamber

[Mims Davies]

All our new work coaches receive six weeks’ up-front training. That includes a week’s induction, followed by an initial 25 days’ intensive training, 20 days’ facilitated learning and five days’ consolidation. Their ongoing learning continues with access to action learning sets, bite-sized products and a learning hub to help build their confidence and skills as they continue to grow in their role. My hon. Friend will be pleased to know that a second round of recruitment will kick off in his region in the run-up to Christmas, looking for almost 200 more work coaches.

[Danny Kruger (Devizes) (Con)]

What steps her Department is taking to incentivise employers to hire young people.

[The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)]

The new enhanced DWP youth offer commenced in September. That is in addition to kickstart. We are increasing the support offered via a 13-week youth employment programme to help young people gain the skills and experience that employers are looking for. We are also working with our network of external partners to deliver 100 new youth hubs, co-located and co-delivered locally, alongside expanding the number of our youth employability work coaches.

[Danny Kruger]

I am encouraged to hear about the progress being made on the kickstart scheme. Does my hon. Friend agree that schemes that provide young people with not only a job placement and coaching but wider personal skills training and even opportunities for social action are more likely to be successful in equipping young people for their careers and incentivising employers to keep them on?

[Mims Davies]

I absolutely agree, and I thank my hon. Friend for his work and interest in supporting young people and focusing on their progression. I remind all Members that, outside the 25 hours that a kickstart work placement provides, jobseekers are encouraged by their work coaches to undertake other activities to help them progress towards long-term employment.

Coronavirus Outbreak: DWP Response

Danny Kruger Excerpts

Thursday 26th November 2020 Commons Chamber

[Danny Kruger (Devizes) (Con)]

I pay tribute to the right hon. Member for East Ham (Stephen Timms) for securing this debate. There has been so much criticism of the Government in this place this year, much of it very unfair and political, and much of it fair and necessary in holding the Government to account for things that are going wrong. What we do not hear often from the Opposition, however, is recognition of what has gone right, which is why I note the generous spirit in which the right hon. Gentleman spoke about universal credit, acknowledging it as a “national asset”. That is good description of what has been achieved.

I honour Ministers at the DWP for the tremendous success story of 2020. There have been 3.2 million new UC claimants, a near doubling of the total case load, as I understand it, and yet despite all the protests about UC in recent years, I do not think that there been a squeak of protest in this place about the process of onboarding those claims. In my constituency, we have had nearly 3,000 new UC claims and, having just checked, I have had eight items of casework on UC this year, which represents a fairly small proportion of my total case load. I honour what has been done, and give my thanks to Jobcentre Plus staff and all the staff at the DWP. There are many heroes working behind the scenes in our country this year, and Jobcentre Plus staff are leaders among them.

I also wish to pay tribute to the coalition Government and principally my right hon. Friend the Member for Chingford and Woodford Green (Sir Iain Duncan Smith) for his role in designing and implementing UC. I can only imagine what would have been the case had we stuck with the old system and the myriad benefits, mostly with paper-based administration; it would have been a complete disaster. But we had a digital system, so when millions of people suddenly needed unemployment benefits, the computer said yes.

On that topic, the right hon. Member for East Ham raises the suggestion from his Select Committee in its report earlier this year that people should be able to go back to legacy benefits after being on universal credit. It is certainly true that, despite the significant increases in universal credit, some people appear to be worse off on it, but as we have seen, and as I have just described, UC is a far more agile system and the intention—I think of the whole House—is to replace legacy benefits. I agree with the Government’s position that it would not be right to let people go back. The right hon Gentleman mentions mis-selling: surely that is an exaggeration, but I do wonder whether more can be done to explain to people what joining UC means and to make sure that they are able to check properly whether it is the right move for them.

I also congratulate the DWP and, more particularly, Citizens Advice on its scheme, Help to Claim, which the DWP funds. It is the beginning of the far more substantial system that my right hon. Friend the Member for Chingford and Woodford Green always intended to accompany universal credit. The Government are recruiting 13,500 new work coaches to work in jobcentres, which is tremendous, but people need more than coaches—they need training, professional support and peer support. They might have issues with addiction or debt, or family problems. We need to create the systems that support job coaches and support individual jobseekers, so I urge the Minister to consider what more can be done to deepen Help to Claim beyond the initial period of joining UC to create a system that works with businesses and charities. The gateway system for kickstart potentially offers a model for that.

The right hon. Gentleman mentioned the future jobs fund. We want to do better than that, because it had quite a high drop-out rate. The opportunity for the kickstart scheme is to sustain those young people in employment, but in order to do that, we need to ensure that they have the right support around them, not simply the job placement itself.

My final point is more strategic and about the principles of welfare. I hope that I will not be thought abstract or even flippant when I make this point. I call in my defence Professor Simon Szreter of Cambridge University, who has made the same point. He said that we need to go back to the principles of the Elizabethan poor law. I am not talking about Victorian poor law—the Dickensian horrors of the workhouse and so on—but the original poor law of 1601. It was the first comprehensive system of social security in this country and, as Professor Szreter explains, it had two elements. First, it was local, it was funded from local taxation and it was paid out to people flexibly according to their needs. Secondly, it encouraged altruism and social responsibility by the wealthy through incentives to create almshouses, colleges and churches.

I do not propose going back to those days, but those are the principles that we need—a more local and more flexible approach and one in which the wealthy, by which I mean businesses in today’s age, play a central role in supporting local communities and helping people into employment. The right hon. Gentleman mentioned the need for a more dependable social security system, and I entirely agree. I support everything the Government are doing to help people facing unemployment, and I hope for more substantial reform in due course.

The Future of Work

Danny Kruger Excerpts

Thursday 19th November 2020 Westminster Hall

[Danny Kruger (Devizes) (Con)]

It is a pleasure to serve under your chairmanship, Ms McDonagh. I congratulate the hon. Member for East Renfrewshire (Kirsten Oswald) on securing the debate. I recognise that there could be no more important subject to discuss in this place. I am pleased that we are able to have this discussion. I will range more widely than our immediate situation, but I will end with a word on where we are and what Government might do.

I will start with a quick scan of what has happened since the last recession. We may be entering a different recession that is happening because demand is being choked off in the economy. The 2008 recession was caused because credit was suddenly cut off and that recession ended quite quickly because the Government and the Bank of England pumped credit into economy. That kept the banks afloat, and through them businesses were able to borrow and stagger on.

The crucial issue is that the great bulk of the money that entered the economy after 2008 fed not into people’s incomes, but into their assets, or the assets of those people who had them. We had 10 years of growth until this year, which is a modern record, but we also had the lowest wage growth for 200 years. Median incomes before covid were still lower than in 2008.

We have had a jobs miracle over the last decade, but these were not jobs as we used to think of them. Two thirds were precarious. I do not mean to criticise the Governments since 2008 that took these steps because things would have been far worse if those steps had not been taken, but we need a different way out of this recession, if we can find one. Most of all, we need to build a better economy that is fit for the times.

The future of work is in large part a debate about automation. I recognise the truth of the claim, that in past times technology has not destroyed jobs but created them, but I do not think that is going to happen this time around to any significant degree. For a start, the new industries that tech is creating are not labour intensive. Some 50 years ago the world’s most valuable company, the telecom firm AT&T, employed 750,000 people. Today’s telecom giant, Google, which is worth about the same as AT&T in today’s money, employs only 55,000 people—less than a tenth of AT&T’s workforce.

Crucially, previous tech revolutions replaced manual labour, which allowed human beings to build new cognitive innovations that created jobs. This time we are seeing cognitive tasks taken over by the machines, not just with clerical work but with projects from design to law and others.

There is a dystopian future, which the hon. Member for East Renfrewshire helped to paint. In that future, inequalities of wealth will get greater. People with assets will get richer and those with the right skills will get more successful. Those without those skills and assets will fight over the low-paid jobs that remain. As Daniel Susskind has shown in his book, “A World Without Work,” many people will find themselves locked out of those jobs by their skills, their attitude or their location.

As the hon. Lady said, this year has accelerated trends that were already under way. The principal victims economically of lockdown have been those in the insecure jobs that have boomed in recent years.

[Grahame Morris (Easington) (Lab)]

The hon. Gentleman is making some important points, but would he accept that there is no inevitability about this, and there is a role for Government? Yes, we need to identify potential growth areas that offer high-skill and high-wage jobs, but we should not simply abdicate from those areas where traditionally we have had a lead, for example in highly-skilled engineering at Rolls-Royce in Derby, and allow those jobs to be offshored, so we lose that potential forever more.

[Danny Kruger]

I agree that there is an important role for Government, both in cushioning the effects of change and in helping to nudge change in the direction where it will be the most beneficial for us all. We cannot stand in the way of what technology is doing to the world of work, but we can definitely make it a more comfortable experience for our people. I agree with that. I shall come to what the Government might do in a moment.

Although there has been an acceleration of many of the dangerous and destructive trends of recent years through the lockdown, we have also had a glimpse of a different future. I was going to say that the danger is having millions of people in forced unemployment, with all the harm that entails. The hon. Member for East Renfrewshire raised the prospect of universal basic income, but I do not believe that we as a species are ready for permanent idleness.

[Kirsten Oswald]

I gently point out that universal basic income is not in any way, shape or form about enforced idleness. I encourage the hon. Gentleman to look around the subject and see what potential there is for better work, and more equal and fair work, under a universal basic income system.

[Danny Kruger]

It may be that we are quibbling over terms, and I recognise and accept that there is a role for Government in subsidising some wages. My concern is that there is danger in the idea that it is possible for Government to provide all the income for all the people, so that they do not have to work—which is, of course, the end result of the proposal for universal basic income.

[Grahame Morris]

No, it is not.

[Danny Kruger]

I think it is dangerous to suggest that it is possible for Government to subsidise all the incomes of all the people. We are fundamentally producers, not consumers. I also think that UBI would lead to inflation, as the income that was passed to people would simply lead into higher costs, so we would need a better management than that.

I have spoken of a dystopian future, but there is also a positive vision. The lockdown has given us a glimpse of that different future for some people. In the future more people will work from home. Fewer people will work at all, in the common sense of the word, for a remote boss in a big corporation or organisation. More of our time will be spent with our families and helping our neighbours, and new resources of care and creativity will be summoned from each of us. The Government might directly subsidise some incomes, but in the future that we want that will not be money for nothing; it will be linked to productive, pro-social creative activity. Of course, that is what we saw for some people during the lockdown. We need it for everyone.

As the hon. Member for East Renfrewshire said, there is a benign scenario in which automation frees up human beings to serve each other, while the machines serve the machine. Let the robots manage the logistics, and we can do what human beings are uniquely capable of, because if there is really nothing in the ordinary way of human work that machines could not do, what is the point of humans? What shall we do in the future? Happily, the answer is obvious. Humans should do what humans are good at—namely the activities of care and creativity.

We are good at looking after each other. Everyone knows from their own lives the foundational need for and value of human help when we are weak, at the start and end of life and at moments of illness or trauma in between. That giving of care might possibly be physically possible for some automation of the near future, but it is unthinkable that we would ever want our children to be nursed by a machine, or a robot to hold our hand as we die. In the new age that we are entering, care will be demanded more than ever, because our societies are ageing. McKinsey reports that by 2030 there will be at least 300 million more people aged 65 and over than there are now. Globally, the number of jobs related to healthcare and social care could grow by 50 million by 2030.

Automation is helping that trend. The duties of hospitality, in retail, cafés, shops, banks and hotels—those are the jobs that human beings are good at. We notice that automation is helping that. Richard Sargeant has written that after the introduction of ATMs—cash machines—the number of bank tellers in the economy rose, because ATMs made the banks more efficient and allowed the tellers, the human staff, to focus on the more complex human role of customer support. If we are good at care, hospitality and customer service, we are also good at creativity. I am talking about art and design, digital innovation, horticulture, philosophy, place making, sport, entertainment and education. We have to use the emergence from the shadow of covid to build back better. That means consciously orienting our economy and our education and skills systems towards those functions of care and creativity. That will require and help to create, as we saw in the lockdown, a more local, family-friendly and environmentally responsible society.

Let me finish on where we are now and the immediate priorities. We recently had a great bust-up in the House on the issue of children in families on low incomes and how they are to be fed in the holidays. We finally reached the right place on that, but I do not deny the role that pressure from Parliament and the media played in getting us there. We got the right result, which is a system whereby alongside more cash for families, which will be delivered in a targeted way through councils, we are enabling more support to be provided through communities. That is the model that we need overall. Yes, people need more cash, and we should consider whether the universal credit uplift should be continued or more flexibly targeted. However, more than money, what we all need is people around us, and that is why I am so passionate about civil society and its role. On welfare, yes to generous universal credit, but I want to put in a word for universal support. The original corollary in the design of universal credit was civil society organisations getting alongside people who were unemployed to support them and their families.

Kickstart is a tremendous programme that the Government have introduced to help young people get into employment at this time. Already 20,000 new placements have been created and 300,000 are due over the coming year. What it enables is more than just a job, which might only be temporary anyway. Crucially, it provides the real social support that young people need to develop the skills, care and creativity that they and the economy need. I urge employers—not just small ones, but large ones as well—to make use of the gateway arrangement, which helps employers to recruit and train young people and to develop the skills that will make them prosper. The future jobs fund, which was a similar programme introduced in 2008, had quite a high drop-out rate, and we need to prevent that.

The activity holiday programme, universal support to help people with employment and beyond, and the gateway system for the kickstart programme are a vision for a better future, so I will end on that point.

Oral Answers to Questions

Danny Kruger Excerpts

Monday 11th May 2020 Commons Chamber

[Will Quince]

I think I did, Mr Speaker. I gently point out to the hon. Gentleman that jobcentres are working with local partners to signpost claimants to the support available in their local area. The Trussell Trust and the Independent Food Aid Network are putting in place appropriate solutions where food banks are in operation. I stress that local councils in England will be able to use funding from the new £500 million local hardship fund to provide further discretion to support vulnerable people.

[Danny Kruger (Devizes) (Con)]

What steps her Department is taking to help ensure that people with multiple and complex needs can access universal credit.

[The Parliamentary Under-Secretary of State for Work and Pensions (Will Quince) [V]]

Dedicated DWP staff continue to be available in jobcentres throughout the country. For claimants with the most complex needs, if we are unable to help by phone or online, face-to-face support is still available. In addition to that, the Help to Claim service is undertaken on our behalf by Citizens Advice and Citizens Advice Scotland.

[Danny Kruger [V]]

I thank the Minister for that answer and congratulate him, the Department and the original designers of universal credit on their success in registering so many new claimants. As he knows, the original idea was for a universal support system, alongside UC, to help people with multiple and complex needs. Will the Minister consider reviving that idea to help the most vulnerable people and make the UC system work better?

[Will Quince]

I thank my hon. Friend for his question. I know that he shares my passion for supporting the most vulnerable and disadvantaged in our society, who often have complex needs, which is exactly why we introduced Help to Claim to support people who need support to access the welfare system. It has been a huge success over the past year, helping more than 250,000 people. I am pleased to say that we have commissioned the service for a second year.