Oral Answers to Questions

David Rutley Excerpts

Monday 8th December 2014 Commons Chamber

[Mr Duncan Smith]

The reality is different from what the hon. Gentleman describes. The personal circumstances of individuals may be appalling and that needs to be dealt with, but people on zero-hours contracts represent 2% of the work force. We are moving to get rid of the one excess that makes them a problem, which is when people are blocked from taking any other work. That will not be allowed, but it was allowed under his party’s Government. The last point I would make about zero-hours contracts is that nearly 70% of those who have them prefer them, because they give them flexibility. That comes from independent polling. Zero-hours contracts were never attacked by his party’s Government and I do not think that it is his party’s policy to get rid of them. We think that they add something to the economy.

[David Rutley (Macclesfield) (Con)]

7. What steps his Department is taking to help unemployed people find work and start their own business.

[The Minister for Employment (Esther McVey)]

The new enterprise allowance scheme offers mentoring support to help people on benefits develop a business plan and a weekly allowance that is payable over six months. That successful scheme has already supported 50,000 new start-up businesses.

[David Rutley]

Given the progress that is being made with the new enterprise allowance, what steps are being proposed to extend its benefits so that more people can establish more businesses?

[Esther McVey]

My hon. Friend is correct that we need to extend the scheme, and we will do so. People can be referred to places through to March 2016. Not only are we extending the time limit for people to apply; we are extending eligibility to the partners of people who are on jobseeker’s allowance or employment and support allowance, and to those on income support. It is a successful scheme. We want to keep it that way and to expand it as much as we can.