Food Banks

Esther McVey Excerpts

Wednesday 18th December 2013 Commons Chamber

[The Minister of State, Department for Work and Pensions (Esther McVey)]

I welcome this debate to answer honestly the points made in the motion and to clarify all this, but to be honest, a far more realistic debate would have been brought by Government Members and the people of the United Kingdom on how Labour derailed the UK, destroyed its finances and made it such a vulnerable place.

[Several hon. Members]

rose—

[Esther McVey]

I will continue a little, because the truth must be heard.

While Labour was in office, it gradually wore away the financial strength of this country, eroding its savings and savings culture, and then it crashed the economy. Gas bills doubled, council tax doubled and fuel duty went up 12 times. The only things that grew under Labour were debt and overspending. It left the UK with—[Interruption.]

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. This is not a football match. Do not shout at the Minister. She will give way when she is ready.

[Esther McVey]

It is only fair that I set the scene before taking interventions.

Labour left the UK with the highest structural deficit of any major advanced country. It wiped £112 billion off the economy, leaving a debt of about £3,000 to every household. Personal debt reached a staggering £1.5 trillion. That whirl of living beyond our means—that increase in prices, debt and unaffordability—had to come to a stop. It came to a stop suddenly and, sadly, we are all paying the price. The Government are paying the price, charities are paying the price, businesses are paying the price and individuals are paying the price as we try to balance not only our household budgets, but the budget of the country. [Interruption.]

[Madam Deputy Speaker]

Order. There is no point in having a debate if nobody listens to the person who is speaking. Be quiet.

[Esther McVey]

As I have said, I will take interventions when I have set out what has happened.

Let us be honest. The Trussell Trust saw what was happening in 2000. It looked at the evolving problem that was caused by personal debt, overspending and people living beyond their means. It set up the first food bank in that year and the food bank network in 2004. The number of food banks had grown tenfold by 2010. Most startlingly, when those food banks started, Labour did not want to know why. When they grew tenfold, Labour did not want to know why.

When the Labour councillor who had set up the Trussell Trust came for support and said, “Allow me to signpost food banks in Jobcentre Plus”, Labour said no. Labour wanted it to be its little secret because, beneath the veneer of what seemed like a sound economy, it was crumbling. It knew what was going to happen. Sadly and shamefully, there has been no investigation by the Opposition. They do not want to know what went on. It took my hon. Friend the Member for Harlow (Robert Halfon) speaking to the Secretary of State for Work and Pensions to get the food banks signposted.

[Several hon. Members]

rose—

[Esther McVey]

Now that I have set the scene, I give way to the hon. Member for Newcastle upon Tyne North (Catherine McKinnell).

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

My constituency office took a phone call from an ex-serviceman yesterday who is now thankfully in receipt of a war pension, disability living allowance and employment and support allowance. However, while he was waiting for four weeks for Atos to deal with his appeal, he had to use a food bank. Does the Minister agree that that is an absolute disgrace?

[Esther McVey]

We have hardship payments and support payments. We have put in a new element of reconsideration to make the process quicker. The speed of the transaction for getting benefits has increased by six percentage points.

Let us not get away from how this started under Labour. What each and every one of us does is important. I have heard nothing from Opposition Members about the news that, because of our welfare-to-work programme, 30 million people are in jobs today. We know that under Labour, the number of households with nobody working doubled—[Interruption.]

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. There are too many people standing up. The Minister is not taking interventions at this point. Allow her to make her speech.

[Esther McVey]

In Labour’s last term in office, the claimant count went up by 82%.

[Andrew Selous]

I am grateful to the Minister for giving way. Does she remember that the Trussell Trust thanked this Government for allowing jobcentres to refer people to food banks? That was a compassionate thing to do and the Labour party refused to do it.

[Esther McVey]

My hon. Friend makes a very good point, and I will also give way to my hon. Friend the Member for Harlow who negotiated that arrangement.

[Robert Halfon]

I am hugely grateful to my hon. Friend for giving way and to the Secretary of State for changing that disgraceful ruling by the previous Government. Will the Minister praise Harlow food bank, which was set up in 2009 after the years of plenty? Does she agree it is sad that food banks are being turned into a party-political football by Opposition Members who are trying to destroy the excellent work they do?

--- Later in debate ---

[Esther McVey]

I do indeed. If one thing came out of the disastrous years that made our country more vulnerable because of the disastrous finances of the Labour Government it was the fact that not only are this Government doing more to get people into work—I will say it again, although I heard no positive sounds from the Labour Benches before: there are 30 million people in work—and that businesses have helped to support people and have taken them on, but that the community has come together to support one another. That must be a positive move. [Hon. Members: “ Give way!”] No, I will make a little more progress.

Let us go back to the report that Labour obviously did not want, so as to keep it as its little secret. Labour Members did not want to look into why the Trussell Trust was set up and has grown exponentially, but we did. We looked into the matter, and it is right that we give an accurate report. It was the Labour party that brought us the dodgy dossier and never wanted verification of the facts—why let the facts get in the way of a tale of fiction? It is only correct that we get our facts right and deliver this report at the right time, as we are doing. As we have said, it is positive; people are reaching out to support others in church groups, community groups, local supermarkets and other groups. That is a fact—[Interruption.]

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. We cannot hear the Minister.

[Esther McVey]

In the UK, it is right to say that more people are visiting food banks, as we would expect. [Hon. Members: “ Give way!”] No. Times are tough and we all have to pay back the £1.5 trillion of personal debt, which spiralled under Labour. We are all trying to live within our means, change the gear, and ensure we are paying back all the debt that we saw under Labour.

It is important to look at what is happening around the world. The UK has a population of 63 million and 60,000 people are visiting food banks according to the Trussell Trust. In Germany, however, with a population of 82 million, there are 1.5 million users of food banks. Canada has population of 35 million, and there are 830,000 monthly users of the Trussell Trust. [Interruption.] We must put everything in context and look at what happened, whether that is the overspending and not being able to balance the books from 2002, or the financial crash of 2007. [Interruption.] We must look at how much we have done to balance and rebalance the economy, and get it on a stable footing.

[Madam Deputy Speaker]

Order. [Interruption.] Order. The House should pause for a moment, calm down and listen to the Minister. Everyone will have a turn to make their point in due course. [Interruption.] Order. I call the Minister.

[Esther McVey]

It is startling that the shadow Minister took only three interventions. We all listened then, so it would be appropriate to listen to the facts now. That is where we go wrong. We do not listen to what is going on.

The coalition Government were brought in to solve the mess that Labour got us in. Nothing more clearly shows what we have done to support people than what we have done on jobs. The best way to help people to get out of poverty is to get people into work. Children are three times more likely to be in poverty if they are in a workless household. Labour is the party that gave us workless households.

I will say this again because the Opposition still have not acknowledged it. Thirty million people are in jobs today. That means that a further 1.25 million people are in jobs since the general election. The Opposition told us—[Interruption.]

[Madam Deputy Speaker]

Order. If hon. Members do not keep quiet and listen to the Minister, she will have to repeat her speech over and over again—[Interruption.] Order. If the House keeps interrupting me, I will call order again and again, and very few hon. Members will have the chance to make the speeches they have prepared. Let us have silence. I call the Minister.

[Esther McVey]

We have 1.25 million more people in jobs than we had at the election. We know that the best way out of poverty is to be in a job. The Opposition said that 1 million more people would be out of work. They were wrong. They said there would be a double-dip and treble-dip recession. They were wrong. They are also wrong on food banks.

That is why we must compare Labour’s legacy of a debt-fuelled boom with what this Government have done. What are this Government doing and how have we supported people? Under Labour, 5 million were on out-of-work benefits, the number of households where nobody worked doubled, and 2 million children lived in workless households. That is what we do not want—[Interruption]—but it is Opposition Members who say, “Shame.”

How are the Government helping families? We want to ensure that work always pays. That is why we have brought in universal credit—to ensure that 3 million people are better off. That is what the Government are doing.

Let us be honest. One thing the Opposition do not understand is that disposable income is different from income. What have we done to support people with disposable income?

[Several hon. Members]

rose—

[Esther McVey]

The Opposition spokeswoman gave way three times. We will finish what we are saying. I appreciate that Back Benchers will have only four minutes, but, should there be time, I will give way.

What have the Government done? We have taken 2.7 million people out of tax. We have cut tax for 25 million people, giving them, on average, £700 extra a year. We have stopped Labour’s fuel and petrol price increases, saving families £300 and someone in a business with a van £1,000. All of that is key. The winter fuel allowance and cold weather payments have stayed, and we have given tax breaks to young people who are going to be in a job. That is what we have done to support people. When we talk about what happened under what Government, what happened when and how the Trussell Trust started, and when we talk about the removal of the spare room subsidy—[Interruption.]

[Madam Deputy Speaker]

Order. Members must not shout at the Minister. It is clear that she does not intend to give way, and she is not going to give way if you shout at her. Please be quiet, allow the Minister to finish her speech and then everyone will have a chance to make their contribution.

[Esther McVey]

The Trussell Trust started under Labour—it hid that away—and the removal of the spare room subsidy in the private sector started under the Labour Government in 2008. Rewriting history does not work. The British public want to know the truth: those on the Labour Benches ruined the economy and we are getting it back on track.

[Sheila Gilmore (Edinburgh East) (Lab)]

I am very grateful to the Minister. On the one hand, she has spent a long time telling us that there are now many more people in work, although the rate of employment has still not returned to pre-recession levels. But if —[Interruption.]

[Sheila Gilmore]

If everything is going so well, why since 2010 has there been such a substantial increase in the number of people using food banks? The only explanation can be the Government’s changes to welfare policy.

[Esther McVey]

Tomorrow, when Hansard comes out, we can read the full explanation, because hon. Members probably do not want me to go through it again. Actually, it was because of the crash, the overspend, the personal debt and the public debt left to us by those on the Opposition Benches.

Another issue that has been raised is zero-hours contracts. They happened under Labour: the numbers in 2013 are the same as the numbers in 2000. In fact, the number of zero-hours contracts went up by 75% from 2005 to 2009, something that those on the Opposition Benches did absolutely zero about. It is the Leader of the Opposition’s Doncaster council that presides over the biggest number, within his council. Again, there is a lot of fluster and a lot of bluster. The Opposition did nothing in government and they are doing nothing to control their Labour councils, yet we are now picking up the pieces.

[Christopher Pincher (Tamworth) (Con)]

I am grateful to my hon. Friend, who has spoken eloquently about the price of Labour. Is she aware that in 2009 one could walk down Glascote road, where my food bank is situated, and see repossession notices in window after window as house after house was taken away by banks that foreclosed on them? The grisly legacy of that lot was not just a loss of jobs but the loss of homes too.

[Esther McVey]

The Opposition like to forget all about that. The industry I know most about is probably the construction industry, which was brought to its knees in 2007 under the guidance of those on the Opposition Benches. Many industries had a tough time pre-2010. That is when it all happened. Equally, the Opposition are so bad with numbers they do not understand that there needs to be a change of gear to rebalance an economy and change things to get back on track. It does not happen overnight; it happens over a long period of time. Something to ponder on for a second is that it was the shadow Secretary of State, the hon. Member for Leeds West (Rachel Reeves), who said that the Opposition want to be tougher on benefits and do more than we are doing. I wonder how Opposition Members feel about that and whether they believe that use of the Trussell Trust would be higher or lower were that to happen.

I will come to a close now. [Interruption.] Sadly, there is chanting from the Opposition. I find how the Opposition left this country—in a vulnerable position—a really sad moment. [Interruption.]

[Madam Deputy Speaker]

Order. Hon. Members will allow the Minister to conclude her speech.

[Esther McVey]

For the people of the UK, I find that deeply saddening. For me, it is not something to be chanting and cheering about. The Opposition need to reflect—for about the next 20 years—on what they did to UK plc, while we get it right. For those reasons, and many, many more—mainly its inaccuracy—I reject the Opposition day motion. Instead, I welcome the promising signs that we are delivering for jobs and growth: the fastest growth in the G7 this quarter, more people in work, more businesses going, more exports, more work for everybody. That is why we object to the motion and welcome what we are doing on this side of the House.

[Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)]

On a point of order, Madam Deputy Speaker. Given the huge interest in this debate, not least among our constituents, is it within your power to extend the time for the debate?

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[Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)]

There is no desire among the Opposition to make political capital out of those who have set up food banks or use them; we are representing our constituents. In my constituency, there has been an exponential growth in the use of food banks since 2010, and I and other Opposition Members are giving voice to those constituents. It is disgraceful for the hon. Member for Halesowen and Rowley Regis (James Morris) to suggest that we are trying to make political capital out of this.

I listened carefully to the Minister earlier, but what we heard from her was a striking combination of denial and complacency. Both the tone and the substance of what she said today failed to meet the scale of the challenge that communities up and down the country face.

[Esther McVey]

indicated dissent.

[Stephen Twigg]

It is simply not acceptable for the hon. Lady to sit in her place, shaking her head, when she knows the damage that this is causing to communities up and down this country.

Disability and Health Employment Strategy

Esther McVey Excerpts

Tuesday 17th December 2013 Written Statements

[The Minister of State, Department for Work and Pensions (Esther McVey)]

Later today we will publish the Command Paper Cm 8763 “The disability and health employment strategy: the discussion so far”.

There are 11.5 million working-age people in Great Britain with a long-term health condition. More than half—6.5 million—are classified as disabled under the Equality Act 2010, because they have a physical or mental impairment that has a substantial and long-term adverse effect on their ability to carry out normal day-to-day activities.

At any one time, some of these people will be unable to work, and we will continue to provide them with financial support. However, many disabled people and people with health conditions can and do work, and the employment aspirations of too many people remain unfulfilled. A number of factors contribute to this loss of potential, for example: entrenched beliefs about what individuals are capable of; an employment support that does not always meet people’s individual needs; and an inflexible benefits system.

This Government are already doing much to tackle these issues, including:

the implementation of many of the recommendations in “Getting In, Staying In, Getting On” has focused resources on tailored, personalised support for individuals, rather than on “one-size-fits-all” institutions and programmes;

our work to enable disabled people to fulfil their potential and have opportunities to play a full role in society through the fulfilling potential strategy series;

the introduction of universal credit, which aims to ensure work always pays;

the introduction of personal independence payment, a new disability benefit designed to better reflect today’s understanding of disability and deliver a benefit that is fairer, more transparent and sustainable;

the first national disability employment conference in July 2013, at which the Prime Minister launched our two-year disability confident campaign, working with employers to increase the employment of disabled people, and now including a series of regional events;

the development of a new mental health and employment resource pack to improve the employment support that Jobcentre Plus provides for individuals with mental health issues; and

the development of the Health and Work Service, as recommended by the sickness absence review. The service is due to start in 2014 and will support individuals with health conditions or impairments to stay in work.

However, we are determined to do more to enable disabled people and people with health conditions to get into, stay in and progress in work. This paper is the next important step in developing our approach and widening our focus. To do this, we need to concentrate on the skills, capabilities and aspirations of all individuals, offering the right support, early on, to those who need it. We need to focus on employers, so they are confident and able to employ and retain disabled people and people with health conditions. We need to ensure that all disabled people and people with health conditions can make a smooth transition from education to work.

In this paper, we set out a range of proposals to further improve our employment support, both for disabled people and for people with health conditions who do not consider themselves to be disabled. This will be followed next year by a further paper setting out our delivery plan.

EPSCO Council—Brussels, December 2013

Esther McVey Excerpts

Wednesday 4th December 2013 Written Statements

[The Minister of State, Department for Work and Pensions (Esther McVey)]

The Employment, Social Policy, Health and Consumer Affairs Council will be held on 9 December 2013 in Brussels.

The council will seek general approach on the posting of workers and on the enhanced co-operation between public employment services (PES).

There will be exchange of views on the annual growth survey 2014 (AGS), draft joint employment report (JER) and alert mechanism report (AMR). Ministers will be asked to approve the scoreboard of employment and social indicators under the JER and endorse the updated Employment Committee (EMCO) report on employment performance monitor and benchmarking. The chair of the Social Protection Committee (SPC) will report on ex-ante co-ordination of major reforms.

The Commission will present its communication on the “quality framework for traineeships” and report on the state of play with the implementation of the Youth Guarantee/Youth Employment Initiative.

The council will adopt a recommendation on effective Roma integration measures in the member states and council conclusions on the “effectiveness of institutional mechanisms for the advancement of women and gender equality”.

The council will note progress reports on improving the gender balance among non-executive directors of companies listed on stock exchanges and on implementing the principle of equal treatment between persons irrespective of religion or belief, disability, age or sexual orientation.

Under any other business the Commission will present its communication on free movement and a proposal for a directive on seafaring workers. The presidency will report on ongoing issues and there will be a presentation from the incoming Greek presidency on its work programme.

Oral Answers to Questions

Esther McVey Excerpts

Monday 18th November 2013 Commons Chamber

[Simon Hughes (Bermondsey and Old Southwark) (LD)]

3. What comparative assessment he has made of the number of people in full-time and part-time employment.

[The Minister of State, Department for Work and Pensions (Esther McVey)]

Three in every four people work full-time, and full-time work accounts for all of the significant rise in employment over the last year.

[Simon Hughes]

The Minister has done exactly what I hoped she would do, which is to deal with the fact that whereas the Leader of the Opposition in 2010 said that the Government’s policy would lose a million jobs, my understanding is that since the election there have been more than a million new jobs, and this year more than a quarter of a million new jobs. Will the Minister put it clearly on the record that these new jobs are not all part-time jobs, that there has been a significant growth in full-time employment and that that is predicted to continue?

[Esther McVey]

My right hon. Friend is correct. It is good news that UK business is creating so many new jobs. Since the 2010 election we have seen a rise of nearly 800,000 in the number of full-time jobs and of more than 300,000 in the number of part-time jobs.

[Julie Elliott (Sunderland Central) (Lab)]

With many people in my constituency, particularly women, doing a number of part-time jobs to make up an income, the knock-on consequence is that many of them do not pay national insurance and are therefore not building contributions to their pension. What is the Minister doing about this long-term consequence of too much part-time employment?

[Esther McVey]

The family will accrue credit if they have family responsibilities. That is a very positive step that the Minister of State, Department for Work and Pensions, my hon. Friend the Member for Thornbury and Yate (Steve Webb), has taken. We can all welcome the fact that more than a million people are now in work, and more than 210,000 more women are in work this year alone.

[Mark Pritchard (The Wrekin) (Con)]

Will the Minister join me in congratulating New College Telford, Telford college of arts and technology and Harper Adams university on providing the skills and training throughout Shropshire to ensure that unemployment continues to fall as it has done month on month for the last seven months?

[Esther McVey]

I will indeed join my hon. Friend in celebrating this positive news. What is happening in his constituency is also happening in every constituency throughout the country. This is positive news that we can all celebrate.

[Mr Frank Roy (Motherwell and Wishaw) (Lab)]

Has a comparative assessment been made of former Remploy employees who find themselves in part-time or full-time work, and if so, will the Minister publish those findings?

[Esther McVey]

I and the Minister of State, Department for Work and Pensions, my hon. Friend the Member for Hemel Hempstead (Mike Penning), will be publishing those findings. We have had significant success with Remploy employees. They have gained jobs at a faster rate than others who have been made redundant, and the work of the local Jobcentre Plus has been exceptional.

[Mr Robert Syms (Poole) (Con)]

4. What assessment he has made of the effect of the benefit cap on employment outcomes

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[Barbara Keeley (Worsley and Eccles South) (Lab)]

13. What progress he has made on delivering his target of 160,000 Youth Contract wage incentives by April 2015; and if he will make a statement.

[The Minister of State, Department for Work and Pensions (Esther McVey)]

There were more than 21,000 wage incentive job starts up to May 2013. The next wage incentive statistics are due to be released early in the new year.

[Mr Reed]

As the Secretary of State is well aware, in the first 14 months of this programme his Department delivered less than 3% of what he promised. Together with the appalling underperformance of the Work programme, and with Ministers and civil servants at each other’s throats over the chaotic introduction of universal credit, is this not yet another example of how this Secretary of State promises much but delivers little?

[Esther McVey]

I am quite sure that what the hon. Gentleman was reading out was a piece of fiction and I would like to give him the correct figures. The Youth Contract is made up of many component parts. One is wage incentives, and there is a wage incentive for apprenticeships, and another is for work experience. Of the 113,000 people who went on work experience, 50% have a job, and 21,000 have wage incentives, and that figure is rising by 4,000 a month. Youth unemployment has fallen for 17 consecutive months. In the hon. Gentleman’s constituency, it has fallen 35% in the last year. Perhaps he wants to congratulate us on that.

[Barbara Keeley]

I do not congratulate the Government on the level of youth unemployment in my constituency; there are 900 unemployed young people in my constituency and almost 1 million nationally. The system of wage incentives is clearly not working, because the numbers are appallingly low for constituencies such as mine. Is not it time that Ministers stopped being in denial and started doing something radical to help young people back to work?

[Esther McVey]

I would just like to mention Labour’s record: a 40% increase in youth unemployment. What we have done, as I have said, has seen youth unemployment fall for 17 consecutive months. It is now lower than it was at the general election.

[Andrew Bridgen (North West Leicestershire) (Con)]

Will my hon. Friend confirm that since the Youth Contract was launched in April 2012 youth unemployment has fallen by more than 59,000 and that the number of people claiming jobseeker’s allowance has been dropping for 17 consecutive months?

[Esther McVey]

I totally agree with my hon. Friend. Just so that we can hear it again, even though I have said it twice and he has said it once, youth unemployment has fallen for 17 consecutive months.

[Charlie Elphicke (Dover) (Con)]

Will the Minister tell the House how the Youth Contract performs in terms of value for money and effectiveness compared with the future jobs fund?

[Esther McVey]

The future jobs fund cost £6,500 per outcome, whereas our work experience outcomes cost £325, which is a 20th of the price for exactly the same outcomes. As always, the coalition Government are delivering value for money.

[Stephen Timms (East Ham) (Lab)]

After more than two years of the Work programme and 18 months of the embarrassing flop of Youth Contract wage incentives, youth unemployment is still nearly 1 million, higher than it was at the general election and higher than when the Work programme began. That is terrible not only for young people, but for the future of the economy. When will Ministers finally get serious about that and back a proper youth jobs guarantee?

[Esther McVey]

Obviously the Opposition like to rewrite history. The 40% increase in youth unemployment that we saw over their years in office was shocking, particularly given that it was during a boom period. We are dealing with the issue most practically. The Youth Contract has been, is and will be a huge success, with wage contracts increasing from a slow start of 1,000 a month to 4,000-plus a month.

[David Mowat (Warrington South) (Con)]

7. What costs will be included in his proposed cap on pension charges.

--- Later in debate ---

[Chris Ruane (Vale of Clwyd) (Lab)]

9. When he estimates the Work programme will provide the same number of job outcomes as the flexible new deal.

[The Minister of State, Department for Work and Pensions (Esther McVey)]

The flexible new deal ran for two years from October 2009 to the end of September 2011, by which time 50,000 people achieved a six-month job outcome. By August 2012, after only one year and two months, 47,000 people achieved a six-month job outcome through the Work programme. Only one month later —in September 2012, after one year and three months—63,000 people were in a job. Simply put, the Work programme is outperforming the flexible new deal.

[Chris Ruane]

It is not so much a work programme, as a Government do not work programme. Whatever the Minister says, the figures she commissioned from a private company state that the flexible new deal created more jobs over a limited period than the Work programme.

[Esther McVey]

I think I set out plainly how many jobs the flexible new deal did not create. To date, 117,000 people have achieved six-month outcomes through the Work programme, so it is working. I am pleased to note that in the Vale of Clwyd the level of jobseekers is at 3.6%, the lowest it has been since November 2008. We must be getting something right.

[Kate Green (Stretford and Urmston) (Lab)]

The Work programme is failing disabled people badly, with only 5.8% getting into work—worse than if there was no programme at all. Meanwhile, specialist disability charities are complaining that they are getting only a handful of referrals. The employment and support allowance is costing the public purse £1.4 billion per year. When will the Minister get a grip on this failing programme, so that disabled people can receive the expert support they need to get them into work?

[Esther McVey]

I have just had a successful meeting with the Shaw Trust. Its latest report calls for the Work programme to be refined, not redone. The Work programme is working, but we need to make it better. The Opposition left 1.4 million people without support or help, and those people are being helped for the first time. Although it is tough, we have got significant numbers into work.

[Mr Stephen Hepburn (Jarrow) (Lab)]

10. What recent representations he has received on compensation for people with mesothelioma.

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[Stephen McPartland (Stevenage) (Con)]

14. What steps he is taking to create more employment opportunities for young people.

[The Minister of State, Department for Work and Pensions (Esther McVey)]

The Government are not only creating job opportunities. In the last quarter, youth employment was up by 50,000. That shows that our approach is working. We are providing young people with the support that is needed, including work experience and apprenticeships.

[Stephen McPartland]

North Hertfordshire college in Stevenage has developed a range of learning companies in which students work while they gain their qualifications. We have seen an increase in the number of job offers for students who are learning in that way. Does the Minister agree that learning companies offer opportunities for young people, in partnership with local employers?

[Esther McVey]

I do agree with my hon. Friend. If people come together to create opportunities that turn into jobs, that is welcomed by the Department. We are leading the way and have put down a strategy that enables people to work in partnership.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Does the Minister recognise that her response to that question sounded a bit complacent? Will she consider how we can build a better relationship among employers and further education colleges, schools and universities? Is it not time that she spoke to her colleagues in the Department for Education and brought a careers service back into our schools?

[Esther McVey]

If I gave the impression of being complacent, I am sorry, but I am certainly not. I know the size of the job that the Government have to do to help all the youth out there. We are doing that job and will continue to do it as best we can. We do talk to other Departments. There is a duty on head teachers to provide careers guidance in their schools. We have a National Careers Service at Jobcentre Plus. We can work with schools to ensure that children have the best careers advice.

[Rehman Chishti (Gillingham and Rainham) (Con)]

17. In my constituency, youth unemployment has fallen to its lowest level since before the last election. Will the Minister join me in paying tribute to the excellent partnership in my constituency between MidKent college and ActivKids, which improves the job prospects of young people?

[Esther McVey]

I join my hon. Friend in celebrating that success. I know that it is something in which he takes much interest and that he has helped greatly. I hope to hear many more stories like that from across the UK.

[Paul Maynard (Blackpool North and Cleveleys) (Con)]

15. What steps he is taking to offer more intensive support for new jobseekers.

[The Minister of State, Department for Work and Pensions (Esther McVey)]

Conditionality measures were announced in the spending review to increase the support for jobseeker’s allowance claimants. Claimants will be asked to write a CV and register with universal jobmatch. Longer initial interviews, weekly signing and quarterly reviews with our advisers will provide more intensive support for claimants.

[Paul Maynard]

I thank the Minister for that reply. Will she reassure me that that conditionality will involve remedying deficiencies in what is often called work readiness, as well as focusing on the overall number of jobs for which a claimant applies each week?

[Esther McVey]

My hon. Friend is quite right that work readiness skills are key and that it is not only the number of jobs for which somebody applies that matters. Through the claimant conditionality and the longer intensive interview when a claim is made, the people at Jobcentre Plus will find out what skills the claimant needs and support them.

[Andrew Gwynne (Denton and Reddish) (Lab)]

The Minister will know that Deloitte is selling its interest in the Work programme. Why does she think investors are pulling out of the scheme?

[Esther McVey]

Investors are not pulling out of the scheme. The hon. Gentleman is quite right that Deloitte is not working with Ingeus any more. Ingeus is one of the top performing Work programme primes. We expected to see movement in the industry. Deloitte came in and supported Ingeus as best it could, and now it is exiting, as happens when any businesses come together. As I said, the Work programme is working. The figures are going up, which is something that the Labour party could not achieve.

[Duncan Hames (Chippenham) (LD)]

Not only is the number of jobseekers falling, but the number of economically inactive people of working age has fallen by more than 400,000 under this Government to a level that has not been seen for more than two decades. Does the Minister agree that when people are returning to the labour market after a long period outside it, new jobseekers need support to prevent them from becoming long-term unemployed themselves?

[Esther McVey]

My hon. Friend is absolutely right. Let us look again at Labour’s record. It left 5 million people unemployed and claiming. We have taken the number of people who are claiming the three main benefits down by more than 500,000 since coming to power. Instead of criticising what we are doing, all Members should take pride in the fact that 1 million more people have jobs.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

21. What assessment he has made of the effectiveness of the Work programme for people already claiming employment and support allowance.

[The Minister of State, Department for Work and Pensions (Esther McVey)]

Work programme provider performance is helping people on ESA move towards work, and to continue that improvement we are setting up a best practice group to help other primes share best practice.

[Chi Onwurah]

Last Wednesday, I spoke at a conference entitled, “Newcastle: a good city in tough times”, where faith, volunteer groups, charities and business all emphasised the importance of volunteering and the voluntary sector in helping claimants into work, yet the Department for Work and Pensions is making it harder to volunteer, through sanctioning, and squeezing the voluntary sector out of Work programme contracts. That is one reason that Newcastle’s success rate for ESA claimants is only 2%. What is the Department doing to encourage volunteers and the voluntary sector to help build the community skills we need to get people back into work?

[Esther McVey]

Of course, we fully support people doing voluntary work, so long as they can commit to their job signing and the work they have to do to get a full-time job. We see voluntary work as an important step to getting a job, and nearly 50% of Work programme providers are from the voluntary sector. Also, I am sure the hon. Lady will join us in celebrating the fact that the claimant count in her constituency has fallen by 13% in the past year.

[Robert Halfon (Harlow) (Con)]

Is my hon. Friend aware that the Work programme and other measures have seen the number of people unemployed in Harlow fall by 100 over the past year and that other Government measures have seen the number of apprenticeships increase by 86%? Does this not show that the Government are helping working people?

[Esther McVey]

Absolutely. Not only are we helping people through the Work programme, wage incentives and record numbers of apprenticeships—half a million in the last year—but the Government are doing everything to support people, young and old, back into the workplace.

[Jeremy Lefroy (Stafford) (Con)]

22. How many people in (a) Stafford and (b) England were receiving the major working-age benefits in April (i) 2010 and (ii) 2013.

[The Minister of State, Department for Work and Pensions (Esther McVey)]

In May 2013, the number of people claiming working-age benefits in England was down to 4,645,040 from 4,807,940 in 2010—a fall of 162,900. In Stafford, the number was down to 8,070 from 8,690 in 2010—a fall of 620.

[Jeremy Lefroy]

The figures suggest that the number of people on major out-of-work benefits has fallen substantially since May 2010. In addition to the great benefit to former claimants of being back in work, will the Minister estimate the saving to the taxpayer?

[Esther McVey]

My hon. Friend is right. The figures suggest that out-of-work welfare dependency has been reduced by nearly 10%, which of course is very encouraging. Furthermore, in the past 12 months, the change in the number of JSA claimants has saved £1 billion.

[Fiona Bruce (Congleton) (Con)]

23. What recent steps his Department has taken to support care leavers.

--- Later in debate ---

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I welcome today’s figures showing a reduction in unemployment, but what are the implications for the targets relating to inappropriate sanctions on jobseeker’s allowance claimants? This is a real issue, and it needs to be addressed. It is distorting the JSA figures.

[The Minister of State, Department for Work and Pensions (Esther McVey)]

I can give a very short answer: there are no such targets.

[Craig Whittaker (Calder Valley) (Con)]

With regard to discretionary housing payment, under a recent freedom of information request it has been established that Calderdale’s budget is almost £384,000 and under the same FOI we learned that in the first six months of the spare room subsidy Labour-run Calderdale has struggled to spend around £24,000. Does my right hon. Friend agree that this massive differential between budget and actual spend could indicate that the spare room subsidy in Calderdale is not an issue, or does he think Labour-run Calderdale is not doing enough to help the most vulnerable?

Housing Benefit

Esther McVey Excerpts

Tuesday 12th November 2013 Commons Chamber

[The Minister of State, Department for Work and Pensions (Esther McVey)]

I welcome the opportunity to speak in this lively and, at times, loud debate. We have heard many speeches in the past five and a half hours and many issues have been raised. Labour Members have passed much speculation as certainty. They all called for the spare room subsidy to remain. There has been much passion—[Interruption]—and much shouting out like that. However, unfortunately, Labour Members have given us no answers—they have given not one single answer to the problems left by the previous Labour Government. Not one Labour Member confronted the nub of the problem or tackled the issues at hand, or addressed the many interdependent issues that have made the removal of the spare room subsidy necessary.

Let us therefore remind hon. Members of the complex mix and the delicate balance that we must get right, which we are doing. Some 400,000 people are in overcrowded accommodation, and nearly 2 million people—[Interruption.]

[Mr Speaker]

Order. There is too much noise in the Chamber. Members must not shout at the Minister. The Minister’s response to the debate must be heard.

[Esther McVey]

Just like I am being shouted down now, the voices of nearly 2 million people on waiting lists have been shouted down and, unfortunately, the 400,000 people in overcrowded accommodation are not being listened to.

We have two different legal systems within one—it does different things for people in the private rented sector and for people in the social rented sector. Opposition Members want to remove the reversal of the spare room subsidy, but I want to throw a question out there. If they retain the spare room subsidy, I believe a legal challenge is on the way from people in the private sector, who want the same policy to apply to them. If Labour reverses our policy, that is not tough on fiscal responsibility. Instead, Labour will spend yet more, which is typical Labour: spend more and increase benefits, and ignore the problem altogether.

Hon. Members have asked whether the policy was about saving money, getting the housing stock right or getting the right people into social houses. Actually, we must do all those things. That is why, as we are solving those problems, £4.5 billion will be put into new building, so we will have 170,000 new houses by 2015. A further £3.3 billion will mean we have another 65,000 houses by 2018.

The hon. Member for Kilmarnock and Loudoun (Cathy Jamieson) said that Members on each side of the House are different and she is quite right: those on the Opposition Benches deliver problems and those on the coalition Government Benches have to solve them. The hon. Member for Islington South and Finsbury (Emily Thornberry) asked what the difference is between the Government side and the Opposition side of the House. The Opposition drove us into recession, never thinking about what they were spending and never living within their means. We are digging them out of that recession.

[Yasmin Qureshi (Bolton South East) (Lab)]

What would the hon. Lady say to my constituents, Mr and Mrs Wilkes? Mrs Wilkes has a back problem and is disabled. Her husband cannot share a bed with her, much as he would like to, and has to stay in the second room. They are having to pay the bedroom tax. [Interruption.]

[Mr Speaker]

Order. Interventions must be brief. I think we got the gist and we are grateful to the hon. Lady.

[Esther McVey]

We have listened to all of those issues and trebled the discretionary housing payment. That is why people have a responsibility to help those people.

The Opposition’s figures—surprisingly—do not always stack up. We talked about how we are going to find new homes for different people and how we are going to support them to move into accommodation—all the things we should be doing. Yes, 660,000 people are affected by these changes, but only earlier today I spoke to one of the biggest online home swap companies. It has 320,000 accommodations for people to move to. By the way, it has only 6.7% market share, so we are easily able, should we be working in this way, to find houses for people to swap. [Interruption.]

[Mr Speaker]

Order. There is simply too much noise in the Chamber. It is not possible to hear what the Minister is saying. [Interruption.] Order. The Minister must and will be heard.

[Esther McVey]

I would like to raise the example of Susannah from south Yorkshire. She had had four children and did not necessarily want to move. In the end, she looked around for six months and moved. She said, “Actually, I wished I’d had that support earlier, because now I am in an area I prefer. I have downsized. I have a smaller house, which means that my cost of living is less. I am paying less on cleaning and less on heating, and I can live within my means.” I have a list of people like that. I ask Opposition Members to work with their local authorities and their constituents to help them downsize so they can live within their means. I know that living within one’s means is not something Opposition Members understand, but that is what we all have to do as a country.

[Sheila Gilmore]

At what point, when the costs of this policy outweigh the savings, will the Government admit that they have simply got it wrong?

[Esther McVey]

We are planning to save money and move people into the right houses, something the Labour Government failed to do. They left people in the wrong houses and never supported them, and lived beyond their means.

[Mr Alan Campbell (Tynemouth) (Lab)]

claimed to move the closure (Standing Order No. 36).

Question put forthwith, That the Question be now put.

Question agreed to.

Question put accordingly (Standing Order No. 31(2)), That the original words stand part of the Question.

Remploy

Esther McVey Excerpts

Thursday 31st October 2013 Written Statements

[The Minister of State, Department for Work and Pensions (Esther McVey)]

The Remploy 2013 annual report and accounts will be published later today. I will place a copy of the Remploy 2013 annual report and accounts in the Libraries of both Houses, and electronic copies will be available on the Remploy website.

Employment, Social Policy, Health and Consumer Affairs Council

Esther McVey Excerpts

Tuesday 22nd October 2013 Written Statements

[The Minister of State, Department for Work and Pensions (Esther McVey)]

The Employment, Social Policy, Health and Consumer Affairs Council met on 15 October 2013 in Luxembourg. The Under-Secretary of State for Business, Innovation and Skills, my hon. Friend the Member for East Dunbartonshire (Jo Swinson), who is responsible for employment relations and consumer affairs, represented the United Kingdom (UK).

The main discussion focused on the posting of workers enforcement directive. The UK emphasised the importance of building a stronger economy to restore growth by keeping burdens, especially on small businesses, to a minimum. Having shown considerable flexibility the UK was disappointed that a general approach was not agreed between Ministers. The UK will continue to aim to ensure that the directive strikes the right balance between protecting posted workers’ rights and the effective functioning of the single market.

There was an exchange of views on youth employment in which the presidency highlighted the significant challenge of youth unemployment across the EU. The UK outlined the successes of the youth contract and discussed the importance of vocational training systems. The Council adopted its declaration on the European alliance for apprenticeships, and the minute statement outlining UK concerns on the prescriptive nature of aspects of the text and the need to respect member state competence in this area was noted.

During the lunchtime discussion, Ministers discussed the key lessons learned from last year’s European semester process. Many member states shared UK concerns over the need for greater European Commission transparency in terms of sharing the evidence base underpinning the CSRs much earlier in the process. The Employment Committee (EMCO) and Social Protection Committee (SPC) reports on the evaluation of the European semester were endorsed. The SPC report on their contribution to the annual growth survey 2014 policy priorities was also endorsed.

There was also a policy debate on the social dimension of the European monetary union. Most member states agreed in principle with the proposed scoreboard and indicators but some called for this to remain voluntary for those not in the eurozone. There was broad agreement that the European semester should remain the primary instrument for pursuing this work. The Commission concluded that there was clear support for the principle of a social dimension of the EMU but recognised that they needed to do more to explain what it means in practice for member states and what indicators needed to be included in the scoreboard.

Ministers adopted Council conclusions on the European Court of Auditors’ special report on the added value of the European globalisation adjustment fund. The Council conclusions recommend improvements in efficiency and effectiveness, and to explore alternative schemes. The UK agrees with much of the analysis in the Court’s report and with its recommendations.

Under any other business, the presidency provided updates on legislative issues and reported on the upcoming tripartite social summit meeting.

Oral Answers to Questions

Esther McVey Excerpts

Monday 14th October 2013 Commons Chamber

[Andy McDonald (Middlesbrough) (Lab)]

1. What recent assessment he has made of the performance of the Work programme.

[The Minister of State, Department for Work and Pensions (Esther McVey)]

First, I am pleased to inform the House that the Work programme is working, and that its performance has significantly improved since being launched in June 2011. By the end of June 2012, 24,000 people had found lasting work. By June 2013, there had been a dramatic increase to 168,000. I should like to put on the record that credit must go to my predecessor, my hon. Friend the Member for Fareham (Mr Hoban), for his rigorous and meticulous work, which brought about that dramatic increase.

[Andy McDonald]

Of the 10 worst constituencies for longer-term unemployment, seven have seen the number of people out of work for more than 12 months increase, and that includes my own town of Middlesbrough. Why are the Minister’s policies failing so badly among the people and in the places that most need help?

[Esther McVey]

I am pleased to inform the hon. Gentleman that, actually, despite the picture he portrays, work is improving. There have been significant job outcomes across the country—they are up 1 million—and the claimant count is down. Inactivity is at record low levels and the number of households where someone is in work is higher now under this Government than it was in any year under the previous Labour Government.

[Andrew Bridgen (North West Leicestershire) (Con)]

Can my hon. Friend confirm that tackling youth unemployment is a major priority for the Government, and that young people—18 to 24-year-olds—have benefited from the Work programme, with more than 100,000 finding some sort of work through it? Does she agree that the Work programme is working?

[Esther McVey]

I agree with my hon. Friend that the Work programme is working. In particular, let us look at the figures for youth unemployment. The number of 18 to 24-year-olds on jobseeker’s allowance has fallen for 15 consecutive months. It is now 60,000 less than in May 2010. Youth unemployment is down from the numbers we inherited from Labour, and the number of young people not in education, employment or training is at its lowest for a decade.

[Dame Anne Begg (Aberdeen South) (Lab)]

But for one group of people—those who have health problems or a disability—the numbers are truly dreadful. What will the Government do to change their approach so that that group of people is not left behind?

[Esther McVey]

For the first time in history, we are dealing with the people the hon. Lady—the Chair of the Select Committee on Work and Pensions—is talking about. Labour Members shake their heads, but I am afraid that they abandoned those 1.4 million people; we are supporting them. Of those on the Work programme, more than 380,000 are in work, and 168,000 have found lasting work. Ninety per cent. of those have been in employment for nine months or more. We are working on and dealing with that matter, but Labour abandoned it.

[Stephen Timms (East Ham) (Lab)]

I welcome the Minister to her new brief, and the Minister of State, Department for Work and Pensions, the hon. Member for Hemel Hempstead (Mike Penning), to his.

The invitation to tender for the Work programme said that, if there was no programme at all, 15% of people on employment and support allowance, to whom my hon. Friend the Member for Aberdeen South (Dame Anne Begg) has just referred, would be in a sustained job outcome within two years. With the Work programme, the number has been about one third of that. Surely that underperformance is unacceptable.

[Esther McVey]

That is not true at all. We have reached out and supported people who were never supported under the Labour Government. Equally, I would like to separate those on JSA, who have exceeded targets, and those on ESA who must move closer to the workplace, which is what we are statutorily obliged to do, but not to put them in a job. We are doing that. Because of that, we are looking at the programme as a whole and putting further support in for those people. It is successful and, as I have said, Labour failed to do it.

[Stephen Timms]

The Minister should ask her civil servants about pathways to work.

In his spending review on 26 June, the Chancellor of the Exchequer called on the Secretary of State to make a hard-headed assessment of underperforming programmes in his Department. What progress is there with the hard-headed assessment of the Work programme?

[Esther McVey]

The Work programme is not an underperforming programme: 60% of people are off benefits. We continue to modify and improve it, which is only right. We have set up a best practice committee so that people can get even better. There is no underperformance. We are proud of the record. I will tell the right hon. Gentleman one thing: those people who have got jobs, whom he dismisses so discourteously, are very proud of what we have done.

--- Later in debate ---

[Rosie Cooper (West Lancashire) (Lab)]

10. How many former Remploy workers are now in employment.

[The Minister of State, Department for Work and Pensions (Esther McVey)]

At 4 October 2013 1,326 disabled former Remploy workers are engaging with personal case workers to find jobs; 535 are in work, and 390 are on Work Choice and training, which makes a total of 925 in work or training.

[Rosie Cooper]

Notwithstanding that answer, more than 93% of disabled people on the Work programme are simply failing to find work. I put it to the Minister that the Government’s record on disability employment is simply a disgrace and is another example of the Government talking big and tough but failing to deliver.

[Esther McVey]

The hon. Lady has bounced across various subjects there, but may I just put on the record the fact that the Remploy factories had faced an uncertain future since 2008 and that her Government closed 29? We have sought to support the people involved in the best way possible, and so 925 out of the 1,325 are in work or training. We are talking about significant support and significant movement into work; the rate is higher than the one relating to regular redundancies. As I said before, the Work programme is working. It has significantly improved under my predecessor and we will continue that.

[Paul Maynard (Blackpool North and Cleveleys) (Con)]

I welcome the information that the Minister has given about the role that Work Choice has played in helping former Remploy employees. Will she confirm that we have no plans, despite rumours I am hearing, to roll Work Choice up into the Work programme? Such an approach would lose the specialisation that has made Work Choice the success it has been so far.

[Esther McVey]

My hon. Friend is right. Work Choice has been a success. We are looking at the disability employment strategy. For the first time ever we are considering greater segmentation and greater differentiation, and the greater support that is needed. We have also engaged with business as never before. We have started a two-year disability confident programme, engaging with 430 businesses and 35 of the FTSE 100. We need employers to work with us to give these people jobs.

[Huw Irranca-Davies (Ogmore) (Lab)]

19. In the same way that the miners’ buy-out of Tower colliery succeeded in sustaining well-paid jobs and exposed the lie that every pit was uneconomic, does the reopening this week of the former Forestfach Remploy site in the constituency of my hon. Friend the Member for Swansea West (Geraint Davies) with workers’ redundancy money give the lie to the need to shut so many viable Remploy factories, such as that in Bridgend, where the workers and management had both the business case and the burning desire to keep the factory open?

[Esther McVey]

I think that the hon. Gentleman does not really understand what happened with the whole set of Remploy factories. In 2008, the Labour party put in £555 million for a modernisation plan that failed. Those factories that can exist as viable businesses are doing so. We have helped them in that. We have supported them, and more than nine have reopened. Of those that could not, we have got some of the employees into work and others are opening up as social enterprises. The Opposition tried and failed. We are doing something about this and supporting those people.

[Mr Dominic Raab (Esher and Walton) (Con)]

11. What steps he is taking to get the long-term unemployed into work.

[The Minister of State, Department for Work and Pensions (Esther McVey)]

From next April, those hardest to help jobseekers returning from the Work programme will get the intensive support they need to get a job. A third will sign on every day; a third will go on community work placements for six months; and a third will receive intensive support from Jobcentre Plus.

[Mr Raab]

Research for the Institute for Fiscal Studies shows that since 2010, the Government’s welfare reforms have already increased tax incentives to work and cut welfare disincentives by 6%. Does my hon. Friend agree that we must continue this recalibration of the system to end the dependency culture that the last Government left behind and ensure that hard work pays?

[Esther McVey]

My hon. Friend is spot-on. That is exactly what we said we would do—a recalibration; a rebalancing of the economy—to get more people into private enterprise and to make fewer people state dependent. We have done that with 1.4 million jobs in the private sector. Opposition Members said that it was not possible. This is down to an environment that we have set and the great British businesses that have provided this employment.

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

It is good to be back. The Minister will be aware that a key barrier to many long-term unemployed women returning to work is the prohibitively high cost of child care. What is she doing to ensure that work will always pay once universal credit is implemented, given the concerning findings of the Resolution Foundation published yesterday showing the opposite to be the case?

[Esther McVey]

I am very proud of our Government’s policies, which have got a record number of women into work and supported them into businesses and in setting up their own businesses. Of those in part-time work, 80% have chosen that work, some of which fits in with their life balance. We are supporting women with child care. That is a difficult job, especially as the price of child care went through the roof under Labour. We are particularly supporting them under universal credit, and, as I said, all credit to this Government.

[Miss Chloe Smith (Norwich North) (Con)]

I welcome the Minister to her place and encourage her to come to Norwich to see the steps that I and a really great team of volunteers are taking to get Norwich’s youth unemployment down. We call it Norwich for Jobs and we have already got literally hundreds of young people into work. Her predecessor had kindly agreed to visit the team; would she like to do the same?

[Esther McVey]

If it was good enough for my hon. Friend the Member for Fareham (Mr Hoban), it is good enough for me, and I will be there.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

Is it not the case that the Secretary of State has been rebuked not once but twice by the chair of the UK Statistics Authority for the misleading, if not false, claims that he is making about the welfare reform programme? Will he take the opportunity to apologise to the House and to the public at large, not least to those on social security, whom the Government continue to denigrate?

[Esther McVey]

I will not be taking this moment to apologise, but I hope that those on the Labour Benches will apologise for the mess they left us, which we have corrected. Employment is up by 1 million since the election and unemployment is down by 400,000. Inactivity records are at an all-time low and the number of people not in employment, education or training is at the lowest rate for a decade. That is what we are doing, and the statistics we are putting out are correct. I am really disappointed that we cannot all celebrate the great work this Government have done.

[Katy Clark (North Ayrshire and Arran) (Lab)]

12. What assessment he has made of the effect of the Government’s housing benefit changes in Scotland; and if he will make a statement.

[The Minister of State, Department for Work and Pensions (Esther McVey)]

All the Government’s housing benefit changes have been subject to full impact and equality impact assessments. We have closely monitored the implementation of the measures and commissioned independent evaluations of the local housing allowance reforms and the removal of the spare room subsidy.

[Katy Clark]

Alex Salmond is coming down from Edinburgh on Wednesday to ask the Prime Minister to scrap the bedroom tax, and the Scottish Labour party is putting a Bill before the Scottish Parliament to stop evictions and provide funding to councils and housing associations for discretionary housing payments. Does the Minister accept that in the meantime, councils and housing associations are under huge pressure to raise rents because of the massive rent arrears resulting from the introduction of the bedroom tax?

[Esther McVey]

What I will say is that we are putting in place support for those housing associations and local authorities that are finding that they cannot come to terms with the issue, although they have had three years to do something and have failed to do so. I would like to talk about the 1.8 million people on housing waiting lists and the 250,000 people in overcrowded accommodation, whom nobody had looked after. We are looking after everybody and supporting them as best we can with discretionary housing payments.

[Sheila Gilmore (Edinburgh East) (Lab)]

Tenants who are not on housing benefits and pensioners are now being affected by the bedroom tax, because councils such as mine are being forced to look at either rent rises or cutting their modernisation programmes because of the impact of the bedroom tax. Will the Minister now look at that again and stop this nonsense, which is not even saving money overall?

[Esther McVey]

There is one point to clarify: pensioners are exempt. If people could get the facts right, it would work better.

[Jesse Norman (Hereford and South Herefordshire) (Con)]

14. What steps the Government are taking on pension charges.

--- Later in debate ---

[Mr David Amess (Southend West) (Con)]

T10. Is my right hon. Friend aware that the number of jobseeker’s allowance claimants in Southend West has fallen by 12% in the past year? Will he join me in congratulating everyone on this very encouraging trend?

[The Minister of State, Department for Work and Pensions (Esther McVey)]

I will indeed do that. Although my hon. Friend talks about an average of 14% fewer people claiming in his constituency, across the country the average is 11%, and 400,000 fewer people are claiming since 2010, so it is success all round for this Government.

[Julie Hilling (Bolton West) (Lab)]

T2. With well over 1 million unemployment benefit claimants being sanctioned since 2010, rumours abounding that targets are in place for sanctioning, and all of us facing many desperate people in our surgeries, will the Secretary of State tell us when we will see the results of his investigation into sanctioning?

--- Later in debate ---

[Huw Irranca-Davies (Ogmore) (Lab)]

T4. Housing associations in Ogmore are carrying a rising level of debt on their balance sheets as a result of rent arrears. They have a desperate scarcity of one and two-bedroom properties to rent, and yet they have three-bedroom properties lying empty. Is this just a necessary but painful adjustment to the Secretary of State’s benefit and bedroom tax changes?

[Esther McVey]

This is something we have to do. I have answered this before: how many people we have to look at who are on waiting lists, how many are in overcrowded housing, and how the bill doubled under Labour. The hon. Gentleman is quite right—we have to get the stock right: the fact that there are three-bedroom houses and why in the last three years they have not been modified into one and two-bedroom houses. Those questions have to be asked. That is what we have to do: get the stock right and support people as best we can.

[David Mowat (Warrington South) (Con)]

The pensions Minister mentioned earlier that the Office of Fair Trading report highlighted some of the abusive practices in the private pensions industry, such as active member discount and charges of up to 3% on many schemes. I welcome his consultation, but does he agree that it will be important to put a cap in place before auto-enrolment is rolled out at volume?

--- Later in debate ---

[Diana Johnson (Kingston upon Hull North) (Lab)]

T8. Given the woeful performance of the Work programme in Hull and local job losses, does the Secretary of State agree with The Economist that Hull’s long-term jobseekers should give up looking for jobs in Hull and travel elsewhere in the country?

[Esther McVey]

I would never put out a message that people should not look for work, because work is vital to self-esteem, motivation and supporting one’s family, so I totally disagree with that statement.

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

The roll-out of universal credit will be complete by 2017, yet the contract for the Post Office card account will be up for renewal in 18 months. What assurance can the Secretary of State give that people will still be able to access their benefits through their post offices?

Employment, Social Policy, Health and Consumer Affairs Council

Esther McVey Excerpts

Monday 14th October 2013 Written Statements

[The Minister of State, Department for Work and Pensions (Esther McVey)]

The Employment, Social Policy, Health and Consumer Affairs Council will be held on 15 October 2013 in Luxembourg. There are no health or consumer affairs issues on the agenda. The United Kingdom will be represented by the Under-Secretary of State for Business, Innovation and Skills, my hon. Friend the Member for East Dunbartonshire (Jo Swinson), who is responsible for employment relations and consumer affairs, and Shan Morgan, UK Deputy Permanent Representative to the European Union.

In the first discussion Ministers will be invited to agree a general approach with regard to the enforcement directive on posting of workers. This will be followed by an exchange of views on youth employment, with the main focus on the implementation of the related initiatives at both national and EU levels.

Ministers will discuss the evaluation of the 2013 European semester in employment and social policies and will be asked to endorse the respective contributions from the Employment Committee (EMCO) and Social Protection Committee (SPC) as well as the key conclusions of the SPC report on social policy reforms for growth and cohesion as a contribution to the annual growth survey 2014 policy priorities.

There will also be a policy debate on the social dimension of the European Monetary Union in which the Commission will be invited to present its recent communication “Strengthening the Social Dimension of the Economic and Monetary Union”, followed by a presentation of the respective contributions of the EMCO and SPC.

Ministers will consider Council conclusions on the European Court of Auditors’ special report on the value of European Globalisation Adjustment Fund.

Under any other business the presidency will provide updates on legislative issues and will report on preparation for the tripartite social summit meeting.

Work Programme

Esther McVey Excerpts

Thursday 10th October 2013 Westminster Hall

[The Minister of State, Department for Work and Pensions (Esther McVey)]

It is a pleasure to serve under your chairmanship, Mr Walker. I thank all hon. and right hon. Members for welcoming me to my new position, and I thank the members of the Liaison Committee for securing the debate. Can the Work programme work for all? I believe it can and it will. We are on a learning curve, and we have to make things better.

Hon. and right hon. Members will be pleased to know that I met all the providers this morning. I told them to watch the debate and listen to all the contributions, because the Work programme is work in progress, and there are things that they can take away from the debate. The comments of the prime providers are quite pertinent, particularly as the hon. Member for Oldham East and Saddleworth (Debbie Abrahams) mentioned low skills and low aspirations. A representative from the Shaw Trust said that they had been working in the field for 35 years, and the system was the biggest and most rigorous ever; they had never been monitored or measured so much. They took great pride in what they were doing, the journey they were going on and how they were helping the most disadvantaged into work.

According to Serco, the Work programme must be viewed not over a year—that would not be correct, because it is a two-year programme—but within the five to seven-year cycle. A representative from Ingeus said that the work was about helping people, and that, fundamentally, individuals are being helped by people who care. They made the point that people who work in the profession chose it, they know what they are doing, and although it is tough, it is what they want to do.

I know that the Chair of the Work and Pensions Committee has to speak, but before I answer the many questions that have been asked, I want to emphasise what a massive step change the Work programme has been. It is bold and ambitious, and I want to set out the motivations behind it. When people ask, “Is it failing?” that is fundamentally the wrong question. To fail would be to do nothing at all. To fail would be to leave people on benefits without even reaching out to them. I believe that the fact that we are on a journey and we have to get it right must be the start of success, and the Work programme must not be viewed from a perspective of failure. We are on a journey together.

I take on board all the points that the Select Committee has made; some of them drive a hard message home, and we must listen to them. The Work programme is evolving as we speak. What did we have before the Work programme? Hon. and right hon. Members have talked about the performance of various previous programmes, but I have different statistics. Those programmes covered a different mix of claimants, using a different measure, in a different time frame. Pathways to work can be classed as a failure because they could not have been rolled out nationally; they would have had zero positive impact if they had been. The previous approach was piecemeal, and people tried and failed to get it right. We have to continue with what we are doing now and make sure it works.

The individuals who are on the Work programme are the hardest to help. When I looked at their journey, I saw that out of every 100 people who go on to jobseeker’s allowance, almost 90 will leave before they reach the Work programme. That core group of people—approximately 10 out of every 100—will end up on the Work programme. Those are the people whom we are trying to support, and it is a difficult task. I have talked about the length of the contract and how we are continually refining it. Our approach is about continual improvement; we have to work with it, monitor it, adapt it and improve it.

I can see that time is running short, and I must allow time for the Chair of the Select Committee, the hon. Member for Aberdeen South (Dame Anne Begg), to speak, so I will move on to answering the questions. The Committee Chair talked about the annual underspend being held back, but the system does not work like that. We have negotiated a sum of money, and the programme is about performance-related payment on results. We have used some of that money to look at new pilot schemes, to see how we can expand our provision to incorporate people who have had prison sentences, for example.

When we talk about the flexibility of the system, we have to understand the people we are talking about well. I hate using such words, but there has to be multi-segmentation or multi-differentiation. We have to look at health and other conditions, including attitudinal factors, and anything that holds people back. We are doing that, not only with people who have been in prison, but with those who have had addictions. We are also helping and working with them, which adds to what we are doing.

The improvements made since the report came out are key, and I must acknowledge the work of my predecessor, my hon. Friend the Member for Fareham (Mr Hoban), whose changes have had a significant impact. Since the report came out in November 2012, the results of the adaptations he made, including the new pilots, can be seen in the numbers that are coming through. We have a set of numbers going back a bit more than a year, and the figures have quadrupled in that time, so there have been significant changes.

I want to pick up a couple of points made by my hon. Friend the Member for Eastbourne (Stephen Lloyd). He mentioned the attachment fee, but there is a fundamental misunderstanding about what it is and what it is for. It was designed to provide cash flow in the early years to get businesses going and to support providers, but that money was only ever given on the basis of payment by results. There was therefore nothing that, as he would see it, could be moved round or taken elsewhere. I needed to state that, because that involved a fundamental misunderstanding about how the system works.

My hon. Friend is quite right that we in the coalition Government are doing the right things. He mentioned relations between employers, employees and the Government, and people must understand what we can do as the Government, what employers can do to provide jobs, and what I hope employees can do. We are actively engaged in a two-year Disability Confident campaign with 430 employers across the country, including 35 of the FTSE 100 companies. It involves asking what we can do, and we should all get involved with it. From the point of view of spending, people talk about the figure of £80 billion, and the purple pound or the disability pound. We should ask what companies can do, including with would-be employees and their families and the extended community. That is something we are looking at, and it is positive that 1.4 million new private sector jobs have been provided, as have 1 million new apprenticeships. It needs to be put on the record that everything my hon. Friend is doing in Eastbourne totally reflects what the coalition Government are doing.

My hon. Friend the Member for Aberconwy (Guto Bebb) mentioned a key point about how we can help people in north Wales who would not otherwise receive full support, and how we can ensure that we are not preventing people from receiving additional support. We are actively involved with and talking to the devolved Governments to see what can be done. The key factors are flexibility and engagement with employers, as well as getting segmentation to work, so that individuals’ particular needs are given support.

Another key factor is the new enterprise allowance and how it fits with the Work programme—a point that has been mentioned. It does work, although not exactly in the same way. There is flexibility in the Work programme, so support can be given by providers to encourage people to set up in business. I wanted to ensure that that was the case and, fortunately, because this is fundamentally about people, I have some examples. They both involve people called Emma, so if someone’s name is Emma and they are on the Work programme and want to set up a business, it looks as though they have a high chance of success. Emma King said that she had never thought about setting up in business before, but now has, having been supported by A4e. Her goal now is to get other people like her into work. Emma Thompson, whose home is in Anfield, has said that if she had not met Dawne, who helped her through the Work programme, she would not now have her own business and would not be on a totally different path, one on which she feels she has self-esteem and self-confidence and can look after herself.

Another key point made by the hon. Member for Oldham East and Saddleworth was about people’s low esteem in starting-off or primary jobs, but in most instances the process is about getting promotion from those jobs, and the question is what we can do to get people through that process. Getting a job is the start of a journey, but getting a better or improved job is another. Some of the people we have worked with—including young men who have just got a child, and who have never worked before or never had a job—have some very positive stories about how they have got on the ladder, got through the process and got a good outcome through their own drive and the support of the Work programme.

I am painting some of the positive stories, and it is correct to do so. We appreciate that some things have not worked as well as they might have done, but we have been on a journey together. As I said, this is the biggest ever programme of its kind, and it has taken time, effort and energy. We have used the whole notion of transparency, and decided to have a black-box approach, because that would give flexibility to providers, particularly at the start of their journey, so that they could better understand people’s needs and see what they could do with the money. However, there are measurements, processes and monitoring within the system, and because we need to reach out to those who are hardest to help, there is also a payment structure so that the most difficult to support get the appropriate amount of money. All that is being developed at the moment.

We therefore take it fairly and squarely on the chin when we are asked whether the Work programme is working, and whether we are working with the hardest-to-reach people. We are now asking people and key providers to get back to us on which issues they found the most difficult, and to tell us what support we need to give them. Yes, a lot is being done, but there is still a lot to do.

The Work programme is not perfect, but it is a major step forward in supporting some of those who are hardest to help. I want to make sure that the programme reaches its full potential, and I am committed to fixing the bits that do not work. Many questions to me today have been about whether we are committed to doing that, and we certainly are. Another question raised was about culture and leadership. Transparency is key, as is bold ambition, hard work and determination to reach out to those who most need our help, and I give a commitment to those things today.