Benefit Sanctioning

Esther McVey Excerpts
Tuesday 2nd December 2014

(9 years, 10 months ago)

Westminster Hall
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Paul Blomfield Portrait Paul Blomfield (Sheffield Central) (Lab)
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It is a pleasure to introduce this debate under your chairmanship, Mr Howarth.

During the September recess I organised a community consultation across my constituency. With 63 meetings over three weeks, the consultation raised a wide range of issues. A dominant theme from some of my most vulnerable constituents, and from those in the voluntary, community and faith sector who work with them, was the impact of benefit sanctions. I cite the example of the Cathedral Archer Project, which works with the homeless. The project has been visited by Ministers and is held up as a model of good practice in taking people off the streets and getting them back into society by giving them skills and a home. The project’s work has been fundamentally changed by the response that some of its clients receive when they start—

Paul Blomfield Portrait Paul Blomfield
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I didn’t catch it from you, Minister.

Some of the project’s clients, in their first home, will suddenly receive a letter that they either cannot read or do not understand, and they will therefore miss an appointment and find themselves sanctioned, out of their home and back on the streets. They go to the jobcentre and are told, “Go along to the Cathedral Archer Project. They will feed you.” That transforms the role of an important local charity from making a strategic intervention to help people off the streets, into homes and into work to just being a crisis centre.

I am pleased to have secured this debate to raise such concerns directly and to make some practical proposals on how the Government can address the issue. Much of what I have to say is based on the work of Sheffield Citizens Advice, which is a great organisation that provides vital support to people across our city, finds solutions and supports people in complex situations. In doing so, it saves public money by averting crisis further down the line. In May, the organisation’s social policy group produced a report on the experience of jobseeker’s allowance sanctions based on the previous 12 months. I am pleased that the report’s author is in Westminster for today’s debate. The Department for Work and Pensions received a copy of the report when it was published, and it has been in correspondence with Sheffield Citizens Advice. I sent a further copy to the Minister before today’s debate so that we can properly consider its recommendations.

I must stress how helpful it is for such evidence to be gathered and presented so clearly by those working directly with the people affected by Government policy, with concrete recommendations about what can be done to improve the system. I hope the Minister will treat that work by people on the front line as seriously as it deserves to be treated. I make it absolutely clear at the outset that neither the report nor my contribution opposes the principle of sanctioning within the benefit system. Applying sanctions to those who are deliberately not seeking work, who are unavailable for work or who have no intention of working can disincentivise such behaviour and, in combination with the right support and training, can help people on the road to getting a job that provides not only an income but self-esteem, purpose, socialisation and accomplishment, but—and it is a very big but—any sanctioning regime has to be humane. The Sheffield Citizens Advice report clearly shows that there is an increasing number of incidents where the system is neither humane nor—this is important—serving its stated purpose of getting more people into work. In fact, the system is having the opposite effect in many cases.

Some of the stories outlined in the report will be all too familiar to hon. Members. I will briefly share the experiences of a couple of my constituents that are not detailed in the report. One constituent prefers to remain anonymous, so I will call her Mary. She was made redundant from a job as a cleaner, so she had to sign on for the first time in her life. She was told by an officer at the jobcentre that her next appointment with a job adviser would be on her signing-on day. She was told that there was no need to come in and sign on in the morning because she could do it when she came in for her 3 pm appointment. That information was wrong: the job adviser appointment was two days before Mary’s signing-on day. We all make mistakes, but it is simply and clearly not right that Mary, who had gone to the jobcentre for help to find a job, was punished for the officer’s mistake. It was an honest mistake, but it was a mistake, and she faced the consequences. Mary had to borrow money to get by, and I am pleased to say that she is now back in work with a cleaning job, but she got there despite the system, not because of it.

Mary understood what she needed to do, but she was wrongly advised. There are plenty of examples in the Sheffield Citizens Advice report of people who are not clear about what is expected of them:

“Alan was given a 4 week sanction for not actively seeking work. Because of his limited literacy/numeracy skills he had been enrolled for an 8 week course in English and Maths. He thought that as he was taking this course he did not need to complete his work search book for that period.”

That was an honest mistake. The report continues:

“Tony is in his mid 50s and is vulnerable because of his learning disabilities and dyslexia. He can’t read or write. Despite the fact that he gets significant support with looking for work from a local Job Club, he was sanctioned for not doing ‘enough’ jobseeking.”

Another constituent, coincidentally also called Tony, thinks he was sanctioned because the activity on his Universal Jobmatch account was considered too low by the jobcentre. I say that he thinks that was the reason for his being sanctioned because he has not yet been notified of the reasons for the sanctioning. Tony is eager to find employment and has completed an IT course through the jobcentre to help him find work online. He does not have access to a computer at home, so he spends much of the day at the central library waiting for his turn on the computer to show activity on Universal Jobmatch. That is in addition to going to workplaces in Sheffield looking for work, but he has been sanctioned. As a result of that sanctioning, he has been referred to the Salvation Army food bank in my constituency.

The question is whether sanctions are the right response to such situations, and not only because of their impact on people. Will they actually bring about the behavioural change that they purport to seek? Might the sanctions hinder, rather than help, the people who are affected?

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Esther McVey Portrait The Minister for Employment (Esther McVey)
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It is a pleasure, Mr Howarth, to serve under your chairmanship. I thank the hon. Member for Sheffield Central (Paul Blomfield) for bringing this important debate to the Chamber. It is important for us to keep a spotlight on the sanctions regime.

Sanctions have always been part of the benefits system. As Oakley stated, benefits sanctions provide a vital backdrop in the social security system for jobseekers. They are a key element of mutual obligation underpinning both the effectiveness and fairness of the social security system. Sanctions help to ensure that claimants meet requirements designed to help to them to move into work. They are only a last resort as part of a wider agenda to help people to get a job and to move closer to the labour market.

Our approach is not to be tougher for its own sake, but to provide a clearer, more consistent and effective incentive to comply. Where sanctions are, how they are set up within the system and how they work are important. Before dealing with hon. Members’ questions individually and responding to the hon. Member for Sheffield Central, I will provide some context.

When the debate was arranged, I thought we should look at what was happening pre-2010. A system is always subject to changes, which must reflect what is happening, to make it better and support more people into work. When looking back—this probably answers the question from the right hon. Member for East Ham (Stephen Timms)—we must consider how sanctions were issued.

There was widespread inconsistency in decision making, with similar cases being treated differently even within jobcentres. We had to ensure that that did not happen so we focused on how to achieve greater consistency and efficiency throughout the introduction of our quality assurance framework. No targets were set and there are still no targets, but when we see variation, whether higher or lower, in the same jobcentre, we seek to ensure that a certain standard is maintained. We would check what various advisers are doing and whether the person concerned needs extra help and support to provide equality. It cannot be right that one jobseeker is treated differently from a friend, colleague or other jobseeker. That is why we made changes.

I also looked at what was happening in 2010 and there were some startling differences. Between 2004 and 2009—this raises a different question, but it is all part of the sanctions system and the extra help given—only four out of 10 British nationals got jobs, but six out of 10 foreign nationals did. We changed that round because it is key that, as well as sanctions, we provide a system that gives the right training, the right support and the right employability skills. In addition, discipline is necessary to maintain a job. All that must be provided. Since we have done that and fundamentally changed the system, nearly seven out of 10 British nationals are getting jobs. That must be seen in the context of the changes since 2010.

I look at the jobs market and what has happened, and at the various quotes. Since 2010, there has been an increase of nearly 2 million jobs. The Opposition said they thought there would be 1 million fewer jobs, but that is not the case. There are nearly 2 million more jobs and at the same time there are an extra 200,000 vacancies, so there are about 670,000 vacancies at any one time.

We must ask whether we have the right incentives in place to get people into work, and whether we are providing the right training, discipline and employability skills for people to get a job. We must look at the issue in the round. There have been significant changes.

Ian Lavery Portrait Ian Lavery
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On the millions of jobs that the Government claim they have created, the Office for National Statistics says that 1.4 million of them involve zero-hours contracts. Does the Minister believe that the Government are encouraging people into long-term employment by offering them contracts under which they might not make even £1 a week?

Esther McVey Portrait Esther McVey
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The Labour party has already been brought to task by the UK Statistics Authority for talking about a significant increase in zero-hours contracts that did not happen. The contracts began in 2000 as the minimum wage was brought in. We know the number of people on them, and for the vast majority they work. When they do not work, we have not allowed exclusive contracts. We are doing something that the previous Government did not do. We want to ensure that people have a good job—not just any old job, but a job they want so that they have a career and progress. We know that three quarters of the jobs created since 2010 are full-time. I hope that answers the question.

The other key issue—for me, probably the most important thing the Government have done—is that fewer children are now growing up in workless households.

Sheila Gilmore Portrait Sheila Gilmore
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Will the Minister give way?

Esther McVey Portrait Esther McVey
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I will not give way. I am setting the scene. I will answer the questions raised, and then I will take some more interventions, but not at the moment.

We know that the best route out of poverty is to have a job and that children born into a household where no one works are three times more likely to be in poverty. This year, we have reduced that number by 390,000. We are talking about poverty, and about support and help for people to get a job and to move forward. The Government have done significantly more than anybody else to support people on their way and into work. That is the background of sanctions and why they exist, and what we must do to meet and match and provide support.

We have introduced the youth contract for young people, with an extra 250,000 extra work experience places, and sector-based work academies. This year, we have seen the biggest fall in youth unemployment—by 250,000—since records began. We are fundamentally turning the lives of those people around, and sanctions are a tiny part of a massive system of support.

Paul Blomfield Portrait Paul Blomfield
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The Minister is making a wide- ranging contribution, but I am conscious that she is— unintentionally, I am sure—leaving herself insufficient time to answer my specific questions. Will she meet me and Sheffield Citizens Advice to talk about them in more detail?

Esther McVey Portrait Esther McVey
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What I will do first, so that I do not run out of time, is to answer the hon. Gentleman’s questions. He referred to various people who did not want their names given but had reasons why they thought they should not have been sanctioned. In many cases, there will have been good reasons for the sanction, but I would like to know what happened to those people.

The claimant commitment is being rolled out to 900,000 people so that the adviser understands what support people need, what journey they need to go on and their individual circumstances, which might mean that they are more vulnerable than other people and need more exemptions or time off because they can work or search for jobs only within certain time frames. That was the point of the claimant commitment and personalising the approach, which we are doing now.

Oakley rightly raised communications, what we were doing and how we could refine the system further. We know what we have done; we have helped people into work. We know what we have done with the sanctions regime, but how do we make it better, which we need to do constantly?

Oakley made 17 recommendations, all of which we have accepted. They include reviewing letters to claimants to ensure that they understand what is going on; work with experts to ensure that communication is better; and work with local authorities to improve communication on housing benefits, to ensure that people do not have their housing benefit stopped unnecessarily, which can make things worse for people. Those recommendations were implemented immediately unless they required substantial changes to the Work programme, in which case they will be introduced as that programme changes.

Social Security Advisory Committee

Esther McVey Excerpts
Tuesday 18th November 2014

(9 years, 10 months ago)

Written Statements
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Esther McVey Portrait The Minister for Employment (Esther McVey)
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My noble Friend the Parliamentary Under-Secretary of State for Work and Pensions (Lord Freud) has made the following written ministerial statement.

Today I am launching a review of the Social Security Advisory Committee (SSAC). As part of the Government’s continuing drive for efficiency and effectiveness, all Departments are required to review their arms length bodies at least once in every three year review cycle to challenge whether the functions they perform are still necessary and if so whether it is still appropriate for them to be delivered in the same way. The review of the Social Security Advisory Committee will look at the Committee’s functions and whether it needs to continue to exist. If the review determines that the Committee should continue, it will go on to examine the potential for delivering more effectively and efficiently and the corporate governance mechanisms. I will inform the House of the outcome of the review and place a copy of it in the Libraries of both Houses when it is completed.

Oral Answers to Questions

Esther McVey Excerpts
Monday 3rd November 2014

(9 years, 11 months ago)

Commons Chamber
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David Nuttall Portrait Mr David Nuttall (Bury North) (Con)
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4. How many people are claiming jobseeker’s allowance in Bury North constituency.

Esther McVey Portrait The Minister for Employment (Esther McVey)
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The number of people claiming jobseeker’s allowance in Bury North was 1,304 in September, a fall of more than 500 people since 2010.

David Nuttall Portrait Mr Nuttall
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I thank my right hon. Friend for that answer. Does she agree that this fall in unemployment has not happened by accident? It has only happened because this Government have cut tax and red tape on businesses, giving them the confidence to grow and take on new employees?

Esther McVey Portrait Esther McVey
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My hon. Friend is quite right. The latest reports from the British Chambers of Commerce show that businesses are feeling more confident and are taking on more people. In the north-west, an additional 109,000 people are in work this year. He knows only too well how important it is to get a job that can lead to career progression. He is a working-class Tory who got himself into a job, did a correspondence course in law and then set up his own legal practice. We want those opportunities for everyone.

Sheila Gilmore Portrait Sheila Gilmore (Edinburgh East) (Lab)
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5. What change there has been in the number of people claiming employment and support allowance over the last two years.

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Andrew Stephenson Portrait Andrew Stephenson (Pendle) (Con)
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6. What support his Department has provided for young people seeking employment.

Esther McVey Portrait The Minister for Employment (Esther McVey)
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In the past 12 months, youth unemployment has fallen by a record-breaking 253,000. This Government have developed an array of support for young people including: work experience, sector-based work academies, traineeships, the Work programme and increasing apprenticeship numbers.

Andrew Stephenson Portrait Andrew Stephenson
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I thank the Minister for her answer. Youth unemployment in my constituency has halved since 2012. I recently visited my local Asda in Colne to see the work it is doing with local jobcentres. What more can my right hon. Friend offer to end youth unemployment in Pendle?

Esther McVey Portrait Esther McVey
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My hon. Friend is doing a lot locally to help people into work. He has had three job fairs so far, and is soon to have a fourth. It is by working with business, as he is doing in his constituency and we are doing nationally, that we have businesses and trade associations engaged in running programmes such as movement to work and feeding Britain’s future. All such initiatives are giving young people opportunities to move into work. We are not complacent, and recognise that there is more we can do. We are looking to create an extra 3 million apprenticeships in the next Parliament to ensure that we have full employment for young people.

Barry Sheerman Portrait Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
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The Minister sounds so plausible and she has oh so many skills learned in the television trade, but she should pick up the Local Government Association report that said that so many young people in this country are being badly served and that there will be 2 million of them unemployed or under-employed in the next few years because the model that we have for helping young people is not fit for purpose and that after four and a half years she has done very little about it.

Esther McVey Portrait Esther McVey
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It would have been better had the hon. Gentleman stopped after his first sentence. Not only am I plausible—I was giving the true statistics. Let us be honest: it was the Opposition who said that unemployment would be up by a million at this stage. How wrong they were. [Interruption.] We have unemployment up by 2 million. [Interruption.] Sorry, the Opposition said that it would be down by a million. Employment levels are at a record high: more than 30.7 million people are now in work, putting the figures on a par with pre-recession rates.

Barry Sheerman Portrait Mr Sheerman
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indicated dissent.

Esther McVey Portrait Esther McVey
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The hon. Gentleman shakes his head, but rather than living on planet fantasy I ask him to look at the facts.

Nigel Evans Portrait Mr Nigel Evans (Ribble Valley) (Con)
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Youth unemployment in the Ribble Valley is relatively low. One of our great facilities, the jobcentre in Clitheroe, is currently under review and the suggestion is that it should close. Does the Minister accept that young people in rural areas have to travel large distances to get to a jobcentre? As these jobcentres are important, they should not be told to get on a bus to Blackburn.

Esther McVey Portrait Esther McVey
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My hon. Friend is right that jobcentres are important. The question is how we best support jobcentres and claimants. Can young people in rural areas make their claim on the phone or online, and can we align various other organisations so that they can come together and help support people in a fully rounded way? Obviously, what we are doing is right, because, as he says, in his area employment is up and unemployment is down.

Barry Gardiner Portrait Barry Gardiner (Brent North) (Lab)
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The Minister budgeted for 160,000 young people to complete the Youth Contract wage incentive payments. When the Department pulled the plug on that scheme, fewer than 10,000 young people had actually completed the 26 weeks on the programme. Will she tell the House what went wrong?

Esther McVey Portrait Esther McVey
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What I will do is tell the House what went right, as that is what people want to know. We have a record number of young people in work. We had a £1 billion Youth Contract, within which was an array of different opportunities—work experience, sector-based work academies and wage incentives. Working with businesses, we found that work experience, sector-based work academies and apprenticeships were the things that they want, and they are the ones offering the jobs. We have seen 40,000 young people—not 10,000 young people—start in that way. We have redeployed the money from the Youth Contract to areas where it will be most effective. The situation is far from what the hon. Gentleman outlined, as what we are doing is working.

Cathy Jamieson Portrait Cathy Jamieson (Kilmarnock and Loudoun) (Lab/Co-op)
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7. What the average waiting time is for an assessment for personal independence payment.

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Chris White Portrait Chris White (Warwick and Leamington) (Con)
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T2. The number of young people claiming jobseeker’s allowance in Warwick and Leamington has fallen by 70% since April 2010. Will the Minister join me in congratulating local businesses and the young people who work so hard to make this possible, and outline what measures are being taken to ensure that this trend continues?

Esther McVey Portrait The Minister for Employment (Esther McVey)
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I will indeed join my hon. Friend in congratulating not only the businesses that are supporting young people into work but the young people who have now got a job and are on their career journey, which we hope will be successful for them. Equally, I congratulate my hon. Friend on having a jobs fair in Leamington town hall and helping more people into work. It is Members on the Government Benches who are having jobs fair after jobs fair and really looking at ways to help people into work. [Interruption.] Rather than chuntering, it would be good if Opposition Members copied what we are doing.

Kerry McCarthy Portrait Kerry McCarthy (Bristol East) (Lab)
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T4. A couple of weeks ago, a very disturbing press report said that teachers are having to resort to spending their reserves, or even the pupil premium money, on providing food, clothes, transport, beds, and even ovens for children living in poverty because they take the view that if children are not fed and have nowhere to sleep, they will never be able to achieve educationally. Is it not an absolute disgrace that schools are having to resort to that because the safety net is not there to meet the fundamental needs of these children?

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Nick de Bois Portrait Nick de Bois (Enfield North) (Con)
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T9. Ministers will be aware that another first for this side of the House is the launch of the Enfield over-50s jobs forum, helping to break down the barriers of getting older people back into work. Will Ministers meet me and support the vast number of local and national companies that have got behind it and fully support it?

Esther McVey Portrait Esther McVey
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I will indeed meet my hon. Friend. I congratulate him on all the work he is doing, not just on job fairs in general but in supporting people over 50. He has developed something unique to help people have fuller working lives. I would be delighted to take forward what he is doing. In fact, I have looked at it, the Department now has a hold of it, and we are going to spread it right across the country.

Baroness Keeley Portrait Barbara Keeley (Worsley and Eccles South) (Lab)
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In earlier questions on the bedroom tax, it was not mentioned that this unfair charge hits 60,000 unpaid family carers, many of whom are not able to move from adapted homes. They cannot move into work, they cannot take extra hours and they need those additional rooms, which are essential for getting enough sleep to enable them to carry on caring. Is it not about time that we accepted that they should be exempt from the bedroom tax?

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Jeremy Lefroy Portrait Jeremy Lefroy (Stafford) (Con)
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I welcome the fall in the number of JSA claimants in my constituency from more than 1,500 to below 700 since 2010. However, one area in which we face significant recruitment problems is nursing. That is a problem not just in Staffordshire but across the country. Will the Secretary of State talk to the Secretary of State for Health to see whether we can increase the number of training places at universities across the country?

Esther McVey Portrait Esther McVey
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We will indeed speak to all the Departments to ensure that more people are recruited in different areas all the time. We speak to trade associations, national employers and other Departments. The wonderful news, which will be celebrated in all parts of the House, is that record numbers of people are in employment.

Mark Durkan Portrait Mark Durkan (Foyle) (SDLP)
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Will the Secretary of State update us on the work that is being done to prepare for the application of the welfare cap? Will he say whether that work has been informed by devolution considerations?

Parliamentary Under-Secretary of State for Welfare Reform (Disabled People)

Esther McVey Excerpts
Tuesday 28th October 2014

(9 years, 11 months ago)

Commons Chamber
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Esther McVey Portrait The Minister for Employment (Esther McVey)
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I want first to congratulate the hon. Member for Heywood and Middleton (Liz McInnes) on her maiden speech. It was delivered with humour, confidence and skill. I look forward to her future contributions in the House. I would also like to pay tribute to her predecessor, Jim Dobbin, a Member of the House who was much respected and well liked in all parts of the House. He will be sorely missed.

Returning to today’s motion and debate, there is one point on which there is consensus and on which we all agree, which is that the words used by my noble Friend Lord Freud were wrong. And do you know what? He came forward immediately and said the same thing: he agreed. He apologised without reservation for his words and then went on to explain fully how he listened to the pleas of a father of a disabled child saying what he would do, who had used his same words. For clarity, nothing that my noble Friend said on that occasion was Government policy—not now and not in the future. National minimum wage entitlement applies to workers whether they are disabled or non-disabled. That is the Government’s policy.

Let me confirm that this Government’s overarching ambition is to enable disabled people to fulfil their potential and fulfil their ambitions. The UK has a proud history of furthering the rights of disabled people. I am pleased to say that even in these very tough economic times, this Government have continued that progress and continued to maintain this country as a world leader in the support it gives to disabled people, spending £60 billion a year on benefits and support for those who face the greatest barriers to enable them to participate fully in society. We spend nearly double the OECD average, a fifth more than the European average, double what America spends and six times what Japan spends. In every year up to 2017-18, we will be spending more on disability benefits than in 2009-10.

Let me explain what has happened over the last few years. No one would know this from listening to today’s debate, but there are now nearly 3 million disabled people in work, which is up 116,000 this year. Access to Work is helping more people—5,000 more than in 2011-12. An extra £15 million has been put into that programme. Attainment levels for pupils with special educational needs have increased since 2010-11 at both GCSE and A-level. The number of disabled students gaining their first degree has increased from nearly 32,000 to nearly 40,000 now. We have also reduced the proportion of disabled people in relative income poverty. These are the things that are happening. Social participation has increased. Sports participation has increased. Those are the facts that we need to set out.

We have heard Members of the House deliver some powerful speeches today. Let me turn first to my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard), who said, “I want to look past labels; I want to make the world a better place. Isn’t that why most of us came into this House?” I believe that is true. He talked about the work he has done on disability hate crime. When I was the Minister for disabled people, I visited the work he was doing providing safe places for people to come forward and explain what was happening to them. He has played a key and crucial part in the journey towards people feeling able to come forward and talk about the issue.

Many Members asked why we, in the epicentre of democracy and the home of free speech, should not be able to talk about the matters that really concern the public. Should we not be able to tackle them head-on, without shying away from some of the difficult issues? Was that not what Lord Freud was trying to do? My hon. Friend the Member for Thurrock (Jackie Doyle-Price) said that most clearly, as did my hon. Friends the Members for South Derbyshire (Heather Wheeler) and for Ipswich (Ben Gummer).

I want to move on to something that I hoped today’s debate would touch on, but it did not. I am going to read out what a mum, Candice Baxter from Grimsby, said. It would have been better if more time had been devoted today to listening to what some people who heard Lord Freud’s words had to say about them. She said:

“My daughter’s ambition is to get a job in an office. She has Down’s syndrome. She thinks that, if she works hard, someone, somewhere will give her a job. At £6.50 an hour, it’s never going to happen.”

Maybe at something else, it could. She continued:

“The minimum wage protects from unscrupulous employers. But for my child, it is a barrier to meaningful employment. Indeed, because of the minimum wage, she is destined for a life of short-lived, voluntary non-jobs”.

This is the mother of a disabled child, and she wanted this issue debated here today, but we never debated it. What we did was just talk about what Lord Freud said. This demonstrates what parents of disabled people wanted the debate to be about. The hon. Member for Stretford and Urmston (Kate Green), who should have talked about that, did not do so.

Esther McVey Portrait Esther McVey
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I will not give way. I have listened to points raised for several hours, and many of them were wrong, particularly those about the Work programme and how we are helping disabled people through it. Over 60,000 people have got a job from the Work programme, which is now on track to deliver a 17% higher performance than Pathways to Work. That means it is supporting an additional 7,000 people back into work. Furthermore, the Work programme is helping more people than any previous employment programme did, which I think needs to be put on the record.

When we talked about Remploy and the staff who used to work there, a couple of points made by the right hon. Member for East Ham (Stephen Timms) were wrong. In fact, 80% of former employees have now found jobs or are receiving specialist tailored employment and support to help them find one. These are the sort of things we are doing to help disabled people, as well as helping an extra 116,000 people into work in the last year.

When we talk about positive initiatives moving forward, I was delighted to be part of the Government who introduced Disability Confident, which was about moving forward and working with employers. How do we best engage with employers? It is about having a conversation with and listening to them, but it is equally for them to understand—this is where we started the conversation with employers—that the disability pound is worth £80 billion a year. It makes sense for employers to get involved with the disability movement and employ more disabled people. When they looked at the issue in a logical way and thought about who were the people shopping in their stores and listening to the things they were saying, they realised that they should get on board with Disability Confident. I am pleased to say that 1,100 companies are involved. That conversation has partly led to 116,000 more disabled people getting into work this year.

As for media coverage, we all agree that it is totally wrong to stereotype people or depict them in a negative way. That is why I was pleased to arrange a round table and to secure a motion for moving forward with some of the main players in the media to make sure that they employed more disabled people—not just in front of screen, but behind screen. They are now creating the programmes and the words said and moving forward so that everybody is portrayed in the best possible light.

We have to reject the motion, because it is absolutely wrong, although many Government Members suggested that it would be best for us not to vote on it, and for the Opposition to remove it. We have every confidence in Lord Freud, who has done so much—working for both this Government and the Labour Government—to advance the status and the job outcomes of disabled people.

Question put.

Employment, Social Policy, Health and Consumer Affairs Council

Esther McVey Excerpts
Thursday 23rd October 2014

(9 years, 11 months ago)

Written Statements
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Esther McVey Portrait The Minister for Employment (Esther McVey)
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The Employment, Social Policy, Health and Consumer Affairs Council met on 16 October 2014 in Luxembourg. I represented the United Kingdom.

The Council agreed a general approach on a proposal for a decision of the European Parliament and of the Council establishing a European platform to enhance co-operation in the prevention and deterrence of undeclared work. Through negotiation we have achieved textual changes which clarify that participation in activities arising from the platform’s discussions will be voluntary. The UK abstained on this vote due to parliamentary scrutiny reserve.

There was a policy debate on the mid-term review of the Europe 2020 strategy, including the evaluation of the European semester. There was general agreement between member states on the future direction of the Europe 2020 strategy; the mid-term review; and the evaluation of the European semester. The UK expressed continued support for Europe 2020 and a renewed emphasis on economic and employment growth. The UK also highlighted the need to avoid new tools of EU governance. As part of this discussion, the Council endorsed the joint opinion presented by the Employment Committee (EMCO) and Social Protection Committee (SPC). The Council also endorsed the SPC report on social policy reforms for a fair and competitive Europe.

Under any other business, the Commission delivered a presentation on a shortfall in the European social fund budget. The UK intervened to set out that while the backlog of unpaid commitments was an issue that needed to be addressed, the Commission should be managing such spending pressures. The Italian presidency provided information to the Council on the September 2014 G20 Labour and Employment Ministers’ meeting. It also provided an update on the proposed tripartite social summit and on other ongoing issues. Finally, the Council paid tribute to the outgoing Employment Commissioner Laszlo Andor, thanking him for his commitment to social reforms.

Separated Families Initiative

Esther McVey Excerpts
Tuesday 21st October 2014

(9 years, 11 months ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Esther McVey Portrait The Minister for Employment (Esther McVey)
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It is a pleasure, Mr Streeter, to serve under your chairmanship. My right hon. Friend the Minister for Pensions could not be here today, but I am happy to respond as best I can, and if I do not have the full information, I will write to hon. Members individually. I thank the hon. Member for Edinburgh East (Sheila Gilmore) for securing this important debate. As a former family lawyer, she takes a close interest in the matter. I welcome the opportunity to talk about the support that the Government are putting in place for separated families, including through our child maintenance system.

Before I explain what we are doing and what we are putting in place, it is important to look at the present system—the Child Support Agency. We may view it with rose-coloured spectacles but, as many hon. Members have pointed out, how many people have come to our surgeries complaining that it does not work and has not been helpful? How many people have said they have never seen the money they hoped they would receive? That system has not functioned since it was put in place; only about half of parents receive child maintenance, and we remember the significant IT failings at the beginning.

The system is expensive to run, costing almost £500 million; it awards about £1 billion. It has complex calculation rules and a slow assessment process. We must take that on board when talking about it. On top of that, it never really put the child at the centre, nor did it resolve conflict.

Sheila Gilmore Portrait Sheila Gilmore
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Was the system not set up because the preceding arrangements, which were a mixture of people trying to make their own arrangements and the courts intervening, also had severe failures? This is a complex subject that requires a lot of care and attention. We should not necessarily think that the problem lies in having a statutory system, although that seems to be the Government’s view.

Esther McVey Portrait Esther McVey
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No, we have to look at what has worked throughout this journey, so that we can use whatever worked with the CSA and on the ground with families. We must go into the process knowing that, without a shadow of doubt, it is complex. This is about families, emotions and relationships that are not working, but what are we trying to do? We all agree that the sad reality is that too many people are affected by separation and, too often, it is the children who suffer the consequences. In Britain today, there are 2.5 million separated families, and one in three children live in households in which their mother or father no longer lives at home. As my hon. Friend the Member for East Worthing and Shoreham (Tim Loughton) said, the cost of family breakdown is £48 billion, and he spoke about parental alienation; what are we going to do there, too?

This Government believe passionately in strong families who can provide the stability that is vital to enable children to thrive. The family environment provides the foundation for raising a child, and we are committed to supporting safe and loving family environments. When parents’ relationships break down, we want to help parents to work together more effectively, so it is important to reduce levels of conflict after a separation and to minimise the negative impacts on the children. That is key. As I think we have all agreed today, this is about moving the child to the centre of what we are doing and focusing on their needs.

We do not need to increase conflict; we want to minimise that as best we can. Where we can help people to have a more conducive family environment, that has to be key, because conflict between parents puts children at a greater risk of anxiety, depression and antisocial behaviour, but when children continue to have positive relationships with both parents, they are more likely to do better at school, stay out of trouble, have higher self-esteem and develop healthier relationships as an adult. That was part of the “Impact of Family Breakdown on Children’s Well-Being” evidence review, so that is the context in which we have to view the changes. How do we support those young children going forward? How do we do the best for them?

That is why we have invested some £14 million in the Help and Support for Separated Families initiative, which has various parts to it: the Sorting out Separation online information tool; the HSSF mark; telephony training to promote parental collaboration; and the innovation fund. On the Sorting out Separation service, we have looked at how many people are using that and going on to the website. Some 205,000 visitors have accessed it since it was launched, 120,000 of those being unique visitors. That is close to what we had hoped for, and not to the numbers mentioned by the hon. Member for Edinburgh East.

Kate Green Portrait Kate Green
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I recognise the overall figure that the Minister gave for the number of visitors to the site, but the point that my hon. Friend the Member for Edinburgh East (Sheila Gilmore) and I were making was about the number of people who then click through to a signposting element of the site. I wonder whether the figures that the Minister is quoting are actually about those people, because clearly, merely visiting is not about taking action, or even thinking about taking action, beyond the initial turning-up.

Esther McVey Portrait Esther McVey
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I have spoken to people who use the site, and I have been on the site myself. There is a lot of information that people can get from it, and there are names and links to the various organisations that they might want to go to. It is not a site where people would do everything at once. They would jot the names down, follow up what they want to, and speak to friends and to other people who would signpost them to the relevant places. What I am explaining is that people do not need to link through; they could get all the information just by going through the site. However, the actual linking through is nearly double what the hon. Member for Edinburgh East said; it is over 9,000. I think we need to look at this in the round. Could people get all the information they want? Could they go back to Google and put in the names that they got from that website? Yes, they could. There are different things that people can go to via that website.

Sheila Gilmore Portrait Sheila Gilmore
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Although I would acknowledge that people might want to go back and do it later, one test of a good website—anybody who is designing one or using one will look at this—is whether it is click-through, and how many people do that. Opening up the website up is not sufficient. Why would we think, “It is all right; we expect people to write it all down, and then type it all in,” when it would be just as quick to go through and get that information? Surely the Minister has to look at that and say, “This may be failing.”

Esther McVey Portrait Esther McVey
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As I said, I have talked to people I know who have used the site, and I have used it myself. The number of click-throughs is nearly double what has been claimed. Equally, it is a usable site in its current form, and people can get all the information that they want from it, then and there. People might reflect and, later on, type all the information into a Google search, so I do not necessarily follow the logic that everybody straight away would have to click through. I have done research among people who have used it, and they did not feel that they needed to do it that way. We are measuring all those who have accessed the site, unique visitors and click-throughs.

We have already begun work on improvements and enhancements to the site. One of those, which my right hon. Friend the Minister for Pensions talked about, was optimising the service online, making it easier for people to reach out and go to that website. Search engine optimisation also means that users can find the relevant pages without necessarily going via the homepage. More people are coming to Sorting out Separation, clicking beyond the homepage and spending more time on specific pages. If they are spending more time on specific pages, that shows that the information has reached out and is speaking to them, and that they are taking more time to read what is on the page.

There are now over 350 HSSF mark holders; the overwhelming majority of those have been awarded the mark via our five umbrella organisations, which is a real indication that the appetite for the mark remains high, and we continue to receive applications from organisations that wish to be assessed. It is particularly reassuring to see the diversity of organisations keen to carry the mark, and the range of excellent support and expertise for families. I want to pay tribute to all the organisations that do valuable work to support families at what can be, as we all know, a very distressing time.

On the question of promotion, mark holders have told us that they are best placed to promote the mark to their clients. It is encouraging that these organisations want to support the HSSF initiative, and we are working closely with them through regular forums to develop a promotion strategy that can take into account the pivotal role that they play in targeting properly the promotion activity, in explaining to parents what the mark stands for and what to look out for, and in parents knowing what they are getting when they see that mark.

The HSSF telephony training is designed to make sure that separated parents get consistent information, messaging and onward support. It is not a network in the traditional sense of one phone line supported by one piece of infrastructure, but over 300 agents have received the tailored training, meaning that the benefits of collaboration can be promoted to parents, regardless of which of the partner organisations’ helplines parents choose to use.

The bulk of the HSSF investment—some £10 million—is being spent on the innovation fund to support separated families, with the aim of helping parents who are going through separation to work together to resolve that conflict. The 17 projects have collectively engaged with 53,500 parents up to September 2014. The hon. Member for Airdrie and Shotts (Pamela Nash) asked whether we were reaching out to those who have been separated longest, who might have the most trying of relationships, and yes, indeed, that is what we are trying to do. We have gone for really innovative projects, looking for greater engagement. Those are the kinds of people whom we will look to help. The hon. Lady also asked about a specific case. I am happy to get my officials to look at that case, see what is happening, and see how we can resolve that issue.

Hon. Members will know that one of the projects, the family decision making service, funds three key Scotland-based organisations to work much more closely together to enable parents to get help on the wide range of issues that they face during separation. For example, a father recently called Children 1st in Scotland for help. He wanted to know about his rights, and to find out what he should do with regards to arranging contact with his son. Children 1st advised him of the family decision making service and asked if he wished for further advice. The father agreed that he did, and he was transferred to the Scottish Child Law Centre, after which the organisations worked together to provide the help that he needed on all the issues that he faced.

This is what we are trying to do—to get all the agencies working together to best provide the support that is needed. In these instances, the information that we are getting back is that the system has helped. People have managed to follow a clear process and have got the result that they needed. This method of transfer ensured that the father I referred to did not need to repeat himself, and that all the elements of the situation were dealt with through one joined-up service. As a result, the father said that he left feeling clear about his options and very confident about setting up an amicable, family-based parenting arrangement that covered finance and his contact arrangements with his son. Those are the outcomes that we want to pursue and obtain. We want people to be able to follow the path that that family followed, although we know that everyone’s circumstances are different.

As part of these interventions, most projects try to work with parents to establish parenting arrangements, which include child maintenance. Measuring the success of the projects in helping parents to establish those types of arrangements will form part of the evaluation. Evaluation will be crucial to determining the learning from the projects, and we are in the process of procuring an external evaluator to ensure that there is an independent assessment of the projects. The independent evaluator will assess the performance of each project separately, and those results will be published after the projects close and sufficient time has passed to analyse and assess performance. We do, however, have some good news stories about what has happened so far to help families.

Sheila Gilmore Portrait Sheila Gilmore
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The Minister appears to be telling us that the process of finding an evaluator is still ongoing. Can she say how close that is to being done? We are virtually in November, and many of the projects are due to finish at the end of March next year; that is a very short time in which to carry out an evaluation, and it is very unusual to be evaluating so late in the process, not having set up the arrangement in advance. Is it true that part of the reason for the hold-up was the Department for Work and Pensions having concerns about data protection? Will it be possible to scale up the projects in any sensible way soon after March next year?

Esther McVey Portrait Esther McVey
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I can tell the hon. Lady that we will provide further details as part of our overall evaluation strategy, which we expect to publish by the end of this year.

I was giving details of what was working, what we know is happening and various innovative projects. For example, a Birmingham project run by Malachi recently worked very closely with both the mother and the father of a boy who had been excluded from school because of bad behaviour, and who had not seen his father in three years. Now, following the intervention, the father spends time with his son regularly and contributes financially to the child’s household, and the child’s teacher has confirmed that his behaviour at school has dramatically improved. That is what we want to happen. Those are the outcomes that we want.

Of course this is about finances; we know that. The CSA was not necessarily providing that. We need to work with families and the child’s surroundings more generally, and get the father seeing the son. We need the son not to be excluded from school and to have better attendance, which will allow him a better education and support him later in life. It is right that a key strategy and raison d’être of this Government is fighting child poverty, and fighting poverty full stop. How do we go about that? It is through education. It is about getting people into work. It is about supporting the family. All these things have to be key, and not just now, for those parents who have made their decision. They have brought a child into the world; how do we as a society protect that child? That is the only way to prevent poverty.

Kate Green Portrait Kate Green
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The Minister is being rather ambitious if she thinks that the HSSF projects will provide all those very laudable outcomes in and of themselves. The anecdotes are very helpful and give us a flavour of the projects that are being conducted, but can she assure us that the evaluation will go well beyond anecdote? We want to be able to look at data and trends. In particular, Opposition Members want to see the number of parents who are receiving maintenance, the amount that they are receiving, the sustainability of that maintenance and the proportion of children who are benefiting from it.

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Esther McVey Portrait Esther McVey
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As I said, we will provide further information on that, and hon. Members will have that by the end of the year.

A point was raised about the 38% drop in applications. Of course we felt that there would be a drop, but not that great. However, as the application fees have been in effect for less than four months, it would be imprudent to draw any meaningful conclusions from the early data—the data that we have so far. The Department will continue to monitor the rates of application to the 2012 scheme, but the correct time frame in which to consider the effects of the reforms will be in the 30-month review. That is what we have to continue to do. The overall objectives and aims were set out in our strategy, in the bids. That is what we are looking for. Of course the projects will be evaluated and monitored. As I said, we are hoping to bring that information to the House by the end of the year.

In addition to the help and support for separated families, it will be helpful to touch on the support available as part of our reforms to child maintenance. We know that after a relationship breakdown, most parents still want what is best for their children. It is increasingly the norm for parents to be doing what is right by their children and contributing to the children’s upbringing, even if they do not live with them any more. Central to our reforms of the child maintenance system is our belief that turning to the statutory service need not be the default position for all families. We do not believe that Government intervention in setting up a child maintenance arrangement is either necessary or beneficial in the majority of cases. It not only puts an unnecessary barrier between parents, but can increase conflict and reduce the incentive for them to work together.

Sheila Gilmore Portrait Sheila Gilmore
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I am grateful to the Minister for reiterating the Government’s position, which is what we have heard ever since the proposals were put into the Bill that became the Welfare Reform Act 2012. The aims are very clear. The issue is: is that happening? Is it working? Is the kind of support and advice that has been set up scalable? Are there any plans to fund this beyond next March?

Esther McVey Portrait Esther McVey
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I will come to those points, but I believe that it is important that we put in context what we are doing, who we believe should be sorting out the arrangements and how best we can help these families—the mum and the dad—to put the arrangements in place. That is why we believe that family-based child maintenance arrangements are often the best option, and we want to encourage and support families to achieve those. We also recognise that separated parents will need a service that helps them to consider all their options in the light of the introduction of charging for the statutory child maintenance system and the process to close Child Support Agency cases, so, since November, the child maintenance options service has also become the gateway to the statutory child maintenance service. The gateway is flexible and personalised to each individual. It uses the same empathetic approach and is designed to ensure that parents can consider the full range of options, including making family-based child maintenance arrangements.

Where appropriate, the child maintenance options service promotes the benefits of making a family-based arrangement with parents, helps them to overcome the barriers that they face to working together, and provides them with the tools to make effective arrangements. The service also continues to signpost to other specialist sources of support.

The Government are committed to helping and supporting the family, which is why the HSSF initiative and child maintenance reforms are a key part of our overall social justice strategy. As part of that, we are bringing relationship support policy into one Department, with the DWP investing £30 million to deliver successfully marriage preparation, couples counselling and relationship education.

We will take forward recommendations from the family stability review. We will introduce perinatal pilots to provide information to expectant couples about the impact that having a baby will have on their relationship, as well as strategies on how to address conflict. All of that is part of a journey—having a family, and understanding those extra pressures and what will happen in a way that maintains family stability. The hope is that parents will not get to the point at which they are looking to separate and have to deal with the fallout from that. All this has to be part of an ongoing strategy.

We have also announced our plans for local family offer trials—

Gary Streeter Portrait Mr Gary Streeter (in the Chair)
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Order. Our time is done. We must move on to the next debate. Will colleagues leaving the Chamber please do so quietly?

Employment, Social Policy, Health and Consumers Affairs Council

Esther McVey Excerpts
Thursday 16th October 2014

(9 years, 11 months ago)

Written Statements
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Esther McVey Portrait The Minister for Employment (Esther McVey)
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Today I will attend the Employment, Social Policy, Health and Consumer Affairs Council in Luxembourg.

The Council will seek a general approach on a Council decision on establishing a European platform to enhance co-operation in the prevention and deterrence of undeclared work.

There will be a policy debate on the mid-term review of the Europe 2020 Strategy, including the evaluation of the European semester. As part of this, the Council is asked to endorse the joint opinion presented by the Employment Committee (EMCO) and Social Protection Committee (SPC). The Council is also asked to endorse the Social Protection Committee’s report on social policy reforms for a fair and competitive Europe.

Under any other business the Italian presidency will provide information to the Council on the September 2014 G20 Labour and Employment Ministers' meeting. It will provide an update on the proposed Tripartite Social summit, and finally will report on other ongoing issues.

Oral Answers to Questions

Esther McVey Excerpts
Monday 1st September 2014

(10 years, 1 month ago)

Commons Chamber
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Paul Uppal Portrait Paul Uppal (Wolverhampton South West) (Con)
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12. What support his Department is providing for young people seeking employment.

Esther McVey Portrait The Minister for Employment (Esther McVey)
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Young people are offered extra support through the Youth Contract and the Work programme. I am pleased to be able to say that we have seen the largest annual fall in youth unemployment since records began, and the youth claimant count is nearly 188,000 lower than at the 2010 general election. However, we are not complacent. There is more we can do, and we are piloting new schemes for additional support for 18 to 21-year-olds.

Paul Uppal Portrait Paul Uppal
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Since 2010, more than 2,660 people have started an apprenticeship in my constituency. Will the Minister elaborate on further Government initiatives to make sure that young people in particular receive invaluable work experience?

Esther McVey Portrait Esther McVey
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I thank my hon. Friend for the work he is doing in his constituency by helping to set up the Wolverhampton employment network, bringing employers and the local college together. We are doing many more things: not only are there over 1 million more young people on apprenticeships now, but we have had 150,000 on work experience placements since 2012, and 60,000 in sector-based work academies. In his constituency, we have had 370 on work experience, and 120 in sector-based work academies.

Stephen Timms Portrait Stephen Timms (East Ham) (Lab)
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Youth Contract wage subsidies were an attempt, albeit half-baked, to tackle youth unemployment, but they were abruptly scrapped just before the summer recess, despite an official promise that they would be available for people applying up until next April. Why have they been scrapped? Has the Minister seen that the CBI is pointing out that “young people are struggling”, and that the biggest single cause of long-term disadvantage is “unemployment early on”?

Esther McVey Portrait Esther McVey
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It seems that only the Labour party is still calling for incentive schemes and guarantee schemes. Even Europe is now saying what a good job the UK is doing on youth unemployment and looking at how we are moving forward. We had a wage incentive scheme, but that has stopped because we are moving the money into other areas where it is needed more. That is the right thing to do—spending the money where it will be used most effectively and efficiently. As I said, we have had the greatest annual number of young people going into work since records began.

Sarah Newton Portrait Sarah Newton (Truro and Falmouth) (Con)
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14. What progress his Department has made on its Disability Confident campaign.

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Martin Vickers Portrait Martin Vickers (Cleethorpes) (Con)
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15. What assessment he has made of recent trends in employment in (a) North Lincolnshire and (b) North East Lincolnshire local authority areas.

Esther McVey Portrait The Minister for Employment (Esther McVey)
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Simply put, the trends for employment are up. In North Lincolnshire, employment is up by 2,400 over the year and in North East Lincolnshire, employment is up by 600. Just like in the rest of the country, employment is up.

Martin Vickers Portrait Martin Vickers
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I thank the Minister for her reply and for her visit to my constituency a few weeks ago. Does she agree that it is not just Government policy that is leading to the fall in unemployment, but the excellent work that is done at jobcentres, such as the work that she witnessed at Immingham a few weeks ago?

Esther McVey Portrait Esther McVey
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I thank my hon. Friend for inviting me up there to see the good work that is done on the ground at his local Jobcentre Plus, including the initiatives that are happening through the flexible fund and the work that is relevant to that specific area. I had a long conversation with Stuart Griffiths, the area manager, who explained how they are helping young people and how they are helping more and more people into work.

Lord Bellingham Portrait Mr Henry Bellingham (North West Norfolk) (Con)
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T1. If he will make a statement on his departmental responsibilities.

Lord Bellingham Portrait Mr Bellingham
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Is the Secretary of State aware that since July last year, unemployment in my constituency has fallen by a very welcome 689 people? That means that nearly 700 more families have a new wage earner and hope for the future. That is surely a clear vindication of his reforms and our long-term economic plan.

Esther McVey Portrait The Minister for Employment (Esther McVey)
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I welcome everything that my hon. Friend has said about what is happening in his constituency. Such things are happening right across the country. The coalition Government—Conservative and Lib Dem colleagues—are developing a better Britain for all of us.

Rachel Reeves Portrait Rachel Reeves (Leeds West) (Lab)
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Two thirds of children in poverty now live in families in which somebody is working, and a record 5 million people are earning less than a living wage. In-work poverty is an injustice and an indignity to those who suffer it, but it also costs the taxpayer through the benefit system. Will the Secretary of State tell us by how much the spending on housing benefit for people in work is expected to increase between 2010 and 2018?

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Jake Berry Portrait Jake Berry (Rossendale and Darwen) (Con)
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Will my right hon. Friend join me in congratulating Rossendale jobcentre, which has just signed up nearly 45 people to its work experience programme, including me and my office? The first young person to come through my office on work experience, Liam, has just secured a job because of that work experience.

Esther McVey Portrait Esther McVey
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First off, three cheers for Liam for getting his job through work experience, as many other people are doing across the UK. Nearly 200,000 people have been on work experience since 2011, more than 40% of whom have got a job. That just shows that people can have a positive future when they have a Government like this in charge.

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Alison McGovern Portrait Alison McGovern (Wirral South) (Lab)
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A constituent of mine, an older, experienced woman, recently told me that when she was made redundant she got barely any help from our local jobcentre. It was therefore no surprise to me to see recent figures showing that the Work programme is getting a job for only one in eight workers over 50. Who is going to fix that—those who are running the Work programme or Ministers?

Esther McVey Portrait Esther McVey
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The Work programme has proved to be very successful. Some 1.5 million people who are long-term unemployed have been on it, and more than 500,000 of those have got a job. However, if that lady was only recently made unemployed, she would not have been going on the Work programme just then. We have a flexible fund to support people, and we are doing more to help people, extending their working lives.

Nigel Adams Portrait Nigel Adams (Selby and Ainsty) (Con)
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I know that Labour Members do not like encouraging news, but youth unemployment in Selby and Ainsty is down by more than a third since the last election, and much of that is down to apprenticeships. Will the Minister join me in thanking the employers who are taking on those youngsters, and encourage them to turn up at my jobs fair—the fourth one in Selby—on 9 October?

Esther McVey Portrait Esther McVey
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I certainly will—if you are an employer and have a job, please get down to the Selby jobs fair. That is absolutely right. That is what we are doing: we are getting the country back on its feet and helping young people as best we can—hence, we have more young people in work than since records began. I congratulate my hon. Friend on all the work he does on the ground.

Ian Paisley Portrait Ian Paisley (North Antrim) (DUP)
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Is the Secretary of State aware of the impending crisis to the stability of institutions in Northern Ireland as a result of the failure to implement significant reforms to the welfare system there? If he is aware of those threats, what message has he for Sinn Fein, which has failed to introduce those changes and appears to be more interested in the need of residents in Monaghan than those in Northern Ireland?

Remploy Employment Services

Esther McVey Excerpts
Tuesday 22nd July 2014

(10 years, 2 months ago)

Written Statements
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Esther McVey Portrait The Minister for Employment (Esther McVey)
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The Department will be launching a commercial process for Remploy Employment Services, a leading national provider of disability employment services. This will give the company the opportunity for a partner or investor to help develop it to its full potential and help more disabled people get into work.

Over the last few years Remploy Employment Services has gone from strength to strength in the support it provides disabled people to find and remain in work. It is one of the Department’s key providers of specialist support for disabled and disadvantaged people. By March 2015, it is estimated that Remploy Employment Services will have supported over 100,000 disabled and disadvantaged people into work since 2010.

The Remploy board has expressed its desire for Remploy Employment Services to be given the opportunity to take on significant investment and the Department has been working with it to identify if there is opportunity to do this in line with the Sayce review recommendations. We both agree that there is now an excellent opportunity for an investor or partner to acquire a significant stake in Remploy Employment Services and invest in its continued growth and development. This opportunity will provide the freedom and flexibility for the business to continue to grow and expand its mission by helping even more disabled people find sustainable employment.

The commercial process for Remploy Employment Services will be launched in the next week through the normal commercial channels and further details will be available then.

This process is seeking a partner or investor for Remploy Employment Services who will hold a significant stake in the business. We envisage that a joint venture will be created and employees will hold an interest in the operation of the company.

This could be through some shareholding held on the employees’ behalf in an employee benefit trust. However the specific structure and governance arrangement linked to the creation of a company will be subject to the negotiation undertaken as part of this process and the Department is interested in any proposals which will deliver the key objectives of this transaction.

The Department will have a contractual arrangement with the new company to continue Remploy Employment Services’ national delivery of Work Choice and other Departmental contracts and agreements which are expected to be transferred as part of this process. The partner/investor will need to demonstrate the commitment, capacity and capability to continue the delivery of Work Choice and continue to grow the business in line with Remploy’s mission.

We will ensure that the Remploy pension scheme continues to be funded and that the accrued benefits of members are protected.

Our key priority during this process will be to ensure that Remploy Employment Services becomes an independent sustainable business which continues to support disabled people in finding and remaining in employment.

Review of JSA Sanctions

Esther McVey Excerpts
Tuesday 22nd July 2014

(10 years, 2 months ago)

Written Statements
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Esther McVey Portrait The Minister for Employment (Esther McVey)
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In September 2013 Matthew Oakley was commissioned to undertake the independent review of the operation of jobseeker’s allowance sanctions validated by the Jobseekers Act 2013, as required by that Act. His report is published later today and I will publish alongside it the Government’s response.

The Oakley report says that

“Benefit sanctions provide a vital backstop in the social security system for jobseekers”

and there is clear evidence that sanctions are effective.

The Government are, however, far from complacent and I believe it is important to improve the system so it continues to work effectively. I have already started to make improvements and will build on this work through the recommendations that Matthew Oakley has made within his review.

The Government welcome and accept all his recommendations.