Welfare Reform (Cumbria)
Esther McVey Excerpts(10 years, 2 months ago)
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The Minister for Employment (Esther McVey)
It is a pleasure to serve under your chairmanship, Mr Dobbin, and to reply to the hon. Member for Copeland (Mr Reed). I congratulate him on securing the debate. I have listened closely to all that he has said, so I will answer all the points he has raised.
It is important to put the situation into context. When the Government came into office, it was clear that the welfare system we inherited was in need of reform and was not working. For far too long, Governments had shied away from making any significant reform, and we had ended up with a complex system that had numerous add-ons. It was complicated for all concerned. The benefit system frequently locked people into benefits rather than liberating them and allowing them to get into work. We had to look at that and think about how we could best sort out a complex system that had grown exponentially under Labour.
If we look at the costs, Labour spent £170 billion on tax credits between 2003-04 and 2010, and contributed to a 60% rise in the welfare bill. Supporting that bill was costing every individual an extra £3,000 a year, and 1.4 million people spent most of the past decade trapped on out-of-work benefits. Around 2.8 million people spent at least five years on some sort of out-of-work benefit. Youth unemployment rose by 45% and long-term unemployment doubled under Labour. Those were the things we had to tackle. The explosion in those numbers came during what some might have called a boom period, between 1997 and 2005.
It is worth noting that at the 2010 election, when we took over, there were 600,000 more people in relative poverty than there are today. There were 300,000 more children and 200,000 more pensioners in relative poverty. There were 400,000 more workless households and 50,000 more households in which no member of the household had ever worked. The hon. Gentleman’s contribution to the debate did not relate to the reality of those facts and figures.
Esther McVey
I am putting the situation in context and showing how many of the figures that the hon. Gentleman cited were inaccurate. I am putting into context why and how we are doing things. Today, the most recent employment statistics have been published. The aim of all our benefit changes has been to liberate people and help them to get into work, and today we have seen a record rate of people getting into work—a rate matched only pre-recession, in 2005. That is nearly 1 million extra people in work this year, and nearly 1.8 million people in work since 2010.
Esther McVey
I will give way to the hon. Gentleman if he will provide some facts rather than fantasy.
Mr Reed
Fantasy is the Minister’s exclusive preserve. We clearly disagree over the figures, so will she come to my constituency? Will she come and do a tour of Cumbria, meet people and speak to them about the realities of their lives and the effects of her policies? Yes or no?
Esther McVey
I was in Cumbria only a week or two ago, discussing those things. I get out regularly and speak to people right across the country, many of whom have told me how they had been abandoned on long-term unemployment, but not any more. Many of them have been on the Work programme and they have now got a job. About 5 million people have been through the Work programme and 300,000 have got sustained work.
Looking specifically at unemployment in Copeland, the hon. Gentleman will be delighted that unemployment has come down by 25%, long-term unemployment is down 30%, youth unemployment is down 36% and long-term youth unemployment is down 40%. That is specifically in his constituency, and those figures are not mine or the Government’s; they are the latest independent, verified figures. I would like the hon. Gentleman to apologise for what he said.
Esther McVey
There have always been people in work who find things hard. The figures I read out have significantly reduced under this Government. The process, ideology and thought behind universal credit is to ensure that work pays and that every extra hour worked pays, rather than having cliff edges as we had under the old system with which the hon. Gentleman was happy to live. People did not know whether it was right to get a job. They could be locked into benefits because there was a cliff edge at 16 hours a week. We have sought to remove all those things.
Cumbria county council has set up a county welfare reform group to keep a keen eye on the delivery and administration of welfare reform. A Jobcentre Plus manager is part of that group, enabling us to ensure that all concerns and worries are heard and addressed. I understand there is a good, close working relationship, so if anyone has any specific issues or concerns, they can go through Jobcentre Plus, and that is reflected in the survey of what goes on in the area. All of that is key.
There are nearly 24,000 Jobcentre Plus staff across the country. Their main aim is to support people by helping them with the benefits they need when they come through the door and by helping them into work. The Government have ensured that that relationship is more personal than ever before. We have introduced a claimant commitment, so that when someone comes in they can say, “This is what I hope to do,” and we will say, “Okay. How do we get you on that journey?” There has been a significant shift in the approach and in what people do. Perhaps the hon. Gentleman would like to visit his Jobcentre Plus and see that transformation in everything that happens.
Mr Reed
The Minister will appreciate that I have done that many times. The report makes it clear that there is an obvious competence deficit in the roll-out of these policies by the Department and Ministers. It is not only claimants who are saying that; people who work in jobcentres and non-party political figures such as the Bishop of Carlisle are saying it, too. Does the Minister regret the lack of competence in the entire policy platform?
Esther McVey
The chap obviously wants to write a press release—he wants to write something that is not true—to put in his local papers. Competence is not an issue. We have introduced some of the biggest ever welfare changes. We know they are working, because the things that the hon. Gentleman and his party talked about, such as double-dip and triple-dip recessions, never happened. They talked about an extra 1 million people being unemployed. It was wrong—it did not happen. He and his party put across terrible scare stories, but they did not happen. In fact, the total reverse happened. Nearly 2 million extra people are now in work, and they are predominantly full-time, permanent jobs. That is wonderful news. There are record rates of women in employment. Youth unemployment has fallen for 10 consecutive months, and it is now 127,000 lower than at the general election. Long-term youth unemployment is also lower than at the general election. I gave him the unemployment figures for his specific area, and they are all significantly down.
Mr Reed
I am uncertain whether the Minister is disputing the figures in the independent report. Will she be categorically clear about that? Does she accept the figures and the findings of the report? The Bishop of Carlisle and an independent group of people assessed the impact of welfare reform on Cumbria, not just my constituency. Are they wrong? Are their figures wrong? If they are, what is their motivation?
Esther McVey
Hang on a second. People produce figures that have not been fully authorised, cleared or passed off. Our figures have to go through the National Audit Office and independent bodies such as the International Labour Organisation because their estimation of what has happened are much more thorough and valid. Estimates based on very small samples may be right, but they can be distorted by the smallness of the sample.
I will now make a little headway, as I believe I have been generous in giving way. The hon. Gentleman has made many points that, as I have pointed out, are not particularly accurate or are distorted by the prism through which he wants to see things.
Esther McVey
No, I will not give way at the moment. We have talked about why the spare room subsidy was introduced—
Esther McVey
The hon. Gentleman wants to call it by another name. I am happy to call it by either name, but in statute it is the removal of the spare room subsidy. [Interruption.] The hon. Gentleman is smiling, so he obviously realises that his own party introduced it for the private rented sector in 2008. Indeed, his party was going to introduce it for the social rented sector, as we have read in Hansard. He is smiling and pretending that it is something that he might or might not do, but in reality it came from his party. Why did that come about? Because the housing bill had doubled in 10 years, reaching £26 billion, which we all know was a bill that we could not afford after the financial crash and after the biggest ever recession in peacetime since 1930.
Esther McVey
I am in order. I have given the employment stats for what is going on in the constituency of the hon. Member for Copeland, and I have spoken clearly about what is happening in his jobcentres. We are now talking clearly about what is going on in his constituency with the spare room subsidy. I am saying why those decisions were taken, because I cannot give a specific answer unless people know the generality.
What happened with the spare room subsidy? We could not afford it. Labour had already introduced the measure. We have to consider the 2 million people on the housing waiting list and the 400,000 people in overcrowded accommodation. We have to ask how we will support the taxpayers paying for it, who might not have spare bedrooms themselves, as well as the people on waiting lists and the people in overcrowded accommodation. We took a decision, which had to be that people with a spare bedroom who are more than happy to stay would now have to pay for that spare bedroom. We also said that we would treble discretionary housing payments for affected areas to allow people to move if they wanted.
Discretionary housing payments were given to six different areas in Cumbria, but interestingly, although councils that needed more money for discretionary housing payments applied for money from a £20 million pot shared across the country, Cumbria did not do that. There was not one bid. There could have been—if Cumbria had thought that it needed more money to help more people in the area, there was an extra pot of £20 million. Unfortunately, only £13 million was deployed to the various places that made requests, and £7 million went back to central Government. Places such as Copeland did not ask for that money, so it must have been deduced that they did not need the money. If the local MP would have liked to have helped his local council and constituents by doing a bit more prep and homework—rather than arguing afterwards, once he had missed the money and once the money had been spent—he could have got some of that money and helped the constituents he is talking about. Unfortunately, he chose not to do that.
We were talking about how PIP is being introduced and why. DLA spending had increased considerably, and there is still an increase in expenditure. DLA has not been cut—it has been increased; it is just not growing as rapidly as in the past. What we had seen under DLA, which is why we are changing it, was that people did not have additional corroborating medical evidence. More than half of DLA claims do not have such evidence, so we are saying, “Under this Government, and in this Parliament, we will give out this money and we will support people as best we can, but we need to focus that money on those who need it the most. It is therefore vital that we have that corroborating medical evidence.” That is what we are doing.
Jobcentre Plus
Esther McVey Excerpts(10 years, 2 months ago)
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The Minister of State, Department for Work and Pensions (Esther McVey)
It is a pleasure to serve under your chairmanship, Mr Amess, as everybody has said. I thank the Select Committee on Work and Pensions for its work on the report that we have been discussing. The Government welcome the Committee’s endorsement of the role of Jobcentre Plus in a reformed welfare system. Through the recession and into the period of recovery, it has provided good value for money and excellent levels of service to claimants and employers.
With employment rising to record levels, unemployment falling and sustained reductions in the number of people on welfare benefits, Jobcentre Plus continues to be a model other countries follow. As the right hon. Member for East Ham (Stephen Timms) said, they use it in Germany. They totally copied it and are following our model, as other countries are coming to follow what we do. More recently, the creation of Jobcentre Plus is reckoned to have raised national GDP by 0.1%—worth £5.5 billion to the UK economy by 2015.
The achievements of Jobcentre Plus stand as a testament to the hard work and dedication of the Department’s staff. I thank the staff who came into work today to ensure that all our jobcentres are open and that everybody who requests to see an adviser can do so. Despite staff reductions, Jobcentre Plus continues to make a major contribution to improvements in our labour market. We know that more people are working now than ever before: a record 30.5 million, up 780,000 over the past year and 1.7 million since 2010. That is a record-breaking number of people into work in a year, and it must be down not only to the hard-working staff of Jobcentre Plus but to all the people working so hard in the welfare to work industry.
The unemployment rate has fallen in every country and region of the UK over the last year. We have had the largest annual fall in long-term unemployment since 1998: 108,000 in just one year. The Work programme, which was set up in June 2011, has made a major contribution to that fall—the biggest since 1998, as I said. We have seen 1.5 million people go through the Work programme. Of those, 550,000 have got a job start and 300,000 have gone into sustained work. That is a significant contribution. I agree with the National Audit Office that the programme had a slow start, but it has improved considerably and its stretching targets will be achieved by its end.
If people have read the NAO report, they will know that the Work programme will actually be 12% better than the flexible new deal and 17% better than the pathways scheme once we have completed our work. It is therefore undoubtedly better than any other programme that has gone before, despite its being talked down. It is hard for me to reconcile what I have heard today with what the NAO agreed, which has to be welcomed.
When I looked into the sanctions applied under the Labour Government’s pathways into work scheme, I saw that they were significantly higher for ESA claimants. It is interesting to note the difference between what has been said today and what the previous Government delivered.
Pamela Nash
I admit that I have not seen the NAO figures, but is there any specific focus on youth unemployment? Although unemployment figures are coming down—I completely welcome that and the success in my constituency—youth unemployment is not coming down at anything close to the same speed, particularly not in my constituency. Is there any focus on how the Work programme is affecting youth unemployment?
Esther McVey
If the hon. Lady had looked at the youth unemployment figures, she would welcome them as much as I have. We have had nine consecutive months of decreasing unemployment, and the figure is now nearly 100,000 lower than at the general election. We have given significant focus and support. We have put in place a youth contract that helps people with work experience—I am delighted that people now agree how important that is—and 180,000 people have now gone on work experience. Of those, around 150,000 have been young people—other people are eligible—and 40% have got a job. So I feel I have answered the hon. Lady’s question—
Esther McVey
We have done a considerable amount of work and we continue to do so. That is key and should be welcomed. Youth unemployment has fallen across the country.
Esther McVey
We know that at the heart of the Government’s plan is the desire to build a stronger, more competitive economy.
Esther McVey
I will give way in a moment, but I want to ensure that we hear what Jobcentre Plus is actually delivering, which is a significant amount. I want people to understand how the more than 26,000 jobcentre staff are helping people and how many people come through the doors each day.
Stephen Timms
I have just been looking at the National Audit Office report, which seems slightly different from the impression the Minister is giving. A press release on the NAO website from 2 July says:
“After a poor start, the performance of the Work Programme is at similar levels to previous programmes, according to a report today by the National Audit Office.”
It also says:
“The Programme has…not improved performance for harder-to-help groups compared to previous schemes.”
Esther McVey
I will give the right hon. Gentleman greater clarification: that was at the very start of the scheme in June 2011, but the report says that, given the way performance has increased and what would be expected by the end of the programme, it would be 17% better than the pathways to work programme.
Stephen Timms
As the Minister says, the report does make the point that the Work programme got off to a rocky start and has improved, but its conclusion is currently that the programme has
“not improved”—
this is now, not at the start—
“performance for harder-to-help groups compared to previous schemes.”
Esther McVey
If the right hon. Gentleman looks into all the footnotes, everything associated and all the figures about what is expected by the end of the programme, he will find the numbers I cited. I can get the report out and go through it—I know that he has been flicking quickly to various points on his iPad, but I can give the full report because I went through it in quite some detail.
We are here to look at what Jobcentre Plus has been doing. It has carried out more than 25 million adviser interviews to help to prepare people for work. We talk about the scale; it is huge. Jobcentre Plus advertises 4 million job vacancies for around 390,000 employers. More than 97% of our JSA claims were processed within 16 days—an improvement of 10% from last year. The process of continual improvement that we talk about is happening.
We have reduced the average time taken to answer calls at our call centres from 4.55 minutes in 2012-13 to 1.07 minutes in 2013-14. According to our last survey, nine out of 10 employers were satisfied and a quarter were extremely satisfied with what we are doing. More than eight in 10 claimants on disability, carer or unemployment benefits report that they are satisfied with the DWP’s service. All that shows—
Esther McVey
I am afraid that, because the right hon. Gentleman has just walked into the debate as I am giving my closing speech and has not heard from other Members, I cannot give way. There is only a limited amount of time, and since it is a three-hour debate, I have many questions to answer.
We have seen the complete modernisation of the Jobcentre Plus system. The system has been personalised and adapted to new technology. We have seen greater employer engagement—how do we get a tailor-made service so that a jobseeker really is ready to go into work? That is what we have tried to do.
When we talk about personalising the service and getting as many people as possible into jobs, one key thing that has come out is the claimant commitment. The claimant feels that they are in charge of the journey they are on and that the adviser can help them. I am pleased to say that more than 26,000 of our staff have received the required training and now all 714 jobcentres offer the service. That is helping 600,000 claimants who have signed the new agreement.
Esther McVey
I appreciate the hon. Lady’s request, but she has just taken the question from the right hon. Member for Birkenhead (Mr Field). I will not be taking questions until I have finished responding to everything. I appreciate what she is doing, but I will continue.
We are also increasing technology: we will be delivering wi-fi across all jobcentres, with 6,000 new access devices. All that is key in helping to get record numbers of people into work.
Many Members mentioned segmentation, which is, of course, important and one of our aims. How do we support people best, help them and target support at them? We looked closely at the Australian jobseeker classification instrument and tested it against our own version in 2010. We found that it was not accurate enough at predicting whether someone would become long-term unemployed. For every accurate prediction, it made two wrong predictions. For that reason, it was better for us to pursue what we were doing and make our system better.
That is why we have done things such as introduce the claimant commitment. We are getting people ready for work straight away and really focusing on day-one support so that we can see whether someone needs extra IT support or NVQ maths and English training. That is what we are now doing from day one so that we understand people’s ability, or perhaps lack of ability, and how to support them.
Esther McVey
I presume that the hon. Lady wants to ask the question passed to her by her right hon. Friend the Member for Birkenhead, but go on.
Sheila Gilmore
I wanted to ask this: to what extent is the claimant commitment really a substitute for a segmentation tool? Is the Minister now saying that she has given up on looking at such a tool?
Esther McVey
Nobody has given up. That is the whole thing about welfare to work—we continue trying and we continue pilots, to see how we can best support people who need to have a job. No, the claimant commitment is not a substitute, but what we have brought in to give both sides greater certainty and it is working very well. It is also about empowering the individual who is looking for a job. Equally importantly, within it we can look at what the barriers are. They could be disability or health barriers, but we would modify the claimant commitment to reflect what somebody needs to do, so that it really is tailor-made for them.
What we have seen with the claimant commitment is that, despite what has been said today about how people who work at Jobcentre Plus feel, actual engagement and positivity within the work force has gone up by six percentage points. Again, that has to be praised, as well as being a positive step in the right direction.
Many people today have brought up the issue of sanctions. We all know that, as the right hon. Member for East Ham said, sanctions have always been a part of the benefit system, ever since it began. We know that there is a balance to be struck between providing support and expecting claimants to meet the conditions for receiving benefit. What the Government have done more than ever before is to increase that support. The number of traineeships has gone up in the past year—by more than 39%, I think. We have changed the rules and regulations, so that it is not only 16 hours that someone has to do for their traineeship; the figure can go up to 30 hours. We are looking at these practical, pragmatic steps that can be taken. We are doing all these things.
We also know that more than 70% of claimants say they are more likely to follow the benefit rules because of the sanctions that might be applied to them. So claimants themselves know that sanctions are key. Academic studies from across Europe show that when there is a sanctions system and regime, people remain in work for longer too. All these things are key in what we are doing.
Sheila Gilmore
The hon. Lady has just thrown in a statistic about attitudes of claimants, saying that 70% of people say that sanctions will make them do things differently. Is that part of some published research? Is it perhaps part of the research that we still have not seen? If so, when are we going to see it?
Esther McVey
I will give the hon. Lady a copy of that research, and there are other debates—various debates—in which it has been used. I will provide her with that information if she would find that helpful.
Most claimants do not get sanctioned. In an average month in 2013, around 5% of jobseeker’s allowance claimants and fewer than 1% of employment and support allowance claimants were sanctioned. We know that those people who follow the rules and take up all the support—
Esther McVey
No, I will not give way at the moment. Those people who take up all the support given to them find it easier to get into work.
We also know that more than three quarters of new claims to JSA end within six months, and that around 90% of new claims to JSA end within a year. So most people are going back into work. However, when I hear stories—whether they come from whistleblowers or otherwise—and when people have concerns, I act. The hon. Member for Oldham East and Saddleworth (Debbie Abrahams) knows that I brought her and her constituent in to meet me, the Secretary of State and the head of Jobcentre Plus. Her constituent brought his concerns to that meeting and they were looked into. I am afraid that with some of the things that were brought up, we did not actually find anything that would—
Debbie Abrahams
Will the hon. Lady do me the courtesy of giving way on that point about my constituent?
Esther McVey
If the hon. Lady does not mind—she has spoken at length and I am now replying, and once I have finished I will let her back in to say what she has to say. I promised that that meeting would be anonymous and I would not talk about it, so it is rather unfortunate that she issued, I think, a press release about the meeting.
There are no targets for sanctions and that has to be key, despite what anybody has said; what was said to be happening is not happening. Where people bring in their concerns, I rightly bring people in to speak to them. We see them all the time in our constituencies, but if it is a whistleblower it is only right that we bring them in and listen to them. I brought into the meeting that I mentioned the head of Jobcentre Plus to look into the matter that had been raised.
Debbie Abrahams
I am very grateful to the Minister for finally giving way. She mentioned my constituent, who is a former JCP adviser, and yes, we met her. However, he has not yet had any response to the issues that were raised at that meeting and that is a real concern. As she knows, because it was discussed at the meeting, there are other whistleblowers who have also provided their evidence, which verifies claimants’ issues. How does she respond to that, and will she finally commit to an independent review to sort out, once and for all, what is happening about unfair sanctions, which is the key point?
Esther McVey
No, I will not. As I have said, not only was it a point of order and not only was it in the last Select Committee—I never said that there would be an independent further review. That was not said. And of course the Matt Oakley review will come out. I said it will come out in due course and that will be this month. The right hon. Member for East Ham asked about that. When we have that report, we will all see what recommendations it makes and what issues have been brought forward. Despite Members here today saying that they did not think that the Oakley review was an in-depth review, yes it was. It was about communications and process; all those things are key.
As I said, we continue to look into these issues, because as was said—it may have been said by the hon. Member for Aberdeen South (Dame Anne Begg), the Chair of the Select Committee—at the end of the day what we need is people to comply and to do what is right to get a job. The ultimate aim would be that less sanctions are given, because that is what we want. We put more and more support into the system; we work with people, and the claimant commitment is there to do that; we see what people’s needs are; and we have got to make sure that we are working with voluntary organisations and charitable organisations, and understanding the needs of the individual and also their vulnerabilities. When we have got all that right, then we will all be going in the right direction.
However, what we know we have got right is the extra support and getting more people into work than ever before. The hon. Member for Airdrie and Shotts (Pamela Nash) said that she had spoken to people who had been unemployed for 10, 15 or 25 years, and she also said how delighted those people now are to have a job, and that it has transformed their lives. Those are the type of people I meet all the time; people who were left on benefits and some people would say that they were forgotten about, and that they were not reached out to and connected with. Well, we said that we, as a Conservative party, do not agree with that; we totally do not agree with it. We will reach out and support them, and help them to do as best they can. But it is a system in the round; it is about support, sanctions and what we can do to get people to support themselves.
Pamela Nash
I thank the Minister for giving way and, yes, those are the good news stories and I love meeting those constituents. However, have there been constituents who have gone to her surgery because they have been sanctioned? Maybe they were sanctioned rightly, but maybe she suspects that they were sanctioned wrongly. What advice has she given them about how to feed themselves that week, and how did that make her feel?
Esther McVey
In what we have heard today in some of the stories about whether sanctions were applied or not, I know that some of them would have come under good cause and they would not have had a sanction applied. Where I would send people who are sanctioned, as do Jobcentre Plus, is hardship funds; they could get support, although the case has to be worked through. Why do people continue to sign on for benefits and remain on the claimant count? Because they would not get that hardship fund, which is either 60% or 80% of the benefit, if they do not. That is what I would say: “How do we support you? How do we get you back re-engaged?” I would also work out the vulnerability of the claimant.
Esther McVey
I will not take another intervention for the time being; I will move forward with some of these answers.
Claimants are given the opportunity to explain why they have not complied with a requirement. If they provide good reason, they will not get sanctioned. Once sanctioned, claimants are informed of how to apply for these hardship payments. Vulnerable claimants, including any claimant with responsibility for a child, can receive payments immediately. We believe that we get the vast majority of our decisions right. In 2013, our decision makers considered nearly 2 million cases that were brought to them, but they imposed just over a million sanctions. So the information comes from the adviser and it goes to a decision maker, who looks at all the evidence before deciding whether a sanction will be given. Of those cases, only 130,000 were overturned on reconsideration or appeal—just over 13%—not the figures that I heard from the Opposition Benches; I am not sure where they get those from.
Stephen Timms
I remind the Minister of the letter from a whistleblower—a constituent of mine—with whom she has been in touch, who says:
“I am not sure if the providers are aware of a ‘good cause’ clause in the process…I don’t think it is being exercised much within the Jobcentre either as it would affect the number of off flows”.
I understand the theory, which the Minister set out, but the reality is rather different.
Esther McVey
The right hon. Gentleman quotes an anonymous whistleblower, but I am the Minister replying and I am not anonymous. We do know what good cause is. For example, if there were confusion about someone going to a job interview who thought they should have been at Jobcentre Plus, that would be good cause, and if somebody had to go to a funeral of an immediate family member, that would be good cause, too. There is a list of various good causes. If it makes common sense, that has to be right and those people have to be looked after.
Of course, we are far from complacent and continue to look for ways to improve the system and ensure that sanctions are applied appropriately. Some improvements have already been made, including introducing a telephone line for providers to check whether a sanction is appropriate, and we have introduced a new quality assurance framework, to improve standards and consistency in decision making—that has to be key.
The Matthew Oakley review will make a significant contribution to our drive to improve the system. The scope of this review was JSA sanctions for claimants on mandatory back-to-work schemes, focusing on clarity of information and claimant understanding. He has been generally positive about the sanctions system and we welcome his recommendations, which we accept and which will, as I said, be with us before the end of this month.
We need to know where we are going and we are now focusing our attention on the hardest-to-help claimants. Record numbers of people are now in work—[Interruption.] I am glad the right hon. Member for Birkenhead is listening rather than laughing, because many extra people are in work in his constituency, too, and right across Wirral. However, we must concentrate our efforts.
Mr Frank Field
Will the Minister not answer my question, since she has now named me? Will she give way?
Esther McVey
We do, indeed.
We are concentrating on the hardest to help and focusing our efforts on them. As I have said, the Work programme is part of that and we have seen the results from the 1.5 million people who have gone on it: 550,000 have had a job start and 300,000 of those are in sustained jobs. Equally, our Help to Work programme is helping another 200,000 people, whom our coaches will be working with to assess their needs and refer them to further intensive support, whether daily signing or community work placement, to find out what limiting factors are not helping them into work. Is greater support needed? Is it about employability skills? Do they need more work skills? Those are the things that we are really trying to get to grips with, understand and reach out further on. Early trailblazing of this approach shows that continuing this support has a long-term positive impact on claimants. Participants spent less time on benefit and more time in work over a 21-month period.
Many questions have been asked. I shall answer some of those asked by the right hon. Member for East Ham. We have talked about good cause and personalisation, the claimant commitment and extra support, and about the whistleblowers. Yes, the Prime Minister met the Trussell Trust, as did I. I have also been to my local food bank. We will all agree—there is no doubt—that those organisations are doing a good job, supporting people, but we have to look at the bigger implications for society as a whole, which is why it was right that the Prime Minister met the Trussell Trust. We know that it was set up in what was regarded as a boom time, when things were going well, before 2007. That was back in 2002 and the organisation increased tenfold, just as it was setting up, up to 2010. It went to the then Labour Secretary of State for Work and Pensions, asking, “Would you signpost?”, but the Labour Secretary of State said, “We will not”, because the Government did not want it growing even bigger and did not want to help people out, because it was growing on the ground. However, when it approached the Secretary of State in this Government, he said, “I will signpost people to those, if need be, because you need to help people as best you can.”
So many things come into play, as the people who run food banks say: understanding how to cook; prioritisation of bills; debt; and debt cards. So many things are tangled up with this issue that we have to educate and support people, as well as doing things right in an emergency. However, this Government and Jobcentre Plus are getting it right on taking the first step to get people out of poverty, by any standard and according to all parties in the House, because we are seeing record rates of people getting into work.
Esther McVey
Being able to provide for themselves and their family is people’s best way out of poverty I will now give way.
Stephen Timms
The Minister told us she met the Trussell Trust, by which I take it she means that she met people at the local food bank. I welcome that. Is she willing to meet the chief executive of the Trussell Trust, to discuss these issues with him?
Esther McVey
I have always said that I am there. Really, the key person who met him is the Prime Minister, and it is right that he did so.
Esther McVey
I have always agreed. I have met the Trussell Trust in my area and the food bank. We decided that the Prime Minister should meet him to discuss the issues.
We are increasing the percentage rate for our processing and getting more people into work.
Esther McVey
I am afraid that I will not at the moment.
When we talk about a change in culture at Jobcentre Plus, about reputation and how people feel about doing their job, the response is that there has been a significant culture change, in that staff are, ever more than before, helping people who come through the door into training and into a job. With the claimant commitment, they are really personalising that support. Yes, there has been a culture change, for the benefit of everyone.
Sheila Gilmore
Is the Minister aware of considerable research evidence showing that people on low incomes are good at budgeting, and that her attitude—that many people need somehow to be taken by the hand and taught to do basic things, such as budgeting—is intensely patronising and quite unnecessary?
Esther McVey
I certainly do not believe that I have such an attitude. I disagree on that point.
The people who come into Jobcentre Plus need help and support, and we have been led by many of those who have been in debt and have not been so good at looking at their finances, for one reason or another. Perhaps some hon. Members in this Chamber have not always been great at looking at our budgets, or support, and may have been caught unawares, if not in work and if they had been expecting a wage and not had one. It does not matter whence you come; you can always have difficulties with finances, fall on tough times and be out of work.
I certainly do not have an attitude. I always say, “Don’t pass comment on anybody else. You haven’t walked 12 miles in their shoes,” and “There but for the grace of God go I.” I work on a completely different premise to the one suggested by the hon. Lady.
We are pushing ahead with changes to our welfare system and those changes are already paying off. We are rolling out universal credit. By 2016, all new benefit claimants will be for universal credit. The majority of existing claimants will move on to UC by 2017.
I thank the Chair of the Committee and praise all the people who work in our Jobcentre Plus offices.
Universal Credit
Esther McVey Excerpts(10 years, 2 months ago)
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The Minister of State, Department for Work and Pensions (Esther McVey)
I have listened to everything that has been said and I have a hefty set of answers to give, but let me put everything in context by starting with what I hope we can all agree on. In between the doom and gloom that swept across the Chamber from Opposition Members, they seemed to agree that the benefits system needs to be changed, and this Government are bringing about the fundamental reform that is needed. The biggest reform in 60 years will ensure that we reward work, support aspiration, encourage responsibility and help those who need it most. As my hon. Friend the Member for Warrington South (David Mowat) said, this piece of work is of national importance. We cannot run away from making the significant changes that are so necessary; it is because they are so imperative that we are making them.
Universal credit is at the heart of our reform. Its aim is to make work pay by ensuring that claimants are better off in work than on benefits. It will promote personal responsibility by ensuring that people actively seek work and increase earnings. At the same time, we will continue to provide support for those who need it most. Universal credit will have a positive impact on claimants. Up to 300,000 more people will be in work, and about 3 million more households will gain from universal credit, with an average gain of £177 per month. We are investing £600 million in child care support, with about 100,000 extra families becoming eligible for such support for the first time. From April 2016, 85% of eligible costs will be covered by the child care rate. Alongside that, thousands of disabled adults and children will receive more support, including a higher rate of support for all children who are registered blind.
Esther McVey
If I may carry on for a while, I will then answer the hon. Lady’s question.
I want to thank the Select Committee for continuing to support the policy objectives of universal credit—improving incentives to work and, as has to be key, smoothing the transition from benefits into work. Public and parliamentary debate has focused on IT systems, and IT is an important enabler, but universal credit is much more than that; it is a transformational change that is building a welfare system fit for the 21st century. It is already making a difference to people and their lives: we have stronger work incentives, there is more support from work coaches and universal credit claimants are spending twice as much time looking for work because they have the extra support.
We know that 90% of universal credit claimants are claiming online. Many Members spoke about the IT system.
Sheila Gilmore
Is it not the case that very high levels of jobseeker’s allowance claimants are claiming online anyway, so that is not really to do with universal credit? Is it not also the case that the number of hours people are spending looking for work has nothing uniquely to do with universal credit, because the Department has rolled out the claimant commitment far beyond those who are in receipt of universal credit?
Esther McVey
Obviously more people are going online because that is key to all our changes. When we were providing support during the roll-out, we were enabling people to get online and use IT. That was part of the system. Obviously it is working and more people are using IT and getting online. As for the claimant commitment, that is an integral precursor of universal credit. We had to ensure that all of our 26,300 members of staff knew how that worked. Of course they are working with JSA claimants, but that is one of the changes towards universal credit that we have put into place.
Members have spoken about the IT system. My hon. Friend the Member for Warrington South, who has worked so ably on such systems, spoke with much knowledge on this matter. I am afraid that there was no knowledge from Opposition Members on this matter. We all agree that it is a complex IT system. I believe that there is a logic that we can all follow in what is happening. We are ensuring that it is slow, it is steady and it is working. The IT system is probably best described as a series of component parts. Some of it will stay—that is known as the legacy system—some of it will be built on, some of it will be plugged in and other bits will be newly built and form part of the enhanced digital solution. As we are rolling out the system, we will constantly be learning and working on it to inform the enhanced digital solution. It is like a pincer effect: we are rolling out what we have and learning as we go along to inform the enhanced digital solution.
Bob Stewart (Beckenham) (Con)
I am not au fait with IT systems, but I am au fait with very complicated plans. This is a very complicated plan, so the expectation must be that it will go wrong and require tinkering and adjustment right to the end. That is what we should expect; not some blueprint that will be perfect all the way through. We know where we want to go. We have to be prepared to make adjustments as we get there.
Esther McVey
I thank my hon. Friend. That is why we are learning as we are rolling the system out and using that to inform what we are doing.
We have a multi-disciplinary team of 90 people, 30 of whom are digital specialists. They are developing the digital system as we go along. It is not a twin-track approach. We are continually learning and informing. We have one system. That is what we are doing. I hope that that goes some way towards answering the questions that have been asked about IT. One thing that we can all agree on is that it is complex. We will learn as we go along and we have the right person doing the job.
Stephen Timms
Is it the case, as the Minister said in her written answer on Monday last week, that the Treasury has approved the universal credit business case—yes or no?
Esther McVey
I have just had the answer that I gave last week checked. It stated:
“The Chief Secretary to the Treasury has approved the UC Strategic Outline Business Case plans for the remainder of this Parliament (2014-15) as per the ministerial announcement (5 December 2013, Official Report, column 65WS)”—[Official Report, 30 June 2014; Vol. 583, c. 434W.]
That was the response and I have just had it verified.
Stephen Timms
Will the Minister tell us, then, why the head of the civil service today told the Public Accounts Committee that the Treasury has not approved the universal credit business case?
Esther McVey
I will look into that additional point and get back to the right hon. Gentleman. On his last point, I have had the answer checked by my officials and it was correct.
On the roll-out, the new service is now available in 24 areas across England, Wales and Scotland, where it is providing people with stronger incentives and support to get into work, stay in work and increase their income. On 23 June 2014, we began rolling out universal credit for single people to jobcentres across the north-west of England, starting with Hyde, Stalybridge, Stretford, and Altrincham. Last week, it went live in Southport, Crosby, Bootle, Bolton and Farnworth. I am pleased to say that today, Wirral, Birkenhead, Bromborough, Hoylake, Upton and Wallasey began accepting claims for the new benefit. Once the north-west expansion is complete, 90 jobcentres—that is one in eight jobcentres in Britain— will be offering universal credit.
From 30 June, we expanded the service to couples in five of the existing live areas: Rugby, Bath, Inverness, Hammersmith and Harrogate. That meets our commitment to expanding the new service to more areas and to more claimant types from this summer. We will continue to roll out universal credit carefully in a safe and secure manner—starting small, testing and learning from delivery. That remains the right approach. Later in the autumn, it will be expanded to include families.
My hon. Friend the Member for Warrington South answered the question about whether somebody will be able to feed in information about how many hours they work per week. Such real-time information is another part of the programme that we had the foresight to put in place. That is working well and the roll out of it is nearly 100% complete—it is more than 99% rolled out.
I have just received a quote from a claimant in Warrington who is working 20 hours a week:
“I’m currently working 20 hours a week but am able to pick up extra hours when overtime is on offer because UC is flexible in that way and I don’t have to worry about my benefit just stopping if I work more than 16 hours. I know I will still get support until I earn enough to completely pay my own way”.
That is what we always intended to happen. There is a cushion of benefit to support people, but they are able to take extra hours and to progress in work without being stopped from working by the old-fashioned rules and regulations that Labour Members allowed to continue for so long. That is what we are trying to change. We all agreed, including the Select Committee, that those changes were needed. That is an example of a claimant saying what is happening to them right now under this system.
Sadly, I come to the questions that were asked by the hon. Member for Oldham East and Saddleworth (Debbie Abrahams). One thing on which we agree is that the media must talk about people and depict people carefully and sensitively. Nobody wants to point the finger at anybody. Nobody on the Government Benches has used any inflammatory language, because that is not right. I have always been very careful about the words that I use, because we all know people who have fallen on hard times and have needed the support of the state. It is imperative that each and every one of us checks our language, because it means a lot, whether it is on the internet, in newspapers or on the radio. I totally agree with her about that.
However, I totally disagreed with the hon. Lady—I am sure she will understand this—when she asked how the Secretary of State is still in his job. I had to smile at that rather absurd comment, given what he has delivered in four years. We have a record number of people in work. We are delivering on youth unemployment: it has gone down consistently for nine consecutive months. It is now 100,000 lower than when Labour was in office. Under Labour, youth unemployment went up by 45%. We have had the biggest fall in long-term unemployment, which doubled under Labour, since 1998. There is not just a record number of women in work, but a record rate of women in work too. All of those things are why the Secretary of State is still in his job: he has changed things around fundamentally.
The hon. Lady talks about a £40 million write-down. Projects of this size usually have about 30% write-down rate—this has a 10% rate. Labour’s track record of IT failure is £26 billion written off with no scope whatever, so we can move on to why universal credit is so important. Even the Joseph Rowntree Foundation is very clear about the benefits of universal credit, recently stating:
“Universal Credit is a once in a generation opportunity to reform a failing and overly-complex system. It will revoke the worst work incentives of the current system, smooth transitions in and out of work and make it easier for people to access all the support they are entitled to.”
Those are the reasons why we are correct in pursuing universal credit.
Geoffrey Clifton-Brown (The Cotswolds) (Con)
My right hon. Friend is absolutely right. She and the Department have simplified the system, making it easier for recipients to understand what they can do to claim benefit. Above all, if they are capable of working, they should be in work. In contrast, the Labour party made the system so byzantine that our constituents had to appeal constantly to get the answers they wanted.
Esther McVey
My hon. Friend is spot on. Not only was it complex, but people sometimes did not know whether to take a job. People were locked into a life of benefits because they did not know if they would have been better off working. We are changing that.
I have listened to the points raised by hon. Members and I hope I have provided more clarity. I believe that we are making a transformational change. Yes, it needs to be slow and steady—[Interruption.] I am afraid that the hon. Member for Bishop Auckland (Helen Goodman) is laughing. We are putting people into work. We are getting them off benefits. We are helping them to progress and supporting them into work. That is what those on the Government Benches are about: support and reforming the benefit system to the benefit of all of the UK.
Question deferred (Standing Order No. 54).
Employment, Social Policy, Health and Consumer Affairs Council
Esther McVey Excerpts(10 years, 3 months ago)
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The Minister of State, Department for Work and Pensions (Esther McVey)
The Employment, Social Policy, Health and Consumer Affairs Council met on 19 June 2014 in Luxembourg. Shan Morgan, Deputy Permanent Representative to the EU, represented the United Kingdom.
The Council approved the country-specific recommendations (CSRs) on the national reform programmes 2014 for each member state, including the macro-economic imbalance procedure (MIP). The opinions of the Employment Committee (EMCO) and Social Protection Committee (SPC) on the examination of the national reform programmes 2013 and the implementation of the 2013 country-specific recommendations were endorsed. EMCO and SPC reports on cross-cutting issues were noted, as was the employment performance monitor (EPM).
During the policy debate on the European semester, the UK stated that it was pleased that the Commission had struck the right balance between providing recommendations and recognising progress. This year’s CSRs reflected the work under way in the UK in a number of areas where we were already seeing significant progress (youth unemployment, child care provision and Universal Credit). The UK also tabled a minute statement reiterating its position that education policies remain a national competence.
Ministers had an exchange of views on the social dimension of the EU and the European monetary union (EMU) for which the discussion centred on the value of minimum income schemes. The UK made it clear that minimum income schemes were an area of national competence and that a “one size fits all” approach would not work.
The presidency’s progress reports on the equal treatment directive, women on company boards directive and the European network of employment services, workers access to mobility services, and further integration of labour markets (EURES) regulation were noted. The presidency gave a progress report on the proposal for a European platform to enhance co-operation in the prevention and deterrence of undeclared work, and Ministers also adopted Council conclusions on women and the economy.
Under any other business, the presidency provided information on the outcomes of the Roma summit which took place on 4 April 2014 and the 2014 International Labour Organisation (ILO) conference. The incoming Italian presidency presented its upcoming work programme which begins on 1 July.
Oral Answers to Questions
Esther McVey Excerpts(10 years, 3 months ago)
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Mr Stephen Hepburn (Jarrow) (Lab)
10. What assessment he has made of the effect of sanctions on claimants of jobseeker’s allowance.
The Minister of State, Department for Work and Pensions (Esther McVey)
Sanctions have always been part of the benefits system and are imposed only where claimants fail to meet reasonable requirements. Sanctions play an important role in encouraging compliance: 70% of claimants say that sanctions are useful for them to follow the rules.
Mr Hepburn
Can the Minister explain why more than 50% of benefit claimants in my constituency whose benefits have been sanctioned have had the decision overturned? In the meantime, they had to live for weeks on nothing—unlike that lot over there, who stuff their nests. Is it not true that this scheme is nothing more than a con? The Government say that they are cutting benefits. They are cutting benefits, but they are taking them off the most vulnerable people in the country and leaving them out for ever.
Esther McVey
There are a couple of points I need to answer, because what was said was inaccurate. The figure for the overturns is 10%, not the high number the hon. Gentleman alluded to. At the same time, people on sanctions are still on benefits and have an underlying qualification to them. The hon. Gentleman is incorrect. Perhaps he does not like the fact that the number of people in work has gone up significantly under this Government and the number needing to claim benefits has gone down significantly.
Philip Davies (Shipley) (Con)
Sanctions as a principle are a very fine part of the benefits system. May I urge the Minister to maintain a system of sanctions and not to listen to the Labour party? It is clear that it is the Conservative party that has become the party of labourers and that Labour is the party of layabouts.
Esther McVey
My hon. Friend makes a very good point. As I have said, sanctions have always been a part of the benefits system, because it is about compliance. I would welcome an announcement today from Opposition Front Benchers on whether they would remove sanctions. That would be very interesting.
Mr Philip Hollobone (Kettering) (Con)
11. If he will take steps to reduce (a) the number of benefit claimants who appeal against decisions and (b) the length of time it takes to have such appeals heard.
David Rutley (Macclesfield) (Con)
13. What assessment he has made of recent trends in employment in the private sector.
The Minister of State, Department for Work and Pensions (Esther McVey)
There are more people in private sector jobs than ever before, up more than 2 million since the 2010 election.
David Rutley
Given the strong growth in self-employment in recent years and innovative schemes such as the Pop-Up Business School, which has helped people in Macclesfield start their own business, what steps are the Government taking to encourage the unemployed actively to explore opportunities in self-employment?
Esther McVey
My hon. Friend, who is a Harvard graduate and has been a senior executive in many high-flying companies, has a huge interest in people setting up their own business. This Government introduced the new enterprise allowance, which has led to 2,000 people a month setting up new businesses. We have done videos with people such as Levi Roots to reach out into different communities, and the link-up, start-up programme enables employers to speak to people who hope to be able to set up their own business.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
What is the right hon. Lady doing about the trends that show that more and more people are working in small and medium-sized companies in the service sector, which demands high skills? What are we doing to equip young people in particular with the right skills for a good life in the future?
Esther McVey
I will be glad to answer that question for the hon. Gentleman. We are taking significant steps to allow more than 1 million young people to earn and learn through apprenticeships. Equally, through sector-based work academies, we are helping people to get a job and then to progress in that job. We have put in place work experience to help young people to find out what a business entails and then to get a job in it, so there is considerable support to get young people into work, which is why youth unemployment has fallen for nine consecutive months, with 100,000 fewer people in that group than at the election.
Wayne David (Caerphilly) (Lab)
How many people are now employed on zero-hours contracts?
Esther McVey
Roughly the same number who were employed on zero-hours contracts under the Labour Government in 2000. I know that Opposition Members like to say that the number has significantly increased, but I believe that they were taken to task for getting that information wrong. Local councils such as Doncaster, where the Leader of the Opposition resides, have the highest number of zero-hours contracts.
Dr Julian Huppert (Cambridge) (LD)
14. What assessment he has made of the effect on homelessness among under-35-year-olds of the extension of the shared accommodation rate.
Rehman Chishti
What support are the Government giving to older workers and their employers in Medway to assist them into work and to build a fairer society?
The Minister of State, Department for Work and Pensions (Esther McVey)
I, along with the Pensions Minister, my hon. Friend the Member for Thornbury and Yate (Steve Webb), recently published the “Fuller Working Lives—A Framework for Action” document, which sets out the support that we are going to give to older workers. That includes a new health in work service, Jobcentre Plus tailored support, guidance and a toolkit for employees, and from next week the right to request flexible working hours.
Rachel Reeves (Leeds West) (Lab)
At the start of this year 3,780 people were claiming universal credit. The most recent numbers show that 5,610 people are receiving the benefit. At this rate of progress, how long will it be until the 7.7 million households that are supposed to receive this Government’s flagship benefit, as the Secretary of State originally set out, are receiving it?
Mr Brooks Newmark (Braintree) (Con)
T7. Unemployment in Braintree between May 2010 and May 2014 has dropped from 3.4% to 2%, and youth unemployment in that same period has dropped from 6.3% to 3.8%. There remains a challenge, however, in that the unemployment rate is not falling as fast for young women as it is for young men. What are the Government’s policies doing to help young women to get back into work?
Esther McVey
I am pleased to say that unemployment is falling right across the country and across all age groups. Employment is up as a consequence. We are doing significant things. We now have record numbers of women going into work, and at record rates. Our policies, more than anything, are supporting young girls.
Mr Andrew Love (Edmonton) (Lab/Co-op)
T3. It is all very well for the Minister to say that, but more than 200,000 young people have been out of work for over a year, which has consequences for the possibility of their finding work in the future. Youth unemployment is falling more slowly than overall unemployment, so what is she doing to help the youth of this country get back into employment?
Esther McVey
It is quite incredible that the hon. Gentleman should ask that question, considering that youth unemployment shot up by 45% under the Labour Government, and that we have managed to get more young people into work. As I have said, youth unemployment has fallen for nine consecutive months; it is 100,000 fewer than at the general election. He would be better off reading about what we have done, if he wants to know how to get young people into work.
Tracey Crouch (Chatham and Aylesford) (Con)
Will the Minister provide the House with an update on the implementation and delivery of the mesothelioma compensation payment scheme?
Stephen Mosley (City of Chester) (Con)
It is welcome that youth unemployment has fallen by some 59,000 in the past three months, but I understand that there has been an underspend of some £50 million on the Youth Contract budget. Can my right hon. Friend reassure the House that that money will be spent on supporting young people into work?
Esther McVey
Absolutely, I can. All the money that we said that we would be spending on youth schemes—we are doing just that.
Kerry McCarthy (Bristol East) (Lab)
T8. It is a great shame that Tory Members of Parliament criticised the Trussell Trust and Oxfam—in fact, some might say threatened them—for daring to suggest a link between food poverty and the social security system: the cuts, the delays, the misapplied sanctions and the abolition of the social fund. Will the Secretary of State now accept his responsibility for what has been a 54% increase in the need for food aid in just one year, and commit to working positively with those organisations to see how his Department can help to address the root causes of food poverty?
Esther McVey
I thank my hon. Friend for asking that question because we have seen the biggest annual fall in long-term unemployment since 1998—108,000 fewer people on long-term benefits. That is a significant change. When we came into office we said that we would help those whom the Labour Government left behind and forgot about. We have set up the Work programme and other schemes, and the consequences are more of them in work.
Heidi Alexander (Lewisham East) (Lab)
T9. Last week I met a constituent who received her husband’s personal independence payment only after he had passed away. Will the Minister guarantee that no one else will suffer that deeply distressing situation in the future?
Daniel Kawczynski (Shrewsbury and Atcham) (Con)
Under this Government, how many more women are now in employment?
Esther McVey
The rate is the highest it has ever been, at nearly 68%. The number and rate of women in employment is the highest we have ever seen.
Mr Andy Slaughter (Hammersmith) (Lab)
After nine months, fewer than 200 people in Hammersmith and Fulham are on universal credit. This morning the shadow ministerial team visited Hammersmith’s citizens advice bureau to hear directly from my constituents about the catastrophic failure of the Secretary of State’s Department in every area of operation. Is his failure to roll out universal credit just a cover-up of another DWP crisis in the making?
Points of Order
Esther McVey Excerpts(10 years, 3 months ago)
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Kerry McCarthy (Bristol East) (Lab)
On a point of order, Mr Speaker. The Minister of State, Department for Work and Pensions, the right hon. Member for Wirral West (Esther McVey), contradicted my hon. Friend the Member for Jarrow (Mr Hepburn) earlier when he asked about the sanctions rate. She said that the number of successful appeals was around only 10%. According to the Trussell Trust’s “Below the Breadline” report, the average success rate was 58% over the period from 22 October 2012 to 30 September 2013, and in the three months to 30 September 2013 it was 86%. How can we put on the record whether those figures cited by the Trussell Trust are correct and where the Minister managed to get the figure of 10% from?
Esther McVey
Further to that point of order, Mr Speaker. I gave the official statistics, and I was correct.
Mr Speaker
Well, we will leave it there for today, but knowing the hon. Lady—
Employment, Social Policy, Health and Consumer Affairs Council
Esther McVey Excerpts(10 years, 3 months ago)
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The Minister of State, Department for Work and Pensions (Esther McVey)
The Employment, Social Policy, Health and Consumer Affairs Council will be held on 19 June 2014 in Luxembourg.
The Council will finalise its contribution to the European Council to take place on 26 and 27 June 2014. The European semester 2014 discussion will focus on a number of documents linked to the European semester. There will also be a separate discussion on the social dimension of the European monetary union.
Council will seek a general approach on the European platform of undeclared work and will provide an update on a regulation for a European network of employment services (EURES). There will also be updates on directives on equal treatment between persons irrespective of religion or belief, disability, age or sexual orientation and gender balance among non-executive directors of companies listed on stock exchanges.
Ministers will consider a set of Council conclusions on women and the economy.
Under any other business the presidency will provide updates on legislative files and other issues. There will also be information on the International Labour Organisation conference 2014 and the Roma summit. Finally, the Italian delegation will outline the work programme of their forthcoming presidency of the Council which begins on 1 July.
Bedroom Tax (Scotland)
Esther McVey Excerpts(10 years, 4 months ago)
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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
The Minister of State, Department for Work and Pensions (Esther McVey)
It is a pleasure to serve under your chairmanship, Mr Bone. I thank the Liaison Committee for securing this debate and I welcome the attention that the Scottish Affairs Committee is giving to welfare reform generally and to housing benefit reform specifically. I appreciate the opportunity to put the Government’s position in this debate. The Committee produced both this report and the subsequent report without seeking any input from the Department or its Ministers.
It may be helpful to discuss why this policy was introduced in the first place. The issue is difficult and complex. It has taken up a lot of time on all sides of the House, as well as the Government’s time. However, people have to understand what we are looking to solve, because we were delivered a huge problem by the Labour party, now in Opposition: a housing bill spiralling out of control, going up from £13 billion in 2002-03 to £24 billion in 2012-13—as it would have been—and increasing. What were we going to do? This was unaffordable. How was it going to be affordable, not just now but in the future, for future generations? Who was going to pick up that debt and solve this issue, and get as fair a solution as possible?
Of course, we are listening to what is said about people today who will end up having to pay a certain amount of money for extra rooms in their houses, but what about the people in the private rented sector who are still getting paid housing benefit? They do not have the luxury of a spare room in their houses. The Labour party introduced this very same change in housing benefit—
Esther McVey
I will not give way at the moment.
The Labour party introduced this same change in 2008 and, at the same time, it was talking about its implementation. So I am afraid it does not wash, now, when Labour are in Opposition—
Esther McVey
I will not give way just yet.
Since I am talking about people who have to afford their homes, what about people who have bought their own home on a low income but cannot have a spare room because they cannot afford it? We have to look at fairness to the taxpayer and to people in private rented homes, and those in social rented homes, as well as at a bill spiralling out of control. As I said, I am afraid that this problem was handed to us. It is not an easy problem; it is a complex one. It is a difficult problem to solve, but we are solving it.
Talking about the extra support, which is key, we trebled discretionary housing payments for the complex cases; that is the money that we have handed out. We recognise the rural issue and have provided an extra £5 million for that, and we recognise significantly adapted homes, whether with a room for those affected by domestic violence or with specific adaptations for disabled people, for example. We have put an extra £25 million into that. All those things have been acknowledged.
At the same time, claimants or their partners who receive frequent overnight care from someone not in their household were exempt. Parents of disabled children who could not share a room were also exempt. Foster carers had an extra room. Parents with adult children in the armed forces who remained at home when not on operations had exemptions, too. All those people were recognised.
Pamela Nash
The Minister mentioned a few numbers relating to money given in mitigation. Exactly how much have the Government saved as a result of this policy? Which organisations have come to the Government, during their analysis of the policy, before and after implementation, and said, “This is a good idea”?
Esther McVey
I am not just talking numbers; I am talking lives of people right across the country who are affected by this. We are looking to save £500 million per year. That is what is being rolled out and what is being saved, because at the moment people are moving into other homes. At the moment, that is the amount being saved.
Esther McVey
I have always made it clear that this is not merely about saving money. It is about the use of housing stock, going forward, and about fairness for all those people paying into the system and all those needing homes. It is not just about money, but money is part of that, too.
Before I give way again—
Mr Peter Bone (in the Chair)
Order. It might help hon. Members—there is clearly still quite a lot of interest in this debate—to know that a vote is scheduled at 3.5 pm, which might be a convenient time to end the debate, so the Minister might have a little more time than she thinks.
Esther McVey
Thank you, Mr Bone.
As we look at the question, it comes into sharper focus. I need to remind all hon. Members, particularly those on the Opposition Benches, that Labour Members fully supported and voted for an overall welfare cap—[Interruption.] Some Scottish National party Members did not vote for it. My question for the Opposition and Committee members is this: if savings are not to come from housing benefit, which aspects of welfare spending and the welfare bill—potentially £500 million a year—are they going to cut? Will it be disability benefits or support to children, or will pensioners be affected? All this is rather complex, because I am afraid that the Opposition voted for an overall welfare cap.
Graeme Morrice
The right hon. Lady talks about the cost. Does she not accept that the evidence provided to the Committee by various witnesses from Scotland and beyond—all the housing providers, welfare rights organisations, tenants, local authorities and even the Convention of Scottish Local Authorities—says that the cap is costing everybody more money than it is saving? How does the Minister respond to that, and particularly to the COSLA figure, supported by all political parties in Scotland, that in Scotland it is costing an additional £60 million to administer?
Esther McVey
I do not agree with that. We are seeing people moving round. The debate never considers the people in overcrowded accommodation. There is an issue in Scotland in that regard, too, although the problem is not as big there as in the rest of Britain. What about people living in overcrowded accommodation? What are we to do with people who do not have the right-sized room for their children, whether disabled or otherwise? What about people on housing waiting lists? We are forgetting about all these other people who have issues, too.
Esther McVey
I am afraid that, in opposition, the Labour party has forgotten about those people. We are dealing with those people. I should like to state some facts about arrears, which were mentioned by the hon. Members for Glasgow South West (Mr Davidson), and for East Lothian (Fiona O'Donnell). The regular Scottish household survey found that arrears in December 2013 were lower than at the same point in both 2012 and 2011, and 55% of Scottish social landlords reported a fall in the percentage of their rent arrears between March and December 2013. These are the figures that we are looking at. The Chair of the Committee asked about support for disabled people. I have talked about that and the extra money in that regard.
The right hon. Member for East Ham (Stephen Timms) talked about the difference between a tax and a subsidy. He is a mathematician—he went to university with a friend of mine—so I know that he knows the difference between a subsidy and a tax. However, I wonder whether it is because the Opposition do not know the difference between the two that we are in incredible debt at the moment. They do not understand the ins and outs of money and how it is best spent; that is why they left us with a £150-billion-a-year deficit.
Pete Wishart
Will the Minister bring her remarks back to Scotland, which is what this debate is about? There are legitimacy issues here. We did not vote for any of this. Why should Scotland put up with it?
Esther McVey
We have, in our latest discussion—this is why we are here today—asked how we could best deal with this situation and what to do. We have put extra money on the table, and the Scottish Government were paying in as well. We have now allowed the matter to be devolved to Scotland, for it to consider what it can do. Although the proposal in Scotland might be an immediate answer to Scotland’s issues and problems in this regard, it does not solve the underlying problem about what people are doing, how Scotland will change its housing stock, how it will get the right people in the right houses, and how it will pay the bills, with an ageing population and more people going into social housing.
Although money might be put towards this issue, we are dealing with other issues too, not only in England but in Wales; we are looking at the stock and getting the right people in the right houses—something that Labour has kicked down the road. It is not dealing with those issues now, and did not deal with them in office.
Mark Lazarowicz
Given that the Minister has mentioned the solution that the Government are putting forward, will she say when the necessary order will go through the House of Commons? We may prorogue next week; can she guarantee that it will be put in place before we prorogue? Otherwise, the Scottish Parliament will not be able to take the necessary action until several months have passed.
Esther McVey
I hope that the hon. Gentleman appreciates that the announcement was made only on Friday. It is very much early days. We are working through the detail of how the policy will work, and we have to make sure that the solution works. I want to check the debate timings with you, Mr Bone, because I know that the Chair of the Select Committee wants to reply. How much longer has the debate got?
Lindsay Roy
The Minister spoke about a potential saving of £500 million. When will we get the actual figure?
Esther McVey
We will get the actual figure as it works through. That figure is the one we are working to. I have always made it clear, and I make it clear today, that it is about getting the correct use of the housing stock and fairness for those paying for their own home, those in the social rented sector, and those in the private rented sector. It is about stopping the spiralling increase in the housing budget, which Labour allowed to run out of control. That budget doubled in monetary terms in 10 years. How best can we tackle that problem? We are dealing with it and solving it, and we are getting it right.
When we look at the changes that have taken effect, we see that, so far, 9% of people in the UK, and 7% of people in Scotland, have moved. The changes that we were hoping for when we put that into effect were that people would downsize, and that larger houses would be freed up for those in overcrowded accommodation on the waiting list. That has happened, but there is still a way to go.
Esther McVey
I am running out of time. If I have only 20 more seconds, I had better not take an intervention. [Interruption.] I feel I have given way many times to Members. It is important that the issue is tackled. It is difficult and sensitive, and it has kept a lot of us up late at night, trying to get it right, and that is what we are doing. The issue is very complex.
Employment, Social Policy, Health and Consumer Affairs Council
Esther McVey Excerpts(10 years, 4 months ago)
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The Minister of State, Department for Work and Pensions (Esther McVey)
The informal Employment, Social Policy, Health and Consumer Affairs Council met on 29 and 30 April in Athens. Robert Specterman, deputy director in the DWP European Union and International Affairs represented the United Kingdom.
The informal started with meetings between the presidency, Commission and social partners on the first day.
The second day commenced with two simultaneous workshops discussing the employment and social dimension of the “Europe 2020 Strategy”. The United Kingdom participated in the workshop which discussed “labour market reforms on the way to a job rich recovery”, emphasising the need for tailored approaches to tackling long-term unemployment, using the Work programme as an example of an innovative approach. The United Kingdom also stressed the need for continued focus on employment as the most effective way for people to lift themselves out of poverty.
The meeting concluded with a plenary session on “Towards quality jobs: Measures to prevent undeclared work” including a discussion of the European Commission’s recent proposal to establish a platform on undeclared work. In common with many other member states who intervened, the United Kingdom explained the domestic measures it already takes to address undeclared work. In addition, the United Kingdom highlighted the range of multilateral forums linked to this issue in which it already participates.
Universal Jobmatch Programme (Fraud)
Esther McVey Excerpts(10 years, 4 months ago)
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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
The Minister of State, Department for Work and Pensions (Esther McVey)
It is a pleasure to serve under your chairmanship, Mrs Riordan. I thank the right hon. Member for Birkenhead (Mr Field) for securing this debate, so we can have clarity over Universal Jobmatch and about the many positive things that it is doing at the moment. If we look at the latest statistics and numbers of people getting into work, we see that this year annual employment has gone up to the highest level in 25 years, and this month we have had the biggest annual fall in long-term unemployment since 1998. The number of vacancies at any one time in the market has also gone up significantly, with 600,000 job vacancies at any one time.
I will try to answer as many of the right hon. Gentleman’s questions as I can here today. If I do not get to all of them, I will write to him with further answers, as he suggested. I thoroughly understand why he secured the debate. Although fraud in Universal Jobmatch is less than 0.1%, the one instance took place in his constituency.
I can confirm that the fraudulent account was closed and all the people affected were compensated. The right hon. Gentleman asked about the amount that was given; it was significant. Of course, there was the repayment of money for the Criminal Records Bureau check—£65—and yes, he mentioned £25 on top of that. Significantly, some of those people got up to £1,200, because it is about actual money lost as well as compensation—he will be pleased to hear that. I have the full list of people, what they have got and how we have recompensed them.
Mr Field
I welcome that information. As the Minister knows, in this case, Jobcentre Plus invited the fraudster in to have an office in the DWP, so one of my questions was what steps the Department takes to ensure that when it offers people office space in the Department, they are bona fide, as one would have thought they would be. What actions does the Department take to weed out fraudsters, who clearly do operate in the system?
Esther McVey
I will come to that. We have more than half a million businesses and 6.1 million claimants on the site, and nearly 5 million job searches a day. We know that there will be instances—it is less than 0.1%, as I said—where something goes wrong. What matters is how we deal with it, sort it out and compensate those people, as we did in this instance.
Things have changed considerably over the past 16 years. The right hon. Gentleman was a Minister in the Department, so he will know that. Every Jobcentre Plus, everybody who works there, and every adviser wants the best for their claimant. We have seen how things have changed significantly, from being paper-based to having job points—a quite clunky solution introduced by the previous Labour Government. Job points frequently did not work, were offline, and things could go wrong. I looked for the statistics for fraud during the Labour Government’s tenure, but it seems that they did not wish to keep those figures. Although we have anecdotal evidence that fraudulent and bad behaviour was common, and we know that that was regional, it seems that it may have been brushed under the carpet. I am not sure what was going on then, whereas we have full transparency of what goes on now, significantly so and obviously, because it is online, which is key.
If we think of the changes and transformations over the past 16 years, of course we have to be online. Google did not even exist 13 years ago. The technological advances are significant and not having people online would be wrong, given that 25% of all jobs are online only. We have to get the best service we can. However, by opening up those opportunities—by having more than 227% more vacancies online and 1,316 more employers online—we open up the possibility of fraud, and we have to clamp down on that significantly.
The timeline of what went on may help to explain some of the procedures and things that happened. The vacancy posted by Options 4 Families for a trainee child counsellor went up online on 9 December 2013. On 18 December, the DWP was notified by Monster, which asked whether it was right that we were asking for CRB checks. It was not a constituent coming in to say, “I have a problem here,” as they do through letters, e-mails, and by coming into surgeries. It was our own checks that came across the problem. Ten thousand manual checks are going on per month, and Monster does checks too, so things were looked at then. It was decided that that was fine and the vacancy went back up online, but it was brought back down again and closed on 20 December. It was probably online for about nine days. Only a month or so after that, it seems, the right hon. Gentleman came to us to discuss the matter. We had, however, already seen it, and we were dealing with it and getting in touch with those constituents. That goes to show the checks that are going on constantly, the support that is available and how we deal with things.
That is what is key. Why did Universal Jobmatch come into being? What did we have to do in 2012 to give us the best opportunities to help people into work in this day and age? How were we going to have an online system that actually helped people to look for work, matchmaking them 24/7 and not only during opening hours of 8 to 6, Monday to Friday? How could we have a system enabling people to upload a CV, to find more jobs and to know what is going on? Universal Jobmatch is the best possible solution: it is the largest website in the UK, with 5 million job searches every day on average, bringing employers and employees together and with a significant increase in the number of employers using it. That is key, too. We have to reach out to claimants, and we have to reach out to businesses and employers to ensure that they want to engage and play a part. We also have to help Jobcentre Plus staff, who want to know that they have the best possible equipment.
As we have seen, it is important that we close down any fraudulent behaviour. It is also important that we deal with other inappropriate vacancies. It is worth noting that there frequently seems to be confusion between fraudulent vacancies, which are entirely unacceptable, and the duplicate vacancies that we sometimes see and can arise for a variety of reasons. Often, if a vacancy appears more than once on the site, it is a result of an employer using multiple agencies or posting the opportunity by themselves in addition to using other avenues. That is an unavoidable feature of the open-access model that the service provides, and it must be seen in that context. There are significant opportunities but, equally, if such duplication should not have occurred—if people are posting a vacancy where they have no direct relationship with the employer, for example—the vacancy will be taken down.
We have to consider what Universal Jobmatch has brought to the arena. There is Monster and various other services, but Universal Jobmatch allows job advisers to help people find a job and to check that they are looking for work, which is also key. Equally, we can work with claimants through their claimant commitment and help them to use the service. We can also advise claimants. We take things such as data security very seriously and we give advice to our jobseekers on how to stay safe online when conducting a job search. That advice is published on the UJ website, and it is given to people in jobcentres in a leaflet, “Safety and Security when looking for work.” Claimants are also advised not to pay any fees up front for help with job searches, and they are advised not to reveal personal details such as their bank account number, national insurance number or date of birth. Such information should also not be included on their CV. We are giving such advice on a daily basis.
People can access extra support through the “contact us” button. They are asked whether the site is working adequately, and there is a most frequently asked questions page. There is also additional support. Jobcentre staff are able to help people as much as they can. All of that is key, but it is always evolving and changing. We have to ensure that we have the best service, and wherever anything goes wrong we have to clamp down and ensure that it does not happen again. Equally, when a local Member of Parliament brings the activities of a company to this House, it highlights exactly what we do to close down companies and see what has happened. It also shows how we have supported claimants to recoup their money, which is right. The system is constantly monitored, and we constantly survey what is and is not acceptable.
We have made considerable improvements to Universal Jobmatch. When it was first introduced, we ensured that it was easy to use, that people were getting used to it and that employers had confidence in it. Confidence is key, too: we have to ensure that people have confidence in the system. Of course, all those businesses have confidence and think that Universal Jobmatch is a great way to reach out and find employees. It is significant that 90% of businesses that use Universal Jobmatch are small and medium-sized enterprises. For them, it is a cheaper and more reliable way of finding somebody close to their business. People underestimate the service. More than ever before, the Government are reaching out to business and asking, “How can we support you? How can we get somebody employed? What training do they need? Do they need work experience? Do they need any extra support?” That is what we are doing, and Universal Jobmatch is part of that greater relationship. All I can say is that, with the significant increases in getting people into work, all of these things are working.
We have the ability to disable and delete non-essential cookies, and we have taken the ability to close down accounts. We are enabling jobseekers to re-access their Universal Jobmatch account securely when locked out. We have revised access groups to control the web admin for DWP. We are also listening to what claimants would like. They are saying that they would like to search by a keyword or skill; they would like to find work within a specific distance, postcode or ward; they would like to choose how many hours they have to travel; and they want to filter out vacancies already reviewed within the list of results. We are doing all of those things—constant monitoring, constant upkeep and constant development.
The system has revolutionised the way people look for work. It is enabling people to get into work, and it is allowing advisers to work more closely with claimants, but where things go wrong, it is right that that is brought to this House. In this case, the matter was sorted back in December before the right hon. Gentleman brought it to the House, but it is right that the matter is discussed openly so that we get the best possible result for claimants.
Mr Frank Field
If one was a Prime Minister looking for a totally trustworthy Minister to be in charge of our security service and to ensure that nothing of any comprehension could be learned about the service, today’s debate shows that we have a candidate to fill that role. I am as confused as I was when I came in about what actually goes on.
In the few minutes remaining, I have three very simple questions for the Minister. First, she said that 10,000 checks are undertaken. Why 10,000? What is the time span, and what are the results? Secondly, she said that the Government will hunt duplicates and take them down. Of the 24 jobs advertised as relevant for Birkenhead, 15 were duplicates. Who is responsible for taking down those jobs?
Thirdly, the Minister talked in general terms about having to clamp down. Who clamps down, and who is responsible for that? How many people? How often do they do it, given the number of people who put up jobs and depend on the results? I would be grateful for answers to those three questions.
Esther McVey
By way of example, I was showing how, before the right hon. Gentleman even knew about the incident in his constituency, we had found it, dealt with it and closed down the site, which shows that we have our own team working on it within the DWP. Monster’s team is working on it, and it was streets ahead of his good self, even though it is correct that he brought the matter to the House. Of course we have said that anyone who was put to any inconvenience, who paid out or who suffered any loss was paid, and the compensation on top of their loss was significant. For example, where a loss in actual terms was £750, there was £500 of compensation on top. I have the full list of all those who received payments, but trust me that we have worked closely with them. We did not want to be in that situation, and as I said less than 0.1% of people are in that position, but we have dealt with it. Equally, there are 1,002 full-time vacancies within a 20-mile radius of Birkenhead posted on Universal Jobmatch today.
As I said, where things go wrong, we correct them and sort them out, but I hope everyone can see that we have done that in this instance. When we look at the number of people, 11 came forward and wanted compensation, which we have resolved. When we see that 5 million people a day are doing a job search on the site, we can see how, for the overwhelming majority of people, it is a very good addition to the other things that they might be doing to search for work both by themselves and with their adviser.
Question put and agreed to.