Employment, Social Policy, Health and Consumer Affairs Council

Esther McVey Excerpts
Monday 10th March 2014

(11 years, 3 months ago)

Written Statements
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Esther McVey Portrait The Minister of State, Department for Work and Pensions (Esther McVey)
- Hansard - -

The Employment, Social Policy, Health and Consumer Affairs Council will be held on 10 March 2014 in Brussels.

The Council will seek a general approach on a Council decision on the guidelines for the employment policies of the member states, and agreement in principle on a text of a decision on a tripartite social summit for growth and employment. As the latter is subject to the European Union Act 2011, its final agreement and adoption will require the approval of Parliament by primary legislation.

There will be a policy debate on the European semester, for a contribution to the March European Council.

The Council will be invited to adopt a recommendation on a quality framework for traineeships and the Council conclusions and subsequent reports on the 2014 annual growth survey and joint employment report and the social situation in the EU.

The Commission will present its communication on the “The EU 2020 headline targets” which will be followed by an exchange of views.

Under “any other business”, the Commission will present its proposals for the gender recast directive report and the report on the two anti-discrimination directives. The presidency will report on ongoing issues and there will be a presentation from the Chairs of the Social Policy Committee and the Employment Committee on their 2014 work programmes.

Work Programme

Esther McVey Excerpts
Thursday 6th March 2014

(11 years, 3 months ago)

Written Statements
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Esther McVey Portrait The Minister of State, Department for Work and Pensions (Esther McVey)
- Hansard - -

Having now helped 444,000 people into jobs and 208,000 into lasting work, the Work programme is succeeding—transforming the lives of those furthest from the labour market, who are the hardest to help into employment. The performance of providers since the Work programme’s first year of operation has significantly improved. As planned, these providers are being paid for getting people into work and keeping them there; a real change in the whole culture of how welfare-to-work schemes operate. Now, the positive signs are clear to see: there are fewer people on jobseeker’s allowance than when the Work programme started, and this quarter marked a sizeable fall of 45,000 in long-term unemployment.

Our aim from the start was always that the Work programme should allow for continuous improvement. By its very design, the Work programme was intended to create a competitive market. Providers are paid by results—transferring financial risk to providers and protecting the taxpayer, unlike previous schemes where vast amounts were paid out up front regardless of success. What is more, for the first time unlike other programmes, through levers such as market share shift and contract termination, we are able to actively manage this market place. Since August last year, the Department for Work and Pensions has been rewarding success by referring more claimants to the better performing providers. At the same time, the structure of the Work programme is intended to push out poorer performing providers.

It is now the right time to focus on those contracts which are not doing as well as their competitors. While all contracts are on track to hit their contractual JSA targets, there is significant variation in performance. Accepting only the best for claimants, I have reviewed the performance of the bottom 25% of contracts against a range of performance measures. As a result, the providers delivering these contracts have been put under an enhanced performance management regime, driving them to up their game further.

Following this review, I have also decided to terminate one contract—the lowest performing when assessed against this range of measures. Today I have issued a notice of termination to Newcastle College Group in respect of their contract for the provision of Work programme services in north-east Yorkshire and the Humber. The notice of termination has been issued under the voluntary break clause in the contract and not for any breach of contract by Newcastle College Group.

Following the contract termination, no individual on the Work programme will be left without support. Not only do other providers operate as competitors in the area already, but Newcastle College Group are required to operate within the terms of their contract while the Department appoints a replacement provider within the next 12 months. To ensure continuity of service for those currently on the Work programme in the region, before making that appointment, we will rigorously assess bids to determine who can best deliver the quality of service and results we require. The Department will also support the provider’s supply chain during the transition of services to the replacement provider.

What we have initiated here is a continuous process of evaluation and improvement, with rewards for success and consequences for failure. To this end, other providers who deliver low levels of performance and fail to improve will be considered for further action including the termination of their contract. For the first time, a Government employment programme is harnessing the disciplines of the market place so that only those providers who succeed are retained to help claimants into work. In doing so, we can deliver on our goal to ensure claimants get the best possible service and achieve the best possible outcomes from the Work programme.

Housing Benefit

Esther McVey Excerpts
Wednesday 26th February 2014

(11 years, 4 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Esther McVey Portrait The Minister of State, Department for Work and Pensions (Esther McVey)
- Hansard - -

Thank you, Mr Deputy Speaker.

It may be helpful if I explain what the Opposition are seeking to annul. The instrument amends paragraph 4 of schedule 3 to the Housing Benefit and Council Tax Benefit (Consequential Provisions) Regulations 2006, which provides for transitional protection for certain housing benefit claimants. The amendment removes the transitional protection from social sector tenants such that their housing benefit will be determined using regulation A13 of the Housing Benefit Regulations 2006, which sets out the maximum rent in the social sector.

The amendment is required to close a loophole that derives from a very narrow set of regulations that date back to 1996. Changes at that time introduced the local reference rent rules and those regulations were intended to provide transitional protection for existing claimants as the new rules came into force.

The local reference rent rules only applied to those renting in the private rented sector, so the transitional protection was only ever intended to support them—the vast majority of them pensioners—not social sector tenants who were unaffected. With hindsight, this protection could have been time limited. Because it was not, 17 years later the protection is now being applied in a way that was never intended but is possible, which is resulting in claimants being exempted from the spare room subsidy. Thankfully, my right hon. Friend the Member for Hitchin and Harpenden (Mr Lilley), who was the Secretary of State at the time, said earlier that that was never meant to be the case.

If the motion’s supporters have their way, they will maintain transitional protection that was put in place for something that no longer applies, in order to exempt a group of benefit claimants from a completely different policy 17 years later. At best that is misguided. When we were looking to exempt a set of people, why would we have chosen that set of people?

Esther McVey Portrait Esther McVey
- Hansard - -

Not just yet. I will finish what I am saying.

Why would that group have been exempted? Why would preferential treatment have been given to a set of people who had been on benefits for 17 years? When we have put protection in place, we have sought easement for four sets of people. Foster carers are eligible for an additional bedroom. Parents who have adult children in the armed forces who usually live with them and who could be away deployed on operations but come back to their room would be exempted. Disabled claimants or their partners who require a visiting overnight carer are eligible for an extra room. Severely disabled children who would ordinarily be expected to share a room but who could not would be exempted. We have therefore set out who would require easement. That should not be provided, through some loophole, for people who were never meant to be exempted. It was never intended that people who had been on benefits for 17 years should be exempted.

John Healey Portrait John Healey
- Hansard - - - Excerpts

The Minister has used the words “misguided” and “loophole”. She told me in answer to a parliamentary question in January that

“we estimate the numbers affected are likely to be fewer than 5,000”.—[Official Report, 14 January 2014; Vol. 573, c. 522W.]

In Rotherham and Barnsley, however, one in 14 of all housing benefit claimants has been wrongly hit by the bedroom tax. That suggests that there are nearly 50,000 such claimants across the country. Will she now admit that Ministers have massively underestimated the numbers who have been hit and massively underplayed the difficulties and distress that have been caused?

Esther McVey Portrait Esther McVey
- Hansard - -

I thank the right hon. Gentleman for giving me the opportunity to answer that question. I looked into the freedom of information request and the numbers that had been obtained, and I was assured categorically that there was no way the Opposition’s figures could add up regarding claimants who were continuously on benefits while remaining in the same accommodation. When I spoke to various housing associations and local authorities, they were somewhat surprised, because they had given the numbers of people who might be affected and the numbers of cases they were still investigating, but the Opposition had added them together to try to multiply the numbers. When we answered the question on the numbers, the figure we gave at that time—5,000—was the best we could do. It is incorrect to say that the Opposition have those numbers; that is not the case.

Chris Bryant Portrait Chris Bryant
- Hansard - - - Excerpts

Will the Minister give way?

Esther McVey Portrait Esther McVey
- Hansard - -

I will indeed give way, to hear some more information sprung from nowhere. Go on!

Chris Bryant Portrait Chris Bryant
- Hansard - - - Excerpts

No, this is not information sprung from nowhere; it is direct questions to local authorities under the freedom of information legislation. A classic instance of this is to be found in the Minister’s own backyard: there are 600 cases in the Wirral. If she does not know the numbers—which is effectively what she is saying—is she not simply seeking to change the law on the basis of cruelty?

--- Later in debate ---
Esther McVey Portrait Esther McVey
- Hansard - -

I shall let that last comment pass, because it is completely inaccurate and should not be responded to. Let me give the House some of the answers to the FOI request. Local authorities did have some cases, but the number that they were still investigating was nearly double that amount. Those two amounts have been added together for the purpose of this argument, however, and that is not correct. It is factually misleading—[Interruption.] That example was from St Helens.

Local authorities said that the numbers had not yet been verified. Some of the figures given by the Opposition were 130% higher than the number already affected, and some of the people involved might be pensioners, who would not be affected by the measure. Such cases have not been thoroughly investigated because there had been a computer system change and those numbers were not available straight away; they would have had to be manually checked throughout the country.

None Portrait Several hon. Members
- Hansard -

rose

Esther McVey Portrait Esther McVey
- Hansard - -

I will carry on. More information has been handed out by the Opposition and, as always, they are not very good with their numbers—hence the problem that we now find ourselves with

. Why are we bringing forward this policy? We are looking at how to make the best use of social housing. We know that more than 400,000 people are living in overcrowded accommodation, and that 2 million people are on waiting lists. At the same time, there is overcapacity equating to approximately 1 million spare rooms in other houses. How do we deal with this? It is not an easy issue that we have been left with, and we are having to make difficult decisions in order to get it right. We know what we cannot do: we cannot have a housing bill that doubles over 10 years, and we cannot have more and more people on waiting lists and living in overcrowded accommodation.

I was intrigued by the fact that it was only Members on the Government Benches who talked about people in overcrowded accommodation. They included my hon. Friend the Member for South Northamptonshire (Andrea Leadsom) and my right hon. Friend the Member for Hitchin and Harpenden (Mr Lilley). Only those on this side of the House seemed to care about the people who are struggling and are on a housing waiting list. The reason that we are putting these measures in place is that we want to ensure we make the best use of our social housing. At the same time, we are building more affordable housing: there will be 177,000 more affordable homes by 2015, with £4.5 billion being spent.

My right hon. Friend the Member for Hitchin and Harpenden talked about home exchanges. He said that there were 56,000 one-bedroom homes and 147,000 two-bedroom homes available on HomeSwapper, and that 66% of the 233,000 homes available for home exchange were one and two-bedroom properties. Of course we are not expecting homes to be vacant at the moment, waiting for people to move in We need to find out who wants to move, how they are going to move, and how we do the swaps.

What is most unfortunate is that when we knew this policy was coming into being—that was four years ago and it has been in place for a year—the Opposition did absolutely nothing. In the year between 2012 and 2013, £11 million was handed back to the Government. The Opposition should have been asking, “How can we help people to move? How can we use that money to reduce rent arrears? How can we use that money to help people move into other accommodation?” They did absolutely nothing, digging their heels in; they were not helping those who most needed their support and were ignoring what was coming through. That is shameful, but this is the Opposition who led this country into serious debt and made sure that private debt for individuals went up to £1.5 trillion. Rather than help people out of debt, and help them move to homes they could afford and live within their means, the Labour party allowed them—

Oral Answers to Questions

Esther McVey Excerpts
Monday 24th February 2014

(11 years, 4 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Laurence Robertson Portrait Mr Laurence Robertson (Tewkesbury) (Con)
- Hansard - - - Excerpts

2. What recent progress his Department has made on reducing youth unemployment.

Esther McVey Portrait The Minister of State, Department for Work and Pensions (Esther McVey)
- Hansard - -

The Government’s approach is working. For the 20th consecutive month, we have seen the youth claimant count reduce, so it is down on the month, down on the year and down since the election.

Laurence Robertson Portrait Mr Robertson
- Hansard - - - Excerpts

It is very good news that young people are finding work, but there are still far too many out of work. None the less, engineering and manufacturing companies in my constituency cannot find young people to employ. What discussions is the Minister’s Department having with Jobcentre Plus and with its colleagues in the Department for Education about giving young people the right kind of career advice?

Esther McVey Portrait Esther McVey
- Hansard - -

My hon. Friend does a lot in his constituency of Tewkesbury with engineering and manufacturing companies. I know that he regards it as vital that more people are involved in manufacturing and science, and that is a view that we all share, which is why we are doing more on apprenticeships—half a million this year—and on advanced apprenticeships. We have also brought together the youth action groups, so the Minister for Civil Society can now lead the way for all Departments and the voluntary and charity sector to work together.

Alison McGovern Portrait Alison McGovern (Wirral South) (Lab)
- Hansard - - - Excerpts

The Minister reels off statistics, but will she help me communicate with young people in Merseyside? What are they supposed to think when they see the figures in the Liverpool Echo today that show that more people have been sanctioned in Merseyside than have found work through her Work programme? What are young people supposed to think?

Esther McVey Portrait Esther McVey
- Hansard - -

I do a lot on Merseyside—whether it is with the Merseyside youth entrepreneurship scheme or with young kids and helping to provide them with role models. Supporting people on Merseyside has shaped my career for the past 15 years. Indeed, I grew up there during the 1980s. What we are doing should be looked at in its entirety. We cannot look at sanctions in isolation. This is about the claimant commitment, the extra traineeships since 2011—more than half a million—and the extra apprenticeships. We are doing a lot. I am focusing on youth unemployment. It is going in the right direction, but there is still plenty more work to be done.

--- Later in debate ---
David Amess Portrait Mr David Amess (Southend West) (Con)
- Hansard - - - Excerpts

5. What recent assessment he has made of the effectiveness of his Department’s work experience programme.

Esther McVey Portrait The Minister of State, Department for Work and Pensions (Esther McVey)
- Hansard - -

Tomorrow, we will publish the Youth Contract claimant survey research, which contains a range of information on claimants’ experiences and an analysis of the early impacts. However, the latest figures showed that we previously had 113,000 people who started work experience and that 50% of them got a job; that there were 21,000 wage incentive starts and that 30,000 people went to sector-based work academies.

David Amess Portrait Mr Amess
- Hansard - - - Excerpts

Having run an employment agency before becoming a Member of Parliament, I wonder whether my hon. Friend agrees that, in a tough labour market, work experience provides a useful tool for our young people to gain access to the permanent jobs market. Should we not do everything that we can to enhance the programme?

Esther McVey Portrait Esther McVey
- Hansard - -

My hon. Friend, who has such great knowledge in this area, is spot on. Only this morning, I was with a group of young people from Livity, as well as various large employers—Capgemini, Ernst and Young and Tesco—and they all said that it was vital that they had work experience. They felt that they could not get a job without work experience. We have put that in place, and the more people who get on board and support it, the better.

Andrew Gwynne Portrait Andrew Gwynne (Denton and Reddish) (Lab)
- Hansard - - - Excerpts

Work experience can certainly be helpful, but given that the Department has recently published a glowing evaluation of Labour’s future jobs fund, why will the Minister not introduce a jobs guarantee scheme?

Esther McVey Portrait Esther McVey
- Hansard - -

That was certainly a rewrite of history, but Labour is used to doing that. The future jobs fund cost £6,500 per person and had only a 50% success rate, but not in the private sector, because most people did not end up there. The hon. Gentleman will be pleased to know that with the work experience programmes and sector-based work academies we are introducing, we are achieving better success rates at one twentieth of the cost—£325 per person.

Baroness Burt of Solihull Portrait Lorely Burt (Solihull) (LD)
- Hansard - - - Excerpts

6. What steps he has taken to help those reaching retirement age before the introduction of the single-tier pension.

--- Later in debate ---
David Nuttall Portrait Mr David Nuttall (Bury North) (Con)
- Hansard - - - Excerpts

16. What assessment he has made of trends in the number of 18 to 24-year-olds claiming jobseeker’s allowance in Bury North constituency.

Esther McVey Portrait The Minister of State, Department for Work and Pensions (Esther McVey)
- Hansard - -

The number of young people claiming jobseeker’s allowance in Bury North has fallen by 17% over the last year and the number of long-term young claimants has fallen by a third.

David Nuttall Portrait Mr Nuttall
- Hansard - - - Excerpts

I am grateful to the Minister for confirming the good news that hundreds more young people in my constituency now have the security of a regular pay packet. Can my hon. Friend tell the House whether that encouraging trend is also reflected in the other age groups and categories of unemployed in Bury North?

Esther McVey Portrait Esther McVey
- Hansard - -

I can indeed answer that question from my hon. Friend, who is a particularly active local MP and holds us all to account thoroughly in his constituency. The claimant count is down 17% across the board in his constituency, and nationally we have got record numbers of people into work—more than 30 million—and we have got a record number of women into work, and at a record rate. That really does show that the Government’s long-term plan is working.

Chi Onwurah Portrait Chi Onwurah (Newcastle upon Tyne Central) (Lab)
- Hansard - - - Excerpts

17. What recent assessment he has made of the extent of abuse of zero-hours contracts in back-to-work schemes.

--- Later in debate ---
Gareth Johnson Portrait Gareth Johnson (Dartford) (Con)
- Hansard - - - Excerpts

T2. Will the Minister join me in welcoming the fall in unemployment in my constituency over the past three years? We now have about 2,500 more people in work than in 2010, benefiting young and old, those in full-time and part-time positions, and men and women. Does not this highlight how important it is for the Government to stick to their economic plans and ensure that the well-being of this country improves?

Esther McVey Portrait The Minister of State, Department for Work and Pensions (Esther McVey)
- Hansard - -

My hon. Friend is right to say that we have got a record number of people into work across the board. What is most interesting as I travel up and down the country is to see how local Jobcentres Plus are working with local businesses to support their local work forces. In particular, the learning shop at Bluewater is doing tremendous work. My hon. Friend is right. We have done a lot; we have more to do.

Baroness Elliott of Whitburn Bay Portrait Julie Elliott (Sunderland Central) (Lab)
- Hansard - - - Excerpts

T3. A constituent of mine recently had his benefits wrongly withdrawn. He has severe learning difficulties and cannot use the internet independently, and therefore has great difficulty in applying for jobs online. Does the Secretary of State agree that targeted support would be more successful in getting my constituent and others back into work than damaging, wrongly imposed benefit sanctions?

--- Later in debate ---
Mel Stride Portrait Mel Stride (Central Devon) (Con)
- Hansard - - - Excerpts

T5. I congratulate my right hon. Friend the Secretary of State on all the work he has put into getting people back into employment, but I was visited this weekend by one of my constituents, Paul Vachon, who has been unemployed for more than 12 months and is highly skilled. His major concern is that, because he is close to the point of retirement, his employability is diminished. What are the Government doing to encourage and support those such as Paul who are seeking jobs at the point when they are about to retire?

Esther McVey Portrait Esther McVey
- Hansard - -

My hon. Friend raises an important question about how we support all people back into work. It really is important that advisers have the flexibility to offer skills and job-search support to people of all ages, including those who might need extra support on the Work programme and, equally, those in local areas that might have an over-50s digital group or 50-plus work clubs. We need to make sure that everybody is getting the support and I would be more than happy to meet my hon. Friend to discuss the matter further.

Jim McGovern Portrait Jim McGovern (Dundee West) (Lab)
- Hansard - - - Excerpts

T8. I have put this question to the Department for Work and Pensions on two previous occasions in the Chamber, but I will try again and perhaps, as the old adage goes, this will be third time lucky. More than 90% of the Work programme participants in my home city of Dundee have not been helped into work by it, so my simple question is: why not?

Esther McVey Portrait Esther McVey
- Hansard - -

The Work programme supports those people who are furthest away from the job market. We have helped more than 1.4 million people and we now know that more than 400,000 of them have had a job start. We have to get them closer to the workplace, so it is working well. We always say that there is more to do, but this has done a significant amount for those people who are the hardest to help.

Lord Beith Portrait Sir Alan Beith (Berwick-upon-Tweed) (LD)
- Hansard - - - Excerpts

T6. Will Ministers do something about the fact that, of all the people being helped with personal independence payment claims by the Berwick citizens advice bureau, not one remaining in the area has received an assessment since the scheme started?

Meg Hillier Portrait Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
- Hansard - - - Excerpts

T9. Further to the question asked by my hon. Friend the Member for Dundee West (Jim McGovern), a number of my constituents have been on the employment and support programme for two years, or nearly two years, and have had not a sniff of a work opportunity. Do the Government have a solution for how to get people with complex needs into work, because clearly the Work programme is not delivering?

Esther McVey Portrait Esther McVey
- Hansard - -

The Work programme is working. For those people who are on employment and support allowance, it is about getting closer to the job market and that is what we are doing—putting provision in place. I remind the hon. Lady that, under her Government, those people were not supported in any consistent way whatsoever.

Bob Blackman Portrait Bob Blackman (Harrow East) (Con)
- Hansard - - - Excerpts

T10. One of the issues raised during the last debate before the recess was payment of benefits to terminally ill patients. Will Ministers update the House on what additional help and support is available for recipients of PIP?

Income Support Lone Parent Statistics (Correction)

Esther McVey Excerpts
Monday 24th February 2014

(11 years, 4 months ago)

Written Statements
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Esther McVey Portrait The Minister of State, Department for Work and Pensions (Esther McVey)
- Hansard - -

I regret to inform the House that an error has been identified within the income support lone parent regime official statistic. This has caused an over-count in the number of income support lone parent sanctions reported within four releases of the statistic (February, May, August and November 2013). During this time, a number of parliamentary questions (PQs) were tabled requesting this data; a list of all such PQs and the Members who tabled them can be found below:

PQ UIN 144830 - Kerry McCarthy

PQ UIN 148374 - Fiona Mactaggart

PQ UIN 150516 - Dame Joan Ruddock

PQ UIN 159327 - Shaun Woodward

PQ UIN 161444 - Jessica Morden

PQ UIN 165640 - Frank Field

PQ UIN 174368 - Stephen Timms

PQ UIN 175527 - David Ward

PQ UIN 175730 - Mike Hancock

PQ UIN 177178 - Barbara Keeley

PQ UIN 180927 - John Healy

I apologise to the House for this inadvertent error. The erroneous data were corrected on 19 February 2014 and are available at the following URL:

https://www.gov.uk/government/collections/income-support-lone-parent-regime-figures-on-sanctions-and-work-focused-interviews--2.

The affected figures are provided in summary below:

ISLP Sanctions

12-month period

Publication

Number of Sanctions

Incorrect

Correct

Oct 2011 to Sep 2012

Feb 2013

64,100

56,800

Jan 2012 to Dec 2012

May 2013

61,400

51,800

Apr 2012 to Mar 2013

Aug 2013

57,900

48,400

Jul 2012 to Jun 2013

Nov 2013

61,500

45,100

Job Insecurity

Esther McVey Excerpts
Wednesday 5th February 2014

(11 years, 4 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Esther McVey Portrait The Minister of State, Department for Work and Pensions (Esther McVey)
- Hansard - -

Only this Labour party could call a debate on job insecurity a week after it was announced that a record number of people have got a job. Such impeccable timing makes me think that the motion must have been written by the shadow Chancellor, for it reminds me of the time he predicted that unemployment would soar by 1 million just before it fell by 1 million to a record low or the time he called a triple-dip recession just before official figures showed we had not even had a double-dip recession. In fact, the only recession that took place was when the Labour Government were in power.

And here we have a motion on job insecurity just after we have had the biggest rise in jobs in 40 years—more than 30 million employed—while unemployment has fallen in every part of the country. It is clear that even Labour Members were disappointed by the motion and had no faith in it, because the Opposition Benches were empty throughout the afternoon. The hon. Member for Streatham (Mr Umunna) has not returned to the Chamber, although it was he who moved the motion, but I can tell the House that in his constituency the claimant count is down by 20% and the youth claimant count is down by 36%. No wonder he is not present to hear those facts. As for the right hon. Member for East Ham (Stephen Timms), the claimant count in his constituency is down by 27% and the youth claimant count is down by 30%.

Labour Members may talk about job insecurity, but the biggest guarantee of job insecurity is a Labour Government. If Members want the facts, I can tell them that unemployment rose by nearly half a million under Labour, female unemployment rose by 24%, youth unemployment rose by 45%, and long-term unemployment almost doubled between 2008 and 2010.

The truth is that Britain is poorer because of the recession over which the Labour Government presided. As Paul Johnson of the Institute for Fiscal Studies put it,

“That household incomes are lower than before the recession and are lower than they were in 2010 is hardly surprising. We have just lived through the deepest recession in generations”.

We are living beyond our means, but given that they were borrowing £160 billion every year, what do the Opposition expect? What we needed to do—and what we have done, in remarkably good time—was turn the economy around in three years. We did what we said we would do: we stabilised the economy, rebalanced the economy, and grew the economy. Even the International Monetary Fund has said that it is now the fastest-growing economy in the western world, and Mark Carney has said:

“The economy is growing at its fastest pace in 6 years… The recovery has finally taken hold.”

That has happened under this coalition Government.

Esther McVey Portrait Esther McVey
- Hansard - -

I should love to hear what the hon. Gentleman has to say.

Huw Irranca-Davies Portrait Huw Irranca-Davies
- Hansard - - - Excerpts

The Minister is giving a glowing report of the coalition Government’s success, but will she tell us whether she has had sight of what now seems to be the suppressed report on food aid that landed on Ministers’ desks a year ago and has not surfaced? Will she give an undertaking to produce that report, which deals with the causes of poverty among working people?

Esther McVey Portrait Esther McVey
- Hansard - -

I have not had sight of the report from the Department for Environment, Food and Rural Affairs, because I am a Minister in the Department for Work and Pensions, but once it has been authorised and released, the hon. Gentleman can read it.

Let us return to today’s debate. We heard a great deal of what I would describe as misinformation about the number of people in part-time work. Since the election, the number of people in full-time work has risen by 1 million; three out of four people are in full-time work, and we have stabilised the position. In the last quarter, the number of people wanting to move from part-time to full-time work fell for the first time ever, and—Opposition Members may be startled to hear this—between 2005 and 2010, the number doubled. That is the truth of Labour’s legacy.

Opposition Members talk of zero-hours contracts, but the number of zero-hours contracts is the same as it was in 2000. The 75% increase happened between 2004 and 2009. Moreover, if we want to think about getting our houses in order, we should note that the council with the worst record for zero-hours contracts is Labour-run Doncaster council, which is in the constituency of the Leader of the Opposition and also in the constituency of one of the ladies on the Opposition Front Bench.

Turning to the contributions of those on the Government Benches, my hon. Friend the Member for St Albans (Mrs Main) talked some good common sense about people getting their foot on the ladder, job progression, the fact that the number of apprenticeships has doubled in her constituency, and how this Government are helping families and young people into work. She also questioned what the hon. Member for Streatham (Mr Umunna) meant when he said, “Don’t take any old job; some jobs are different from other jobs.” There was some real job snobbery from the Opposition Front Bench.

My hon. Friend the Member for Selby and Ainsty (Nigel Adams) talked about youth unemployment being down by 25% in his constituency, and how he does not talk down the economy, but instead talks it up because that is positive and it helps people into work.

Chuka Umunna Portrait Mr Umunna
- Hansard - - - Excerpts

I ask the Minister to withdraw the comments she has just made. I was quite clear that of course we welcome people getting back into work. My point was—and I am sure she will agree with me—that we aspire for more than that for the people we represent. We do not just want them to get a job; we want them to get good-quality jobs which are secure and well paid. That is the point I was making. She was here. Perhaps she will clarify her comments.

Esther McVey Portrait Esther McVey
- Hansard - -

Well, I am glad the hon. Gentleman has decided to return to the Chamber. I explained earlier how unemployment has significantly fallen in his constituency, but he was not here to hear that. His words are on the record, and we all heard them. Should he wish to read them back tomorrow, he can do so in Hansard.

My hon. Friend the Member for Ipswich (Ben Gummer) talked with great clarity about the great recession that we were left with, how we have sorted it out and taken significant strides in building up the economy, and what we have done in terms of exports and developing manufacturing, so that now for the first time since the ’70s we export more cars than we import, and we are now exporting more outside Europe than inside Europe. All these things have happened under our stewardship.

My hon. Friend the Member for North Swindon (Justin Tomlinson) talked about how people can set up their own business, and how that is a real engine for social mobility, and how this Government are helping people through the new enterprise allowance. Under us, businesses are setting up at the rate of 2,000 a month. That is what we want—young people setting up in business, older people and women setting up in business. Those are the sorts of policies we are coming forward with.

My hon. Friend the Member for Reading West (Alok Sharma) rightly said that this motion is vague, confused, and just lacking really, rather like Labour’s policies in this entire area. He also said business confidence is up, and not just in his area but right across the country. There are reports that say so: the CBI and PricewaterhouseCoopers have said optimism is up. Do people want to take on people? Yes they do. Do people want to give people jobs? Yes they do. They feel that for the first time.

The whole motion did not really make much sense. It never really looked at what had happened under Labour’s stewardship. It never really looked at how when we talk about the tax credits bill and the benefits bill, we say it might have gone up a little bit; it will have gone up by 5% in five years, yet under Labour it had gone up by 20%. What we are doing is rebalancing the economy, bringing the spend down, and living within our means.

The hon. Member for Bridgend (Mrs Moon) talked about unemployment in her constituency. I am pleased to be able to tell her that unemployment is down 26% on this year and 23% on—

Baroness Winterton of Doncaster Portrait Ms Rosie Winterton (Doncaster Central) (Lab)
- Hansard - - - Excerpts

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

Question put forthwith, That the Question be now put.

Question agreed to.

Main Question put accordingly.

Psychological Wellbeing at Work

Esther McVey Excerpts
Monday 20th January 2014

(11 years, 5 months ago)

Written Statements
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Esther McVey Portrait The Minister of State, Department for Work and Pensions (Esther McVey)
- Hansard - -

Poor mental health is a major issue for Government, society and for the many individuals either directly or indirectly affected by it. At any one time, around one in six people have a common mental health problem like anxiety or depression, and a further two in a hundred are affected by severe mental illnesses like schizophrenia. Additionally, we know many people suffer from both physical health and mental health problems at the same time.

The sheer number of people with mental health problems in work, and out of work, across all working-age benefits, makes this a mainstream issue for the Government. It represents an enormous challenge to both health and employment services, not just in the UK but across industrialised nations.

While none have yet established the best way to increase the effective support for people with mental health problems to work, the mental health benefits associated with good work are well known. We are working towards a solution and, if we get it right, the benefits for society will be substantial.

It is clear that health and work services need to work together, for example with flagship programmes like improving access to psychological therapies (IAPT) working more closely with local employment services. We are also developing the health and work service in order to support employees to return to work from sickness absence.

This need for collaboration between health and work services is precisely why my colleague the Minister of State, my hon. Friend the Member for North Norfolk (Norman Lamb), who is responsible for care and support, and I are vigorously pursuing solutions to this issue. Through the Cabinet Office’s Contestable Policy Fund, the Department for Work and Pensions and the Department of Health jointly commissioned RAND Europe to explore the most promising approaches on how to improve employment outcomes for people with common mental health problems, with a focus on better alignment of employment and health services.

Today we are launching RAND Europe’s report, “Psychological Wellbeing and Work: Improving Service Provision and Outcomes”. The report sets out key findings and advocates:

enhanced employment support in primary care including IAPT services, building on the employment advice currently offered in these services, with fully-specified support models like individual placement and support (IPS);

activities for benefit claimants with, or at risk of developing depression or anxiety to build belief in capability for work and increase emotional resilience to the setbacks people face when job seeking; and

different modes of specialist work and well-being assessments and support, including online, telephone and face-to-face.

The project report and its proposals will contribute to a better evidence base for action. It will enable both Departments to take forward our exploration into better mental health and employment provision—providing better approaches to help people with mental health problems to work.

The report will be published later today on the gov.uk website, and I will place a copy in the House Library.

Oral Answers to Questions

Esther McVey Excerpts
Monday 13th January 2014

(11 years, 5 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Michael Ellis Portrait Michael Ellis (Northampton North) (Con)
- Hansard - - - Excerpts

14. What assessment he has made of the implications for his Department’s policies of the most recent employment statistics.

Esther McVey Portrait The Minister of State, Department for Work and Pensions (Esther McVey)
- Hansard - -

The latest employment statistics, which show a record number of people in work and falling unemployment, demonstrate that our policies are working.

Bob Blackman Portrait Bob Blackman
- Hansard - - - Excerpts

Will my hon. Friend tell the House by how much the number of claimants has fallen since the Government were elected in 2010, and what has been the consequent saving to the public purse?

Esther McVey Portrait Esther McVey
- Hansard - -

I know that my hon. Friend is very interested in this subject. I understand that he runs business breakfast clubs to help people to obtain work, and to secure growth in his constituency. I can tell him that 525,000 fewer people have claimed the three main out-of-work benefits since the election, that both unemployment and the claimant count are lower, and that in his constituency the claimant count has fallen by 23% in the last year, long-term unemployment has fallen by 16%, and youth unemployment has fallen by 28%. Obviously, all that is saving the Government a considerable amount of money.

Michael Ellis Portrait Michael Ellis
- Hansard - - - Excerpts

Youth unemployment in my constituency has fallen by 25.6% in the last 12 months alone thanks to this Government. I organise a job fair every year, and last year more than 2,000 people came through the doors, many of them wanting to swap jobs. Thanks to the Government, things are moving very much in the right direction. Meanwhile, the Government are expanding the new enterprise allowance scheme, which is designed to improve young people’s entrepreneurial skills. What is the Minister’s assessment of how that is going?

Esther McVey Portrait Esther McVey
- Hansard - -

My hon. Friend is another Conservative Member who is doing a great deal in his area. He has got together 2,000 people from his local community—job seekers and businesses—and has found everyone work. He is right: youth unemployment has fallen by 28% over the year, and long-term youth unemployment in his area has fallen by 26%. The new enterprise allowance scheme is expanding—2,000 young people have already set up businesses in that way—and we are investing more money by extending the scheme until December 2015.

Sheila Gilmore Portrait Sheila Gilmore (Edinburgh East) (Lab)
- Hansard - - - Excerpts

The December report of the Office for Budget Responsibility increased its projection for increased spend on housing benefit by £1.8 billion between March and December and attributes half of that to people in employment who will have to claim housing benefit. Is not the truth that because of low hours and wages, savings in one respect are simply popping out as increased spending in another?

Esther McVey Portrait Esther McVey
- Hansard - -

That is not the case. We want to look at the numbers. If we look at the spend on housing benefit, we see that it doubled under Labour from £12 billion to £24 billion. What we have got to do is look in the round at those people who are in overcrowded housing and those on waiting lists as well as those who have got houses that are bigger than they necessarily need and yet the taxpayer is funding all of it. The figures are right: the cost doubled under Labour’s watch.

Stephen Timms Portrait Stephen Timms (East Ham) (Lab)
- Hansard - - - Excerpts

What plans does the Minister have to tackle the new record level of people wanting full-time work but only able to get part-time work? That went up in the most recent statistics to 1.47 million. It is the highest level it has ever been. What is the Minister going to do about it?

Esther McVey Portrait Esther McVey
- Hansard - -

Actually, in the last three months the vast majority of people who got jobs were getting not only full-time jobs but also permanent full-time jobs, and three out of every four jobs have been full-time.

Andrea Leadsom Portrait Andrea Leadsom (South Northamptonshire) (Con)
- Hansard - - - Excerpts

22. For the past three years running I have had an apprentice caseworker in my office who has been an A-level school-leaver. Does my hon. Friend agree that having apprenticeships perhaps before university is an opportunity for young people to get on to the road to work by getting some work experience and that that is an incredibly valuable experience for young people that more and more of them are taking advantage of?

Esther McVey Portrait Esther McVey
- Hansard - -

I totally agree with my hon. Friend who set up one of the biggest and best job clubs in her area, supporting people into work. Work experience is key and it does not matter whether people are on their way to university or just wanting to get into a job because this helps in understanding what jobs they want to do and what jobs they do not want to do. Around 113,000 people have gone through work experience and over 50% of them have ended up in a job. My hon. Friend is right to sing the praises of work experience.

Ann McKechin Portrait Ann McKechin (Glasgow North) (Lab)
- Hansard - - - Excerpts

8. What steps he is taking to increase the ability of employment and support allowance claimants in the work-related activity group to gain paid employment.

Esther McVey Portrait The Minister of State, Department for Work and Pensions (Esther McVey)
- Hansard - -

ESA claimants in the work-related activity group have access to a wide range of employment support, including the Work programme where claimants receive tailored support for two years, and a flexible menu of support through their Jobcentre Plus. Specialist support is also available through Work Choice.

Ann McKechin Portrait Ann McKechin
- Hansard - - - Excerpts

The Minister will be aware that the Lichfield review analysing the system said that it was beset by delays beyond the stipulated regulatory period and that Work programme providers consistently reported that they had very little information about the people referred to the scheme. Can the Minister explain to the House what specific steps she has taken to address those concerns?

Esther McVey Portrait Esther McVey
- Hansard - -

First, let us talk about the Work programme, which is the first time we have ever had a coherent way to address and support these people back into work. We know through industry statistics that over 440,000 people have got a job from that programme and that over 100,000 have found a long-term job. We are supporting people as best we can—the first time we have ever done this. We are taking specific steps, too: we are analysing everything, watching what works, conducting a best-practice group and implementing the findings. So this is new, it has started and we are getting it better.

Charlie Elphicke Portrait Charlie Elphicke (Dover) (Con)
- Hansard - - - Excerpts

Can the Minister confirm that the pilot is the first time that ESA has been looked at in a co-ordinated way to try and get people to fulfil their potential? Will she also confirm that it is innovative policies such as this that mean our unemployment is so much lower than that in countries such as France where the Labour party’s policies are being pursued to economic catastrophe?

Esther McVey Portrait Esther McVey
- Hansard - -

My hon. Friend is right. Most of Europe is looking to us to see how we get people into work, whereas the Opposition are looking to France where the exact opposite is happening. This is a very complicated journey for people who are in the ESA group and for most of them it is about understanding their lifestyles and getting them closer to the workplace and then into a job.

Andrew Jones Portrait Andrew Jones (Harrogate and Knaresborough) (Con)
- Hansard - - - Excerpts

10. What recent assessment he has made of trends in auto-enrolment.

--- Later in debate ---
Nicholas Dakin Portrait Nic Dakin (Scunthorpe) (Lab)
- Hansard - - - Excerpts

16. What assessment he has made of the effect of the under-occupancy penalty on household incomes.

Esther McVey Portrait The Minister of State, Department for Work and Pensions (Esther McVey)
- Hansard - -

The average weekly reduction in housing benefit resulting from this measure is £14.50. However, two thirds of those affected experience weekly reductions of less than that, and the average weekly loss for those who have moved off benefit as a result of this policy is £8.

Nicholas Dakin Portrait Nic Dakin
- Hansard - - - Excerpts

When I visited the Scunthorpe food bank recently, the excellent volunteers there reported a significant increase in the numbers of people using the food bank. When I asked them why that was, they chorused in unison: “The bedroom tax.” When are this Government going to do a proper evaluation of the damage the bedroom tax is doing to hard-working families?

Esther McVey Portrait Esther McVey
- Hansard - -

I, too, praise the local community, the voluntary groups, the Trussell Trust and the Churches that are helping people through the food banks, but I do not agree that we can draw an analogy between what is happening there and our attempt to get fairness through changes to the spare room subsidy. What about those people who are in overcrowded homes? What about those people who are on a waiting list? How do we support everybody in this way? Labour shirked dealing with this problem, and it is a very difficult issue to get right. Labour shirked it but we are dealing with it.

James Morris Portrait James Morris (Halesowen and Rowley Regis) (Con)
- Hansard - - - Excerpts

Does my hon. Friend agree that it is financially unsustainable for the housing benefit bill to continue rising at the level that it has historically without the type of fundamental reform to housing benefit that this Government are introducing?

Esther McVey Portrait Esther McVey
- Hansard - -

I completely agree with my hon. Friend. There are many dimensions to this, because it is not just about a housing benefit bill that doubled under Labour’s watch; it is also about the lack of houses that were built, fairness in the system, getting housing right and building right for the future.

Chris Bryant Portrait Chris Bryant (Rhondda) (Lab)
- Hansard - - - Excerpts

This might be all right if there were smaller properties for people to go to, but there are not. It might be all right if £14.50 was a tiny sum, which it may be to the hon. Lady or to any of us in the Chamber, but it is not to the carers who do an invaluable job, not only on behalf of the person they care for, but for the whole of society. So how can it possibly be right that 60,000 carers are paying, on average, as the Minister has just admitted, an extra £14.50 a week? Are this Government dim-witted, short-sighted or just plain cruel?

Esther McVey Portrait Esther McVey
- Hansard - -

I am afraid none of those are true. I see that the hon. Gentleman gathered much information together, but let us see what happens; as I said, we have got to get this right. We have to get the housing right. We have got to have more smaller buildings. He wrote to me as he did not understand about conversions and I had to lay it out clearly in the letter; the National Housing Federation agreed with me. Despite not knowing the facts, he did produce a press release for the papers. We are getting conversions right, sorting out the problem and helping as many people as possible.

Teresa Pearce Portrait Teresa Pearce (Erith and Thamesmead) (Lab)
- Hansard - - - Excerpts

17. What assessment he has made of the effect of the under-occupancy penalty on carers.

Esther McVey Portrait The Minister of State, Department for Work and Pensions (Esther McVey)
- Hansard - -

Live-in carers are provided for as part of the assessment of household need. An additional room for non-resident overnight carers is allowed in certain circumstances. Discretionary housing payment funding has been increased to £180 million for 2013-14 to help support vulnerable claimants to adjust to the reforms.

Teresa Pearce Portrait Teresa Pearce
- Hansard - - - Excerpts

Many children grow up with separated parents, but I think we would all agree that joint parenting is in the best interests of the child. One of my constituents is a devoted father whose small son lives with him 50% of the time, but he now has to lose his son’s bedroom because the benefits system will accept only one parent as the “main carer”. Will the Minister re-examine that rule and consider an exemption?

Esther McVey Portrait Esther McVey
- Hansard - -

The hon. Lady is right to bring this matter to the House, and such situations are always difficult, but the room would be allocated to whoever was the main carer of the child. In this instance, that is the mother and that is who we would be looking to. We would not be supporting two sets of rooms in two separate houses, as we are trying to get this housing policy right.

Baroness Keeley Portrait Barbara Keeley (Worsley and Eccles South) (Lab)
- Hansard - - - Excerpts

May I bring the Minister back to the issue of unpaid family carers of sick and disabled people? She recently admitted in a response to my question that 50,000 or 60,000 of those carers were affected by the bedroom tax. More than 1 million of those carers have given up work to care, and they have nowhere to go to find the money. She has talked about live-in carers, but it is not about that. Will she answer about the 50,000 or 60,000 carers? Will she admit that it was a mistake not to exempt them from the bedroom tax?

Esther McVey Portrait Esther McVey
- Hansard - -

What we did is not name absolutely everybody who could have part of the discretionary housing payment. We have allowed discretion for those people who might need it the most, hence it is called “discretionary”, hence it has been trebled and hence we are supporting these people. Obviously, if somebody on housing benefit, or their partner, needs an overnight carer on a regular basis, they would have their spare room subsidy; they would be exempt from this.

Nigel Mills Portrait Nigel Mills (Amber Valley) (Con)
- Hansard - - - Excerpts

18. What plans he has for the habitual residence test.

--- Later in debate ---
Philip Hollobone Portrait Mr Philip Hollobone (Kettering) (Con)
- Hansard - - - Excerpts

20. How many adults and young people have been helped to find employment by Kettering Jobcentre Plus in each of the last three years.

Esther McVey Portrait The Minister of State, Department for Work and Pensions (Esther McVey)
- Hansard - -

In the last three years, the number of young people and adults claiming jobseeker’s allowance in Kettering has fallen by 26%, long-term unemployment is down 8%, youth employment is down 35% and long-term youth unemployment is down 31%. Claimants are not required to tell us their reason for leaving JSA, but surveys suggest that it is that 77% of people move into work.

Philip Hollobone Portrait Mr Hollobone
- Hansard - - - Excerpts

I thank the Minister for that extremely good news for Kettering. Will she say what assistance is being provided to help young people find employment?

Esther McVey Portrait Esther McVey
- Hansard - -

I will indeed. I was planning to give my hon. Friend some information for those young people in Kettering. There is a growth hub, Brackley job club, Christ Church work club, the graduate boost work club, Kettering library work club and a whole host of extra support. Across the country, we have put £1 billion in the Youth Contract to help young people get into work.

Neil Carmichael Portrait Neil Carmichael (Stroud) (Con)
- Hansard - - - Excerpts

T1. If he will make a statement on his departmental responsibilities.

--- Later in debate ---
Jim McGovern Portrait Jim McGovern (Dundee West) (Lab)
- Hansard - - - Excerpts

On the Work programme, can the Minister explain why Dundee is once again the least supported city in Scotland, with only 9.79% of people being helped back into work by the programme? Will she apologise to the people of Dundee and explain why 90% are still not being helped?

Esther McVey Portrait The Minister of State, Department for Work and Pensions (Esther McVey)
- Hansard - -

The majority of people are being helped by the Work programme. As I said earlier, this is the first time we have had a co-ordinated approach to support, and it has supported 2.5 million people so far. Of course we have to make it better and support more people, but 444,000—that figure is from industry statistics—have actually got a job.

Greg Mulholland Portrait Greg Mulholland (Leeds North West) (LD)
- Hansard - - - Excerpts

Tragically, nearly 10,000 families suffer the death of a child each year, including 7,800 babies under the age of one. Is it not time that the Government did the right and compassionate thing in the remainder of this Parliament by backing the Change Bereavement Leave campaign and introducing a statutory right to bereavement leave for all parents who lose a child?

Parliamentary Written Answer (Correction)

Esther McVey Excerpts
Monday 6th January 2014

(11 years, 5 months ago)

Written Statements
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Esther McVey Portrait The Minister of State, Department for Work and Pensions (Esther McVey)
- Hansard - -

I wish to inform the House that an error has been identified in the written answer given to the hon. Member for Kingston upon Hull North (Diana Johnson) on 21 November 2013, Official Report, column 1023W—written answers and statements. The information included within the table in the answer to PQ 176414 contained some incorrect figures and these have now been amended. I apologise to the House for this error.

The full answer given was:

Diana Johnson Portrait Diana Johnson
- Hansard - - - Excerpts

To ask the Secretary of State for Work and Pensions how many jobseeker’s allowance claimants in Hull have been sanctioned since 22 October 2012; how many such sanctions have been subsequently overturned; how many such claimants had previously been asked to undertake a literacy course by a jobcentre; and how many claimants were previously claiming employment support allowance. [176414].

Esther McVey Portrait Esther McVey
- Hansard - -

The information is tabled as follows:

Number of jobseeker’s allowance (JSA) claimants with an adverse JSA sanction decision, and of these, the number overturned upon reconsideration or appeal in Kingston upon Hull local authority, 22 October 2012 to 30 June 2013

Number

Total number of jobseeker's allowance (JSA) claimants with an adverse JSA sanction decision

6,540

Of Which:

Decision overturned: Total

1,140

Decision overturned: Following reconsideration

1,050

Decision overturned: Following appeal

90

Notes: 1. Figures are rounded to the nearest 10. 2. Totals will count individuals who have had both a sanction overturned upon reconsideration and also upon appeal.

Source: DWP Information, Governance and Security Directorate: JSA Sanctions and Disallowance Decisions Statistics Database.



The information requested how many such claimants had previously been asked to undertake a literacy course or how many claimants were previously claiming employment and support allowance (ESA) is not readily available and could be provided only at disproportionate cost.

The revised answer is as follows:

Diana Johnson Portrait Diana Johnson
- Hansard - - - Excerpts

To ask the Secretary of State for Work and Pensions how many jobseeker’s allowance claimants in Hull have been sanctioned since 22 October 2012; how many such sanctions have been subsequently overturned; how many such claimants had previously been asked to undertake a literacy course by a jobcentre; and how many claimants were previously claiming employment support allowance. [176414].

Esther McVey Portrait Esther McVey
- Hansard - -

The information is tabled as follows:

Number of individuals with a jobseeker's allowance (JSA) sanction by decision in Kingston upon Hull local authority, 22 October 2012 to 30 June 2013.

Number

Sanction applied

4,330

Overturned following reconsideration

880

Overturned following appeal

80

Notes: 1. Figures are rounded to the nearest 10. 2. Data are to the 30 June 2013 which is the latest available information. 3. Sanction applied: New sanctions rules came into force for JSA from 22 October 2012. The number of sanctions applied is the number of low, intermediate and high-level referrals where the decision was found against the claimant. Further information can be found here: https://www.gov.uk/government/publications/jobseekers-allowane-overview-of-sanctions-rules. 4. The decision to apply a sanction can be overturned following reconsideration or appeal. 5. All figures may include individuals who have had more than one sanction decision e.g. if an individual has a sanction applied and another sanction overturned following an appeal then they will appear twice. Source: DWP Information, Governance and Security Directorate: JSA Sanctions and Disallowance Decisions Statistics Database.



The information requested how many such claimants had previously been asked to undertake a literacy course or how many claimants were previously claiming employment and support allowance (ESA) is not readily available and could be provided only at disproportionate cost.

Food Banks

Esther McVey Excerpts
Wednesday 18th December 2013

(11 years, 6 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Esther McVey Portrait The Minister of State, Department for Work and Pensions (Esther McVey)
- Hansard - -

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

None Portrait Several hon. Members
- Hansard -

rose—

Esther McVey Portrait Esther McVey
- Hansard - -

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

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

Baroness Laing of Elderslie Portrait Madam Deputy Speaker (Mrs Eleanor Laing)
- Hansard - - - Excerpts

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

Esther McVey Portrait Esther McVey
- Hansard - -

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

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

Baroness Laing of Elderslie Portrait Madam Deputy Speaker
- Hansard - - - Excerpts

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

Esther McVey Portrait Esther McVey
- Hansard - -

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

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

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

None Portrait Several hon. Members
- Hansard -

rose—

Esther McVey Portrait Esther McVey
- Hansard - -

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

Catherine McKinnell Portrait Catherine McKinnell (Newcastle upon Tyne North) (Lab)
- Hansard - - - Excerpts

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

Esther McVey Portrait Esther McVey
- Hansard - -

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

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

Baroness Laing of Elderslie Portrait Madam Deputy Speaker (Mrs Eleanor Laing)
- Hansard - - - Excerpts

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

Esther McVey Portrait Esther McVey
- Hansard - -

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

Andrew Selous Portrait Andrew Selous
- Hansard - - - Excerpts

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

Esther McVey Portrait Esther McVey
- Hansard - -

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

Robert Halfon Portrait Robert Halfon
- Hansard - - - Excerpts

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

--- Later in debate ---
Esther McVey Portrait Esther McVey
- Hansard - -

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

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

Baroness Laing of Elderslie Portrait Madam Deputy Speaker (Mrs Eleanor Laing)
- Hansard - - - Excerpts

Order. We cannot hear the Minister.

Esther McVey Portrait Esther McVey
- Hansard - -

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

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

Baroness Laing of Elderslie Portrait Madam Deputy Speaker
- Hansard - - - Excerpts

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

Esther McVey Portrait Esther McVey
- Hansard - -

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

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

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

Baroness Laing of Elderslie Portrait Madam Deputy Speaker
- Hansard - - - Excerpts

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

Esther McVey Portrait Esther McVey
- Hansard - -

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

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

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

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

None Portrait Several hon. Members
- Hansard -

rose

Esther McVey Portrait Esther McVey
- Hansard - -

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

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

Baroness Laing of Elderslie Portrait Madam Deputy Speaker
- Hansard - - - Excerpts

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

Esther McVey Portrait Esther McVey
- Hansard - -

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

Sheila Gilmore Portrait Sheila Gilmore (Edinburgh East) (Lab)
- Hansard - - - Excerpts

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

Sheila Gilmore Portrait Sheila Gilmore
- Hansard - - - Excerpts

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

Esther McVey Portrait Esther McVey
- Hansard - -

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

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

Christopher Pincher Portrait Christopher Pincher (Tamworth) (Con)
- Hansard - - - Excerpts

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

Esther McVey Portrait Esther McVey
- Hansard - -

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

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

Baroness Laing of Elderslie Portrait Madam Deputy Speaker
- Hansard - - - Excerpts

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

Esther McVey Portrait Esther McVey
- Hansard - -

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

Tom Clarke Portrait Mr Tom Clarke (Coatbridge, Chryston and Bellshill) (Lab)
- Hansard - - - Excerpts

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

--- Later in debate ---
Stephen Twigg Portrait Stephen Twigg (Liverpool, West Derby) (Lab/Co-op)
- Hansard - - - Excerpts

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

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

Esther McVey Portrait Esther McVey
- Hansard - -

indicated dissent.

Stephen Twigg Portrait Stephen Twigg
- Hansard - - - Excerpts

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