(9 years, 6 months ago)
Commons ChamberBack in 2011, I had discussions with Tesco about its plans to set up a major distribution centre in my constituency. They were very successful and a couple of years later we had a new distribution centre employing more than 1,000 people. As part of its commitment to helping the long-term unemployed, Tesco ring-fenced 85 of those new jobs for those who had been long-term unemployed; about 18 months ago I went to a graduation ceremony for those who had been on the scheme. They had not only gained new skills in the workplace but received training at a local college. The age range of those graduating was from the mid-20s to the mid-50s, and the event was one of the most emotional and uplifting that I have been to during my five years as an MP. The sheer sense of achievement and pride for those graduating was palpable, and it was not because somebody had just come along and handed them a job but because they had each worked hard, had achieved and had won a job on their own merits. There are many examples of employers across my constituency who have created jobs over the past five years.
A number of my colleagues have talked about apprenticeships. They have been a huge success in Reading West in the past five years. We have had thousands of new starts. All sorts and sizes of businesses, everyone from Cisco and Microsoft to Chiltern Training and Pertemps—a huge range of organisations—have been taking advantage of help from the Government to start apprenticeships,. We talk about real jobs—these organisations have been creating real opportunities for young people. The end result of all that job creation and help for young people is a massive 60% fall in unemployment in my constituency since May 2010. Overall, unemployment is now below 2%. The right hon. Member for East Ham (Stephen Timms) talked about youth unemployment. That has fallen from 7.8% in May 2010 to 1.7% today.
Those businesses did not need any kind of compulsory guarantee from Government; they got on and created jobs. The reason why businesses have invested, putting money into research and development and infrastructure, is that they have regained the one absolutely precious commodity that one needs to succeed in business: confidence. Businesses have confidence in the British economy and they have confidence in the future. Above all, they have confidence in a Government who have cut corporation tax, national insurance and red tape, and increased the investment allowance and extended small business rate relief. All these are policies designed to create jobs. It is not Governments who create jobs; it is companies in the private sector that create jobs.
The right hon. Member for East Ham, who is no longer in his place, was not able to say what percentage of jobs under the compulsory jobs guarantee would come from the private sector. I can tell him that, according to a BBC report in March 2014, the Labour party was talking about 80% of jobs coming from the private sector. In the past few weeks, it has been bashing businesses and demonising wealth creators. Labour has made it clear that it will put up taxes and have more red tape. That will end up driving businesses away from our shores. With all due respect, I have to say that I do not think the Leader of the Opposition, or indeed very many Labour Members, understand business. That is because they have never worked in business.
There are a number of Labour Members who have worked in business, including me. What the hon. Gentleman said was ridiculous, and perhaps he will withdraw it.
Order. May I just say that interventions are going to take time from Members who are going to speak later? That is the only worry I have, but by all means continue.
If there is one group of people in this country whom the Government have let down it is our young people. Young adults in this country have been pushed to the fringes by this Government, who have chosen to focus their energies on pockets of society they believe are more important. But nobody is more important than our young people. No one knows that more than our older people. Grannies and granddads are heartbroken that their grandchildren are unable to start making their own way in the world, and are having to rely on mums and dads who are dealing with pressure on top of pressure. Our older people have seen it all before, and this Government should have spent the past five years helping them and helping our young people. Instead, they have sat back and watched poverty creep across the UK, so that it is now a normal part of far too many working people’s lives.
I will not give way.
The Government have sat back as almost 1 million people have turned to food banks for help. Their mismanagement of the economy means that prices have risen faster than wages for 52 out of their 53 months in office. Under this Government, unemployment reached more than 2.5 million, which is its highest level for 17 years, and youth unemployment peaked at more than 1 million.
Ministers may rejoice at the figures in their briefings, but let me tell them that things do not feel like they are getting better for my constituents. Some 6% of young people in my constituency are claiming jobseeker’s allowance, which is twice the UK average. Although that figure represents about 500 people, in every month of this Parliament the number of unemployed young people in my constituency has been closer to 1,000. Sometimes the figure is above 1,000, but mostly it is close to it. Those young people, who are struggling to find work, have been let down month after month after month by this Government. Tory Ministers would rather give millionaires a tax cut than help our young people. Young people think that life under the Tories is not fair, and they are absolutely right.
A Labour Government would introduce a compulsory jobs guarantee to get more young people into work. Those young people would receive in-work experience, on-the-job training, and wages; perhaps most importantly, they would have the dignity and confidence they need and deserve.
Government Members are wrong in saying that our scheme is not costed. We have set it out very clearly. It would be paid for through our tax on bankers’ bonuses and by restricting pensions tax relief for those who earn more than £150,000 to the same rate as that for basic taxpayers, which is fair enough. This scheme is necessary. Our young people deserve a better future. We cannot have another five years of this Government.
(9 years, 6 months ago)
Commons ChamberMesothelioma is a disease that affects far too many of my constituents. In fact, numerous studies show that some parts of my constituency have the highest percentage of asbestos-related disease per head of population in the UK by a considerable measure. I agree with my hon. Friend the Member for Stretford and Urmston (Kate Green): of course, we welcome the uprating, but it is still some way from the compensation levels that people suffering from this awful disease should receive and deserve to receive.
I want to mention the Clydebank Asbestos Group in my constituency. While the Prime Minister faffs around with his big society project, its members just get on with helping their fellow Bankies and people across Scotland who have been diagnosed with this terrible disease. The Mesothelioma Act 2014 was very welcome—it was overdue—and it obviously means that many people can access compensation that they would not otherwise have had.
It is not acceptable that those responsible for poor working conditions or for exposing employees, tenants and others to asbestos can shirk their responsibility and live their lives without consequences, while too many of our constituents have succumbed to this terrible disease or have watched their loved ones die. I suspect that if we looked at the uprating of the payments compared with the profits of the insurance industry over the past year, we would see a significant difference, and that makes the case for making compensation levels far higher than those set thus far.
There is still a serious anomaly for veterans diagnosed with mesothelioma. It was brought to the Government’s attention by the Royal British Legion, as well as by me and other hon. Members some five months ago. It is a clear breach of the armed forces covenant because veterans diagnosed with mesothelioma are receiving only a fraction of the compensation paid to civilians—in some cases, up to £100,000 less—which is clearly unacceptable. I appreciate that this is an issue for both the Department for Work and Pensions and the Ministry of Defence, but five months ago we were told that the matter would be looked at urgently and that there would be action. Will the Minister discuss that with his colleagues in the MOD as a matter of urgency?
(10 years, 8 months ago)
Commons ChamberI will not give way.
Setting the payments at the right rate is crucial to the success of the Bill and the ultimate establishment of a payment scheme. The payment rate of 75% of average civil damages takes the levy right to limit of what insurers have indicated they could absorb without passing the costs on to new businesses—an absolutely crucial issue. It is the absolute maximum that would be realistic within a fixed-payment scheme.
The levy on insurers will be imposed on active employers’ liability insurers at large today, not the individual insurers who took out the premiums, who were covered in cases that come under the scheme. The scheme could be jeopardised if the levy were set disproportionately high. That could delay the introduction of the scheme, preventing the payment mechanism from being in place at the time of the peak of mesothelioma deaths, which, according to the actuaries, will be around 2015. I am sure we will debate that as we go through the Bill, but I hope that that will not detract from the importance of ensuring that it gets on to the statute book as soon as possible. As everybody in the House will understand, the scheme must strike a careful balance in making a substantial payment to eligible people while ensuring that the contribution made by the insurers is fair and not excessive. Crucially, the proposed levy rate must not be so high as to risk increased costs on business, thereby adversely affecting British businesses, which no one in the House would want.
In addition to the payment scheme and the levy, the Bill makes provision for the possibility—I stress, the possibility—of establishing a technical committee to adjudicate on making binding decisions on disputes between insurers. I think we would all prefer that to these matters being in the courts.
The Bill and the principles behind it merit the support of the whole House.
I am coming to the end of my comments.
We have no doubt that the principle of the Bill—[Interruption.] It is no good Opposition Front Benchers chuntering; they will have their opportunity to speak in a minute. Let us just get on. If the hon. Member for West Dunbartonshire (Gemma Doyle) wants to speak, as lots of Members do, she will be welcome to do so. That is why I am not giving way every five seconds.
It is always a pleasure to follow my hon. Friend the Member for North Durham (Mr Jones) no matter how long he speaks for. Anyone who watched “Britain and the Sea” last night—I think it was on BBC1—would have seen a great deal of my constituency, because it was all about shipbuilding on the Clyde. Unfortunately, that is now part of our history because the remaining yards on the Clyde are not in my constituency. Although we are proud of the industry, we have two quite stark reminders of our shipbuilding past that we would rather not have. One is a large derelict piece of land at Queen’s quay, on which I hope we will soon see some houses built. The second is the scourge of asbestos exposure, which leads to, among other things, the horrible cancer that is mesothelioma. As we have heard this evening, people have also been exposed in a number of other industries—among other things, my constituency had an asbestos factory.
Being diagnosed with such a disease is bad enough, but having to fight not only it but for compensation is a double blow. The average life expectancy following diagnosis with mesothelioma is about two years, which people should not have to spend battling to ensure that their family have a little financial security.
I welcome the Bill and want to see it become law as soon as possible, but I also want the House to work together, if possible—it looks like that will be possible—to make it better. The Bill could and should be better.
I want to reinforce a number of points that Members have already covered today. My first concern is the level of compensation. Why should it be set at only 75% of the average paid out? I wanted to ask the Minister that as he was making his opening speech, but he refused to take more interventions—I do not know whether he takes a daily allowance of three—and we did not get an answer to that question. I urge the Government to consider raising the level to at least 90%, although hon. Members have suggested other figures. According to the Government’s own analysis, that would still fall within the 3% levy on premiums that the industry tells us it can afford. The pay-outs would be raised by an additional £18,000, and I hope that proposal is considered seriously in Committee.
Secondly, the cut-off date for those eligible for the scheme has simply been set far too late and does not kick in until a good two years after the consultation was launched. Whether the two-year delay is attributable to the wheels of the civil service turning slowly, or Ministers prevaricating with or placating the insurance industry, that is two years in which people will have been diagnosed who are now excluded from the scheme. There is a seriously twisted irony in the fact that, as I have said, the average life expectancy following diagnosis with mesothelioma is approximately the same length of time—two years.
As other Members have argued, it is entirely justifiable for the kick-in date to be put back to February 2010, when the consultation and the intention to legislate for an industry-funded scheme were first announced. An industry whose business is assessment and the management of risk would have made plans to meet that responsibility from the very first mention of it.
Thirdly, like other hon. Members I am concerned about the exclusion of other asbestos-related diseases from the scheme and see no reason why it is limited to mesothelioma only. Lord Freud said in the other place:
“The issue of individuals who have developed other asbestos-related diseases…and are unable to bring a civil claim for damages of course needs to be addressed.”—[Official Report, House of Lords, 20 May 2013; Vol. 745, c. 690.]
I hope that the Government and the Minister will deal with that issue at some point.
Fourthly, there is the inequitable situation of the compensation that is to be paid out compared with the clawback of previously awarded benefits or lump sum payments. There is no logic whatsoever in awarding claimants only 75% of civil compensation rates while clawing back 100% of previously awarded benefits or lump sum payments, and I hope that that issue will be dealt with in Committee.
Those are the four key points that need to be addressed. Research has been mentioned and I note that in the Lords a commitment was made to a joint strategy with the Department of Health on encouraging proposals for research on mesothelioma. I hope that will be taken forward. I also back the suggestion, made by my right hon. Friend the Member for Wythenshawe and Sale East (Paul Goggins), that industry should contribute to research.
I pay tribute to Clydebank Asbestos Group in my constituency. The people who run it are volunteers; they are not paid, but—I am not overstating this—they genuinely dedicate their life to helping people who have been affected by asbestos-related diseases, wherever they live. They deal with victims and their families. They campaign, run very informative conferences in my constituency, and offer advice and support that is both professional and personal. They see people at various stages of the disease; some have literally just walked out of the doctor’s surgery, having been diagnosed, and are afraid and confused, and do not know what their diagnosis means. They assist people who are battling for compensation. Everybody who walks through the door of the group’s shop sees a friendly face, and gets a cup of tea, and advice and support that are absolutely second to none.
Some, if not all, of the volunteers have lost friends or loved ones to asbestos-related diseases. I want to share a few words of Joan Baird’s. I know her well; she is one of the group’s stalwarts, and she lost her husband some years ago. If anyone would like to read her story, it is on the group’s website. This is what she said about her husband:
“How do I feel! Cheated, lonely and empty; denied the autumn of my years with my husband. The doctors confirmed that Willie most likely would have lived to a ripe old age had it not been for this devastating disease. Like thousands of others he was killed by corporate murder. UNFORGIVABLE.”
I hope that the Government will consider the improvements to the Bill that Members on both sides of the House have suggested this evening. I also hope that the Minister will enter more fully into the spirit of debate in his closing remarks, given his refusal to take interventions and answer legitimate questions during his opening remarks. He shakes his head, but he did not do justice to this very serious issue.
(11 years, 1 month ago)
Commons ChamberI can confirm that a strong passion of mine—and certainly one of the DWP’s—is to get financial education literacy into the national curriculum. I hope that view would be shared on both sides of the House. Clearly, people coming out of the education system need at some point to understand what interest rates are, for example—otherwise they will get ripped off by unscrupulous lenders. The national curriculum is published in its final form for first teaching in the autumn of September 2014. The Department for Education and ourselves are consulting on including financial education in it, and I believe that we are likely to get that, so I can say an honest “yes” to my hon. Friend.
The Daily Record recently alleged that Youth Contract wage incentives are being handed out to people already in work—just to give the illusion that the funds are being used. What investigation has the right hon. Gentleman made of that report?
This is not directly related to the innovation fund, which is about testing programmes so that extra skills, quality and money can eventually be put in. However, I am aware of what the hon. Lady says, as is the Minister of State, Department for Work and Pensions, my hon. Friend the Member for Fareham (Mr Hoban) who is looking into it and will ensure that action is taken. If the allegation is true, we will act; if not, it will simply be a scurrilous report.
(11 years, 5 months ago)
Commons ChamberThe hon. Gentleman is having a go at the record of the previous Government but he cannot abdicate all responsibility from previous Tory Governments who made it impossible for local authorities to build houses without them being sold off at below market value to tenants who bought them at knock-down prices. That underpins the whole shortage of supply and Government Members cannot pass off responsibility for having created the problem in the first place.
Housing in the social rented sector is by far the cheapest option for people on low incomes. In my constituency, a three-bedroom council house can be rented more cheaply than most one-bedroom flats. People who live in council houses already have limited choice about where they live and what sort or size of house they are offered. Councils and housing associations already go to great lengths to match tenants with a house of the right size, but they do not have enough one-bedroom properties to go round. Many councils allocate homes on a points-based system, which is the most transparent and fair approach, but they require considerable flexibility from prospective tenants in terms of the size, location and type of property they will accept. Demand exceeds supply. Anyone who knocks back the offer of a house because it has two bedrooms when ideally they need one bedroom may not get another offer. People cannot be picky and must take what is available.
I absolutely agree with the points that the hon. Lady is putting to the Government. Is she aware that 83% of the Government’s cuts have been passed directly to councils by the Scottish Government and that councils are having to deal with the sharp end of this measure? That amount of money that is being taken out of Scottish councils at this extraordinarily difficult time—[Interruption.]
Colleagues from Wales are saying that there the Labour Government have passed on 100% of the cuts. Surely it is better that the Scottish Government have tried to mitigate the impact of those cuts on households, rather than passing them on wholesale. We must remember that most of our social housing was built in an era when people had much larger families and different housing needs. Existing housing simply does not match today’s demographics.
That is very interesting. The right hon. Gentleman and his party were in office for 13 years and decided in their 2010 manifesto—the manifesto to which he just referred—to do something to control housing benefit. In office, they do not do it, but as they are heading out of government, they promise to do something.
Will the Minister explain to the right hon. Member for Bermondsey and Old Southwark (Simon Hughes) that Ministry of Defence Ministers have now admitted that some armed forces families will be affected by the change? Why does he think that families of prisoners should be exempted, but not armed forces families?
Let us address the position of armed forces personnel specifically, because there has been an awful lot of misinformation about that. A married member of the armed forces is unaffected, so if someone is living with a spouse and goes away to fight—[Interruption.] Let me work my way through—they will be unaffected. A young serviceman or woman living in barracks will not be affected either, because they are not social housing tenants. Many young service personnel living with parents not in social accommodation will not be affected, and neither will young people living in social accommodation who are not on housing benefit, so we are narrowing down the number of people we are talking about probably to a very small number. When a young serviceman or woman, leaves social accommodation where the parents are on housing benefit, their housing benefit will go up.
If the hon. Lady knows it, I do not know why she asked the question.
The young serviceman or women, who will be on a wage, is deemed to be making a substantial contribution towards the household rent—say £70 a week or so—but when they have been away for more than 13 weeks, that non-dependent deduction does not apply anymore, so the housing benefit goes up substantially. There will be a charge for under-occupancy, which might be, say, £14 a week. Instead of paying £70 to the household housing costs, the young serviceman or woman will not have to pay anything, so if they value the room at £2 a day, they could still pay that £2 to mum and dad and be more than £50 a week better off. Rather than seeing mum and dad’s housing benefit fall, therefore, they will see it increase. So we have dealt with that issue.
(11 years, 7 months ago)
Westminster HallWestminster 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
It is a pleasure to serve under your chairmanship today, Mr Bayley, and I congratulate my hon. Friend the Member for Sedgefield (Phil Wilson) on securing the debate.
Like other hon. Members, over the past few months, I have been contacted by many of my constituents who simply do not know what to do about the policy’s implications. There is not a smaller house for them to move into, and they are not going to be able to afford their rent.
One of my constituents lives in a three-bedroom house, which he needs, as he looks after his children at weekends—similar to some other examples we have heard—but his housing benefit will be cut. If he has to move to a one-bedroom house, does it mean that it is right that his children only get to see him if they all sleep in the living room at weekends? Where should they do their homework? Would he even get access to see his children if he does not have somewhere for them to sleep, if the courts were involved in making a decision?
I have also been contacted by a couple who foster up to six children at a time, and again, they are not exempt from the cut. Is the Government’s policy honestly to cut housing benefit for foster parents, which means that they have to downsize and that they cannot foster children any more? What on earth are the Minister’s plans for the children who will then not be able to be placed with foster parents? Another constituent has sent me his monthly expenditure breakdown. The only thing he has left to cut is his contents insurance, and even then, that will not make up the difference.
What about tenants whose house has been specially adapted for them? Councils do not have the money to adapt another tranche of houses for all the people who have an extra bedroom. Some councils are considering knocking down a whole block of flats—from two-bedroom flats into one-bedroom flats—to try and deal with this. The Minister is nodding his head. Does he honestly think that that is what councils should be spending their money on? Okay, he does. We have that on record. I am a bit shocked about that.
I also want to raise the impact of the bedroom tax on serving members of the armed forces and their families, as alluded to by my hon. Friend the Member for North Durham (Mr Jones). A prisoner can be away from home for up to 52 weeks and not have their housing benefit docked, but if someone is a serving member of the armed forces, their housing benefit will be docked if they are away for 13 weeks or more. It is astonishing that Ministers are giving prisoners more flexibility to claim those benefits than serving personnel. They are choosing prisoners over patriots. Some 96,000 members of the regular forces do not live in service accommodation, and I want to know how many of them will be affected. The Minister seems to be indicating that they will not be affected. Perhaps he can explain how that is, because we are aware of examples where they will be. Service families and personnel could be hit for doing their duty for their country.
Reservists will be affected too. They do not live in forces accommodation, so surely an even higher percentage of them will be hit. The Government are trying to increase recruitment to the reserve, so how do they think the prospect of having a housing benefit cut will affect those plans? They must publish the impact of the bedroom tax and set out very clearly who will be affected. It is the least they can do to clear the matter up for our forces. Either Ministers do not realise that serving personnel and their families will be affected, or they think that it is right that prisoners should have an exemption, while those protecting our country do not.
I want to read out a couple of lines from an e-mail that I received from a constituent about the impact that the policy will have on him:
“I am 40 years old, receiving incapacity Benefit, and live alone in a 2-bedroom flat. I struggle to make ends meet as it is at the moment, and literally keep track of every penny I spend. I do not drink, or smoke, or go on holidays, or socialise—my existence…consists of hiding from the world in a cold flat (I cannot afford to use the central heating) and reading. I cannot even visit my parents because I cannot afford £4 bus fare.
Come next April, I will no longer be able to afford to live. I do not enjoy my life, but have struggled to retain it. These changes are likely to be the proverbial straw that breaks the camel’s back, and I am sure I am not the only person considering this.
I would like to know, in your opinion, what I can realistically do next year to survive.”
I have replied to my constituent, but I could not tell him how he can survive when the impact of this policy is felt, so I wonder whether the Minister could tell my constituent what he can do.
(11 years, 9 months ago)
Commons ChamberWhen one of the big beasts from the past roars, it is always difficult not to be incredibly enthusiastic about what they are roaring about, so I accept the hon. Gentleman’s invitation to express my interest and support for the report. Obviously there are details in it, but he makes the vital point that in too many communities there are families of two and three generations that have been beyond the work cycle. This is about getting them back into the idea of work not just for the money but because their whole lives disintegrate without it. I agree with him and will certainly make sure I tell Lord Heseltine how supported he is.
21. What assessment he has made of the effectiveness of the youth contract; and if he will make a statement.
The youth contract was introduced in April 2012 to provide additional support worth almost £1 billion to unemployed young people over the next three years. Although it is too early to make any judgments of its effectiveness, we have commissioned an external evaluation of the youth contract to examine delivery and outcomes, and the first report will be available early next year.
I notice that the Minister gives a cautious response. Is it true that millions of pounds that we should be using to get young people into work are sitting unallocated and helping no one, because the Government cannot get employers on board with the youth contract?
A number of young people have been helped by various aspects of the youth contract. Twenty young people in the hon. Lady’s constituency have had work experience as a consequence of it, and another group has been helped into work as a result of the sector-based work academies. I hope that she is doing all she can in her constituency to champion the youth contract and to get more young people into work.
(11 years, 11 months ago)
Commons ChamberI am grateful for the opportunity to speak in the debate, mainly because, since I was elected at the last election, I have been contacted every single week by constituents who are concerned about the Government’s plans to shake up the benefit system—the so-called welfare revolution—and about what it will mean for them.
Universal credit was supposed to lie at the heart of that revolution, but it appears to be unravelling. The Secretary of State’s flagship project is descending into chaos; it is £100 million over budget and the timetable has slipped by several months. He needs to get a grip on it before it sinks and takes £2 billion of public money with it. I am surprised that he did not take the chance of a free transfer to another team to get him out of the mess.
A welfare project as all-encompassing as universal credit is too important to get wrong. We are not talking about numbers and schemes but about people having enough money to feed and clothe their children and keep warm. In Scotland we have experience of the Tory Government testing out their flawed policies and failing in the face of mass opposition, and I worry that this policy will be as disastrous as the poll tax. I sincerely hope that it will not.
One of the few things that most Members agree on is the importance of a welfare system that encourages people who are able to do so to look for work. It is very difficult for people to find a job at the moment, and if the Secretary of State is as compassionate as he makes out, he should recognise that when he does his tour round Glasgow. In West Dunbartonshire more than 19 people are chasing every job vacancy. At times in the past year that number has been as high as 40 and it continues to fluctuate.
The Government have cut the number of public sector jobs in West Dunbartonshire, including at Jobcentre Plus. The Scottish National party Government have excluded my constituency from any assistance such as from enterprise zones and the youth unemployment strategy fund despite the fact that when they announced the areas that would get money, West Dunbartonshire had the highest youth unemployment and had been named as the most difficult place in the whole of Scotland to find a job. The SNP continues to ignore us.
The people of West Dunbartonshire feel let down by both the UK and the Scottish Governments, and that may be one reason they booted out the SNP council and elected a Labour one in May. They have never elected a Tory council, I am glad to say. Even for those people who are in work, many are now worse off as a result of the Government’s changes to tax credits. The new criteria on minimum working hours mean that some families will be better off out of work and on benefits. Is that really what the Government want; is it what their Back Benchers want? I really do not think it is, so I suggest that they look again at the system.
It should never be the case that it is better to be on benefits than in work—[Interruption.] Well, this is what the Government are doing. If Government Members do not like it, I suggest that they tell their Government.
So does the hon. Lady support the benefit caps that mean that some will be better off working? That is presumably why she voted against them.
I want work to pay for everyone and what the Government are doing means that it does not for some families, and that is the black-and-white truth.
In West Dunbartonshire 200 households are set to lose up to £4,000 a year as a result of the Government’s changes and, with the jobs market already very difficult and businesses struggling to keep afloat, it is almost impossible for people to increase their working hours.
Unemployment in West Dunbartonshire was falling before the Government were elected, but under their stewardship of the economy it is rising again. What the Secretary of State and his Ministers forget is that when they make a decision the people who pick up the pieces are the volunteers and staff who try to help people through the welfare maze. That includes the staff in Jobcentre Plus and in my constituency it includes West Dunbartonshire welfare rights service, the Independent Resource Centre and the citizens advice bureau. They are all swamped at the moment. They help people with appeals and frequently win them because Atos has such a low rate of getting it right the first time around. Even for people who win their appeal the stress continues because they are soon sent for further assessment; they are knocked back, taken off benefit again and go into a never-ending cycle of appeals and assessments.
One of the organisations has told me that often claimants are told on the phone that they have been judged fit for work, and that the clock has started ticking on the time within which they can appeal, but that they cannot make that appeal before they receive the formal decision notice, which often does not appear until more than a week later. I would ask Ministers to look at this issue; I hope that it is not an attempt to squeeze the amount of time that claimants have to make an appeal. The delay is certainly making it more difficult. The organisations in my constituency have also raised with me the problem of the IT equipment used to move towards the online system.
I also want to raise briefly a specific concern about the replacement of disability living allowance with the new personal independence payment. Earlier this summer the Prime Minister apparently intervened to ensure that injured veterans would not have to undergo further assessments for PIP and to protect their benefits, but I understand that no definite protections have yet been put in place. I have been contacted by a veteran who is very concerned that only those who qualify for the armed forces compensation scheme will be covered by the protections and that pre-2005 veterans who were injured during their service and receive a war disablement pension will not be covered under the protections. I ask the Minister to look at that issue and hope that we will have some clarity on it soon.
There were elements of the universal credit that sounded promising, such as a simpler and more streamlined application process, but there are many outstanding concerns, as we have heard today. I support a welfare system that makes work pay. I would also support a Government who create work, but this Government are failing to do that.
(12 years, 5 months ago)
Commons ChamberMany people listening to the debate will be somewhat surprised that in this day and age we still have this approach to supporting disabled people in this country. I know there is union involvement in the factories and perhaps that had some bearing on the problems that the previous Administration had in taking tough decisions on this issue. I assure my hon. Friend that we will take the right decisions for disabled people because we are listening to their aspirations for the future, not the unions.
Earlier, the Minister indicated that stage 2 factories such as the one in Clydebank in my constituency can expect no more support than stage 1 factories in finding a way forward to a sustainable future. Will she reconsider that position and put a taskforce into each of the stage 2 factories at least?
(12 years, 8 months ago)
Westminster HallWestminster 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.
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The hon. Gentleman will know that the consultation talks about freeing Remploy from the control of Government and making sure that successful organisations can continue to thrive.
To return to the specific point that Members have addressed at great length, there are examples of local authorities and Remploy working together, but the problems in the factories will not be addressed by that alone. Article 19, to which Members have referred, is clearly a way to help public bodies use supported businesses, but it does not address the issue of value of money that procurement officers always need to consider, nor does it guarantee that Remploy will be given work in competition with other supported businesses.
The issues currently faced by Remploy factories are not new, and concern over the increasing cost, low productivity and sustainable jobs for disabled people has been an issue since the 1990s. The operating loss for the factories has increased into tens of millions of pounds, and the steps taken under the modernisation plan, which was rightly introduced by the previous Administration, including closing and merging 29 sites, has simply not addressed the fundamental weakness in the business model.
The right hon. Member for Cynon Valley mentioned my comment that I was minded to accept the consultation’s proposals. I want to make it clear that I have not yet made a final decision about the consultation, but I am persuaded that there is a need for change and that the Sayce review suggests a persuasive model for such change.
Is the Minister aware—I believe that she is—of the Blindcraft factory in Glasgow, which is a very successful supported employment workplace? Will she acknowledge that it is the business plan, not the business model, that is failing, as the management themselves acknowledged to her and me earlier this year?
I thank the hon. Lady for her intervention. We have met on several occasions to discuss the issue. There are examples of areas where there can be success. Indeed, the hon. Member for Swansea West has walked the talk and made sure that the procurement issue has been uppermost in his local authority’s mind, and he has been very successful in that regard. There are opportunities for success, but the problem is that that success is not across the board.
I have already confirmed that the amount of money going into specialist disability employment is not the issue, because we have protected that pot of money. This is about ensuring that that money works hardest for disabled people. This is not about reducing funding; it is about using the money most effectively in whatever way that comes about. We have to consider those alternatives.
I have met Remploy trade union representatives on a number of occasions to discuss the matter. I have visited factories and listened to the views of employees, and I attended one of the consultation events in Reading in September. Let me restate that the Government’s commitment is to the five-year modernisation plan introduced in 2008. We are now in year four of that and those targets are not being met.
Last week, Remploy published independently audited annual reports and financial statements for 2010-11, which revealed that the Department for Work and Pensions spent £68.3 million supporting 2,200 disabled people in Remploy enterprise businesses at an annual cost of £25,000 per person. That is £5 million more than in 2009-10 and is more than 20% of the total budget available to help disabled people into work through the specialist employment budgets. We have to take a long hard look at the situation.
That is extremely kind of the right hon. Lady. I have managed to race through most of the issues that I want to cover—I think that I have actually managed to cover almost everything raised by hon. Members.
The Minister is drawing to a conclusion, but I do not think that she has mentioned the issue of bonuses, which we discussed earlier this year. She promised to look at the scandalous practice of management still collecting millions of pounds in bonuses. Has she decided to take action on that?
The hon. Lady has raised the issue of bonuses before. I think I can remember either writing to her or perhaps replying in detail. It is vital that any business is run in a proper way. As an incoming Government, 18 months ago we took over a set of commitments that the previous Administration had put in place. That included many things including not only the modernisation plan, but the issue of bonuses for senior managers at Remploy. The performance incentive payments in the annual report—the statement made this year—relate back to 2009-10. The executive directors are contractually entitled to those payments, but, unfortunately, those contracts predate this Administration. The hon. Lady may know that there are legal issues that we have to be aware of. The Department has no power to limit bonuses, but from 2010-11 all Remploy’s executive team and senior managers have agreed to cap their bonuses in line with the senior civil service bonus cap. That was a particular request made by the Secretary of State, so that we can ensure that there is some—[Interruption.]