Covid-19: Economic Package

Gerald Jones Excerpts

Tuesday 12th May 2020 Commons Chamber

[Rishi Sunak]

My right hon. Friend is absolutely right; the creative industries play an incredibly important part in our economy in this country, and they are also one of our great exports around the world and add to our soft power. He is right that we should do everything we can to preserve the jewel that is that industry. As I said, I am talking to my right hon. Friend the Secretary of State for Digital, Culture, Media and Sport, who is engaged with that industry to find the safest way for those workers to get back to work. We all want to see that happen in a measured and safe way. He can rest assured that I am also thinking about it from an economic perspective and seeing whether our support schemes and everything else are optimised for that industry as we emerge from this recovery.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab) [V]]

The furlough scheme is hugely welcome, but it needs greater flexibility. I hear what the Chancellor says, but the Opposition have set out ways in which the furlough scheme arrangements could be adapted to include new starters who have just missed out without risking fraudulent payments. Will he give those proposals urgent and serious consideration?

[Rishi Sunak]

We did give consideration to proposals that we received and worked with our systems, which is why we were able to extend the date from 28 February to 19 March, the day before I made the announcement. To me, that is a reasonable and defensible date to choose. It is important not to underestimate the operational challenge of creating these schemes and ensuring that they work for people. As I said at the time, from announcement to the scheme going live was a matter of weeks. Thousands of people worked their socks off to make that happen, and several million people’s pay packets are now being supported because that all works. These things are not straightforward to do, and changing them and adding complexity to them will simply make it more likely that they do not work and that people have to wait a lot longer to get the support they desperately need at this time.

Economic Update

Gerald Jones Excerpts

Tuesday 17th March 2020 Commons Chamber

[Rishi Sunak]

The measures announced today, whether the loan or other guarantee schemes, will be of significant support to those businesses, and the measures we announced last week will also help the employees. As I have said previously, we are looking at more measures in all areas, and I will update the House at things develop.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

All our constituents will require realistic statutory sick pay if they are required to self-isolate. Will the Chancellor do whatever it takes to ensure that happens, and will he include the self-employed and those on zero-hours contracts in his measures?

[Rishi Sunak]

As previously discussed, depending on people’s particular employment circumstances, they might well be eligible for statutory sick pay even though they are self-employed or in the gig economy. We have already taken measures to ensure that they are eligible for those benefits and for employment and support allowance from day one, rather than day four and day eight respectively, and we have further strengthened the safety net with an investment of £1 billion.

Apprenticeship Levy

Gerald Jones Excerpts

Tuesday 11th February 2020 Westminster Hall

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

It is a pleasure to serve under your chairmanship, Ms Nokes, and I congratulate the hon. Member for Gloucester (Richard Graham) on having secured this debate. I will drill a little bit further into the issue raised by the right hon. Member for Dwyfor Meirionnydd (Liz Saville Roberts).

Apprenticeships are a devolved issue in Wales. Although I praise the Welsh Labour Government for doing what they can to make the levy work and to ensure that apprenticeships are delivered according to the needs of communities and of the Welsh economy, funding for apprenticeships and graduate training is an ongoing issue for Welsh police forces. The UK Government need to provide clarity and to resolve this issue, because for over two years Welsh police forces have been forced to use their own budgets to fund those apprenticeships.

Although training and apprenticeships are devolved to the Welsh Government, policing remains a reserved area. As such, if the Government apply their apprenticeship levy policy to Wales and to all employers with a wage bill of £3 million or more, including police forces, they must also commit to provide the funding for it, not just pass the buck and shirk their responsibilities. My constituency of Merthyr Tydfil and Rhymney crosses two police force areas—namely, those of South Wales police and Gwent police. Gwent police have paid some £400,000 into the apprenticeship levy every year, while the figure for South Wales police is closer to £1 million. Collectively, the four Welsh police forces pay over £2 million a year into the levy, but they do not receive that money back from the UK Government.

[Liz Saville Roberts]

Does the hon. Gentleman agree with the report of the Commission on Justice in Wales, chaired by former Lord Chief Justice Thomas and commissioned by the hon. Gentleman’s Welsh Labour Government, that now is the time to demand that policing in its entirety be devolved to Wales? That would bring us clarity on exactly this matter.

[Gerald Jones]

I thank the right hon. Lady for that intervention. That is a wider issue, one that is probably too large for this debate, but it should certainly be considered going forward.

In England, the money that police forces have contributed to the levy fund has been reimbursed—they have had their fair share of the funding back—but that is not the case in Wales. This is another example of the Government dodging responsibility on funding and trying to shift the blame, based on a technicality of devolved and reserved powers. The Government must devolve the money required to go alongside their policies, including the apprenticeship levy, not just devolve the policies themselves. At a time of rising crime levels, when we need to be investing heavily in our police and providing them with the support they need to keep our communities safe, the Government should provide the money that Welsh police forces need and deserve so that they can fund those critical apprenticeships.

Jeff Cuthbert and Alun Michael, respectively the police and crime commissioners for Gwent police and for South Wales police, have repeatedly called on the UK Government to provide the funds for those apprenticeships. The Home Office previously advised Welsh forces that from 2019 onwards they would be provided with their fair share of the levy. It is now 2020, more than a year on, and that has still not happened. Welsh police forces have still not received a penny of that funding. With apprenticeships providing an established way for police recruits in Wales to enter the force without a degree, it is crucial that police forces in Wales receive their fair share of the funding as soon as possible.

We know that once the Government’s planned police recruitment drive is complete, whenever that might be, overall police numbers will still be lower than those inherited from the last Labour Government in 2010, as will police numbers in both of the police areas in my constituency. If the Government will not commit to providing the funding for apprenticeships lost through the apprenticeship levy, there will be even fewer police officers on the streets of Wales. This issue has gone on for a very long time and that funding is needed to support police forces across Wales, so I hope the Minister can provide clarity and reassurance.

--- Later in debate ---

[Michelle Donelan]

My right hon. Friend gives me more credit than my position is due. I am afraid that I do not set the budget, but I assure him that we are keeping everything under review. As he knows only too well, the apprenticeship levy is worked on in conjunction with the Treasury. We will be considering the impact that it has on businesses, on social mobility and on opening up apprenticeships in the long run, so that the system is not only sustainable but opens door after door for young and older people in our communities.

Hon. Members mentioned SMEs, and I assure them that we are putting those on the same footing as big business. The apprenticeship service includes an award-winning digital service to support employers to manage their funds and choose the training they need from a register of approved providers. We are rolling out the benefits of that service to smaller employers too, moving away from the previous procured contract system to give SMEs more choice than ever over the opportunities that they create. Putting employers that do not pay the levy on the same footing as big businesses will allow them to choose the training providers that suit their individual needs. As that transition takes place, we are supporting SMEs by making funding available for more than 15,000 additional apprenticeship starts this financial year. I hope that addresses some of the points raised by my hon. Friend the Member for Stoke-on-Trent Central (Jo Gideon).

I note the comments of my right hon. Friend the Member for Harlow (Robert Halfon), the Chair of the Education Committee, which I formerly served on. He talked about the issue of gaming, and mentioned second degrees. We have to be really careful, because there are a number of sectors in which we have to recruit more people because we have skills gaps, including the NHS and the police, so we actually want people to do a second degree to get into those sectors. I hear the concerns about that and the MBA debate. I want him and other Members to know that I am personally looking at that to ensure that we get it right.

We are confident that our work to improve the working of the levy will respond to the rigidity of the system, which hon. Members mentioned, and open up more opportunities for individuals and businesses. I assure hon. Members that we will continue the progress with this so we support employers in the sector. However, as my hon. Friend the Member for Gloucester said, starts have fallen since our ambitious reform programme began. We will continue to carefully monitor falls in apprenticeship starts at level 2 and by younger people, as our reforms bed in and the balance of the programme continues to shift. Apprenticeships at level 2 can provide significant returns to individuals and may be the starting point for further progression—or, as my hon. Friend the Member for Henley (John Howell) neatly said, act as the ladder of opportunity. However, it is also vital that young people and those from disadvantaged backgrounds can realise the benefits of apprenticeships at higher levels, so we will continue to look at this.

[Sir Gary Streeter in the Chair]

I want to stress the importance of quality, because apprenticeship standards are central to driving forward our reforms. Employers often told us that the quality of the training was inconsistent and inappropriate. Standards today ensure that apprentices train for a minimum of a year, with at least 20% off-the-job training, and receive a rigorous assessment at the end. All apprentices will be starting on these high-quality standards by the start of the 2020-21 academic year. We listened to employers’ concerns around their engagement in developing the apprenticeships. We have established the independent Institute for Apprenticeships and Technical Education, which was mentioned several times. It is working with employers of all sizes to ensure the standards deliver for them.

When we reach National Apprenticeship Week 2021 and look back on the achievements of the coming year, I am confident that we will still be proud of the progress we are making. By this time next year, all apprentices will be starting on high-quality standards, developed by employers to deliver the skills they need.

[Gerald Jones]

The Minister talks about the funding for the apprenticeship levy and the scheme, and some reforms, but I ask her to look carefully at the issue with the Welsh police forces, because it is causing real concern and has been going on for quite some time. If she cannot address it today, will she respond over the next few days?

[Michelle Donelan]

I am conscious of the fact that I need to give my hon. Friend the Member for Gloucester time to sum up. I will certainly meet any Members from the devolved nations to address the issues in their areas or meet my counterparts to discuss them.

By next year, we will have continued our engagement with employers, and will have brought thousands of small and medium-sized employers on to the apprenticeship service. I also want to ensure that we are doing more for those from disadvantaged backgrounds. I am personally passionate about that issue, and I will be driving it forward.

I am grateful for the support of my hon. Friend the Member for Gloucester and for the fact that he has raised the issue of apprenticeships again and is ensuring that it is at the top of our agenda. I am glad that a number of Members share my passion for ensuring that apprenticeships are a true vehicle for social mobility.

Economy and Jobs

Gerald Jones Excerpts

Monday 20th January 2020 Commons Chamber

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

It is a pleasure to speak in this debate and to witness so many passionate maiden speeches from both sides of the Chamber. I pay tribute to the hon. Member for Loughborough (Jane Hunt) for her passionate and entertaining maiden speech. I am sure she will be justifiably proud of her contribution this afternoon. I would also like to pay tribute to my new constituency next-door neighbour, from whom we heard earlier. My hon. Friend the Member for Cynon Valley (Beth Winter) spoke with passion and an awareness of the stark realities facing her constituents, as well as mine and many others across the country, due to the actions of this Government.

This is the first time I have had the opportunity to speak since Parliament returned after last month’s general election, so I would like to put on record my thanks to the people of Merthyr Tydfil and Rhymney, the constituency where I was born, raised and still live, for their continued support and for giving me the huge honour of representing them in this place for the third time in four years.

The Queen’s Speech did little seriously to address the poverty prevalent in Wales, including in my constituency, and across the UK. We need an end to austerity. Despite promises from successive Tory Governments, public services continue to be under huge pressure. That is simply not good enough for those who are living in poverty and need real action now. They are left with a legacy of almost 10 years of Tory austerity. Local authorities and public services are cut to the bone. The impact that austerity has had on frontline public services has been huge. Only last week I heard about local authorities being forced to cut the staff operating their CCTV, so that although cameras will remain in some cases there will be fewer people, if any, monitoring them. That will have a huge impact on the fight against crime and antisocial behaviour, given the Tory police cuts since 2010. Councils are forced to make these cuts due to Tory austerity—let there be absolutely no mistake about that.

The Gracious Speech also does nothing to address the shambolic system of universal credit, with many thousands across the UK and in my constituency forced into poverty and experiencing greater hardship due to the way the system is operating. The Government’s reforms do not go nearly far enough and they must act now to ensure that the benefit system stops punishing some of the most vulnerable people in our society. Need has increased, with demand at our food banks increasing. I speak to many of the wonderful volunteers in our food banks. It is fair to say that many, if not most, of the people using food banks are in work. That highlights the scandal of low pay, the scandal of zero-hour contracts and the high level of in-work poverty that exists in 21st-century Britain.

There was in this year’s Queen Speech a sense of déjà vu. Yet again, there is a lack of attention shown to the UK’s devolved regions, especially Wales and especially with regard to the investment that is so desperately needed. Some Welsh voters put their faith in the Tories for the first time. How let down they will feel as the Government fail to deliver a credible and properly funded industrial strategy for Wales. Many areas in Wales, including in my constituency, suffer from a lack of access to job opportunities. Many of the jobs and schemes available are focused in other areas. In the south Wales valleys it can be difficult and sometimes impossible to access them due to the geographical isolation of communities and the limited availability of public transport. That is yet another reason why it was deeply worrying to hear only more of the same from the Government on their plans for infrastructure investment. There were vague and loose promises, rather than firm commitments that are badly needed to improve our railways and public transport, starting with rail electrification across South Wales and the valleys, which is long overdue, and the infrastructure we desperately need to connect some of our most isolated communities.

The UK Government have stated time and time again that Wales will not lose a penny when we leave the EU, promising that the shared prosperity fund would replace the development funding that areas such as south Wales have received from Europe over many years. Now, however, with Brexit less than two weeks away, and after months of Members from both sides of this House calling for clarity on this fund, it is astonishing that we have still not heard any real detail whatsoever. The Brexit deadline is looming ever closer, and the people of Wales need answers and assurances on this fund. We need to know whether Wales will be worse off as a result of Brexit and we need to know that the new fund will directly benefit Wales. We need urgent clarity on how the fund will operate and who will decide on the priorities for the fund. We were promised “not a penny less, not a power lost” and this Government must now give us assurances that that is still the case.

I turn briefly to social care. In the Queen’s Speech debate on Thursday, it was clear that social care in England desperately needs real and emergency attention, not vague and empty promises. I want, in comparison, to praise the Welsh Labour Government for the social care system they have pioneered in Wales: investing more per head on social care than in England; doubling the amount people can keep before they are asked to pay for care to £50,000, the highest level of any country in the UK; and ensuring all domiciliary care workers get a choice of contract after three months of employment, ending the practice of enforced zero-hours contracts. In England, 49% of jobs in home care are zero-hours contracts. That demonstrates a true success story and what can be achieved when a Labour Government are in power. We do all of that despite operating on a budget from Westminster that has been cut by £4 billion since 2010.

I will end on the environment. I think it is fair to say that the Government need to be honest and clear about the climate and environmental emergency. We all know only too well that their target to reach net zero by 2050 is far too late to avoid dangerous and irreversible climate change. The Government simply will not acknowledge how serious the situation is—2050, frankly, is not good enough for my generation, let alone the young people whose futures are on the line. The Government’s policies are not sufficiently ambitious to meet their climate change targets. According to their official advisers, the Committee on Climate Change, the UK is even off track to meet its old climate change target of an 80% reduction in emissions by 2050.

I look forward to hearing some positive comments from the Minister this evening and hope that she can offer some reassurances that the Government will start to listen. With all due respect, we have had enough warm words—it is time for action.

Financial Exclusion: Access to Cash

Gerald Jones Excerpts

Tuesday 21st May 2019 Westminster Hall

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Henry. I congratulate my hon. Friend the Member for Feltham and Heston (Seema Malhotra) on securing this debate on an important issue. I agree with her point that there is widespread concern across the country about access to cash. It is hugely important to us all. We all need cash to varying degrees for incidental purchases, giving children money for school, paying the milkman and so on. Access to cash is often, though not always, easier in cities and towns, but our country is also made up of lots of smaller towns, villages and communities.

There are 2.2 million people in the UK almost entirely reliant on cash in their daily lives. We know that the use of cash is in decline, but, as we have already heard, the UK is not ready to become a cashless society, and sleepwalking into one will leave millions, including many people in my constituency, behind.

The communities that I represent in Merthyr Tydfil and Rhymney are ranked in the Welsh index of multiple deprivation as some of the most deprived in the country. Deprivation is measured by a range of statistics, including health inequalities, educational attainment, income levels and access to services. In my constituency, some of the economically deprived areas are also geographically isolated communities, such as Bedlinog, Ponsticill, Fochriw, Butetown, Abertysswg, Pontlottyn, Phillipstown and Aberfan. Those communities have a strong community spirit and breathtaking views up or down the valley, but they are often isolated from services and support. The Access to Cash independent review established in July 2018 concluded that around 17% of the UK population would struggle to cope in a cashless society. I welcome the recommendations in the review to ensure that consumers can get cash wherever they live or work, and I look forward to the further work to consider the report’s findings.

In the south Wales valleys, as in many other parts of the country, we have seen banks closing, with a 38% reduction in the number of banks since 2010. In the Upper Rhymney Valley part of my constituency, the last bank closed in January. On the Merthyr Tydfil side, the only banks that remain are in the town centre, leaving huge parts of the county borough without access to bank facilities. There are ATMs throughout the area, but many impose a charge for residents to withdraw their cash. As an example, Aberfan has three ATMs that all require a fee to be charged, and Bedlinog has two machines that are both chargeable.

Along with my Welsh Assembly colleague, Dawn Bowden, I am currently working with the company LINK to identify communities that have little or no access to free-to-use cash machines. We hope that shop owners will convert to free-to-use machines. As we know, subsidies are available for cash machines located in deprived areas, with the first ATM to convert to free usage receiving the subsidy.

Geographically isolated communities often experience issues with digital inclusion because the broadband is not as strong as it is in other areas. The report and the attention that it has received is welcome. However, it must be part of an ongoing awareness campaign to ensure that we move at a pace that does not leave communities behind.

Spring Statement

Gerald Jones Excerpts

Wednesday 13th March 2019 Commons Chamber

[Mr Hammond]

I am not sure I entirely understand the question, but clearly corporation tax receipts have gone up as a result of reducing corporation tax rates, making the UK one of the most attractive places for businesses to establish and invest. As I have acknowledged, business investment is depressed by Brexit uncertainty. The sooner we can end it, the sooner we can get back to business.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

The Chancellor will be aware that the budget for the Welsh Government has been reduced by some £4 billion since 2010 because of his austerity. There is a massive impact on local councils and public services. Jobs and frontline services are all that is left to cut, so will the Chancellor end that austerity and apologise for the pain he has caused public services?

[Mr Hammond]

I have announced a trajectory for the growth of public spending in the next spending review period—there will be at least a 1.2% per annum real-terms growth, which will have positive consequences for Welsh Government spending.

Oral Answers to Questions

Gerald Jones Excerpts

Tuesday 5th March 2019 Commons Chamber

[Elizabeth Truss]

The reality is that we have been so successful in reducing youth unemployment—which in 2010 was almost double what it is now—because we have taken a reasonable strategy with minimum wages. We have also had a welfare to work programme and helped young people to get experience and skills. It would be completely wrong to raise wages to the extent that young people were unemployed and unable to get the experience and skills that they need to succeed in life.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

5. What discussions he has had with the Secretary of State for Business, Energy and Industrial Strategy on potential job losses as a result of the UK leaving the EU without a deal.

[The Financial Secretary to the Treasury (Mel Stride)]

The Government’s analysis indicates that leaving the EU without a deal would not be good for the UK economy, which is why we are so determined as a Government to secure an appropriate deal with the European Union that can pass through this House.

[Gerald Jones]

There are 4,000 jobs in the manufacturing sector in Merthyr Tydfil and Rhymney. This Government have had two years to negotiate a good deal for that sector, but they have so far failed to do so. Does the Minister share my concern that Nissan’s decision to build its X-Trail in Japan, and similar decisions by Honda, are a sign of things to come as a result of this Government’s chaotic negotiations?

[Mel Stride]

The chief executive of Honda has made it perfectly clear that the company’s recent decisions were not a consequence of Brexit. Other factors across the world are affecting car sales, including the switch away from diesel and, in the case of Honda, the agreement on tariffs that has been entered into between the European Union and Japan, which will mean that, after the move to Japan, exports into Japan will attract no tariffs.

Oral Answers to Questions

Gerald Jones Excerpts

Tuesday 6th November 2018 Commons Chamber

[Mel Stride]

It was all going so well—not that well, actually, but it got a sight worse towards the end. Government Members know that we are taking the responsible decisions to move forward a very difficult and detailed negotiation. At the appropriate time, when we have a deal—we are confident we will do that—we will present it to the House, and the House will then be able to express its view on it.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

3. What recent discussions he has had with the Secretary of State for Work and Pensions on the potential effect on household income of the roll-out of universal credit.

[The Chief Secretary to the Treasury (Elizabeth Truss)]

Thanks to our universal credit and welfare reforms, we have a record number of families earning wages and a record number of children in houses with work, bringing more income.

[Gerald Jones]

Labour Members and my constituents would gladly welcome the end of austerity, but the measures laid out in the Chancellor’s Budget certainly will not bring an end to it. Will the Chief Secretary clarify what proportion of the cuts to UC made by George Osborne in the 2015 Budget have now been reversed?

[Elizabeth Truss]

In the Budget, we announced an additional £630 for every family on UC. The Resolution Foundation has confirmed that this is more generous than the previous benefits system, but it is also better at keeping people in work. The reality is that if the Labour party was in power there would be no money to spend on those families, there would be no money for tax cuts and taxes would be going up for ordinary people.

Customs and Borders

Gerald Jones Excerpts

Thursday 26th April 2018 Commons Chamber

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

In my constituency, 4,000 jobs—16% of the total employment—are in manufacturing. Does my hon. Friend agree that for the Government not to consider a bespoke customs union is both reckless and a huge risk?

[Mr Speaker]

I emphasise that if there are further interventions, which are legitimate in parliamentary terms, the time limit will have to be cut for remaining speakers.

Spring Statement

Gerald Jones Excerpts

Tuesday 13th March 2018 Commons Chamber

[Mr Hammond]

We are committed to the oil and gas industry and, as my hon. Friend knows, to measures that will ensure that every drop of economically recoverable oil and gas in the UK continental shelf is recovered, which is in the interests of the Scottish economy, the UK economy and Her Majesty’s Treasury. I am delighted that the increase in the price of oil, together with the uptick in activity as a result of that rise and of the measures that we have announced, means that the oil sector’s contribution to the UK Treasury will again become positive in the year to come.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

The Conservatives have cut the Welsh Government’s budget by around £1 billion a year since 2010, and the knock-on impact on public services in Wales and on Welsh local government’s ability to deliver key services has been huge. Will the Chancellor apologise for the failed Tory austerity that has caused so much damage to public services in Merthyr Tydfil and Rhymney and across the UK? Given his outlining of a rosy picture, will he set out his plan adequately to fund the public services on which many people rely?

[Mr Hammond]

I do not have the figures to hand, but if my memory serves me correctly, I was able to confirm at the Budget last year that Wales will receive over £1 billion of additional funding, including as a result of changes to the agreed formula. So funding is not down, but up. The failure of services in Wales, mainly in the Welsh health service, that we regularly catalogue across the Dispatch Box is a result of decisions made and priorities set by the Welsh Government, not the UK Government.