Labour Market Activity

Guy Opperman Excerpts

Tuesday 28th February 2023 Commons Chamber

[Alison McGovern (Wirral South) (Lab)]

I thank all right hon. and hon. Members who have spoken in this debate, but particularly my friend the hon. Member for Glasgow South West (Chris Stephens) and my hon. Friends the Members for Worsley and Eccles South (Barbara Keeley), for Leicester West (Liz Kendall), for Swansea East (Carolyn Harris), for Newcastle upon Tyne North (Catherine McKinnell), for Ealing North (James Murray), for Denton and Reddish (Andrew Gwynne) and for Warrington North (Charlotte Nichols). I thought they all made comprehensive and excellent cases in support of a Labour Government.

[The Minister for Employment (Guy Opperman)]

I am not sure the hon. Member for Glasgow South West (Chris Stephens) did.

[Alison McGovern]

I do apologise. I had written down the hon. Member for Glasgow South West. He can, I am sure, opine on his opinions about the possibility of a Labour Government at a later date, but I had included him in my list of friends.

On the subject of a Labour Government, I have served in opposition for 12 years and nine months—just three months shy of the age of the last Labour Government —and I am not proud of having been in opposition for that long, because it has been painful to watch events in our country and know that too often voting in this House on behalf of my constituents can do little in reality to help them.

I have learned a few things, having been here for 12 years and taking part in many debates on our country’s economy. I have learned that whenever the Tories are criticised on their economic record, they rely again and again not on their own record, but on a cheat sheet handed out to them by the Whips. On employment, there is one thing in particular that they always come out with: according to them, every Labour Government have left office with unemployment higher than when they started—so they tell us, as if the food banks do not matter and as if child poverty does not matter.

Were this a unique failing of Labour Governments, it might be a serious charge, but the problem for those on the Government Benches and the thing they never tell us is that it is not; the very same accusation is also true of Tory Governments, and we have had a lot more Tory Governments about which that is true. The record of the Conservative party on unemployment is far worse than that of the Labour party. This ridiculous accusation about Labour Governments that I have heard again and again over 12 years in trying to defend the indefensible reveals a political truth about work: Governments who are not able to respond to events and who are not seen to help people do better at work do not last long.

I bet I know what it says next on the Whips handout, and we have heard it again today. It will say, “Unemployment is at a record low of 1.2 million people, or 3.7%.” Historically speaking, and taken technically, the International Labour Organisation measure of unemployment looks low, but that figure hides a multitude of sins in our economy—1.7 million of them, to be precise. That is the number who, despite our so-called low unemployment, want a job, do not have a job, but are not actively looking right now. It is classified as inactivity, but I say that if it looks like people are being given up on, it does not matter what kind of unemployment it is; it is still throwing people on the scrapheap, at the very time our country needs them most.

Those 1.7 million people include parents who cannot get childcare, women over 50, more than 50,000 of whom are looking after a loved one, and far too many people who are ill and on waiting lists and their carers, knackered out by not being able to get the support they need. I thought we heard compellingly from my hon. Friend the Member for Denton and Reddish about the impact of long covid and the Government’s failings. We also heard with absolute clarity from the hon. Member for Leicester West about how this issue is not just damaging our economy, but is a feminist case for change.

We have altogether nearly 3 million people out of work, and all those people will be right to wonder if the Tories, as usual, have given up on them, because the theme of Conservative Governments over the past 12 years since 2010 is of slowly giving up—giving up on building the living standards they promised and building opportunities across the whole country; giving up on increasing productivity as they promised; giving up on older people, ill people and disabled people; and, giving up on building back better and levelling up. All their empty words never had substance. More importantly, they never had belief in the British people, while demanding that the British people believed in them.

In 2015, the Conservative manifesto promised to deliver the highest employment rate in the G7, but mysteriously that commitment disappeared from future manifestos. In 2017, the Conservative manifesto pledged to get 1 million more people with disabilities into employment over the next 10 years. The 2019 manifesto removed that target and replaced it with something vague, and something vague is all that people with disabilities have had. There are three-word slogans all the time, yet all we get is very little help.

The truth is that, whatever recent changes to our economy have been caused by the pandemic, we have deep flaws in this country that have been created by previous generations of Tories and made worse by the current crop. On skills, because of long-standing low ambition, we have 5 million people lacking basic skills, but now, to make matters worse, nearly one in five people are working below their skill level, including 27% of people in London. In our nation’s capital—our so-called success story—27% of people are working below their skill level. What a waste of time, what a waste of talent, and what a waste of our country’s potential.

On care, childcare is unaffordable and unavailable, and social care is in chaos, leading to the dreadful situation—as I have said, my hon. Friend the Member for Leicester West made this case—of women’s economic progress going backwards.

On disabilities, never mind creating the inclusive workplace that we need, the Government cannot even get the basics right. Crucially, everyone can see that some places in our country are still suffering from dreadful unemployment—actual ILO statistical unemployment —despite the UK picture. From Blackpool to Peterborough, the Tories are ignoring the very places they claimed they would level up.

But who cares if some places fall further behind and who cares if people are too sick to work, as long as the headline numbers look okay, eh? Money has been thrown at kickstart and restart, but we have seen no real progress and no real learning—just a waste of time, money and effort. Does anyone believe that if there was real commitment from the Government there would now be the ability to deliver after 12 years of failure? I do not even think there is such commitment any more; nor even the pretence of it. We have wasted time and talent, and broken communities everywhere, because the Tories have given up now. They have given up on people, as we have seen from their failed schemes. They have given up on places, as we have seen from the towns and cities that have fallen further behind. They have given up on skills and growth, and given up on government. It is a triumph of not caring.

I tell you one thing, Madam Deputy Speaker, if 12 years in opposition has taught me anything, it has taught me never to give up, and that is why we will not. We will not give up on our towns and cities. We will not give up on the fact that our country needs proper care, childcare and social care, and we will not give up on disabled people. Harold Wilson said that unemployment above all else made him political. Anyone who grew up in Merseyside before the advent of the last Labour Government knows exactly what he meant, and this is personal to me. We will not stand by any longer and see low ambition and the tick-box culture of the Tory DWP run people down. We are bigger and better than that as a nation. If the Government think that a few attack lines from the Tory Whips Office will keep them going until the general election, I say, “Bring it on!”

[The Minister for Employment (Guy Opperman)]

Can I start by adding my tribute to Betty Boothroyd, who was a role model to so many in this House? As a former chair of Women2Win, I can certainly say that she made a massive difference to so many candidates. Can I also urge colleagues to get behind World Book Day this Thursday?

Unlike the hon. Member for Wirral South (Alison McGovern), I would like to thank all colleagues who have contributed to this debate. I am certain that my hon. Friend the Member for Glasgow South West (Chris Stephens)—I know he will be in trouble because I have called him an hon. Friend—is most definitely not a Labour party member, is definitely not a Labour MP and is strongly advocating the SNP cause.

The UK labour market remains in a strong position, with payroll employment at a record high. There were 30 million people on company payrolls in January 2023. There are also 2 million more women in work than in 2010. Unemployment remains at a very low level, with long-term unemployment 12% lower than it was pre-pandemic, and unemployment below the pre-pandemic level of 4%.

However, on inactivity, we know that levels of vacancies remain high, and increasing the labour supply is a key priority of this Government. The Prime Minister has tasked the Secretary of State to look in detail at the workforce participation programme, including how to address economically inactive cohorts. We need to reduce the number of people leaving employment into inactivity, and encourage those who are economically inactive and can work back into the labour market. Many today have made pitches to the Chancellor, who will be reporting back on these matters in 15 days’ time. I am sure he has taken due note of that. The point on historic levels of economic inactivity was made at great length by Labour Members. I entirely accept that the current rate is approximately 21.4%, but it is fair to note that in 2010 it stood at 23.3% under the previous Labour Government.

The hon. Member for Glasgow South West and the hon. Member for Motherwell and Wishaw (Marion Fellows) raised issues about the innovation pilot that we are carrying out, which has just begun. I urge them to read the written ministerial statement by my right hon. Friend the Secretary of State, which gives details of who is excluded from that particular pilot. It particularly deals with the fact that anyone with exclusions—basically, only claimants who are work-ready will be dealt with under that pilot. I have already met some of the job coaches and managers who are driving the pilot forward at Crawley, where I was yesterday. This is fundamentally about one thing: providing more support. The hon. Member for Motherwell and Wishaw raised concerns about travel. That is what the flexible support fund is for: it covers any travel costs in those circumstances, and there are no questions whatsoever but that that can be addressed in those particular ways.

Many points were made by those on the Labour Front Bench, most of which were dealt with by my right hon. Friend the Secretary of State. It is interesting that the shadow Secretary of State is now committed to conditions and sanctions—a genuinely amazing flip-flop given his position barely three weeks ago in the debate on uprating. He is resembling more and more a kangaroo in how he turns around and flops away to his next policy.

On flexible work options, as hon. Members know, the Under-Secretary of State for Business and Trade (Kevin Hollinrake) is introducing flexible working legislation. In 2010 there was no paid-for childcare for the 15 or 30 hours; there was no 85% universal credit childcare worth £1,108 per month for two or more children, with support provided by the flexible support fund on an ongoing basis.

On the disabled, I totally rebut the arguments made by the shadow Minister. The Government are committed to improving the lives of disabled people and those with a health condition, and we will deliver the most ambitious disability reform agenda in a generation. We set a goal to see 1 million more disabled people in employment between 2017 and 2027. The most recent data show that between the first quarter of 2017 and 2022, the number of disabled people in employment increased by 1.3 million, meaning that that goal was met after only five years. I urge employers up and down the country to get behind the Disability Confident campaign.

On the 50PLUS campaign, the Government are already providing more than £20 million of funding for an enhanced offer for people aged 50-plus, and there is an opportunity for multiple older worker fairs, which are happening every single week up and down the country. I have met the 50PLUS champions in Bolton, Hackney and various other places. They are doing a fantastic job to roll out and explain the situation. We are doing so much to try to bring more people back into the workplace. In addition, the Midlife MOT looks at wealth, work and wellbeing. It has already been rolled out to jobcentres, and been introduced on a private sector basis and online.

We are committed to helping people to progress while in work, and we are therefore extending the jobcentre support provided to people in work and on low incomes, to help them increase their earnings and move into better-paid quality jobs. That in-work progression offer is being expanded on an ongoing basis. The youth offer sees youth hubs, and so much support from youth employment and employability coaches who provide flexible support to young people with significant complex needs and barriers, to help them move into employment. The jobcentre offer provides localised support up and down the country to nearly 800 jobcentres. It is different for each individual jobcentre, and from Banff to Brixton to Basildon, there is a different approach on an ongoing basis.

[Sir Alan Campbell (Tynemouth) (Lab)]

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

Question put forthwith, That the Question be now put.

Question agreed to.

Main question accordingly put.

Question accordingly agreed to.

Resolved,

That this House is concerned that the number of people out of work and economically inactive is higher than before the pandemic, that thousands of older people have left the labour market and that there have been significant increases in the number of people out of work due to ill health or mental ill health; notes that recent employment support schemes have underperformed and underspent; condemns the Government for its failure to get more people into work; regrets that this failure is contributing to low economic growth and falling living standards; and therefore calls on the Government to get Britain back to work by reforming disability benefit assessments, devolving employment support to local areas and providing specialist and targeted help for those with long-term ill health or aged over 50 to grow the economy and boost both public finances and household incomes.