Scotland Bill

Hannah Bardell Excerpts

Tuesday 30th June 2015 Commons Chamber

Employment support

[Hannah Bardell (Livingston) (SNP)]

I beg to move amendment 120, page 27, line 22, leave out from beginning to “for” in line 23 and insert “Arrangements”.

Amendments 120, 121 and 122 make provision for the Scottish Parliament to have power to legislate on arrangements for employment support programmes.

[The Temporary Chair (Sir David Amess)]

With this it will be convenient to discuss the following:

Amendment 121, page 27, leave out lines 27 to 29 and insert—

“(b) assisting persons (including persons claiming reserved benefits) who are unemployed or at risk of long-term unemployment to select, obtain and retain employment”.

Amendments 120, 121 and 122 make provision for the Scottish Parliament to have power to legislate on arrangements for employment support programmes.

Amendment 113, page 27, line 29, leave out

“where the assistance is for at least a year”.

This would allow the provision of employment programmes where assistance is for less than a year. The Scottish Government could develop support programmes for those who repeatedly move in and out of short periods of work, or admit people to the Work Programme early.

Amendment 122, page 27, line 34, leave out “another person” and insert

“a person other than the person making the arrangements”.

Amendments 120, 121 and 122 make provision for the Scottish Parliament to have power to legislate on arrangements for employment support programmes.

Amendment 9, page 27, line 36, after “person”, insert

“in conjunction with the local authority”.

Amendment 114, page 27, line 39, at end insert—

“(b) provision of support for disabled persons in the form of non-repayable payments to enable them to access employment, remain in employment, or move into self-employment or start a business.”

This amendment provides for the devolution of the Access-to-work scheme.

Amendment 10, page 27, line 41, at end insert “and

(d) temporary jobs paid at least the national minimum wage providing a route back into further work.”

Clauses 26 to 30 stand part.

New clause 43—Job search and support—

In Part 2 of Schedule 5 to the Scotland Act 1998, omit Section H3 (job search and support).”

This new clause would devolve employment support programmes to the Scottish Parliament.

[Hannah Bardell]

It is a pleasure to serve under your chairmanship, Mr Amess. I am delighted that we have support for the amendments from our friends in the Labour party. As the SNP spokesperson on fair work and employment, I rise to speak up for the many who will look to the Scotland Bill to deliver on Smith and give the Scottish Parliament the tangible new powers so trumpeted by those on the Government Benches.

We on the SNP Benches find the powers on offer today sadly lacking, and I am disappointed to see the lack of willingness to accept any SNP amendments. Smith was clear on the devolution of employment programmes. He said:

“"The Scottish Parliament will have all powers over support for unemployed people through the employment programmes currently contracted by DWP (which are presently delivered mainly, but not exclusively, through the Work Programme and Work Choice) on expiry of the current commercial arrangements. The Scottish Parliament will have the power to decide how it operates these core employment support services. Funding for these services will be transferred from the UK Parliament in line with the principles set out in paragraph 95.”

However, the Scottish Parliament Devolution (Further Powers) Committee, in its interim report on the draft Scotland Bill clauses, considered at paragraph 335 that

“the clauses as currently drafted do not fully implement the Smith Commission recommendations. The Committee considers that the Smith Commission intended that all employment programmes currently contracted by DWP should be devolved. Therefore, the Committee recommends that any future Bill should not place any restriction on the type of person receiving support or in regard to the length of unemployment any person has experienced. The Committee considers that this should include the devolution of the Access to Work Programme.”

At paragraph 337 the Committee recommended that

“the principles which will govern the operation of inter-governmental relations with regard to welfare, including employment support, should be placed in any future Bill devolving power in this area.”

The Committee expected that that would include the principles by which the Scottish and UK Parliaments could

“maintain scrutiny and oversight of the inter-governmental machinery with regard to welfare and employment support.”

The employment support clause, clause 26, as introduced, does not have any changes from the draft clauses. The UK Government have not, therefore, followed the views of the all-party Scottish Parliament Committee, on which there were Conservative members, and the Bill, as it stands, does not deliver on Smith.

There is no evidence of the respect agenda in the Bill. It is vital that the employment powers give Scotland the power to give Scottish solutions to Scottish challenges. It is not good enough to promise one thing in the Smith commission and then to come to this House with a Bill that does not live up to the promises made. Furthermore, the overwhelming mandate that the Scottish people have given the SNP indicates that they expect this Parliament to deliver beyond Smith. Smith is not the floor or the ceiling of our aspirations for the people of Scotland.

[Andrew Gwynne]

The hon. Lady makes a compelling case for employment support to be devolved to Scotland, but does she agree that it needs to be devolved still further within Scotland so that local authorities in Scotland can develop work programmes to suit their needs? The needs of Glasgow, for example, are very different from the needs of the highlands.

[Hannah Bardell]

The hon. Gentleman makes a fair point and I agree with him to some extent. We have had significant success with our Opportunities for All programme. He obviously has some insight into what I was going to say. I will come on to that later in my speech.

The people of Scotland deserve better. We need a streamlined system that looks holistically at how we support people back to work and what kind of employment they are offered, rather than the random approach that seems to take place much of the time at present. We need to look at people’s skill sets and expertise and what potential they have to offer. We hear much talk of aspiration from the Government Benches, yet the stream of people I have had through my door at constituency surgeries in Livingston in the past few weeks, concerned about benefit cuts and sanctions, suggests that the concept of aspiration and opportunity certainly did not make its way into this part of the Bill. If we are truly to give the unemployed opportunities through these programmes, the Scottish Parliament must have the powers it needs at its disposal, to tailor these programmes for those most in need.

As the devolution committee pointed out at paragraph 303, the original Scotland Act 1998 reserved employment policy. That included job search and support, with the exception of careers services and training for employment. Draft clause 22, which became clause 26 in the published Bill, set out further exceptions to the reservation in the 1998 Act: assisting disabled persons to select, obtain and retain employment, and assisting persons claiming reserved benefits who are at risk of long-term unemployment to select, obtain and retain employment, where the assistance is for at least a year.

However, a range of organisations expressed a view on whether the suggested clause delivered on the Smith agreement. At paragraph 306 Inclusion Scotland is quoted as saying in its written evidence:

“The Smith Commission proposes that ‘The Scottish Parliament will have all powers over support for unemployed people through the employment programmes currently contracted by DWP.’ However, both the narrative and draft clauses appear to restrict this power to employment support schemes that last over a year. It is not clear why this restriction has been included and it appears to be a direct contradiction of the Smith Commission proposal.”

Inclusion Scotland argued that

“the most effective employment support schemes are short term schemes designed to identify the barriers preventing someone gaining employment and providing support, training and assistance to overcome these. If a scheme lasts for more than a year without supporting someone into employment, surely it has failed?”

Inclusion Scotland also pointed out that the UK Government also appear to have arbitrarily applied the reference to conditionality and sanctioning for universal credit to devolved employment support schemes, including the use of mandatory placements. It states:

“It is not clear how this is compatible with the Scottish Parliament having all powers over support for unemployed people through the employment programme, for example if the Scottish Parliament determines that participation in such schemes should be voluntary.”

--- Later in debate ---

[Ian Murray]

The hon. Lady is making a marvellous speech about the devolution of the Work programme. I had a private Member’s Bill last year to devolve the Work programme not just to the Scottish Parliament but to the local authorities that are delivering many of the programmes. Would she go further and agree with double devolution down to local authorities?

[Hannah Bardell]

I would certainly be interested in taking a closer look at that and discussing it with my colleagues. I welcome the hon. Gentleman’s intervention.

To deal with youth unemployment, that approach is supported by the EU. We are keen for the powers that we were promised to be delivered to Scotland. Delivery of those powers and agreement on our proposals today would help to create a more joined-up approach to employment service provision for disabled people, as well as for the many others who have been mentioned, and more integrated support for these vulnerable groups.

Although it is demand-led, the current DWP spend on Access to Work in Scotland is disproportionately low. The Scottish Government have previously stated that the programme should be devolved to allow us to promote a more equitable share of spend in Scotland and to get more disabled people into sustained employment.

In summary, it is not just the SNP that sees significant flaws in the Bill. Citizens Advice Scotland notes:

“The Smith Commission Report…provided that the Scottish Parliament should have powers over all employment programmes currently contracted by the DWP. However, Clause 26 of the Bill restricts the powers devolved to employment support programmes that last at least a year. It is unclear why this restriction has been included; the Bill as drafted would appear to only devolve the Work Programme and Work Choice; which is inconsistent with Smith. Clause 26 as currently drafted does not clearly devolve powers over the Access to Work Scheme.”

Both the Scottish Council for Voluntary Organisations and the Scottish Association for Mental Health support the amendments, which serve to devolve all employment powers and functions to Scotland covering Access to Work, devolution of services and Jobcentre Plus.

In Scotland, with the limited powers we have, we have proven that we can make a difference to people’s lives. The SNP Scottish Government have done their best to mitigate the damage done by Westminster cuts to date, but time is running out. If we do not gain the powers that were promised, we cannot continue to protect the vulnerable and grow our economy.

We have an excellent track record on apprenticeships and training for young people. In 2007, just 15,000 people started modern apprenticeships. We are now delivering more than 25,000 of them, and we will increase the number to 30,000 by 2020. To reply to the hon. Member for Denton and Reddish (Andrew Gwynne), the Scottish Government’s Opportunities for All programme has also been a significant success, with more than 90% of young people going on to positive destinations. In my own county of West Lothian, the figure stands at more than 96%. We are glad to announce today that the Scottish Government has got its 250th business, a nursery in West Lothian, to sign up to the living wage.

The opportunity to work is one that the vast majority of people in Scotland seek. The SNP wants dignity in work for all, and I commend our proposals to the Committee.

[Kate Green]

I will speak particularly to amendments 113, 9, 114 and 10, and much of what I will say will echo what the hon. Member for Livingston (Hannah Bardell) said about the devolution of employment programmes.

It is clear that there are different labour markets not just between England, Scotland and Wales but within those nations. That is why I echo the point that my hon. Friend the Member for Denton and Reddish (Andrew Gwynne) made about the opportunity that our amendments and the SNP amendments offer not just for devolution to Scotland but for double devolution of labour market programmes within Scotland.

--- Later in debate ---

[Priti Patel]

I begin by commending the contributions not just on this group but throughout the day. It has been said that the Government are not doing what the Smith commission said we should. We are clear that the commission recommended that the UK Government devolve all powers specifically in relation to contracted employment programmes, but the amendments go well beyond that remit and would include the powers to operate support through Jobcentre Plus.

Beyond that, there are key reasons why the amendments do not work. First, there would be no clear demarcation of responsibilities between the Scottish and UK Governments around the provision of employment support. The UK Government would retain the Executive competence under existing legislation and could continue to operate employment programmes and Jobcentre Plus. This would create a confusing, disjointed and misaligned landscape of support that could hinder employment support as much as it helps move people back to work.

Clause 26 manages that risk by creating clear lines of accountability between those claimants for whom Scottish Ministers can create employment programmes and those who will continue to be supported through the Jobcentre Plus structure. In particular, it makes it clear that the Scottish Parliament can only provide employment support for claimants at risk of long-term unemployment where the assistance lasts at least a year and for disabled claimants likely to need greater support. It thereby draws a line between such schemes and the core functions of Jobcentre Plus, enabling a smooth delivery of an integrated welfare and benefits system and, importantly, resulting in a better service for claimants.

In the debate around the devolution of contracted employment programmes, there have been extensive discussions through the joint ministerial working group on welfare, which has played a key role in ensuring a seamless transfer of responsibility. As my right hon. Friend the Secretary of State said, these are ongoing discussions, and, importantly, officials are working to set up the right framework and ways of working. On the Work programme, our officials have had many meetings with Scottish Government officials on a range of aspects relating to the delivery of contracted employment support programmes. That engagement is good. It is concerned with how we can work together to develop integrated local support and the issue of Skills Development Scotland in jobcentres, which of course is going strong today.

I would like to touch on some of the other points raised in this debate. The hon. Member for Livingston (Hannah Bardell) spoke about the current system for employment. The Government are delivering on the current system for welfare reform and it is working in Scotland, too, as demonstrated by record levels of men and women in employment. Importantly, they are providing more support for getting lone parents back to work. In Scotland, benefits reform has seen 2 million people back in work and employment continuing to rise. That is to be commended and supported. For our ongoing discussions at official and ministerial level, it is at the heart of what we are trying to achieve.

Amendment 113 applies to the matters that clause 26 will except from reservation for job search and support. Clause 26 delivers on the Smith commission agreement to give the Scottish Parliament the legislative competence to establish employment programmes that support disabled people and that offer long-term support to benefit claimants at the risk of long-term unemployment. I have no doubt that that is welcomed by all hon. Members. The amendments to clause 26 would have changed the scope of the legislative competence of the Scottish Parliament to allow for the provision of employment programmes for those at risk of long-term unemployment where assistance, as I have said, has been ongoing for less than one year.

We want to ensure that the employment landscape in Scotland is not confusing when it comes to the support structure in Scotland. Importantly, we want to ensure that Jobcentre Plus continues to deliver effectively for claimants, while also giving employers greater continuity in respect of the overall landscape.

I shall speak now to amendments 9, 10 and 114 collectively and show how clause 26 already covers many of the points raised by them. Amendment 9 is designed to add to the illustrative list of the ways in which the power to make arrangements for employer support might be used. Members will be pleased to hear that the list provided in the clause is purely illustrative and that it would be possible for the Scottish Government to work with local authorities and other partners and stakeholders to design and deliver employment programmes. The same applies to amendment 10, which is designed to add to the illustrative forms of the assistance that Scottish Ministers might provide under clause 26.

On the point about the devolution of the Access to Work programme, which is the subject of amendment 114, we have not sought unreasonably to limit the legislative competence of the Scottish Parliament. Non-repayable awards such as those provided through the Access to Work scheme are already covered in clause 26. As such, the Scottish Government can choose to introduce a similar form of support for disabled people additional to that provided by the Access to Work programme, should they wish to do so. Given that Access to Work is an integral element of the support we offer, let me be clear that this Government intend to continue the Access to Work provision in Scotland and will retain the associated funding.

I hope that my response has assured hon. Members that clause 26 fully enables the Scottish Parliament to make the provisions covered in amendments 9, 10 and 114 and has set out a clear rationale as to why the Access to Work programme will remain a reserved programme.

[Hannah Bardell]

We have had a fascinating debate, and it has been a pleasure to participate in it. It seems to me that there is much agreement across the Benches on this side of the House. The hon. Member for Stretford and Urmston (Kate Green) made some important points about tailoring work programmes in de-industrialised areas, and I certainly agree with much of what she said about West Lothian. Although Livingston is its name, it does not fully take into consideration the many former mining towns in my constituency. I well know the impact of de-industrialisation and the need for tailored work programmes there.

The hon. Member for Edinburgh South (Ian Murray) touched on the future jobs fund, and I would certainly be interested in looking further at how we can work together on that. The hon. Member for Stretford and Urmston highlighted the importance she placed on it, and made it clear that she saw the importance of devolution.

My hon. Friend the Member for Glasgow South West (Chris Stephens) spoke about his experience as a Unison representative, the importance of access to work for those with disabilities and how those who were already in work could be helped to find further employment if they developed a disability. My hon. Friend the Member for Banff and Buchan (Dr Whiteford) spoke passionately—as she has throughout the debate—about Opportunities for All. That initiative has been a huge success in Scotland, and it is a very good example of how local authorities can work closely with the Government. I think that my hon. Friend the Member for Angus (Mike Weir) and I are still stuck on the point made by the hon. Member for Edinburgh South about the detail of the devolution of those powers to local authorities, given that, as was pointed out by my hon. Friend the Member for Banff and Buchan, 90% of ring-fencing has been abolished.

The hon. Member for Edinburgh South also referred to college funding. He may have missed my comments about the increase in the number of modern apprenticeships, and the investment that has been made by the SNP Government. We are clearly investing more in colleges than Labour ever did. College resource budgets increased to £526 million in 2015-16, which is well above Labour’s highest level of £510 million in 2006-07, in cash terms. The number of full-time students aged under 25 has increased by more than 15%, and the number of those aged over 25 has also risen.

The Minister talked a great deal about Access to Work, and why it should not be devolved. She spoke of the success of the current system, and said that it might become disjointed if further powers were devolved. We would argue that there is already a significantly disjointed approach, given the number of problems caused by benefit sanctions. I know that many of our constituents come to our surgeries, and walk through the doors of our constituency offices, with harrowing and desperate stories about sanctions, and citizens advice bureaux have informed us of a number of such cases.

A CAB in the south of Scotland reported that a client had been sanctioned for the second time for failing to log into Universal Jobmatch. The client’s local library had been closed for refurbishment, and there was no other access to public computers in the local area. The sanction was upheld following a mandatory reconsideration request, and the client produced a letter from his doctor stating that his mental health had declined as a direct result. He was also building up council tax debts, and his home telephone had been disconnected.

We must remember that we are not just debating statistics today; we are debating real people’s lives, and real situations. We are talking about people left in desperate circumstances as a result of benefit sanctions. If we do not change the system, people in Scotland and throughout the United Kingdom will continue to suffer.

Question put, That the amendment be made.