Jobcentres and the DWP Estate

Hannah Bardell Excerpts

Thursday 20th July 2017 Westminster Hall

[Chris Stephens (Glasgow South West) (SNP)]

I beg to move,

That this House has considered job centres and the Department for Work and Pensions estate.

It is a pleasure to see you in the Chair, Mr Evans. This is a very serious issue, and I will be unashamedly referring to the effects that the jobcentre closures will have on claimants in every single constituency in the city of Glasgow, but before I do, I will make some general remarks.

The closures are, of course, part of a wider Government strategy to review their property estate, but it is my contention that very little strategic thinking is being done centrally. Government Departments’ offices are closing in towns and cities, with potential job losses, alongside the closure of jobcentres in the same towns and cities across the United Kingdom. I hope the Minister will be able to tell us if one Department is considering office closures across all Government Departments, and whether there is a strategic overview.

I hope the Minister will finally admit not only that the starting point of this process was the 2015 spending review, which identified a 20% cut in the Department for Work and Pensions estate, but that that target also decided the endgame, as everything since has been an exercise in delivering those savings no matter what. It has been a question of identifying an outcome and working back from that, with a fig leaf of consultation and a token change not by closing six jobcentres across the UK, but by pushing ahead with halving the number of jobcentres in Glasgow, with the solitary exception of Castlemilk jobcentre. As we all know, Castlemilk is noted for its excellent transport links—not! Along with my hon. Friend the Member for Glasgow South (Stewart Malcolm McDonald), I acknowledge the reprieve but condemn the closure of Langside, which is a resource close to a major further education college. Talk about an opportunity lost for positive outcomes.

The suggestion that the closures will usher in an improved service, with fewer public access points combined with swingeing back-office cuts, is an insult to our intelligence. Ministers have had to admit that they expect at least 750 DWP staff to lose their jobs and have refused to rule out compulsory redundancies, although I invite the Minister to do so today. The knock-on effect on vulnerable users and the wider community through the cumulative effect of closures hitting local economies and businesses is hard to quantify, but one thing we can be sure of is that the Government have made no assessment of the impact of these cuts.

[Hannah Bardell (Livingston) (SNP)]

I congratulate my hon. Friend on securing this debate. I am so sorry to hear of the impact that these closures will have in his constituency. In my constituency, the jobcentre in Broxburn is going to close. The constituency has already faced significant economic challenges, with the closure of Hall’s, and people now have to travel more than six miles to the jobcentre. Does he agree that a global view of communities that have had such losses is vital in this process?

[Chris Stephens]

I do agree. The Government really have to publish a map of office closures in every single UK Government Department. Not only has my hon. Friend’s constituency seen the closure of Hall’s, but Her Majesty’s Revenue and Customs wants to close its office in Livingston, while jobcentres are being closed in the very same constituency. That really does not add up.

This is a calculated, savings-driven, back-of-an-envelope, callous exercise in studied avoidance of the real issues at stake. The scale of job losses is severe because it is cumulative, coming as it does after years of erosion of DWP staff numbers. I note the careful use of semantics when any Minister replies to questions; they talk about no loss of frontline staff. However, the cuts programme includes large-scale back-office closures, with no clear commitment to no job losses, and as those of us with trade union experience know fine well, big budget savings are made on salaries rather than bricks and mortar, and not renewing a lease does not realise the savings that not paying wages and underwriting pensions does.

Before the Minister repeats the mantra that we have heard and memorised about Glasgow having the most jobcentres per head of population, may I strongly suggest there is a reason for that? It is not a numbers game. It is because historically and currently, Glasgow has the highest levels of deprivation in the country. The highest proportion of indices of multiple deprivation data zones in Scotland are in the city. We are talking about intergenerational poverty, rooted in the Scottish Office plan to encourage skilled workers to leave the city in the 1960s, followed by the systematic and planned destruction of the industrial base of Scotland in the 1980s. That was combined with the explicitly political reorganisation of local government in 1996, which abolished Strathclyde region, so that the ability to fund social work and education services by a broader tax base was destroyed. We remember how the Tories have dealt with Glasgow over the years, and we now see once again how they wilfully fail to recognise the scale of deprivation and poverty that people in our communities struggle with daily.

Carntyne West and Haghill data zone, ranked No. 2 in the list of the most deprived areas in Scotland, is currently within walking distance—if you are healthy—of Parkhead jobcentre. North Barlanark and Easterhouse South, ranked No. 3, is just about within walking distance of Easterhouse jobcentre. Both are marked for closure. If we take the time to look at the location of the most deprived communities in Glasgow, which has the highest percentage of deprivation in Scotland, and then overlay the map of closures, a bleak picture emerges. The people who are the furthest from being job-ready and require intensive support are now being pushed even further to the margins. The notion that they can and will use online services instead can only come from those who have no grasp of the realities of lives where women struggle to afford sanitary products, never mind broadband and tablets. Is this digital by default, or exclusion by design?

The Scottish index of multiple deprivation indicators identifies the 10 most employment-deprived zones in Scotland. With Possilpark ranked fourth and Wyndford ranked eighth, the closure of Maryhill jobcentre will do little to alter those statistics. Possilpark tops the list of zones with the poorest health indicators, and with the recent publicity surrounding a claimant who was forced to get out of her wheelchair and crawl up the steps of the building where her assessment was taking place, we can only wonder what levels of indignity will follow from these closures.

To know Glasgow’s geography and transport links is to understand the problems people will experience in the communities with the highest levels of deprivation and the poorest transport links. Glasgow is like a wheel, with the circular subway and linear spokes of bus routes radiating from the city centre, but not across communities. The east, north and north-east of the city, where the majority of closures are planned, are not well served by public transport. The 2014 report commissioned by Glasgow City Council on in-work poverty, “Hard Work, Hard Times”, identified transport as a major barrier to finding and sustaining work. In the consultation response on some of Glasgow’s jobcentres, a staggering 92% of respondents expressed concerns about the increase in travel time to attend the new jobcentres, and 79% expressed concern about the potential increase in travel costs.

It is clear that the industrial level of denial about the impact of these closures is accompanied by an expectation that other agencies will pick up the pieces and that, as per usual, local councils and third sector bodies such as citizens advice bureaux will carry the burden of mitigating these cuts. At Scottish questions yesterday, in answer to pointed questions about jobcentre closures, there was a glancing reference to “new outreach facilities”—provided and funded by whom, exactly?

Not only in Glasgow, but across Scotland and the UK, the way this cuts exercise has been conducted is riding roughshod over any partnership approach. Local community planning partnerships heard about the closures via the media, when many have been trying to address employment issues as a key outcome in their plans. Jobcentre Plus has been described as a claimant employment service rather than a public service, as those not claiming benefits do not receive support, and that is writ large in the way DWP and HMRC closures have been announced—I am not going to say “planned”, because that would imply a holistic approach with a strategic overview of the estate, rather than an incoherent, budget-driven approach.

People are rightly concerned and angry about the closures, and with the roll-out of the fiasco that is universal credit, we can only conclude that unacceptable burdens are about to fall on the people who are most vulnerable, furthest from the job market and least digitally connected, and that despite the best efforts of local councils, the third sector and local elected Members and their staff, real suffering will follow as people are sanctioned for not attending a jobcentre miles away because a costly, complicated journey has replaced the access to support that they once had.

I look forward to other hon. Members explaining how the closures will affect their constituents and, of course, to the Minister’s reply.

--- Later in debate ---

[Ronnie Cowan]

The hon. Lady is absolutely correct. It is the classic double whammy that people are put into an impossible situation by the Government and then look for support from them and find that it has been taken away. As we all know, the apprenticeship scheme is just an aberration at the moment.

Unfortunately, all levels of poverty are rising. In-work poverty is on the rise, yet the Minister continues to argue that jobcentre mergers are needed to ensure that the welfare state

“works for those who need it and those who pay for it.”

That kind of irresponsible language detracts from the reality that those who need the service and those who pay for it are in fact the same people. Ultimately, the whole of society benefits if poverty and inequality are reduced. Jobcentres are supposed to be part of the solution.

Aside from the £1 billion deal with the Democratic Unionist party, the UK Government have made the case over the past seven years that drastic public spending cuts are a financial necessity. The plan to close jobcentres across the UK is part of a wider plan to sell £4.5 billion-worth of Government land and property by 2021. While it is easy to cut services and demonstrate savings made in the short term, it is not so easy to quantify and predict the long-term impact of those changes.

[Hannah Bardell]

On the matter of property and quantifying decisions, does my hon. Friend agree that the decision to close an HMRC office in my Livingston constituency and an area of West Lothian that is significantly cheaper, and to move it to Edinburgh city centre in a record long-term contract of 20 to 25 years, is just sheer stupidity on the Government’s part and clearly a waste of public money?

[Ronnie Cowan]

I absolutely agree, and could not have put it better myself.

The UK Government have simply not made a convincing case that the proposed closures will benefit clients or society as a whole. Jobcentre staff have contacted me to say that the impact of the closures on disabled people has not been properly assessed. The Scottish Government have indicated that the closures are likely to push many vulnerable people into crisis. Will the Minister meet me in Inverclyde and show that the UK Government are actually listening to those concerns? We are about to set off into recess. I assure the Minister that I will clear my diary and cancel my holidays, and will be there whatever day he wishes to come and visit Inverclyde.