Oral Answers to Questions Debate
Full Debate: Read Full DebateIain Duncan Smith
Main Page: Iain Duncan Smith (Conservative - Chingford and Woodford Green)Department Debates - View all Iain Duncan Smith's debates with the Department for Work and Pensions
(9 years, 2 months ago)
Commons Chamber13. What progress the Government have made on reducing the rate of unemployment.
Under this Government, unemployment has fallen by more than 650,000 and the unemployment rate has been cut from 8% to 5.6% of the labour force.
Last month’s figures showed that the number of people in Kingswood claiming jobseeker’s allowance had fallen by 23% since July 2014. Does my right hon. Friend agree that that shows that the Government’s welfare reforms are helping people back into work, and that the Conservatives are now the true workers’ party thanks to our long-term economic plan?
My hon. Friend is, of course, right. People should remember what we inherited, which was a collapsing economy and huge levels of unemployment. Under this Government, some 1,000 more people are in work each day and employment is up by more than 350,000 to more than 31 million. Really importantly, 14.5 million women are in work, which is a record high that the last Labour Government never, ever achieved.
May I thank the Secretary of State for all his work in reducing unemployment in my constituency? South East Cornwall is a beautiful area, attracting many tourists, especially during the summer. What action have the Government taken to assist those coming out of seasonal work, to help stop them becoming unemployed again?
My hon. Friend does a huge amount of work in her constituency to help people in those kinds of jobs and represents them very well here. Jobcentres in her area are tasked with and focused on helping people who do periodic work, which is the nature of a lot of the employment there, and they are trained to do that. As universal credit arrives next year, my hon. Friend will find that a huge number of her constituents will benefit, because instead of losing their way by having to come off jobseeker’s allowance and on to tax credits, they will stay on universal credit and with the jobcentre. That will help those who have work that is not always permanent.
Does my right hon. Friend welcome the fact that the number of people in Morecambe and Lunesdale claiming jobseeker’s allowance for 12 months or more fell by more than 30% over the past 12 months? Is not it a key part of any long-term economic plan to help the long-term unemployed back into the dignity of work?
My hon. Friend has been assiduous in his work with the jobcentre and those who have been unemployed. Across the country, long-term unemployment is down by more than a fifth, falling to about 165,000 over the past year, and the number of people unemployed for more than 24 months is falling. The latest figures are down by a fifth, which is a remarkable position, given what we took over from the last Government.
22. What assessment is being made by the Department for Work and Pensions of the impact of cuts to the teaching of English as a second language on over 50-year-olds who are seeking employment?
As the hon. Lady should know, we offer support and help to those who attend jobcentres. If they do not speak English correctly, we send them on and support them through language courses. That process helps them obtain jobs and improve their circumstances.
Is the Secretary of State confident that the rate of unemployment in Northern Ireland would be reduced if, perchance, the Northern Ireland Executive were not to agree welfare reform and the powers were taken back by Westminster?
Obviously, this is a matter for my right hon. Friends the Prime Minister and the Secretary of State for Northern Ireland, but what I will say is that we have been in constant discussions and negotiations with politicians in Northern Ireland about implementing welfare reform. Even though there was agreement, they have now decided not to agree. I simply say to all involved that they now need to start thinking about how they can address the issue; otherwise, they will not benefit the people they serve who will lose out because they will lose money.
My constituent, Mr Colin Fraser, has degenerative Parkinson’s disease. He came to see me at my constituency surgery just over a week ago in a very shaken and devastated state after having had the mobility component of his personal independent payment reviewed. According to the Department’s own guidelines—[Interruption.] This is an important issue. The guidelines state that cases involving claimants with severe neurological conditions such as motor neurone disease, dementia and Parkinson’s should be “paper based” and not subject to interview. My constituent was subjected to very intimidating behaviour and I would like the Secretary of State to look very carefully at his case and, in a wider context, how people are dealt with in such situations.
We do conduct reviews and I would be very happy to review that particular case, if the hon. Lady wants to take it up with me. The Under-Secretary of State, my hon. Friend the Member for North Swindon (Justin Tomlinson), has already met Parkinson’s UK to discuss how we can improve and modify the system so that it helps people much better. We are always looking for ways to improve it, and I and my hon. Friend would be very happy to speak to the hon. Lady about this particular case.
I know that the Secretary of State and his team are absolutely committed to helping 1 million people with disabilities back into work. Last week, I met representatives of an access-to-work contractor, Pluss, which is very active in Gloucester. It told me some remarkable stories of people being helped into jobs. Does my right hon. Friend agree that specialist providers have a real role to play in helping his Department to achieve this important goal?
Yes. That is one of the objectives of this Government. We have made huge strides in getting more people with disabilities back into work—I think the figure is now over 220,000, which I believe is the highest figure since records began, in proportionate terms—but the most important point is that we are looking to get that up to the level of normal, non-disabled people who are back in work. Those with disabilities have every right and every reason to expect exactly the same support into work that everybody else gets.
Unemployment went up last month. The Government’s commission on employment and skills pointed out earlier this year that although we currently have German levels of adult unemployment, we have eurozone levels of youth unemployment, which went up in July and in August. Does the Secretary of State accept that much more needs to be done to give young people the chance of a decent start?
Of course we are focused on youth unemployment, but it has actually been falling from what we inherited. It has fallen by more than 200,000 since we took over, and the claimant count has fallen every month in the past three and a half years. The right hon. Gentleman talked about the figures going up, and in a sense I am not surprised, because they cover the period leading up to the last election. Given what the Opposition were saying, and looking at the polls that some businesses carried out, it is no surprise to me that they might have held back. If he looks at the vacancies, he will see that there are 735,000 vacancies in the jobcentres every week, which is more than he managed.
4. What discussions he has had with the Chancellor of the Exchequer on ensuring that people accessing new pensions freedoms receive appropriate advice.
16. What representations he has received on changing the Government’s child poverty targets.
This Government are committed to working to eliminate child poverty and improve the life chances of children. Our approach is to focus on the root causes of poverty and not just on the symptoms, which will deliver the best improvement in children’s life chances. Our consultation on child poverty measurement in 2013 received more than 250 responses, capturing views across the spectrum from local authorities, charities, academics and members of the public.
I am grateful to the Secretary of State for that answer, but children growing up in households where the parents are on the national minimum wage will see their household income cut next year by up to a maximum of £1,426. He punched the air when the announcement was made in the House in the Budget in July. Was he being incompetent or just callous when he did that? What is he going to do to deal with this cut in household incomes?
I am surprised that the hon. Gentleman did not notice that at the time of the Budget my right hon. Friend the Chancellor announced one of the biggest rises in the living wage. I make no apology for punching the air, because that was a huge announcement. This is the whole point: as we get people back to work, they should be earning more in work—rather than being paid for by taxpayers, they should be paid for by their businesses.
Can the Secretary of State explain why the Government are scrapping all child poverty targets?
We are not scrapping all the child poverty targets; what we have said is that we are going to look at all the life chances measures. We want to know what they are doing and how well they are performing. Alongside that, we are still publishing income measures; HBAI statistics—households below average income—will still be published. The hon. Lady is therefore wrong in what she says. What we are doing is focusing on what we can actually do to help families get out of poverty, rather than rotating them around a 60% median income line, as the last Labour Government did. That did not make any sense and cost a huge amount of money.
Does the Secretary of State agree that an important indicator of a child’s prospects in this country is whether they live in a workless household, and that it is right for the Government to take account of that when assessing child poverty?
Absolutely; that is exactly right. This is about the measures we take that keep people out of poverty in a sustained way. I have talked already about the rise in the national living wage, but we are also doubling free childcare to 30 hours a week; raising educational standards; and expanding successfully the troubled families programme to a further 400,000 families. In addition, the early years pupil premium is hugely important in helping the most troubled families.
What has happened to the number of workless households since my right hon. Friend became Secretary of State for Work and Pensions?
We inherited a situation where nearly one in five households in Britain had nobody in work at all. It is far more likely for someone who is out of work to be in poverty and for their children to be in poverty. We have pretty nearly halved that level and have the lowest number of workless households since records began.
Until a few weeks ago, the Secretary of State told us that he was committed to the targets in the Child Poverty Act 2010, but now he has brought forward legislation that not only scraps those targets, but, as my hon. Friend the Member for Cardiff Central (Jo Stevens) pointed out, will leave Ministers with no child poverty targets at all. He has just denied that from the Dispatch Box, but the fact is that the Welfare Reform and Work Bill removes all the child poverty targets. Why are the Government, in reality, despite his fine words, throwing in the towel on child poverty?
We are not; we are committed to eradicating child poverty and we will have to report every year on our achievement in line with the figures that I gave the right hon. Gentleman earlier. I simply say to him that his Government failed to meet their targets—they spent £75 billion on tax credits in their last six years and still failed—and it is under this Government, in the past five years, that child poverty has actually fallen by some 300,000, rather than under them.
The truth is that child poverty is now going to rise even faster than already predicted because of the huge cuts in tax credits next April, to which my hon. Friend the Member for Eltham (Clive Efford) referred. With most children in poverty now living in working households, not workless households, should the Secretary of State’s children’s life chances reports not include data on children in low-income working households, as well as on those in workless households?
I believe that our reports will cover a much wider range of issues that affect child poverty. I have always felt that issues to do with family stability, drug and alcohol addiction and education are critical to a child achieving a decent outcome. If the right hon. Gentleman has anything further to add, I am always willing to take his submissions, and the Select Committee has also said that it will do the same. My point is that an arbitrary target simply for an income line, which is what his Government did, leads to a huge distortion in the benefits system, and the right hon. Member for Birkenhead (Frank Field) has said exactly the same.
7. What steps he is taking to increase public awareness and understanding of the new state pension.
18. What assessment he has made of the effectiveness of the roll-out of universal credit.
Universal credit is now available in more than half of jobcentres across Great Britain and will be available in all jobcentres early next year. The national roll-out is on track and our “test and learn” approach is now working very well. Nearly 175,000 people have made a claim for universal credit so far. The number is growing exponentially as we roll out the scheme across the country. Our evidence shows that universal credit claimants find work quicker, stay in work longer and earn more than the jobseeker’s allowance claimants.
I am surprised by that response. The targets that the Minister set last October have been dramatically missed. Will he now accept that universal credit is a failed and expensive policy?
It would be helpful if the hon. Lady listened to the answer that she was given rather than go with a Labour Whip’s handout. The Front-Bench team obviously worked very hard to ensure that she got her question in. Universal credit is going to be a remarkable success; it is rolling out to more than half of jobcentres and people will benefit enormously.
In contrast to the views expressed by the hon. Member for Blackburn (Kate Hollern), in my constituency of Boston and Skegness I am told that the roll-out of universal credit is progressing well in its limited form, thanks in part to all the agencies involved. Will the Secretary of State assure me that we will continue to provide the important computer support needed for this online programme so that we can ensure that it goes as far and as fast as possible?
I can give my hon. Friend that assurance. In all the areas in which we have rolled out universal credit—in more than half of jobcentres—it is dramatically improving people’s lives. Unlike when the previous Government rolled out tax credit and hundreds of thousands of people lost their money, this scheme is ensuring that people who deserve the money and are ready for it are paid it.
The number of people receiving universal credit remains derisorily small. Four years ago, the Secretary of State told us that the transition to universal credit would be complete by 2017. We told him he would not manage it. We were right; he was wrong. He still has not given us a revised date for the completion of universal credit roll-out. Has he given up entirely on ever having one?
I am on the verge of giving up speaking to the right hon. Gentleman, because he misuses all the facts. As I have told him again and again and again, he is more than welcome to visit the sites where it has been rolled out. He has had an open invitation to come to see the digital site and I recommend that he does so. Universal credit is already working; no one has lost any money; it will be online; and it will go out fully and start next year. This is a successful programme and if the right hon. Gentleman wants to compare notes about tax credit roll-outs, I would be more than happy to do that.
I recently visited my local jobcentre in Maidstone. I found that the job coaches there were pretty much unanimous in their support of universal credit—
Will my right hon. Friend advise on what formal assessment there has been of the success and impact of universal credit so far?
As I have already said, universal credit is now available in more than half the jobcentres. The full development starts rolling out next year. People will benefit enormously not just from the technicalities but from the fact that an adviser will now stay with a claimant all the way through the claim. I know that my hon. Friend was not looking for a job, but perhaps the hon. Member for Bermondsey and Old Southwark (Neil Coyle) will need to be looking for one in a few years’ time.
9. What recent assessment he has made of the effect of work capability assessments on disabled people.
15. What estimate he has made of the number of people who have been in full-time employment in the last 12 months.
Full-time employment has risen by more than 350,000 over the last year, accounting for 99% of the rise in total employment. The number of people in full-time work is at a record high, and is up over 1.5 million since 2010.
I am sure the whole House welcomes this Government’s success in creating more full-time jobs. I hope it will also welcome the fact that wages are now rising by 2.8%, on average, which shows that not only are more people in work, but they are being rewarded better than ever.
My hon. Friend is right: nearly 2 million more people take home a pay packet that is increasing, up 2.8% on the year, and for the last nine consecutive months, the increase in pay has outstripped inflation. Even better, my right hon. Friend the Chancellor has announced a huge rise in take-home pay through the national living wage, and we should all welcome that.
T1. If he will make a statement on his departmental responsibilities.
This month, we are rolling out our Fit for Work programme to all employers across England and Wales, and to GPs. Employers will now be able to refer thousands of workers facing long-term sickness to specialist support, providing occupational health advice and helping them to avoid long absence. The Fit for Work service is the first line of defence when anyone falls sick, and alongside GPs it will help employers to avoid people falling on to sickness benefits and losing their link with the world of work.
Will my right hon. Friend join me in paying tribute to the work of social enterprises, such as GO4 Enterprises in Colchester, which do brilliant work in helping young people, ex-offenders and those with mental health difficulties to get back into lasting work?
Absolutely. I recognise the huge and vital contribution made by firms such as GO4 Enterprises, delivering huge change in Essex. My Department is instrumental in growing social investment via the £30 million innovation fund I set up, and we will continue to chase and improve those targets.
T4. How can the Secretary of State claim, as he did this afternoon, that no one has lost out from the roll-out of universal credit, when the taxpayer has lost out to the tune of £140 million because of the botched roll-out of the IT systems?
Actually, that has not happened. Taxpayers have not lost money. What we have done is to go on rolling out a system, and unlike what happened when tax credits were rolled out under the last Labour Government and hundreds of thousands of people lost money, nobody is losing money as universal credit rolls out.
T2. Despite being diagnosed with neuromyelitis optica mid-way through her degree course, my constituent Amy Green successfully completed her course and now hopes to set up her own business. What support is available for people with disabilities who want to start their own business?
T6. When is the Minister’s Department going to publish a full analysis of the impact of the Welfare Reform and Work Bill on the proportion of children living in child poverty as defined by the Child Poverty Act 2010?
We publish statistics the whole time on child poverty. We will also be publishing statistics on the effects of different aspects of what we do. There has never been across-the-board comprehensive publication of data by Government on all those things, but I am happy to engage with the hon. Lady if she wants to take the matter further.
T3. My constituent, Mrs C, recently bereaved, failed to apply for the bereavement allowance in time because she was not aware that it existed. She now has severe financial problems. Will the Minister and his officials be willing to meet me to discuss this case and any way that we could help her?
I am very happy to see my hon. Friend myself. If what he is suggesting has happened, it should not have done, and let us put it right.
T7. Will the Secretary of State support Oxfam’s calls for the Welfare Reform and Work Bill to include a requirement for his Government to publish a poverty strategy that would properly address the issue of low pay and tax credit cuts? Please note: the answer is not the Chancellor’s entirely bogus living wage.
We are focused constantly on trying to get incomes up, and we are looking to do that through the raising of the national living wage announced by my right hon. Friend the Chancellor. For this Government, the No. 1 thing we need to do to make sure that people get out of poverty is to get them back to work. There are some of the best employment figures in Scotland thanks to this Government.
T5. Given that the Chancellor has said that the welfare costs of new Syrian refugees will be paid for out of the international aid budget, does the Secretary of State agree that there is a good case to be made for that budget also to be used to pay for the costs of existing asylum seekers already in the United Kingdom?
I thank my hon. Friend for that really helpful question. My right hon. Friend the Chancellor has made it clear that in this particular circumstance, the needs of these particular migrants, in many cases in desperate trouble, will be met by the money in the aid budget. We have no plans to change that. My hon. Friend cannot tempt me to say more, but following is a statement in which he might like to catch the Speaker’s eye.
Of course, there is no obligation on colleagues to ask helpful questions.
Physical exercise and sport have been shown to have a very positive effect not only on physical wellbeing, but on mental wellbeing. What is the Department doing to encourage employers to encourage employees to take part in such activities, perhaps with flexible working hours to allow them to do so during the working day?
The hon. Gentleman raises a really important point, which is about getting ahead of the curve by making sure that people do not fall sick. I have announced today the Fit for Work programme, part of which is very much about trying to encourage employers to look at the health of their employees well ahead of that happening. If he wants to write to me about this, I will be very happy to discuss it with him, and we may be able to do more.
I welcome all that the Government have done to increase youth employment, including the remarkable achievement of Eastleigh College, working alongside local employers and stakeholders. Will the Minister investigate having a separate disability living allowance application for those with mental disabilities, such as severe autism, as highlighted by my constituent Cheryl Derrick on behalf of her son?
This Government oblige jobseekers to search online without giving them the skills or resources to do so. Despite my many questions, the Minister has refused to tell me how many claimants have been sanctioned because they cannot get online. Will the Minister tell me or promise to find out?
Nobody should be sanctioned because they cannot get online. If the hon. Lady has any examples of that, we would be very happy to take them up. There are online opportunities in libraries and jobcentres, and everything else. If she wants to write to us about it, I would be very happy to deal with it.
With Wales nearly certain to qualify for the European championship, what efforts are being made to improve disabled spectators’ facilities in football stadiums?
As it seems that there may finally be movement towards addressing welfare in Northern Ireland, has the Minister considered how best to address one of the core legacy issues from the troubles—that of mental health?
The hon. Gentleman is right that a huge amount of work is being done and there is still even more that can be done, but the No. 1 priority for Northern Ireland right now is for people to sit down, behave rationally and sort this out so that we can get the money to Northern Ireland and support the sort of people he talks about, rather than posturing and playing games.
The Government’s own data show that people in the work-related activity group are twice as likely to die than those in the general population. How can the Secretary of State justify £30-a-week cuts for people in that category?
The hon. Lady put out a series of blogs on the mortality stats last week that were fundamentally wrong. Her use of figures is therefore quite often incorrect. I simply say to her—[Interruption.] She has had an offer to meet the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for North Swindon (Justin Tomlinson), time and again, but she just wants to sit in the bitter corner screaming abuse.
In the period during which the Secretary of State has held his job, what is the most unacceptable reason he has come across for a benefit claimant being sanctioned?
There are rules, regulations and guidance on who should be sanctioned. The sanctions regime, which was in place under the Labour Government, is there to ensure that when taxpayers pay their money to support unemployed people, those people look for work, take that work and stay in work. I think that is only fair.