Oral Answers to Questions

Debate between Iain Duncan Smith and Stephen Mosley

Monday 26th January 2015 Commons Chamber

[Stephen Mosley (City of Chester) (Con)]

3. What recent assessment he has made of the effectiveness of the innovation fund for young people.

[The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)]

I set up the £30 million innovation fund four years ago to test cutting-edge projects for helping disadvantaged young people: some of those most at risk of becoming NEET—not in education, employment or training—or falling in with gangs. Using social impact bonds, these projects are now proving they can deliver a return on the investment; 16,600 positive educational and employment outcomes have been achieved, each one an improvement in a young person’s prospects.

[Stephen Mosley]

One key factor of the innovation fund is the use of social investment. How effective does my right hon. Friend think social investment has been? What future does he foresee for social investment in future projects from his Department?

[Mr Duncan Smith]

The interesting thing about this development, which I hope has support on both sides of the House, is that these social investment bonds have advanced dramatically in the past four years, making the UK now a world leader in this, with lots of different Governments coming to ask how to implement it. With the tax relief that we have granted to social investment bonds, the future funding in many of these projects will involve more and more decisions being able to be taken by local government; it will be able to set individual projects up and fund them, without recourse to government, but with a return. So we will be paying for things that happen rather than things that might happen—that is the key.

DWP: Performance

Debate between Iain Duncan Smith and Stephen Mosley

Monday 30th June 2014 Commons Chamber

[Mr Duncan Smith]

In that case, will she explain why she was saying—to a group called the Christian socialists, I think—that all the changes that the Government have introduced to welfare can be reversed and all benefits can be universal? That is what she said.

[Stephen Mosley (City of Chester) (Con)]

To be fair to the hon. Member for Leeds West (Rachel Reeves), she spent 30 minutes not saying what she was going to do, so she may not have said what she was going to do then either.

[Mr Duncan Smith]

This is what is so interesting. Over the weekend, the lid was lifted on what is really going on. [Interruption.] They do not like this, because it is the truth. The hon. Member for Dagenham and Rainham said of the Opposition employment policy announced the other day:

“We managed in the political world to condense it into one story about a punitive hit on 18 to 21-year-olds around their benefits. That takes some doing, you know, a report with depth is collapsed into one instrumentalised policy thing which was fairly cynical and punitive.”

He was making the point, I think, that the Opposition are failing to say what they really want to do. The hon. Lady let the cat out of the bag when she made it clear that the Opposition want to spend more on welfare and to reverse our changes to the welfare system.

Oral Answers to Questions

Debate between Iain Duncan Smith and Stephen Mosley

Monday 23rd June 2014 Commons Chamber

[Mr Duncan Smith]

The jobcentres do not force anybody to take on something that is not there; the jobcentres are working will all those individuals. I welcome the hon. Gentleman’s welcome for the figures from Wales, because it has been particularly successful, having had some very difficult times, particularly in the valleys. I welcome that improvement in employment. Jobseekers go to the advisers, who help them to find those jobs and take the hours that are available. No one will be punished or penalised for trying to take a job or for working with the advisers and only taking the jobs that are there.

[Stephen Mosley (City of Chester) (Con)]

6. What assessment he has made of the performance of Universal Jobmatch.

[The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)]

Universal Jobmatch revolutionises the way jobseekers look for work. Since it was launched in November 2012, we have seen 6.9 million jobseekers register on the site; 4.3 million average daily job searches; over 560,000 jobs available; and more than 550,000 companies set up an account. It has been a successful transformation.

[Stephen Mosley]

My right hon. Friend will be delighted to hear that more than 5,500 jobs within 5 miles of Chester are being advertised at the moment, which is a massive testament to the number of new jobs that have been created under this Government. However, Universal Jobmatch depends on accurate data, so what steps is he taking to ensure that all the jobs on the site are described accurately, are real and are available for jobseekers?

[Mr Duncan Smith]

We regularly talk to all the employers. New employers are seen by advisers in the jobcentres in the local area. Fraudulent jobs are rare on the site; it is estimated that fewer than 0.1% of these vacancies have been fraudulent since go-live, and those have been removed. We constantly monitor the Universal Jobmatch system and we crack down on abuse. In addition, employment advisers are meeting all those employers they are not aware of or who have just come up on the system for the first time.

--- Later in debate ---

[Mr Duncan Smith]

Let us pause and get this absolutely right. The reality is that what the Opposition are now saying is utterly illogical. [Interruption.] Let me give the hon. Lady the figures. What is fascinating is that 93% of cohabiting couples and 98% of married couples share their finances, so most of those people will reach a conclusion. The second point is that we have put safeguards in place within universal credit so that the payments can be nominated as an exception if the carer is to receive the money. Right now, this is about a household getting more money than under the existing systems. This is a benefit that benefits more people, and, honestly, the idea of micro-managing everybody’s lives from Westminster is the kind of absurdity that the Labour party tried when it was in government.

[Stephen Mosley (City of Chester) (Con)]

It is welcome that youth unemployment has fallen by some 59,000 in the past three months, but I understand that there has been an underspend of some £50 million on the Youth Contract budget. Can my right hon. Friend reassure the House that that money will be spent on supporting young people into work?

Universal Credit

Debate between Iain Duncan Smith and Stephen Mosley

Tuesday 10th December 2013 Commons Chamber

[Mr Duncan Smith]

No.

[Stephen Mosley (City of Chester) (Con)]

Fraud, error and overpayment led to £2.8 billion being wasted during the introduction of tax credits by the previous Government. Has my right hon. Friend made an assessment of how much has been lost during the phased introduction of universal credit to fraud, error and overpayment?

[Mr Duncan Smith]

There is no money lost to fraud, error and overpayment under the universal credit system. As we roll it out, the system itself will save a huge amount in fraud and error on the current system, which is a mess. The level of overpayments and clawbacks of tax credits every single year is a scandal; the scandal is that the policy and the programme left to us by the Opposition, which has been failing every year, is costing huge sums of money.

Oral Answers to Questions

Debate between Iain Duncan Smith and Stephen Mosley

Monday 14th October 2013 Commons Chamber

[Mr Duncan Smith]

My hon. Friend is absolutely right. The example she gives is one of many that prove the programme is working. The scheme was due to end in September 2013, but now, as a result of its success, referrals will extend to 2014. More than 54,000 have taken up the mentoring offer and there is an extra £35 million for an additional 60,000 mentoring places. I hope my hon. Friend, and all hon. Members, will ensure that many more people know about the scheme and have the same opportunity as her constituent.

[Stephen Mosley]

Last month, I organised a small business fair in Chester. We had the support of the local provider, Blue Orchid, which seems to be doing an excellent job of helping people to start businesses in Cheshire. There are a large number of providers across the country. What assessment has my right hon. Friend made of their effectiveness?

[Mr Duncan Smith]

For the most part they provide a good service to all constituents and have been successful in all parts of the country. They operate within Jobcentre Plus districts and are monitored locally. If there are concerns, they are raised with the Jobcentre Plus. Their monthly management information flow gives us a very good overview of the scheme. In the north-west, my hon. Friend’s region, 8,000 have started working with a mentor and 4,420 have started claiming the weekly allowance—a big success.

Romanians and Bulgarians (Benefits)

Debate between Iain Duncan Smith and Stephen Mosley

Tuesday 5th March 2013 Commons Chamber

[Mr Duncan Smith]

It has been a problem for some time—this is the point I am trying to make—that the open door comes through on the tax credit system, whereas self-employed people have been able to make that claim. This is the Big Issue seller question that has been going around—I am very positive about The Big Issue, by the way; this is just about who we pay to do that. The reality is that universal credit opens up an opportunity for us to tighten up those measures, and we will tighten up hugely on access through universal credit for legitimately self-employed people who are unable to declare any kind of income that we might recognise as real.

[Stephen Mosley (City of Chester) (Con)]

There is always a danger, when we are discussing a problem such as this, that we give the impression that all immigrants are coming to this country for our benefits system. Will my right hon. Friend confirm that the vast majority of eastern European immigrants into the UK are coming here to work and to contribute to our society, and that they should be welcomed?

Oral Answers to Questions

Debate between Iain Duncan Smith and Stephen Mosley

Monday 10th December 2012 Commons Chamber

[Mr Duncan Smith]

This Government are doing more to help unemployed young people back to work than was ever done by the previous one. I remind him that his Government left us with rising youth unemployment. They took all those who were unemployed for over 10 months and put them on a course. When those who were unemployed came off the course, they went back to zero, and therefore were never registered. We have a better record than they had.

[Stephen Mosley (City of Chester) (Con)]

2. What steps he is taking to prevent fraudulent universal credit claims.

[The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)]

We are investing £400 million in the next four years to reduce fraud and error as part of a joint operation with Her Majesty’s Revenue and Customs and the Cabinet Office. We are already making progress, and universal credit will enable even greater strides to be made. At the autumn statement, the inclusion of universal credit in the baseline—a critical moment—means we now anticipate savings from fraud, error and overpayments to be roughly £2.2 billion per year.

[Stephen Mosley]

I welcome my right hon. Friend’s response. Any money defrauded from the taxpayer is money taken from those who are most in need. Does he agree that universal credit is one way in which the Government are cracking down on those who are abusing the system?

[Mr Duncan Smith]

That is absolutely true. We were left with a series of benefits that too often were riddled with fraud and error. Not all of this is about fraud. Many people are receiving overpayments or underpayments when they should be receiving the correct amount. Too often with tax credits, people are chased at the end of the year, without their realising that they had received the wrong money in the first place. Universal credit will be kinder in the sense that it will be adjusted each month. It will help us save huge sums—some studies state £2.2 billion per year.

Oral Answers to Questions

Debate between Iain Duncan Smith and Stephen Mosley

Monday 28th November 2011 Commons Chamber

[Stephen Mosley (City of Chester) (Con)]

15. What steps he is taking to tackle benefit fraud in areas where its prevalence is high.

[The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)]

I remind my hon. Friends of our inheritance from the previous Government: fraud and error in the benefit system were at £3.1 billion and progress had plateaued since 2005. The joint strategy with Her Majesty’s Revenue and Customs started in 2010 and included mobile regional taskforces to look at different areas. We are targeting claimants in high fraud areas with visits, phone calls and letters. One pilot has been completed in Birmingham and we have two more in Cardiff and Croydon. We will carry out evaluation once all three are completed. So far, since October, from case cleansing alone we have saved more than £100 million.

[Mr Duncan Smith]

We prosecuted almost 10,000 benefit fraudsters in 2010-11, up from 8,200 the year before. Of those, 86% were successfully convicted—[Interruption.] I would have thought that the right hon. Member for Birmingham, Hodge Hill (Mr Byrne) would like to keep quiet, because he has made one mistake already and is bound to put his foot in it again. We will push for the strongest possible sentences. In all cases, benefit fraudsters are required to pay back the money they have stolen.

[Stephen Mosley]

Benefit fraud is not just stealing from the taxpayer; it also leads to less money being available to those who are most in need. One measure that should deter benefit cheats is the one, two and three strikes rules. How successful does my right hon. Friend think that those rules will be in reducing benefit fraud?

Oral Answers to Questions

Debate between Iain Duncan Smith and Stephen Mosley

Monday 14th February 2011 Commons Chamber

[Mr Duncan Smith]

The honest truth is that I do not think it a good idea for people to do that in the present climate. There is currently a public sector pay freeze, we are imposing limits on bonuses, and I am asking staff in one of the lower-paid areas of Government to forgo some of their future pay rises. My simple answer to the right hon. Gentleman is this: I wish that those who are thinking about acting in that way would think again, and I also wish that I had not been left in such an invidious position by the last Government.

[Stephen Mosley (City of Chester) (Con)]

T2. Opposition Members have spent the past 50 minutes calling, in almost every question, for more Government spending, yet just nine months ago we famously heard the shadow Secretary of State say that there was no money left. Given the shadow Secretary of State’s willingness to offer honest advice, might my right hon. Friend reciprocate the favour and offer his own advice to his new opposite number?

[Mr Duncan Smith]

Given my political career, I have given up giving advice to anybody, so the best thing the shadow Secretary of State can do is forge his own way and I will look to see how I can dismantle that.