(7 months, 3 weeks ago)
Commons ChamberI totally agree with the Secretary of State that everyone gets dignity from being in work, but he will be aware of the very high levels of unemployment experienced by those with learning disabilities and autism. Bearing in mind that able-bodied people over 50 struggle to find work, let alone those with a disability or long-term health condition, what does he propose doing to change the attitude of employers, so that they recognise that everyone has a skill and a role to play, and that everyone is an asset?
I thank my hon. Friend for that really pertinent question. She will be familiar with the Buckland review, which has reported. I was very keen to pursue that review when it came across my desk, and I made my officials and the necessary infrastructure available to ensure that it was able to go ahead. It addresses many of the issues to which my hon. Friend rightly points, in terms of employers accommodating and benefiting from those who have autism and other conditions.
(9 months, 2 weeks ago)
Commons ChamberIt is a pleasure to follow the hon. Member for Halifax (Holly Lynch). She was doing so well until she mentioned Thurrock.
Perhaps I could give some clarity on why Thurrock Council got in such bad financial trouble. Over the last decade, as some Members will know, Thurrock was the subject of very aggressive three-way politics, with the UK Independence party holding the balance of power between a Labour minority administration and a Conservative minority administration. Frankly, it was impossible to get a balanced budget passed, because sensible decisions would not be taken to either increase council tax or reduce spending. That led council officers to pursue a risky borrowing strategy in order to plug the gap. The lesson we should learn is not so much about the Government’s overall strategy on local government, but about the need for all of us, wherever we are in public life, to take sensible decisions based on positive outcomes for those we serve.
I listened very carefully to what the hon. Lady said about special educational needs, and she is absolutely right: it is an issue that we really need to get to grips with. The Budget is great for providing plenty of knockabout between the Front Benchers, but her speech reminds us that we really need to think in a more granular way about whether we are delivering the outcomes that we want for a mature, advanced society, and particularly about whether we are delivering the best outcomes for those who are most vulnerable and perhaps least able to speak for themselves.
We are witnessing some very real challenges for children with statements in our schools, for a whole host of reasons. One of them is that, for a while, there was a fashionable view in the educational establishment that children with special needs ought to be educated in a mainstream setting. That will work for many of them, but we will fail others, including others in the school, if we continue with this model. Overall, it has led to under-investment in special provision, which has resulted in so many schools having to manage more and more children with special needs. I have seen that at first hand in my constituency. We have reports of a massive post-pandemic increase in children with statements, not all of which are related to having been out of school; some of these things are genetic. There has been a massive increase in children presenting as non-verbal, and we have not really got to grips with why that is.
We need to acknowledge that the explosion in special needs is being absorbed by our school sector. Let us pay tribute to those working in the sector, who are doing their best. I have seen at first hand the real efforts being made in some of my schools to manage this issue, and to give the best possible education to all pupils. I recently visited Tudor Court Primary School in my constituency, where I was told that 13% of the school’s intake now have a statement. I was also told that the figure is low compared with that for other schools, which strikes me as a significant indication that this issue ought to become a top priority.
I come back to the fact that we must, first and foremost, look after those who need our help the most, not those who shout loudest. I often say that this place works best for the pointy-elbowed middle classes. We really need to make sure that we focus on those who need our help the most.
The hon. Lady makes an excellent point about special needs provision in most authorities across the country, regardless of the politics of a place. The situation is really damaging for young people. Bristol City Council has become part of the Government’s safety valve initiative, along with neighbouring Conservative- run councils and others. Does she agree that we need to take a serious look at this issue across the country to understand both demand and the provision that already exists, and that we need to work together for the benefit of children coming through the system and their families, who are so desperate for support?
I agree, and we should embrace this outbreak of consensus. The hon. Lady is absolutely right, because we cannot tackle this in a silo. Ultimately, it is for the local authority to ensure that a statement of special educational needs is given, but equally, local authority budgets are under pressure. I went to my local education authority a few years ago to talk about the need to progress a free school application for special provision, and I received a clear message: “We don’t want to encourage that, because people will move here, and we would have to look after them until they are 25.” We need to look at this at a high level to make sure that we deliver the provision that is needed across the board.
Turning to the substance of the Budget, I welcome the decision on national insurance, which is clearly no longer the contributory levy that it once was. The idea was that people bought credits towards their pension and out-of-work benefit entitlements, which have become much more universal, so national insurance makes no sense as a separate tax. That raises a philosophical debate about whether there ought to be a contributory principle for some services. In particular, we still await a long-term solution to funding social care.
Although I welcome the aspiration to remove national insurance, we still need to sort out social care funding. There is still uncertainty about how we fund social care, and local authorities are again left to pick up the pressure. It has been very convenient to give local authorities that responsibility, but we need to do our bit. Ultimately, everything has to be paid for. If we are to have mature and sensible long-term decisions at central Government level, we need to give local authorities the same space. While there is still uncertainty about how the cost of social care will be met, local authorities cannot make sensible decisions, and the disasters that the hon. Member for Halifax described will only become more common.
We need to look again at how to ensure that local authorities make mature and sensible decisions about their budgeting. The Audit Commission has been replaced by audit firms, and the frank advice that ought to be given has simply not been given. We used to have the surcharge, which was a very blunt instrument, to ensure that councillors made mature and sensible financial decisions, but now councillors have no stake.
We often say in this place that we have great champions for local communities, but we have to show leadership and maturity in making sensible decisions. When it comes to local councils, we have the same situation on speed. They have great local ward champions who view themselves as street-by-street spokespeople for every problem, but they perhaps do not properly recognise their corporate responsibility for making sensible judgments. Councils are multimillion-pound businesses that are there to deliver outcomes for the whole local authority area, not just individual wards.
As well as looking holistically, we need to make sure that, where local authorities get things wrong, there is an element of accountability outside the ballot box, especially because local election turnouts are so poor. That is all our fault. We are all politicians, and it is our job to motivate people to vote for us. I am often frustrated by the knockabout of political debate, which is a big turn off—it is sometimes a big turn off to sit here on a Wednesday lunch time. For people who are not engaged with politics, it is an even bigger turn off. The result is that, particularly in local politics, people zone out and switch off.
Even after the biggest failure in local government finance, the turnout in my local election in Thurrock was less than 20% in some wards. Is that not shocking? It tells us that the public are thinking, “Well, it doesn’t make any difference. It doesn’t matter who I vote for. Nothing will change.” We should all think about that as the general election approaches, because I detect the same mood out there.
The hon. Lady is never a turn off for me. She is making some excellent points, not least in respect of SEND children and kinship carers. The needs of those individuals and groups should be addressed.
On local government finance, my local authority is a coalition of Conservatives, independents and Lib Dems. Heaven knows I have criticised it an awful lot, quite justifiably, but we should recognise that all local authorities, including mine and Thurrock, have had to deal with huge cuts over the past 10 or 14 years. My local authority has had to cut £260 million from its revenue spend. I was looking at some figures, and would it not be more sensible to change council tax—
Order. We have quite a lot of time this afternoon, but that is an incredibly long intervention. I am looking forward to the hon. Gentleman’s speech in due course.
I acknowledge that there have been cuts to local authority budgets, but the root of this is that so much local authority funding comes from the centre. Where is the accountability? As far as local electors are concerned, the council can spend only what it is given. Given the cuts, it is incumbent on councils to make sensible decisions. They cannot have their cake and eat it. They have to live within their means.
Given the rainbow coalition that the hon. Member for Easington (Grahame Morris) has just described, I suspect that there is an awful lot of playing to the gallery. We expect our councillors to be more mature.
Does my hon. Friend agree that one of the problems is that we gave local authorities a power of general competence, and that we should have concentrated their mind on the things that they really have to do?
Yes, I agree. With hindsight, that was a big mistake. It was done with the best of intentions. Given that local authorities were in a new set of circumstances, there was a desire to give them freedom to be more relevant and to have fewer constraints, but it has given licence to risky behaviour. We will see further consequences of that in due course.
Clearly, we would all like to be in a much better place with regard to the strength and growth rate of our economy and the state of our public finances, but we need to reflect that the last 15 years have been challenging. We have had three significant shocks that have cumulatively made us poorer than we would like to be—that is just a fact. The 2008 financial crisis had to be managed, and we have had the consequences of the pandemic; one way or another, we locked down our economy for the best part of two years, which has clearly had a massive impact on growth. The billions that we spent on keeping people in their jobs still have to be paid for. There is also Ukraine. Not only do we need to support the people of Ukraine, but we need to address the consequences for energy prices.
Returning to the need for responsible leadership, we should level with the public about what these things mean. The public are not stupid, and they are not deceived by spin and rhetoric. They know that these shocks have consequences. If we do not treat people with the respect that they deserve by levelling with them, they will show us the same lack of respect. They understand that this all needs to be paid for. If we do not face up to that, we will end up compounding the challenges created by those political choices.
I return to the financial crisis. Clearly, there was a need for a massive intervention to prevent the whole banking system collapsing, but we got addicted to quantitative easing. The correction that should have taken place following that financial crisis never happened, because, guess what, we do not want middle-class people who vote to have a reduction in the value of their property. By sticking with that policy, we ended up with interest rates that were artificially low for a very long time, which completely distorted asset class prices. That meant that everyone put all their investments into property, which has contributed to massive inter- generational unfairness, because people cannot now afford to buy a house. Does that not just show the short-termism and the failure to get real, explain things to the public and make long-term financial decisions that will do the most to grow this country? We all bemoan the lack of growth in our economy but if we have generated a system where there is more profit to be made by investing in housing than in business and wealth creation, this is where we end up. We all need to make a determined effort to be more long-term in our decision making and not just pursue the retail benefits of going up a few percentage points in the opinion polls.
We spent billions during lockdown to keep people in their jobs, but, again, that has to be repaid by the taxpayer. People do understand that; they know that nothing can be made for free. We also need to address the wider consequences of what we did in lockdown, because there is a longer-term impact on our nation’s productivity. We were all psychologically damaged by being taken out of social circulation for two years, and we have ended up with work practices that are not always the most efficient. Worst of all, we have an expectation that the state will deal with every problem. Again, we need to get back to having the leadership that says, “We’ve all, collectively, got to fix this problem.” Fighting covid is the equivalent of fighting a war. After the second world war, everyone knew that there was going to be a massive effort to get our country back together again. We have pretended, never more so than on public services, that the situation is easier than it is.
I hear over and over again about underfunding, but what does that mean? If there is not enough money to deliver what people are expecting, we have to be honest about that and cut our cloth; we have to recognise that nothing can be delivered without being paid for, so we must either increase taxes or look at what we are delivering. We all want to get to a position where we are much richer and can pay for a lot more, but concessions will have to be made before we get to that place after the shock we have had to deal with.
We also need to have a much more honest debate about what we should be spending our money on. The situation in Ukraine clearly illustrates the need to spend more on defence. Since 1989, we have taken our eye off the ball, but we now face a more challenging and unstable world. To keep our energy prices low and stable, the best measure is to invest in defence at an increased rate.
The two biggest challenges that face us are perhaps not the focus of mature debate or leadership by this place. First, there is no doubt that the public think we have too much immigration, on which we have become dependent as a source of cheap labour. From 2006, the UK’s openness to immigration from eastern Europe had a very positive effect on growth, but it was “growth” as in the overall quantum. The impact on individual productivity, earnings and GDP per capita was poor, because earnings were depressed. Overall, the resentment towards immigration comes from a lot of those people who found their earnings diminished as a consequence. We think about the “Auf Wiedersehen, Pet” generation of builders and labourers who earned lots of money by going overseas. Post-2006, they found that their earnings were depleted because people here were choosing to employ Lithuanians and Poles, because that was cheaper labour. Naturally, they will have a clear view that immigration has reduced their earnings.
The hon. Lady’s account is completely inaccurate. Often UK employers have employed workers from the European Union because the labour has not been available here. That is why, for example, we now have a crisis in recruitment to social care professions; we have stopped the Europeans coming in and there is nobody in the UK who is able to do the work.
On social care, the hon. Gentleman has a fair point, but I do not think that what he says is true as regards HGV drivers, builders, labourers or anyone else in the construction industry. It is true that we have relied on cheap migrant labour to deliver social care, but that is largely because we have not valued social care as a profession. While we have had that abundance of cheap labour in the sector, we have also been able to kick the can down the road about how we fund social care and our later stage of life, so the impact has been not just on earnings but on allowing policymakers to be lazy about grappling with these difficult issues.
My hon. Friend is making an important speech, with the authentic voice of common-sense Conservatism, which we need to hear much more of. The point she makes about the depressive effect on wages of the high immigration so far this century is incredibly important and relevant to the debate we are having about the workforce. Does she agree that at least our party has a plan to reduce legal migration substantially in the years ahead, which is more than we hear from any Opposition party?
I do agree that we have a plan, but I say to my hon. Friend that it has to be more than words—it has to be delivered on. I am sure he would agree on that. He will have heard, as many of us have, about how many industries have lobbied us to ensure that such and such a profession is added to the skilled workforce list. Those employers do not want to pay those higher wages and we, as politicians, need to be robust about that and say, “You know what, we genuinely want to deliver a high-wage, high-skilled economy. If you want to employ HGV drivers, you are going to have to pay them the money they deserve.”. That is how we will reward aspiration and hard work by the people of this country, and, overall, we will have better growth. It is not going to be painless getting there, because some employers will have to start paying higher wages and that will filter through to higher prices. But that is how we correct our economy and become the great world leader that we should be. We should be the powerhouse of the G7; given the skills and abilities within our country, we should be leading the world. We have allowed ourselves to become impoverished by quick fixes, to be brutally frank.
I come to my final issue. I have said for a long time that the biggest challenge facing this country is the lack of affordable housing and the failure to build enough new homes. I welcome the continued emphasis by the Government on this issue, but we are still failing to deliver. Yesterday, the Chancellor mentioned new investment to facilitate new housing in Barking and Canary Wharf. If we are to learn from what can go wrong, I encourage him to travel a few miles east to my constituency, to Purfleet. It sits on the River Thames and it has a railway station that can take people to Fenchurch Street in the City of London in 45 minutes. We have been talking about building 3,500 homes in Purfleet since 2008. If they were constructed on the River Thames, 45 minutes from central London, these homes would have sold themselves. Purfleet Centre Regeneration Limited, a public-private partnership, was developed to deliver these homes. It had £70 million-worth of public land gifted to it. It was granted £5 million in 2015 to kickstart the works, and it subsequently received £70 million in housing infrastructure funding. The first house was promised to be constructed by 2018. We are now in 2024, and we do not have a single new home after all that public money.
I want the Government to register that while it is great to see capital funding being made available, with all these wonderful brochures with nice plans for new homes, nothing is being delivered. I wonder whether there is something wrong with how we approach these things. From where I am sitting, I can see consultants who have managed to earn a pretty penny over the past eight years out of Purfleet, but we have achieved nothing except the disappointment of the public. The public have supported and got behind these proposals, but have found their hopes and ambitions dashed. They deserve better. They have been seriously misled by a number of people. It is not for me to apologise to the people of Purfleet—I have done my best to call out the fact that the emperor had no clothes for a very long time—but the public gets very disillusioned when promises given by politicians come to nothing. If we really are to deliver more new homes, then we need to look at why we have not realised the ambitions from such projects in the past.
I thank my hon. Friend for that observation. I hesitate to agree with him definitively, because I just do not have the evidence, but I strongly agree with the basic point that we should not reach straight for the chemical solution. We should look at other solutions that are clinically much better for people, including the social prescribing to which he refers.
I could highlight many issues in the Budget that I know would be welcomed in Redditch. I have campaigned long and hard for the Alex hospital and the Conservatives have delivered an £18.8 million operating complex, now open, ensuring that we are making progress in cutting the waiting lists. People can get operations closer to home and can get home quicker, and they can have more lifesaving surgery closer to their homes. I was glad to see the emphasis yesterday on productivity gains in the NHS, as well as pouring in money. Constituents know that healthcare is expensive and valuable. Staff time and public resources must be properly stewarded and not wasted.
Yesterday, there was an unexpected but welcome announcement—a delightful one—by the Chancellor: £5 million to spend in Redditch on cultural projects. That will be massively welcomed in our area, where the arts play a huge part in our local life. I will talk to local and community groups about how we can best use that. We have plenty of potential destinations, including the Palace theatre, Arts in Redditch, our new library complex—also boosted by Government levelling-up funding—and many more.
I am particularly proud of the record of my local council, which is led by Councillor Matt Dormer, who instigated a council house building programme that has delivered 19 council houses. I always appreciate the fact that we need to go further, but that is a significant move because they are the first true council houses built in Redditch for 29 years. For all the years that it was in control, Labour did not build a single council house, even though they are much needed.
(1 year, 9 months ago)
Commons ChamberIt is a pleasure to participate in the debate. I congratulate the hon. Member for West Lancashire (Ashley Dalton). I have to say that I like her style: I like people who can bring subjects to life and talk with real empathy about the experience of their constituents. I look forward to hearing more of her speeches, but I suspect that we will have a few more ding-dongs than the spirit in which I am addressing her now suggests.
That brings me to the speech from my former hon. Friend, the hon. Member for Bury South (Christian Wakeford). He paints a rather Dickensian picture, but that view is not widely shared—certainly not by my constituents, who are not without hope. They recognise that we are going through a challenging period and that it is incumbent on all of us as a nation to put our shoulders to the wheel and get on with it.
The hon. Member for Eltham (Clive Efford), who is no longer in his place, talked about the level of earnings and economic growth today compared with 2007. In 2008, we went through a massive financial crisis that required significant taxpayer intervention, which reminds us that when the taxpayer has to intervene, it does not come for free—there are consequences for the wider economy and everybody in it. Just as having to deal with that financial crisis made us poorer in the long run, so too does fighting a fatal disease and defending freedom against the actions of a dictator.
All those things that we collectively decide to take action on cost the taxpayer—every taxpayer in this nation—and have an impact on our economy, but those are the choices that we make, because they are the responsible and right thing to do. Nothing comes for free; everything has to be paid for by taxpayers. The more tax we take from them, the more we limit their ability to contribute to the economy.
Every Budget is a balance of decisions about how best to support those who need it, of course, and how best to fund our public services, as well as how best to generate the revenue to pay for them. Sometimes, those policies pull in different directions, but we should never forget that all the money that we take from taxpayers is theirs. When we make a change to the pension tax regime, therefore, we are not giving money away to the rich; we are letting them keep more of what they earn, which is the right thing to do. The virtue of that is not only that they keep more of what they earn, but that we incentivise doctors to work for longer and address that capacity within the health service, and we incentivise everyone to work more and contribute to the economic life of the country.
Collectively, we in this place spend an awful lot of time—I say this as somebody who spent their whole career in the public sector, which makes me somewhat unusual on the Conservative Benches—debating public services and how much we should pay public sector workers, because that is what we decide to fund from here. I often think, however, that we take for granted the private sector’s ability to generate the wealth that pays for those services.
That is why yesterday’s Budget was important. Opposition Members can find ways to criticise it, but it focused on the need to tackle inflation, which we all know impoverishes people and kills jobs, so it is right to nip it in the bud. We also know that inflationary pressures are made not here but by global factors, which is why we need to ensure that we are not too short-termist in addressing some of those demands. If we agree to high wage demands for public sector workers, they will fall through to the private sector. Last week, I met a local employer who employs 200 people and, frankly, his business cannot sustain the wage demands he is facing from his employees without making job cuts. That is the reality of the situation. So the more we can do to combat inflation, the more we can restrict the damage it will do to our economy in the long run.
As I said earlier, we really need to champion our private companies and make sure that we are providing the best possible conditions for them to flourish. I want to highlight a few success stories, because I am very proud of the businesses I represent in my constituency, and some of them are great British brands. Not many Members will know that the mayonnaise in their sandwich will have been made in Purfleet in my constituency. If they go to the opera, everything they see on stage will have been made in Thurrock. Every newspaper they buy has come through the port of Tilbury. These are the businesses that really keep our life going. We are looking to the future, too. We have a new investment in Tevva trucks in Tilbury, which is bringing the manufacture of hydrogen-powered trucks to this country.
There is plenty to be hopeful about and plenty to be ambitious about. What we need to do is make sure that we are creating the best possible conditions for our businesses to flourish, to provide high-paid jobs and to generate the wealth of this country. That is what we are going to do on the Government Benches, and everybody will be better off if we succeed.
(3 years, 9 months ago)
Commons ChamberThe clear intention is that this is an extension of six months, because that will take this well beyond the aspect of the national lockdown. I was particularly making the point about monthly payments because I have always been clear that this is about UC continuing on a monthly, rather than one-off, basis, and that would be the preferred approach. I am pleased that the Chancellor has agreed with me on that and on making sure we keep that regular payment uplift for the next six months.
Secondly, we have self-employed people on UC, and in addition to the further help through our self-employment income support scheme we will suspend the minimum income floor for a further three months. That means that hundreds of thousands of people will continue to receive financial support based on their current actual earnings, rather than on the assumed amounts we would normally undertake through the gainfully self-employed test.
Thirdly, the further extensions of the furlough scheme to the end of September represent a huge investment in people, keeping them connected to their current jobs and employers. I urge employers and employees to take full advantage of this additional time of furlough to get ready to return to work, and do the training and refresher courses, so they are ready to hit the ground running as their business fully reopens. Taken together, I believe that these temporary extensions will provide essential support as we move along the road map, restart the economy and transition to our full recovery.
Thanks partly to the extension of the furlough scheme, the OBR is now expecting a better jobs outlook than it was in its November forecast, with unemployment now expected to peak at 6.5% at the end of this year, instead of 7.5%, which was its previous forecast. Although that represents a third of a million fewer people than the OBR previously forecast, I fully recognise that the OBR is still predicting that, sadly, unemployment will rise by a further half a million people compared with now. As we have always said, we cannot, sadly, save every existing job, but my right hon. Friend the Chancellor set out yesterday extraordinary measures of support to help businesses stay in business and to create new jobs. The supercharged super-deduction on capital investment is exactly the kind of initiative that can stimulate businesses to invest here in Britain, leading to brand new jobs.
I am very conscious of what the hon. Member for Oxford East said, which is why we have undertaken significant work across government on our labour market sector plans in working through the opportunities we can create, not only by resurrecting some businesses and sectors that have been temporarily affected by the lockdowns but to bring in new jobs. I particularly commend initiatives such as the freeports, which we know will be creating tens of thousands of extra jobs right around the country. I was delighted that Freeport East was successful, as it covers the ports of Felixstowe and Harwich, one of which is in my constituency. It was a great pleasure to work with businesses across Essex and Suffolk to make that happen, particularly with the creation of a green hydrogen energy hub. That is really important investment that will be coming now thanks to the freeport initiative, and I know that the same will be happening right across the country. I can see people in this Chamber, such as my hon. Friend the Member for Thurrock (Jackie Doyle-Price), whose constituents will benefit from her ports coming together to be a freeport.
Perhaps I could advise the House that this affects not only the ports in my constituency; it is also a partnership with the Ford plant in Dagenham. My right hon. Friend will be aware that there are employment challenges in that borough—it has a very high unemployment rate compared with the rest of London—and the freeport initiative opens up the opportunity for Ford to breathe life back into that site, given the redundant diesel technology that it currently produces. That will attract new investment from a global player. Should that not be welcome?
My hon. Friend is absolutely right, and I know how much of a champion she has been for the people of Thurrock and the surrounding areas in making sure that they have that opportunity. Indeed, there are opportunities right around the country. We will hear contributions later from Members for the north-east, who will be championing, and are delighted by, not only the freeport in Teesside but the Treasury North campus in Darlington. I am sure that the Leader of the Opposition’s campaign director, who is now in the other place, will also be thrilled that Treasury North will be in Darlington.
Right across the country we are laying the platform for businesses to create jobs, and my Department is ready and primed—indeed, we are already delivering—as we put our foot to the floor, our pedal to the metal, on our plan for jobs. Over this year, as our economy starts to recover, my priority, and that of the Government, is getting people back into work, investing in skills and training, and helping people to get up the career ladder and increase their income.
We came into this pandemic with record high employment. That was down to successive Conservative Governments since 2010 focusing on supporting people in moving to and progressing in work, including by reforming the welfare system through universal credit, which is a conservative benefit. Unlike the legacy benefits, whereby people would often be worse off working under tax credits and similar, universal credit is a benefit that always makes sure that work pays.
I am truly astonished that the Opposition continue to want to scrap universal credit, when it has clearly done its job of getting money into people’s pockets within days of their making a claim when newly unemployed, and remembering that 40% of UC recipients are working and it automatically puts extra money into people’s pockets when their hours are reduced, never mind the £20 uplift for covid.
We know that we have a huge task ahead of us, but I am confident that we will deliver, fuelled by the firepower of our plan for jobs. Just as we have had the jabs army putting vaccines into people’s arms, we now have the jobs army of our work coaches, with an extra 13,500 recruited to bolster our support to help get people back into work.
In the jobs market, sadly it is the hopes and prospects of our young people that have been affected more than most. That is why we launched kickstart, a scheme that helps to give young people that first key step on the jobs ladder and offers employers effectively free access to the next generation of talent, as long as they provide an additional real job and job support.
I am concerned that the hon. Member for Oxford East and the Opposition are giving kickstart a bit of a kicking. Instead of slamming it, they should be supporting it. The Chancellor and I launched kickstart in September, the first young people started their jobs in November, and since then I am pleased to be able to share with the House that around 4,000 young people have now started a job, with 30,000 vacancies to be filled in the next month, and there are more in the pipeline. More than 140,000 jobs have already been approved, with agreed funding, which is more than the 105,000 that the future jobs fund of the last Labour Government created over its entire lifetime—and we have achieved it more quickly.
This is not, however, a tit-for-tat on numbers; this is about real people and helping them with their lives, right here, right now. Take Cerys, for example, who is 19 and had sadly lost her job in catering last year. With the help of her work coach, Cerys has started a kickstart job with Northam Care Trust in North Devon as a care worker. In her own words, this has changed her life. With the ongoing interest from employers and our making it even easier for them to join kickstart with direct applications through DWP, I am confident that by the end of this year, we will have helped a quarter of a million young people become kickstarters, setting them up for a great future.
With kickstart getting into the fast lane, the rest of our plan for jobs is also firing on all cylinders. Recognising that some sectors may continue to struggle, we have doubled the number of places on our sector-based work academy programme—SWAP—scheme to 80,000 this coming year. SWAPs help jobseekers to upskill, retrain and find a route into a new sector with a guaranteed interview for a real job. We are also supporting people in their job searches through our job entry targeted support—JETS—scheme and our job-finding support digital offer, which is now operating across Great Britain, helping those who need only light-touch support.
These schemes are working for people in every constituency. Take Marius from north London. He recently lost his job in the hospitality industry after 15 years and was worried about his future prospects. His local jobcentre referred him to a SWAP, and, after completing just a two-week course to build skills and experience, he was offered a job in the care sector.
This summer, as we restart the economy, businesses will get their restart grants, and we will also restart people’s careers. The new £2.9 billion restart scheme will provide intensive help to over 1 million jobseekers who, sadly, have been out of work for over a year. But we are also helping our jobs army with further assistance by considering new tools to help them diagnose people’s skills and help transform their lives. As part of the Budget, we are investing just over £1 million to pilot the use of new innovative technologies, such as artificial intelligence tools, to match jobseekers’ skills to vacancies they may not otherwise have considered. Work coaches and test sites will start signposting claimants to these services from August.
Also in this Budget, we have brought forward some measures that we know will help people still on low incomes. In particular, we are bringing forward to next month a measure that will allow universal credit claimants who request a new advance to help them with their budgeting to spread the phasing of that support over 24 months rather than 12. That will allow them to retain, on average, £30 more per month up front. We are also bringing forward a reduction in the maximum amount that can be deducted from a claimant’s standard allowance for debts such as rent or utility bills, from 30% to 25%. We expect that that will allow more than 350,000 families with the highest levels of debt to retain up to £300 extra per year.
On top of these measures, we are going further to help some of the most disadvantaged and vulnerable in society. We had already agreed to have exemptions on the shared accommodation rate for care leavers and people who have been in homeless hostels from 2023, but I am pleased to say—this is thanks particularly to the Minister for Welfare Delivery, my hon. Friend the Member for Colchester (Will Quince), who is here in the Chamber today—that we are bringing forward those exemptions by two and a half years, so that we will provide additional housing support for care leavers up to the age of 25, and for younger claimants who have spent at least three months in a homeless hostel, from next month. That will give them the stability and the foundation to take on the opportunities that work can provide, and will provide, to help them build their future.
We have also added a further £59 million of support for local welfare provision, so that the covid winter grant scheme will be extended into the Easter period, helping the most vulnerable families with the cost of food and bills.
My right hon. Friend the Financial Secretary to the Treasury will respond to some of the questions asked by the hon. Member for Oxford East, but it is fair to point out to the House that, among public services, we have already allocated an extra £55 billion of support; we have already initiated, or we are preparing for, the catch-up summer for children; and we will continue to invest in our public services. We are already increasing the number of nurses. We are increasing the number of police officers. I think the public pay uplift is for those people with salaries below £24,000, not the figure to which the hon. Lady referred. We are also making sure that the national living wage rises above inflation from next month.
The hon. Lady also pointed out aspects of statutory sick pay. She will be aware that that is the minimum rate required to be paid by employers; many pay a lot more than that. However, in recognising that universal credit supports people on low incomes, the Department of Health and Social Care introduced the self-isolation payment of £500 in order to help people who need to self-isolate and would otherwise be deprived, perhaps, of a lot more of their usual income. That is a sensible approach that we have taken.
It is important to say that, of course, in order to help control coronavirus infections, we had already changed the rules so that workers could receive statutory sick pay from day one rather than the eighth day of being off work, as well as extending it to people who are self-isolating rather than just sick themselves, so we have already taken measures in that regard to help others. In addition, I think it is an estimated £3 billion of extra support that has gone to local authorities next year to help manage the impact of covid-19 across their services and on their income. Of that, half is non-ring-fenced to ensure that they can adjust to what is needed.
The hon. Lady referred to some of the extra support that will be going in to support towns and other places around the country, with the new town deals that are coming, the community ownership fund—which is particularly interesting—to help communities to buy local assets such as pubs and theatres, and opening up as we get ready for the UK shared prosperity fund. We are already setting the scene with the community renewal funds and the levelling-up funds. I think those measures should be welcome.
Let us not pretend otherwise: as we reflect on 2020 as a wretched year when many people have lost family members, lost friends and lost colleagues, there is no doubt that the British spirit has been tested, but the response has been remarkable and, frankly, typical of the Britain I love. Our focus, with the successful vaccine roll-out, should be on giving hope and confidence to millions of families and businesses that there genuinely is light at the end of the tunnel. While the focus has rightly been on the jabs army, we are mobilising our jobs army to help people to get back into work as we speed towards our recovery.
This Budget builds on what is already one of the most generous and comprehensive economic packages in the world to provide further support and protection. We are ratcheting up our support. We will be super-charging skills. We will rebuild, revitalise and regenerate our economy and level up across the country. I am really looking forward on 21 June to toasting the victory of the vaccine over the virus, when we will get back to normal, building back better and building back fairer, with a brighter future for Britain.
It was a real pity that the hon. Member for Bootle (Peter Dowd) was cut off in his prime earlier as he was embarking on a very good defence of our pharmacy sector and its contribution, and I want to associate myself with his comments. There is a real issue with regard to the moneys advanced to pharmacies to deal with the consequences of the pandemic; it now needs to be clawed back and that is going to hit our pharmacists, who have been at the front end of the fight against the pandemic. I just remind Ministers to get together with the NHS to come up with a solution to this. Notwithstanding the fact that pharmacists are independent providers, they are very much part of our NHS and should be treated as part of the NHS family. I hope that the House will indulge me in finishing the hon. Gentleman’s speech off for him.
I commend the Treasury team and my right hon. Friend the Chancellor for the Budget presented yesterday. It has to be said that they were not dealt the best set of cards to start with. As Conservatives, we know that everything has to be paid for by taxpayers, whether they are the taxpayers of today or the taxpayers of tomorrow, and we have to balance our responsibilities to all taxpayers when we make these decisions.
Notwithstanding that, the Budget showed great imagination. It took it on the chin that we need to continue the support until we really can release the restrictions that we are working under. It also laid some foundations to encourage investment—particularly imaginative ones, I would add. In that regard, let me celebrate the fact that the Thames freeport has been given the go-ahead by the Chancellor. Clearly, that will benefit my constituents, but it takes in not just the port of Tilbury but that at London Gateway, the Ford site at Dagenham and what used to be the Petroplus oil refinery in Stanford-le-Hope.
Far from the freeport just displacing activity from elsewhere in the economy, the Ford site and the Petroplus site are redundant industries. Ford manufactures diesel engines for export, and Petroplus, where, clearly, the demand came from petrol-fuelled cars, went into receivership a few years ago. That land is ripe for development, and this is a perfect opportunity to encourage inward investment from overseas to take advantage of the freeport policy. I very much look forward to seeing Ford’s plans to use the Dagenham site, which has been with us for so many decades, to invest in new technology to deliver autonomous vehicles and electric vehicles, because that is the future. This very action will do so much to facilitate that and to breathe economic growth into an area of east London that really deserves it.
It has been very tiresome hearing Opposition Members say, “Oh, all the help’s going to Tory-held seats.” I just remind them that Barking and Dagenham are very much not Tory-held seats, and that Tilbury, which I represent, is the poorest of the 100 poorest towns. I am really grateful that this Government are showing faith in Tilbury and making those investments. Let me also say to those on the Opposition Benches that they could have done it when they were in power, but they chose not to. The Government are doing the right thing, and I commend the Budget to the House.
(5 years, 1 month ago)
Westminster HallWestminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.
Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.
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I congratulate my right hon. Friend the Member for Elmet and Rothwell (Alec Shelbrooke) on the sensitive way in which he introduced the debate. He posed three questions at the end of his speech. The answer to all three is: “Because it affects women.”
I have never been one to claim that we are disadvantaged as women, but I have seen over time that so much discrimination still happens. Never was that clearer than when I served as a Health Minister. Over and over again, I was approached by female colleagues from across the House—we are all very good at fighting for ourselves—who told me about how they had felt diminished at the hands of the NHS when sharing their experiences of quite common conditions.
At the heart of this debate is the fact that 51% of us have periods, so there should be far better understanding of menstrual health and what constitutes a healthy period. I pay tribute to the hon. Member for Dewsbury (Paula Sherriff) for her work in this area. She highlighted to me the under-diagnosis of endometriosis, despite the fact that, as we have heard, it can be a debilitating condition for some women and it is very common.
I had the pleasure of addressing the hon. Lady’s women’s health conference, where I met representatives from Endometriosis UK. They had three jars, which contained physical representations of how many sanitary products someone would use if they had a healthy period, if they had heavy periods or if they had dysmenorrhea, which affects people with endometriosis. That was a revelation. If only young women were shown that when they started their periods, they could manage their menstrual health so much more effectively. I met a woman from Endometriosis UK who was in her early 20s. She had struggled with endometriosis and very heavy periods throughout her teens, to the extent that she had had to have time off school. Seeing that representation had been a revelation for her; she had been able to get the treatment she needed and carry on with life.
That brings me to my final point, which I pitch to the Minister for him to consider when he responds to the debate. We all expect our employers to have good policies on staff wellbeing—we encourage that with respect to mental health and physical health—but we really should encourage them to do much more about really common conditions that can be managed effectively with support. I thank everybody for attending the debate—especially the men.
(10 years, 1 month ago)
Commons ChamberThere are times when we debate issues in this House with maturity and sensitivity, and I am pleased that, since the hon. Member for Stretford and Urmston (Kate Green) sat down, that has been the case today. No one could fail to have been moved by the examples given by the hon. Member for Mitcham and Morden (Siobhain McDonagh), or by the speech from my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard), who is no longer in his place. The reality is that, if we want to make a difference, to fix the ills of our society and to make Britain the best it can be, we need to show more maturity in debating these issues.
Unemployment for people with disabilities exceeds 50%. Among those with severe learning disabilities, the figure is more than 90%. Many of those people want to work, and I would expect every Member to want to see those unemployment rates fall. When we tackle youth unemployment through apprenticeships, we concede that it is legitimate for employers to pay less than the minimum wage and for the Government to give support to employers, so why can we not consider doing that for people with disabilities? We owe it to them to think constructively about what more we can do to give employers a greater incentive to give people with disabilities a chance. The truth is that the minimum wage acts as a barrier to employment when an employer judges that the amount they have to pay exceeds the value being added by the employee. It is surely self-evident that we should try to identify what we can do to eliminate that barrier. I am not talking about people being worth less; I am talking about making practical interventions to fix a problem.
The fact is that we, as politicians, need to deal with the world as it is, not how we would like it to be. If we want to achieve the outcomes that we have been talking about today, we need to reflect the real world. We need to work with employers to see what more we can do to encourage them to be more ready to employ those with disabilities. Simply to sit on the sidelines and whip up hysteria about the minimum wage will quite simply fail those people. What is needed is a mature debate about what more we can do in this space.
Lord Freud is an honourable man who has done more to support people with disabilities than many of the members of rent-a-mob who have leapt on his words with synthetic anger. His only offence was one of sloppy language. Who in this House is always completely accurate in their use of language? Who in this House has never made a mistake? The way in which Labour Members have inflamed this row has shown them at their holier-than-thou worst. They like to pretend that my party is the “nasty party”. Well, I will tell them what is nasty. It is distorting the comments of a decent honourable man and using people with disabilities as a political football with which to beat the Government. Shame on them!
If there is a good thing to come out of this unhappy episode, it is that the public saw it for what it was: a shameless piece of political opportunism. We wonder why people are turning away from politics. This is a perfect example of why they are doing so. Politics should be about ideas and principles. Politicians should be about leadership, not about simply being weathervanes. Today’s politicians are too scared of saying anything that might be construed as politically incorrect, or of saying anything that could be taken out of context to write a headline. The result is that politics is becoming bland, managerial and utterly uninspiring. It is failing to deliver.
This is a perfect example of an issue that we should be debating in a more grown-up manner. If we do not talk about the world as it is in a mature way, there are others who will fill the gap. The fact is that the quiet majority of people out there are very reasonable. They are not stupid—far from it. Any politician who takes them for fools will pay the price. The public have judged that Lord Freud was well-intentioned. Labour Members can use their friends in the metropolitan media and the charities to try to score a political advantage, but they will be the ones who suffer next year at the ballot box.
Success in politics is not measured by how much of a hoo-hah we can generate on Twitter. It is measured by delivering on our policy objectives. Our objective is to give those with disabilities the opportunity to work if they want to, and no amount of political haranguing by the party opposite will stop us on this side of the House focusing on the real challenge. If Labour Members have not got anything constructive to say about this issue, frankly they should shut up.
(11 years ago)
Commons ChamberI have not, but I have confined my research to this issue. There was a trend back in the late 1990s and early 2000s for large motor companies to spin off their parts manufacturer and create separate entities, but Visteon never had a chance, certainly in the UK, as demonstrated by its profit and loss. It never made a profit, and no company that never makes a profit can succeed. Inevitably, in March 2009 Visteon collapsed, shortly before the global corporation went into chapter 11 in the United States. Following the collapse in the UK, it emerged fairly quickly that the UK pension fund was underfunded to the tune of about £350 million. That required the pension fund to be placed in the Pension Protection Fund for assessment, which ultimately left former Ford employees with much reduced pensions. Some suffered cuts of up to 50% to a pension they had paid into and had earned. Indeed, my constituent Dennis Varney, who has been leading the campaign so vigorously with me in the past few years, told me his story and I would like to share it with the House.
Dennis joined Ford in 1967 as an apprentice toolmaker. He studied, worked, gained qualifications and got promoted. In 1973, he became a press toolmaker. In 1976, he transferred to the Basildon radiator plant and became responsible for maintaining press tools and related equipment in the manufacture of heat exchange components. In 1978, he was promoted again, with responsibility for the press shop. In 1986, he was promoted to senior manufacturing engineer and then to a management position in 1990. He went to university to study between September 1998 and 2000, and completed a degree course in engineering manufacturing. In 2000, he was transferred to Visteon UK after more than 32 years with Ford. At Visteon he held a management position in a simultaneous engineering group, and had 20 engineers reporting to him directly. In 2006, after 38 years of combined service, Dennis retired. He had worked a lifetime for a company he respected and trusted, and looked forward to a well-deserved and well-earned retirement. We can therefore imagine his dismay—I put it mildly—when Visteon collapsed and his pension was cut by almost 50%. What had he done to deserve this, other than provide decades of loyal service? This was Ford’s response to the plight of Dennis and the many others affected:
“While Ford recognises the severity of the situation for former Visteon UK employees, Visteon became an independent company in 2000 and was responsible for its own business decisions…Ford fully fulfilled both its legal and moral responsibilities to former Visteon UK employees.”
I, for one, do not think it did. I do not intend to comment on whether it fulfilled its legal obligations, as that matter may well go before the court. I remind Members of the words of Madam Deputy Speaker—to be cautious in what they say. Let me say, however, that in my view Ford has not met its moral obligations.
I congratulate my hon. Friend on all the work he has done to try to secure justice for the Visteon pensioners. On that specific point and to avoid this situation in future, would he welcome the Government reflecting on the legal obligations of employers to employees who have their rights transferred to a spin-off company? One big weakness in this case is that the employees who transferred did not have access to good financial advice. We need to ensure that protections are in place for workers.
My hon. Friend makes an excellent point. The root of the issue does not lie at the door of the Government, but the Government can do more to protect workers, particularly on how the Pension Protection Fund cap operates when long service is involved. The Government need to ensure that people receive proper, independent, sound financial advice when they are transferred to a new pension fund. That would be a good and sensible step forward.
This is not a personal issue and I have no particular beef with the individuals I have dealt with at Ford. I have great respect for those who have worked with me on this issue over the past three and a half years—the former Ford UK chairman, Joe Greenwall; Christophe Clarke from the government affairs team; and, most recently, the director of government affairs, Madeleine Hallward—but is time for Ford globally to face up to its responsibilities and to do the right thing. I, with colleagues across the House, have been campaigning on this issue for nearly four years and we want to see it resolved.
Some might argue, agreeing with Ford, that this has nothing to do with Ford, but I disagree. Yes, Visteon was an independent company, but as we have heard from my hon. Friend the Member for Finchley and Golders Green (Mike Freer), it never stood a chance, and someone somewhere knew it. I submit that Ford recognised it could source its parts cheaper from other companies around the world and needed to get rid of its expensive in-house manufacturing plants, so it spun them off. That is what Tim Leuliette said. He said it did not stand a chance: the cost base was too high, the overheads were too high, the labour costs were too high. It was totally out of sync with the running of a profitable motor business, so it was sent floating off on its own into the great blue yonder.
That is why I am calling on Ford to meet its moral responsibilities. It knew that Visteon had no long-term future and that among the casualties when it inevitably collapsed would be thousands of former employees who had given loyal service. Those employees have now suffered serious pension losses. They transferred their pensions from Ford to Visteon in good faith, on the basis of trust. People trusted Ford, so when it gave them its assurances, they took them at face value. Why wouldn’t they?
I would like to quote the words of John Hill, a former Ford employer, then Visteon pensioner, who unfortunately is no longer with us:
“I had absolute faith in Ford, and I trusted them. Although over the years we had our ups and downs, everybody had a great respect for the company and a degree of affection for being part of its traditional values and the ‘family of Ford’. A long heritage, and the fact that they had been around for so long formed part of that trust. I just cannot believe that this could happen, and we have been betrayed.”
Unfortunately, he is one of the pensioners who will never benefit, whatever the outcome of the court case and our campaign.
Trust is important, as is family, and Ford likes to talk about family. When Bill Ford celebrated Ford’s 100th anniversary in the UK in 2011, he said:
“I have always thought of Ford employees, dealers, suppliers and partners as members of our extended family. My visit here has confirmed that belief—it has felt like a homecoming.”
He also said:
“Ford of Britain has a proud heritage…The United Kingdom quickly became the most important market for our cars outside of the United States.”
There is no doubt that Ford UK is a vital cog in the global Ford machine and Ford family, yet “family” is probably not the word that Visteon pensioners would associate with their former employers any longer. Simply put, people trusted Ford, and now they wish they had not. That is sad. Ford is a great company and has the potential still to be great in the future, but it is allowing its reputation to be tarnished by not stepping up to the plate. I am asking, in all good faith and in recognition of Ford’s contribution to the UK, that Ford do what is right by its former employees and resolve this issue. Yes, times are tough for the motor industry, especially in Europe, but this goes further than just a financial transaction; it is about restoring trust in what should be a rock-solid brand and removing a stain from Ford’s rich history.
Finally, I can do no better than refer colleagues and the Government to the wording of the motion. That is why we are here and that is what we want—put simply: justice for our constituents.
It is a great privilege to follow such an enviable group of MPs, particularly those from Essex. We started with eminent words from Basildon and then moved down the estuary to those from Castle Point, and we will end—I hope on a high point—in Rochford and Southend East. Several points have been made, and I will take care not to reiterate them, even to add emphasis.
Not in the last debate on Visteon but in the one before that, my hon. Friend the Member for Broxbourne (Mr Walker) referred to Ford as
“a four-letter company, behaving in a four-letter way”.—[Official Report, 4 December 2012; Vol. 554, c. 182WH.]
Hon. Members will recognise that we normally speak in very temperate language, so people should bear in mind how strongly we all feel about this issue. Very rarely is there a debate in which such strong words are used as we have heard today from both sides of the House. It has been not so much a debate as a siren call for action. Points have been made from either side, but they have all pressed Ford in the same direction.
I must disagree with my hon. Friend the Member for Enfield North (Nick de Bois), who felt that the issue was a stylistic change between American and British business practices and some type of misunderstanding. If it had involved Baltimore rather than Basildon, or Seattle rather than Swansea, the same lack of duty of care and the same lack of moral responsibility towards employees would not have been tolerated.
I know that my hon. Friend the Member for South Basildon and East Thurrock (Stephen Metcalfe) has travelled to the US and had informal discussions with several Congressmen. I hope that in the near future that can be formalised by making a request that the US Congress look at the issue alongside us, which will increase the pressure on Ford Motor Company.
I do not know whether my hon. Friend has seen the film “Made in Dagenham”, but it clearly brings out the very close relationship between Ford and the unions, and how the workers trusted it to give them the best deal. In that respect, have not the workers been greatly let down? They expected a deal to be made that was good for them and they had put their trust in the company, but they were sitting ducks to be misled.
My hon. Friend makes a very good point. Not only have I watched the film, but one of my constituents, Lesley Butcher, starred in it in a voiceover role. She is also an excellent parish councillor in Rochford, but that is her claim to fame. That goes to show what a close community we are. The community trusted Ford and was badly let down.
The motion has been signed by my right hon. Friend the Member for Chelmsford (Mr Burns). People who do not know his background might think that his speech verged on being anti-American. Given his strong passion for that country, I do not think it can be seen as anti-American. He will certainly be distraught that the project that allowed the supply chain to continue had the name Project Kennedy. My hon. Friend the Member for Castle Point (Rebecca Harris) made the very good point that this was clearly not an independent company. Project Kennedy allowed the continuity of the supply chain. Effectively, the directors and managers of Ford were shadow directors of Visteon. They were manipulating what went on in that separate company.
I hesitate to share with the House my ambitions as a young child.
(11 years, 6 months ago)
Commons ChamberWe did indeed. In fact, that was the favoured option of many of our witnesses. The Government did not listen, and opted for “pot follows member”, but we, and a number of witnesses, thought that NEST would be ideal as the source of an aggregated fund.
The communications strategy must also make it clear that savings credit will end when the single-tier pension is introduced. However, one of the main issues dealt with by the Select Committee was the issue of women—for it is usually women who are affected—who currently depend on the pension contributions of a partner or husband and whose pensions are therefore based on derived rights, because that system will end. The Committee recommended that women within 10 years of pension age should continue to enjoy those rights, because in less than 10 years they would not have time to build up a contribution record that would enable them to receive any kind of state pension in their own right. That, we thought, was very unfair, given that all the household planning might depend on the assumption that the wife would receive 60% of the husband’s basic pension.
I share the hon. Lady’s concern. In their retirement, a group of people who have depended entirely on a single income and have not imposed any burden on the taxpayer are now being robbed of what they had every legitimate expectation of receiving.
Indeed. We talk a great deal about how women’s lives have changed. Younger women may have built up contributions in their own right, either through caring responsibilities or through their own work, but there is a generation of women who may not have retired or reached pension age, who have stayed at home throughout their lives, and who expected at least to receive that 60%, although they did not expect more.
I accept that, ultimately, that system should probably end, but I think it unfair to take the 60% away from people who are too close to pension age to build up contributions in their own right. I also accept what the Government have said about people who do not live in the United Kingdom, but some of those affected will be living here, and that group may include a number of people who have been in work but have not qualified for national insurance credits, because their income has been too low to register, or because they have had a number of very small jobs and have therefore not made NI contributions that would have covered those years.
We have already discussed the group of women who were born between April 1951 and 1953. Some of their fears have been allayed—I think they initially believed that they would suffer a major change in their pension income—but some issues still need to be addressed, partly through the communications strategy. The Government must deal with that group first, and give them the information that they need.
There will be cliff edges, as there are bound to be when any change is made, and there may be some groups whose cliff edges will be worse than the one facing that group of women, although we have not spotted them yet. I hope that those who give evidence in Committee will make the Government aware of any other cliff edges, because the last thing we want is to discover in April 2016 that there are unexpected problems affecting certain groups. There will also be a great deal of complexity in the new system. Nothing will be simple, particularly the migration from the old system to the new system and the calculation of accrued rights. That was never going to be easy, which may be why it has taken the Government so long to come up with a solution.
We know that in the long term the Government will be spending less money. There obviously cannot be more winners than losers overall, because the pensions bill will be lower in 30 years’ time—which, I suspect, is why the Government managed to get the legislation past the Treasury. I hope that that will make the situation more sustainable, but I believe that this will be an election issue in years to come. The level at which the single-tier pension is set will be in the gift of Governments, and it will be up to them to decide whether to increase it or not.
However, overall the Bill is to be welcomed. It is the right step in the right direction, and it will build on the good work that is already being undertaken. It is also important that people realise that the subject of pensions affects not just those of pensionable age, but everyone, and especially those of working age, because if they do not start making provision for their pensionable age now, they will find that they do not have enough money to be able to have the quality of life they expect in retirement.
It is a great pleasure to speak in support of the Bill and the introduction of the single-tier pension. The simple truth is that our pension arrangements have not kept pace with changes in lifestyles. I commend Members from all parts of the House for their constructive contributions. I hope that the Minister will address their concerns. This is a measure that he can be proud of because it will entrench the welfare state for the 21st century and make it sustainable, but there are some tweaks around the edges that we need to get right.
I commend the Bill for maintaining the principle of national insurance. In recent years, much of our welfare bill has become means-tested or universal, rather than contributions-based, which, as we all know, is not what Beveridge intended. The Bill will entrench the contributory principle, not least by recognising the contribution of self-employed workers and by improving the treatment of women who take time out to raise families.
On the whole, the Bill is very good for women, but I do have concerns that I hope the Minister will reflect on in Committee. The Chair of the Work and Pensions Committee raised the concern about women who will be disadvantaged because they have stayed at home to be homemakers, but have not had children. That group of people has been identified by Age Concern. They are people who have never worked, but who had expected to inherit pension rights on the basis of their husbands’ contributions. It is easy for women of my generation to be sniffy about women who have never worked, but we need to look at what society was like. That was a legitimate lifestyle choice. Those people were homemakers, and we should not diminish that role. Now that we are in the era of the ready meal, encouraging more homemaking might address the rise in obesity and diabetes, but I digress.
We are retrospectively trying to change people’s expectations of how they will provide for their retirement—a fundamental unfairness. People will be affected by this problem if the husband retires under the current system and the wife under the reformed single-tier pension. We are changing the deal that such people have anticipated for many years, and at a time in their lives when they can do precious little to deal with it.
I will illustrate the problem with an example. I have been lobbied by a constituent who is extremely anxious about the changes. Her husband will retire in three years and she in five. She fully anticipated inheriting derived rights from her husband’s pension. She has never worked, has never had children and has struggled with illness all her life. She will therefore not be covered by the transitional arrangements for women with lower contributions. The couple have dealt with the challenges that life has thrown at them with considerable stoicism and with no help from the state. This is the one period in their lives when they have expected the state to honour the deal. They have planned for their retirement on the one national insurance record and they now find that the goalposts have been moved.
I firmly believe that putting such people at a disadvantage is not the intention of the Government, but one of the unintended consequences of this significant and positive reform for women generally. Will the Minister look at that group of people?
It has been estimated that 30,000 women will be affected. I notice the Work and Pensions Committee has recommended looking at women who are within 10 years of retirement and at where the current inherited rights could be retained. As I understand it, one reason the Government are not minded to alter the system is that some 70% of women who would benefit from that provision live overseas. I completely endorse their position in not wanting to pay pensions to widows living overseas—particularly those who may never have had any real relationship with this country—but we could look at protecting widowed ladies who are expecting a pension if they are resident in this country. I doubt whether such a provision would be particularly costly because, as we have said, it is a small and diminishing group.
Although lifestyles have changed over time and women tend to work more than stay at home, we should not discriminate against those whose lifestyles do not fit that profile, particularly when we are effectively retrospectively changing their plans for retirement. I make a wider point that much action in public policy is sending out a sign that society does not value women who do not work full time. I consider that regrettable, and I speak as someone who is as much of a feminist as anyone else. We must recognise that running a home is every bit as valuable as anything else a woman might do.
On a more positive note, I give an enthusiastic welcome to the improved provisions for the self-employed, and I was disappointed to hear the comments of the right hon. Member for Birkenhead (Mr Field). I do not know what it is about those on the Opposition Benches, but they are so negative about the self-employed.
I will give way to the right hon. Gentleman because he has been critical in the past of the self-employed.
The hon. Lady makes an important argument that I am following with great interest. The Opposition are trying to say that this is an extraordinary deal for the self-employed, who are paying half the national insurance contributions of everybody else but still enjoying 100% of the pension. The key assurance we are looking for from the Government is that this is a deal for the long term. It is not clear that this deal will stick; it is generous and sounds good for the self-employed, but is it there for the long term? We think the self-employed demand certainty.
I agree that the self-employed demand certainty, and one reason the deal needs to be generous is that the self-employed do not have access to occupational pension schemes. At a time when self-employment is increasing, the role of the self-employed is growing, not least because people have different work patterns throughout their life. Some will go from employment to self-employment and so on, and we must allow them to make sufficient contributions.
Let us reward and celebrate entrepreneurism in our economy. It is playing a significant role in creating jobs and growth and should be welcomed—I gather it is now 40.2% of the economy, and I can only see that growing. We must do our bit to nurture and support entrepreneurship, not get in its way. The mealy-mouthed and churlish comments about pork-barrel politics for a group of people who are working hard and doing their best do those on the Opposition Benches no credit whatsoever.
Finally, I congratulate the Government on their determination to continue supporting pensioners more generally, and the Minister on the triple lock. As my hon. Friend the Member for Gloucester (Richard Graham) reminded us, the days of the 75p rise are long gone, and I hope pensioners realise that Government Members are on their side. If people work hard and do the right thing, we will support them. That means that we owe our pensioners who have worked hard and contributed. I hope the protections that we have given them will be recognised, and that we can lay a good foundation for our pension system in the future.
(11 years, 10 months ago)
Commons ChamberThat is why measures such as the Work programme and the new enterprise allowance help lay those foundations. We need to see businesses moving to places such as the Rhondda and south Wales. I went to Swansea before Christmas to see the work that Amazon is doing there to boost employment in the local community—[Interruption.] Opposition Members may mock, but that created job opportunities that people would not otherwise have had.
3. Whether he plans to phase the introduction of the benefit cap.
The benefit cap will be implemented from 15 April 2013 in Bromley, Croydon, Enfield and Haringey local authority areas. This will be a phased roll-out, with the remaining local authorities implementing the cap by the summer. This is in keeping with the way that the culture has changed in DWP. All the programmes that we are implementing are being rolled out on a staged basis. That includes changes to the Child Maintenance and Enforcement Commission, universal credit, personal independence payment and universal job match.
Can my right hon. Friend give me some reassurance that vulnerable people will not be affected by the cap? Can he also assure me that every effort is being made to support people back into work?
Clearly, the cap and the principles behind the cap are supported by Government Members—that is, that people who are on benefits should not be earning more than those, for example, on average earnings. Those who are exempted are those who are entitled to working tax credit—because this is about getting people back to work, not stopping them doing that—war widows, widowers, those in receipt of disability living allowance/personal independence payment, attendance allowance, industrial injuries benefits, those on war disablement pension and compensation scheme and the support component of employment support allowance. There is also a 39-week grace period for those who fall unemployed so that they can get back to work without having to change their arrangements.
(12 years, 3 months ago)
Commons ChamberIt is a great pleasure to support the Secretary of State today. He is one of the most serious-minded members of Her Majesty’s Government, and he has put forward a proposal where there is amazingly little disagreement over the principle of what is being done. Indeed, the motion is not about the principle; it is about some of the practicalities. However, it is worth concentrating on what the principles underlying the universal credit are.
The first principle must be simplification. All of us know from our surgeries that the people who come in to see us—who are some of the most vulnerable in society—are confused and bewildered by the range of benefits that may or may not be available to them, the interaction between one and another, and the way they can become worse off by doing sensible things, which therefore encourages them to do things that are not in their long-term best interests. To move to a system that is simple and straightforward must therefore be an advantage, and it has, I think, broad support across this House.
Then there is the issue of the reduction rate—the rate at which people lose money from benefits when they move into work. I have spoken before in this House about the Laffer curve. It is often pooh-poohed by Opposition Members, although I see—as they themselves say—that there is an irony in that we quote it most often in favour of high-rate taxpayers and they quote it most often in favour of people on benefits. However, in my view the Laffer curve applies equally to both. People work because they get money out of it. It was Dr Johnson who said that nobody but a blockhead writes, except for money. It is not just writing that is done just for money; it is most employment—with the exception of being a Member of Parliament, which I think most of us are so privileged to do that we might even pay for the opportunity.
The importance of that point is that the withdrawal rate is going to be the absolute key. It is crucial that, at all times, being in work makes people better off than being unemployed, not only for their financial benefit but because dependency is bad for people and their families. It is destructive to their lives. It leaves them without a focus, unable to get up in the morning or to do anything. It can also lead to depression. We want a society in which people want to be, and are encouraged to be, in the work force, and in which dependency is an option that is limited to those for whom nothing can be done. We need to become a society in which dependency is rejected.
The principles behind the reforms are fantastic, and they are worthy of widespread support. I agree with my hon. Friend the Member for Aberconwy (Guto Bebb) that we would like the withdrawal rate to be reduced from 65%, but 65% is still a lot better than some of the very high rates that exist, which is extremely good news. In respect of the practicalities of the reforms, my admiration for the Secretary of State is unbounded. I have never before seen a Minister or an Opposition spokesman in the House being so open to suggestions, thoughts and questions about what they were doing, or being so careful about the way in which their proposals were being implemented.
It was notable at questions yesterday that, in response to a point about refuges raised by the hon. Member for Manchester Central (Tony Lloyd), the Secretary of State said:
“If he has any concerns that he thinks we might not have dealt with, my door is open for him to come and talk to me.”—[Official Report, 10 September 2012; Vol. 550, c. 14.]
That is a Conservative being open to a socialist Member of Parliament. Politics normally involves a Minister being defensive and saying, “I’ve got it right. You know I’ve got it right, and my troops will vote for me because the Whips have arranged that in advance.” It has been wonderfully refreshing to hear the Secretary of State go through all the points today. Has anyone ever seen a Secretary of State take more interventions than he did in his speech? In each case, if he did not have an immediate answer, he said that he would be willing to listen and to consider the matter, to ensure that we got this right. Pilots are being carried out, and the scheme is being implemented carefully and cautiously.
Does my hon. Friend agree that the spirit in which the Secretary of State is approaching this issue stands in clear contrast to the approach of the Opposition, who have tabled this mealy-mouthed, negative motion? They are willing the reforms to fail, but we should all want them to succeed if we really want to make work pay.
I am very sympathetic to what my hon. Friend says. This is something of a puzzle to me, because the Labour Front-Bench spokesmen on this subject are among the most civilised members of the Opposition, and it seems uncharacteristic of them to table such a motion—[Hon. Members: “Hear, hear!”] I felt sure that they would be delighted to be flattered by me, of all people. What I have said about them is true, however; it is recognised by those on my own Front Bench.
However, the motion before us is extremely overstated. It uses the language of chaos and disaster, as did the right hon. Member for Birmingham, Hodge Hill (Mr Byrne), and calls on the Government “urgently to set out” plans. In contrast, the Secretary of State answered every question that was put to him. He was willing to listen, and he is doing something that, in principle, those on both sides of the House agree with.