Unemployment

Jim Shannon Excerpts

Wednesday 14th December 2011 Commons Chamber

[Chris Grayling]

I regret every single redundancy in any sector in any part of this country. It is a terrible blow for the people concerned. I do not know about the case, but if the hon. Gentleman wants to talk to me afterwards, I will ensure that Jobcentre Plus support from a rapid response team is available to his constituents. I regret any such situation. However, we are having to get to grips with the challenges of the public sector because of the mess we were left. If we did not do that, unemployment would be higher, not lower. I stress that we will do everything we can to help the hon. Gentleman’s constituents and those elsewhere who are in a similar position. Any unemployment is too high, and we will do all we can to help tackle it.

Let me briefly consider the youth contract because questions have been asked about it. It was announced shortly after our debate a month ago and I think that it will enhance the programmes that we are already delivering. It builds on the programmes that are already in place and will involve doubling the work experience programme so that we should be able to guarantee every single young person who has been out of work for three months a work experience place. Through the Work programme, it provides a subsidy to employers to take on a young person who has been unemployed for a longer time. The CBI proposed it to us, but it is more generous than the programme that the CBI requested. The shadow Minister made the point about the previous Government’s scheme in 2009, but the difference is that we are delivering something to a template that leading business groups requested. They say that it will make a real difference to the likelihood of an employer taking on a young person. I hope and believe that will make a genuine difference.

[Jim Shannon (Strangford) (DUP)]

One of they key factors throughout the United Kingdom that perhaps the Minister has not mentioned yet is small and medium businesses. In Northern Ireland, 90% of those in employment are employed through small and medium businesses. What help does the Minister intend to give small and medium businesses to create jobs and thereby address youth unemployment?

[Chris Grayling]

I agree that small and medium-sized enterprises are crucial. I hope that the subsidy that is paid to employers through the youth contract will be attractive to large and small employers. We are clear that the role that small businesses play is important. Opposition Members raised issues about unemployment among the older generation and I believe that our new enterprise allowance, which is proving successful in the areas where it has been operating so far and is now available throughout the country, will provide a real route for people who want to build their own SME in future.

Mr Deputy Speaker, do not listen to what you hear from the Opposition about the Government doing nothing about unemployment. We have a comprehensive range of support, which I believe can make a real difference to the unemployed. We face huge economic challenges and some of the most difficult economic circumstances that any Government have faced. However, unemployment is and will remain a priority for the Government. We will do everything that we can to tackle it.

--- Later in debate ---

[Alex Cunningham]

I agree. My hon. Friend provided an illustration of that earlier when he mentioned the job losses that have been announced in a company in his constituency. For some time the Tories said that we did not have a plan for jobs. They may have systematically dismantled our investment programmes for job creation, but it is not too late for them to adopt our five-point plan for jobs and growth.

Like others who have spoken, I shall concentrate on the subject of young people. The acceleration in the number of young unemployed people will help this Tory-led Government to go down in history as the Government who could not care less about our country’s most important asset.

[Jim Shannon]

It has been suggested that businesses should be given an incentive to employ people aged between 16 and 24, in the form of a £1,500 tax relief which would cover national insurance contributions for a year. Does the hon. Gentleman believe that such initiatives are capable of providing employment for unemployed people?

Pension Plan Charges

Jim Shannon Excerpts

Wednesday 7th December 2011 Westminster Hall

[Brandon Lewis]

The hon. Gentleman makes a good point, and I will touch on it later. I fully agree that one of the issues that people do not understand is that a figure that seems small now can have a huge impact on how a pension pays out later on—up to 25%, as I will touch on later. The hon. Gentleman is absolutely right. That is exactly the clarity and understanding that we need.

Provident Financial’s clients are low earners, who often borrow just £100 or less to get through to the end of the month. The company told me recently that the issue for many of them is not so much about whether they can save. They may be able to save only a small amount; I know that the Minister appreciates that, because we have had a conversation about it. In some cases, it could even be just a few pounds a week or month. However, all that money can add up to mean something later.

The hurdle that those customers find is psychological. The company said to me that people who are on the lowest incomes understand and learn how to manage their money and how to get their family through a week or a month. Within that, they will still do certain things—£1 or £2 a week on sweets for the children, or something like that. What they do not do is trust an unnamed and unknown big organisation with some of their money, because it is complicated and there is no face to it. That is why they use organisations such as Provident Financial rather than high street banks.

By dealing with the issue of transparency, we may well be able to break through that psychological barrier and get more people saving. If the industry is clearer and puts things across more simply, it will instil more confidence in the customers that it is looking to pick up. I will return to that with a clear example in a moment.

The system is complex. People’s underlying attitude is unsurprising, given that we have such a diverse and complex pensions industry, with a wide range of schemes and options alongside an array of different regulatory regimes. A wide range of items may be included in pension charges—and alas, with no clear industry standard at the moment, providers often differ on what is included. Just to name a few, any or all the following may be included: product management, communications, services, administration, regulatory requirements, some investment management and, possibly, the cost of providing advice. How can any consumer find an easy way to compare like with like when there is such a range of options and figures printed on a statement? It is simply not possible.

[Jim Shannon (Strangford) (DUP)]

I, too, congratulate the hon. Gentleman on bringing the matter to the House today. We need clarity about hidden charges—charges that people do not know are being made and which are removed from people’s funding regularly—and about sales commission. There are often hidden charges before someone can leave a scheme.

There is also excessive trading in respect of those who are trying to keep on top of the portfolio; there is a charge every time that happens, and customers do not know that. There are a lot of hidden charges that customers do not know about. Does the hon. Gentleman think that such charges should be made known to the pension holder, so that they are aware of the costs involved?

[Brandon Lewis]

It is absolutely right that as much as possible should be transparent—potentially, everything should be as transparent as possible. The hon. Gentleman is right. As I will come on to say, people do not necessarily understand that when they come out of certain schemes or change jobs, the potential cost to them can as much as double. The costs are effectively hidden, because they are not clear or transparent at the time of entry, let alone of exit. That is why we need regular transparency. I will touch on that further in a moment.

It does not seem possible to find an easy way of comparing like with like. Just last week, the Work and Pensions Committee was taking evidence on pensions and it became very clear from looking at different operations that there are major variations in style between companies. What highlighted the issue of transparency for me more than anything was the fact that one company said that the simplicity and transparency of its charges is its single biggest marketing advantage. If Members will bear with me, I will read a short quote from that session. Adrian Boulding of Legal & General, which I congratulate for having this kind of transparent operation, said to the Committee:

“We compete on price in the market place and we are able to do that because we have invested heavily in technology. If I look at pension schemes that we have sold this year, they have all been sold within a price range of 0.3% at the bottom to 0.8% at the top. 90% of them have been sold at 0.5% or less.”

Again, that is a range of figures that many people will struggle to understand. However, Mr Boulding went on to say:

“One of the particular features of our pitch to the market is that we charge just a single charge for the scheme, whereas some providers now want to charge £1.50 in addition to a fund management charge. NEST charges a contribution charged at 1.8% in addition to a fund management charge. Some insurance companies charge higher fund management charges when people leave the scheme. We charge a simple, straight fund management charge and it is the same for all members whether they are in the scheme or whether they have left, and there is only the one charge. We find that gives us an edge in the market place.”

It was interesting that a company specifically said that the simplicity of its charging—it only has a single charge—was its marketing edge.

What is included in the charge element of a pension fund varies, but the inconsistency in how charges are communicated is an additional complicating factor. In fact, the wide range of approaches is needlessly complicated. Some pensions are regulated by the Financial Services Authority and require an illustration of the effects of charges. Other pensions, mainly those that are trust-based, have no requirement for such disclosure. The stakeholder pensions were introduced in 2001 and I credit the previous Government for introducing something that provided some simplicity and clarity. Stakeholder pensions require disclosure of individual deductions.

The lack of comprehensive and consistent information prevents effective monitoring by the FSA, the pensions regulator, and, potentially, by the Department of Work and Pensions itself. We risk creating a regulatory black hole if we fail to create a clear communications framework. That is why there is also a need to specify which regulator covers which area and to define regulators’ powers to avoid market confusion over which regulator covers which issue—let alone confusion among consumers or among the employers that are implementing a scheme.

The approach taken by different pension providers and schemes also varies widely, as the National Association of Pension Funds has helpfully highlighted. Some providers quote an annual management charge as a percentage; others illustrate the effect in cash terms. Some present information in a personalised form, where charges are illustrated in a very varied way over different periods, whereas others provide information with a generic example. In some cases, the information is prominent, but in others it can be hard to find. In some cases, there are even charges for different parts of the process—for example, fund management prices can be shown separately.

We should compare the pensions sector with the banking sector, in which statements now clearly show what bank charges are on a weekly or monthly basis. The example of the banking sector is certainly one that the pensions sector should look at.

There is also financial jargon, which is unhelpful in any industry. If the range of charges and the communications about those charges are inconsistent, a pensions fog is created, and the impenetrable financial jargon that consumers must navigate has created a further consumer whiteout. In fact, I have used much of that jargon in my opening remarks today. I want to illustrate that point by giving two real-life examples, courtesy of the National Association of Pension Funds. They highlight how difficult it is for any consumer or business to understand what they are taking on with pensions. The first example is taken from a handbook provided to employees on a trust-based scheme. The handbook says:

“The manager’s charges differ according to the type of fund. The charges are made within the fund and are reflected in the price of fund units. With some funds, two unit prices are shown - the “bid” price, at which units are sold, and the “offer” price, at which units are bought; the difference - the “bid/offer spread” - reflects the manager’s dealing costs. The bid/offer spread on these funds vary.”

Then there is an impenetrable table listing six funds, showing for each one:

“a percentage annual charge on fund and a percentage bid/offer spread”.

Just looking around the Chamber now, I can see that Members are already somewhat glazing over with the difficulty of trying to understand what we ask ordinary people to understand in their daily lives.

Living Standards

Jim Shannon Excerpts

Wednesday 30th November 2011 Commons Chamber

[Ian Mearns]

I could not agree more. If we want an economic race to the bottom, that is exactly the sort of policy to follow.

In September 2010 the BBC published a report that demonstrated clearly which regions would suffer most. Spending cuts were “to hit north harder”, it reported. BBC-commissioned research showed that industrial areas in the north-east and the midlands are least resilient to economic shocks. It showed that Middlesbrough is ranked as the most vulnerable, followed by Mansfield in Nottinghamshire, and Stoke-on-Trent. The Experian research suggests how England’s regions may cope or not cope with further public sector cuts. The study looked at the ability of each local authority area to withstand sudden changes in the economy, and a clear north-south divide is evident in the research. Elmbridge and Waverley in Surrey and St Albans in Hertfordshire are the most resilient places, and places such as those I mentioned are the least resilient.

[Jim Shannon (Strangford) (DUP)]

Clearly, the changes in working tax credit and child tax credit will also affect people, and those who are not on the poverty line but are close to it will be pushed towards it. Does the hon. Gentleman believe that the Government’s changes in working tax credit and child tax credit will have a harsh impact on those people who can least afford it?

Disability Hate Crime

Jim Shannon Excerpts

Wednesday 23rd November 2011 Westminster Hall

[Kate Green]

That is an important point and I am sure that it is one that the police will also take note of. Too often there is an attitude that nothing can be done because the victim is disabled and there is scepticism about what disabled victims say. One shocking case, quoted in Katharine Quarmby’s book “Scapegoat”, was that of a blind woman who had been sexually assaulted, but the response of the police was that it was not possible to proceed with the case because, of course, she had not seen her attacker.

In its report, “Hidden in plain sight”, the EHRC has proposed a number of important measures to help to improve the situation. First, there must be leadership and ownership of the issue across all public bodies. This is not an issue simply for one arm of government. It cuts across central Government Departments, local government, the criminal justice system, the education system, health, housing, care, transport, employment and so on. Therefore, a signal from the Minister today of the seriousness with which the Government regard the issue will be important. However, warm words will not be enough. Disabled people want to know how Ministers will ensure that the issue remains a priority for ministerial attention across Government; what structures exist within Whitehall to focus attention and drive action; what accountability mechanisms will be put in place; how public institutions that fail to take action will be compelled to do so; and how Ministers will work with local government to ensure ownership of the issue at local level.

Secondly, such an approach must be informed and supported by the systematic gathering and monitoring of data that spell out the scale and severity of the problem, and by analysis of that data to support and direct policy makers’ attention to where action is needed. We know that there is significant under-reporting of harassment and abuse of disabled people, and there is a need to improve the recording and reporting of disability hate crime.

Radar has responded to that problem through its “Stop Disability Hate Crime” project, which is working with disabled people’s organisations and the authorities to develop a national independent disability hate crime reporting centre, which will provide minimum standards for other such centres, and raise awareness of disability hate crime and incidents and how to report them. The project also maps the disability hate crime third-party reporting sites that already exist or are being established. Also, a survey has been undertaken to find out why disabled people do not want to report disability hate crime and what would make them more confident to do so.

The Radar project is an important initiative and I hope that the Government will look carefully at the lessons that emerge from it, and at ways of strengthening the capacity of third-party hate crime reporting centres as a valuable way of increasing the incidence of reporting. Of course, it will be important that such centres follow minimum standards, but I know that all right hon. and hon. Members will welcome Radar’s work in that area and look forward to its report, which is due to be published early next year.

Thirdly, practice at the front line is, of course, vital to ensure that action is taken swiftly to respond to and prevent harassment or criminal attacks on disabled people. That requires the engagement, attention and effort of a range of public institutions. Crucially, those public institutions must work in partnership with each other and with disabled people to develop and to implement the right strategies to tackle disability hate crime. That partnership working can enable early identification of the patterns of behaviour that we have been discussing today, which is essential if problems are not to escalate. Today those patterns are too often missed, or cases are dealt with in isolation. As a result, the response of the authorities can be fragmented, inadequate or too slow.

In its 2009 report on the security of disabled people, the EHRC pointed out that a range of public authorities were not playing any preventive role: housing associations, social care providers, health care providers, the voluntary and community sector and local authorities. Too often, there is an inadequate response to incidents even when they are reported. That must change. Although there has been some progress in the response of the criminal justice agencies, action across the piece is needed and it is in that context that the Government’s action plan will be so important.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on securing this debate and bringing this matter to the Chamber today. Society is always measured by how it treats those who are less well-off, and that is true of individuals as well as of society as a whole. She has discussed a campaign that she hopes the Government will support. Does she feel that that campaign should not only be an England and Wales campaign but a campaign that goes to Scotland and Northern Ireland, too? If so, perhaps the catalyst to make that happen will come from this Chamber today. I ask the Minister to consider that point too in her response to the debate.

[Kate Green]

That is also an important point, and if there is good practice from which we can learn we will want to learn it in every part of the United Kingdom.

The Government’s action plan will need to include action on developing a better understanding of the motivations of perpetrators of disability hate crime, and of the interventions that are effective in changing such behaviour. It must be a priority to develop appropriate interventions that can be made in schools, which have already been mentioned, in the criminal justice system, through family and community programmes, and in other settings. I hope that the Minister will be able to tell us what analysis and action the Government are considering with regard to those interventions.

The action plan must also address the need for proper training of front-line professionals who may be required to recognise and respond to issues of disability-related harassment. Such training must include training in communication skills and understanding and recognising signals of abuse. I hope that the Minister will be specific today about the steps that the Government are taking to make progress on those matters and I look forward to hearing her response.

Before I conclude, I want to highlight one especially vulnerable group of victims—those people with learning disabilities who have experienced sexual violence or abuse. All too often in those cases, the perpetrator is a partner, a family member or a carer, so the attack is compounded by an abuse of intimacy and a breach of the victim’s trust.

A shockingly high proportion of women with learning disabilities have experienced sexual abuse. The problems that other victims of disability hate crime experience are magnified for these women by their not being believed, by professionals not knowing how to address the issue, and by abuse continuing and escalating over a long period, which happens all too often.

During the summer, I attended a conference with a group of learning disabled women to discuss the measures that are needed to address that form of abuse. The conference was jointly organised by the rape crisis centre in my own borough of Trafford, Salford university and Change, an organisation that is run by and for learning disabled people.

The learning disabled women present at the conference, who themselves were victims of sexual abuse, were absolutely clear about the action that is needed. I should say that they were also prepared to acknowledge that there have been improvements in parts of the criminal justice system, including better awareness among the police, greater understanding of their circumstances and their needs by the Crown Prosecution Service, and greater responsiveness from the courts. However, they also highlighted the need for specialist advice and support to be much more widely available. They spoke about a lack of access to health services and other support services, which happened for a number of reasons: sometimes because of discrimination, sometimes because of a lack of communication skills, and sometimes because they and other learning disabled women were not empowered to express their needs. They repeated that there was a need for training for front-line professionals, which they strongly suggested should be delivered by learning disabled women themselves. They identified an additional barrier that they faced, which was dealing with workers who did not have the confidence to deal with them as learning disabled women.

Women often want to use mainstream services where they can, but feel that the staff are often not equipped to support them. In her role as Minister with responsibility for disabled people, I hope that the hon. Lady takes these points up urgently with colleagues in the relevant Departments, and urges them to engage directly with learning disabled women in formulating Government policy.

I want to put on record my gratitude to the disabled people and their families who have taken the time to describe to me the deeply distressing, shocking and vicious attacks they have experienced, and how the system has sometimes let them down. I also want to thank the families of Keith Philpott and Gary Skelly, members of the Disability Hate Crime Network, Simon Green and Stephen Brookes, and the women I met at Change. Their stories of abuse, violence and in some cases death, have brought home to me that there remains a dark and primitive side to our attitudes to disabled people, which still too often manifests itself in harassment and criminal behaviour that simply cannot be tolerated in any civilised society. I am pleased that we are debating the issue this morning. It must not remain hidden in plain sight.

Pensioners and Winter Fuel Payments

Jim Shannon Excerpts

Tuesday 22nd November 2011 Commons Chamber

[Steve Webb]

My hon. Friend raises the important issue of take-up. Clearly, benefits such as cold weather payments and the warm home discount, which is the £120 off fuel bills in Great Britain, as I mentioned in the letter that I sent, are contingent on receiving an income-related benefit. That is a challenge that we always face. We want to target those who are most vulnerable, but if some of those who are vulnerable miss out on the passported benefits, how do we get that money through without spending it on everyone, resulting in it being spread much more thinly? That is a permanent trade-off and why we are looking at ways of improving the take-up of these benefits and having a mixed strategy—a mix of a universal winter fuel payment that goes to everyone regardless of whether they claim, and targeted help for those most in need.

As a Department we are working with organisations such as Age UK to try to make sure that pension credit materials are provided to them. Those organisations have responded positively to make sure that the literature we provide is easy to understand and reaches the people who need it. I entirely take my hon. Friend’s point that there will always be gaps, and we need to address that. My view in the long run is that if we can have state pension reform that guarantees a state pension above the basic means test, that will go a long way to addressing some of these issues, but perhaps that is for another day.

I do not want to go on too long but I will mention, briefly, the warm home discount. This is important because it is the subject of negotiation between the Government and the big six energy companies in Great Britain that will give £120 off the electricity bills of 600,000 of the poorest pensioners. That will make a real contribution. We do it through electricity bills because pretty much everybody has an electricity bill, not because we think the price of electricity has necessarily gone up more, but it does not apply in Northern Ireland.

There is an interesting question about the negotiations or discussions between the Northern Ireland Executive and Power NI, for example, about whether the Northern Ireland providers could be asked to do the same sort of thing. If the big six are doing it in Great Britain, I cannot immediately see why the same should not benefit pensioners in Northern Ireland. Perhaps right hon. and hon. Members could take that back and challenge their own power suppliers to do more.

Clearly, we need to make people aware not just of the means-tested benefits they can get, but of the help with insulation, cavity walls and so on. Further in response to my hon. Friend the Member for Oxford West and Abingdon (Nicola Blackwood), we as a Government are sending letters to about 4 million of the most vulnerable energy customers, letting them know that they have access to heavily discounted insulation for their lofts and cavity walls. Even when we write directly to people, we do not always get the results that we want, but we are aiming to target people directly.

[Jim Shannon (Strangford) (DUP)]

Is the Minister aware that 43% of those over 75 years of age live in unfit houses? Is that not a group that he should target specifically?

[Steve Webb]

Perhaps I was not explaining myself clearly. There is a whole raft of things that we are doing precisely because low-income households cannot afford the large capital costs of insulation. There is the green deal, the letters that we are sending about subsidised insulation, cavity wall insulation and so on, and the measures that we require the energy companies to take under the carbon emissions reduction target, the CERT scheme. There is a whole raft of things that we are doing, precisely because of the point that the hon. Gentleman makes, which subsidises insulation. It is perhaps a misnomer to talk about that as being long term. Someone’s house can be insulated tomorrow, which will mean savings on their heating bills. It will take a long time to work through the whole housing stock, but that has an immediate and beneficial impact on people today. Perhaps “long term” was not quite the right phrase.

--- Later in debate ---

[Mark Durkan (Foyle) (SDLP)]

It is a pleasure to follow the hon. Member for Upper Bann (David Simpson). I commend him and his colleagues on bringing the motion to the House. In particular, I commend the right hon. Member for Belfast North (Mr Dodds) on the cogent and assertive way in which he moved the motion and anticipated many of the Government’s arguments.

The motion is timely and focused. Contrary to much of the debate, which has ranged far and wide along the full dimensions of fuel poverty, the structural condition of the housing stock, fuel prices and all those vagaries, the motion is focused on something under the control of the House and the Government: the decision on the winter fuel payments. We are clear that all those issues need to be addressed, and the measures taken by the previous and present Governments are to be encouraged, as too are other more far-reaching measures, but given the rampant rise in energy costs for older people and all the other pressures on their incomes, we cannot countenance complacency about the cut to winter fuel payments.

The decision on winter fuel payments represents a clear and present cut imposed by this Government. The Minister tried to argue first that it was not a cut, then that it was a Labour planned cut, but the fact is this: it is a clear and present cut for pensioner households already facing other pressures and difficulties. It is a sleight of hand for people to suggest, “Well, the Government were committed to doing what the previous Government did”, because really they said, “No, we’re only committed to doing what we think the previous Government planned, not what they did.”

The hon. Member for Thurrock (Jackie Doyle-Price) said that we have to talk to and listen to our pensioners. I have, and every single one has told me that the cut is an issue for them, and every single one is clear that for three years they received payments at a certain level, but that this year they will not get them at that level. That is a cut, and it is a cut from this Government.

[Jim Shannon]

Does the hon. Gentleman agree that this is at a time when they need it most?

[Mark Durkan]

Yes, of course it is at a time when they need it most, and it is not only the time of year when they need it most but the time in the economic cycle—with all the difficulties that people are facing.

We have heard some duplicitous arguments from Government Members. On the one hand many people talk about the difficulties with means-tested benefits and with supporting pensioners through pension credits, but on the other hand we have heard criticisms of the fuel payment and the fact that it is not means-tested or discriminatory. We have heard contradictory arguments.

Indeed, the Minister earlier argued against the whole scheme, structure and logic of winter fuel payments. He actually argued against the allowance altogether and said that better, more discriminating interventions were available to protect people against fuel poverty and to support more deserving pensioners. In the light of his logic, I wonder whether the Government plan fundamentally to review or redesign the fuel payment.

The previous Government introduced the single annual payment in 1998, but the first time I heard it advocated was in 1988, when my predecessor, John Hume, commended to the then social security Minister, John Major, the introduction of an annual thermal allowance to overcome many of the difficulties with the cold weather payments, their inadequacy and the poor and inconsistent triggering system. Thankfully, we got something similar with the winter fuel payment in 1998.

Over the years, the amount of money committed to the payment has changed and top-ups have been introduced. Pensioners have come to see those top-ups as a given, and considering what the Prime Minister said going into the election, they had every right to expect them to remain a given. The motion tabled by my compatriots in the Democratic Unionist party gives the House the opportunity to signal to the Government that that is what we want and what pensioners expect.

Many valid arguments have been made about how to tackle fuel poverty—improving energy efficiency, for example. Although some of those measures can be introduced in Northern Ireland at the devolved level, others need wider intervention from here. Those could include more up-front investment in energy efficiency retrofit schemes or VAT concessions, not least to stimulate work in the hard-pressed construction sector, which is not building new houses. There is an awful lot of work that people with construction skills could do to retrofit and improve existing houses, and there are many things that young people who want to get construction skills could do on such schemes. The Government need to think more widely about other measures to tackle fuel poverty, but they should not use the existence of other interventions as an excuse to justify this unjustified cut.

I shall not rehearse the statistics on the levels of fuel poverty in Northern Ireland that my colleagues have mentioned because other Members want to speak, and nor shall I rehearse the number of winter deaths from fuel poverty either in the UK at large or in Northern Ireland. I shall only make the point that those deaths are avoidable and that we need to take what steps we can to avoid them. This cut is avoidable.

The Minister asked, “Where else can the money come from?” I do not necessarily agree with some of the suggestions from right hon. and hon. colleagues, although I am glad that the Government moved on from some of the vanity projects—for example, the NHS IT scheme. Money could also be saved on Trident.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

It gives me great pleasure to speak in this House on behalf of the elderly and those in need, and to address the issue of the winter fuel payment.

I read a statement the other day that said:

“The world is getting older. The UN has called the current global ageing trend a situation ‘without parallel in the history of humanity.’ Here in Northern Ireland, our very own society is ageing…An ageing demographic like this carries significant consequences for the fabric of our community. It changes how we plan the way we live; education systems, health and social care, work life, family life. It affects older people now and in the future.”

I am aware of the clear demographic changes in my constituency of Strangford, to which many people move to retire—it is a beautiful place to visit at most times, but it is also a nice place to retire—and where the issue of winter fuel payments comes up over and over again. It comes up because—let us be clear about this—winter fuel payments are not a luxury, but something that goes to pay for fuel, which, for most elderly people in my constituency, means oil. Therefore, the cost is greater than anywhere else. It is no exaggeration to say that literally hundreds of my constituents have spoken to my offices about this issue, and it is clear what they are telling me: winter fuel payments are critical for them to get through the winter.

Age NI has a vision for Northern Ireland and the United Kingdom:

“To create a world in which older people flourish,”

and:

“To enhance and improve the lives of older people”.

Those are the words of Age NI, but they should apply everywhere in the United Kingdom, and be taken on board by all the elected representatives in this place as well.

Age NI has three themes—health and social care; poverty; and equality and human rights—but this evening we are focusing on poverty. Poverty affects health and social care, and winter fuel payments and poverty affect equality and human rights as well. Although there are many ways of helping—my right hon. Friend the Member for Belfast North (Mr Dodds) spoke earlier about the pension credit, and the Minister responded in an intervention—we need a way of speeding the system up. The system needs a sense of urgency; I cite the number of times that I have to phone through to the pension credit system to ask for something to be done only for me to have to return to the problem a week later or perhaps the week after that. The system also needs less bureaucracy and paperwork.

The autumn spending review is an opportunity to put older people at the heart of Government policy and to plan for an ageing population. Northern Ireland has some 300,000 people of retirement age, who make up 17% of the population, and the trend is upward. Unfortunately, the figure will be 24% or 25% in a few years. The largest increase will be in what is sometimes referred to as the “older old”. It is not an “Irishism” to say that: it refers to those who are 80-plus, who feel the pain of winter more than most. Other Members have underlined that point today, stressing the importance of all those who fit into the pension bracket, but especially those who are 80-plus, of whom it is estimated that there will be some 130,000 in a short period of time. Again, that is a concern.

Two fifths of single pensioners and one fifth of pensioner couples have no income other than their retirement pension and state benefits. Whenever we put the issue in perspective, we see that the winter fuel payment means a whole lot to those people. Some 44% of my constituents are in fuel poverty. By the way, the same proportion of those entitled to draw the pension credit—44%—are not claiming it. When the Minister responds, I will be keen to hear her ideas about how we can ensure that they apply. One of the figures underlining this issue that came up in research is that average weekly unclaimed benefits are estimated at between £1.2 million and £2.3 million, which is a vast amount of money. It is important that we address those issues.

Some 23% of older people across certain parts of Northern Ireland are living in poverty, whereas the figure is 16% in the UK. The Minister referred to how we gauge the extra money in the winter fuel payment to reflect the temperature. I made the point in a Westminster Hall debate earlier this year that I drove from Greyabbey to Newtownards in my constituency, speaking to people along the way, and found different temperatures all the way up the road. Obviously the temperature is lower closer to the coast, but in certain parts of Ards it was below zero, while over in Ballygowan and Comber it was minus 3º or 4º. That is an illustration of how the temperature can vary within a 50 to 60-mile radius.

Why is it crucial that the winter fuel payment is made? Because a failure to do so will mean more referrals to the health service, with elderly care accounting for 21% of all the programme of care expenditure. I will not go into all the figures that others have mentioned, but I will make this point. It is important to make a “pre-emptive strike” when it comes to health, particularly through the winter fuel payment, which plays a clear role. For every death from cold, there are eight hospital admissions and 100-plus visits to GPs and health centres. When we add that to the figures, we know what we have to do about the winter fuel payment—it helps to avoid lots of those issues, too.

Elderly care expenditure per head for Northern Ireland is £2,086, while in Scotland it is £2,313 and in Wales it is £2,109. I would also like to make an important point—the hon. Member for North Down (Lady Hermon) made this point too—about Alzheimer’s and dementia. In some 26 years as an elected representative, I can never recall a time when so many people had dementia or Alzheimer’s. We therefore need to enable our senior citizens to enjoy a level of health that will not cost more later on. The winter fuel payment makes that contribution. The Government have stated that they will restore the earnings link for the basic state pension—that was indicated earlier. The income-poverty figures show that 23% of older people live in poverty, while the figure is 16% for the UK. Some 15% of people in Northern Ireland live in severe poverty—the figure is 9% in the UK, up 3% in the last year—while 30% of single women over 75 live in poverty, and 42% of those homes are condemned.

The winter fuel allowance is the biggest topic in my three advice centres. For those who qualify, the situation is simple. The price of oil has increased—indeed, it has never been as high. If the Government have any intention of reducing the winter fuel payment, balancing the books will not happen. Many OAPs have no income other than the state pension, as I said earlier. This was an issue last winter; it was an issue for me at the parliamentary elections a year and a half ago; it was an issue at the Northern Ireland Assembly elections back in May; and it is an even more critical issue today. I urge hon. Members to support our proposal.

[Mr Deputy Speaker (Mr Nigel Evans)]

I call Mr Weir, who is to resume his seat no later than 18 minutes past 7.

Youth Unemployment

Jim Shannon Excerpts

Wednesday 9th November 2011 Commons Chamber

[Mr Byrne]

My hon. Friend makes an extremely important point, which echoes that made by the hon. Member for Beverley and Holderness (Mr Stuart). We know that if people are out of work when they are young, they are more likely to be low paid in the course of their career, more likely to suffer ill health and more likely to be unemployed again. That is why the Prince’s Trust and others are right to focus their attention on the crisis of youth unemployment that is unfolding in our country.

[Jim Shannon (Strangford) (DUP)]

Not only is there the spectre of unemployment and the prospect of no jobs, but many of the young people who are not in education, employment or training are under medical supervision. Is the right hon. Gentleman aware that almost 30% of the young people who are unemployed are facing depression and are suicidal? Does he feel that we have to address that issue along with unemployment?

[Mr Byrne]

The hon. Gentleman makes an extremely valuable point, which I hope he will develop in the course of the debate.

When this Government were first in office, at a time when the economy was fragile, when the recovery was in its first stages, when they were launching the biggest programme of Government cuts for many years, and when there was a risk of rising unemployment, as was made obvious by the Office for Budget Responsibility, they chose, at huge expense, to take out the key back-to-work programmes that we had in place, which were keeping unemployment down. That will stand as one of the worst judgments made by this Administration.

I know that the Government will in a moment protest that they are taking action. The Secretary of State, who is not here today, reeled off a list of programmes at Question Time last month, when he said that there are

“work clubs, work experience, apprenticeship offers, sector-based work academies, the innovation fund, European social fund support,”—

it is nice to see the Secretary of State supporting Europe on something—

“the skills offer, the access to apprenticeships programme, Work Together, the Work programme, Work Choice, mandatory work activity and Jobcentre Plus.”—[Official Report, 24 October 2011; Vol. 534, c. 4.]

It is not clear how Jobcentre Plus is an innovation of this Government, but none the less it earned a place in his list.

The only problem is that none of these programmes is making a blind bit of difference, so let us take some of the key measures one by one. I want to start with the flagship package of measures launched last May. So important was it, so pregnant with opportunity, so sure was it to make a difference, that the Deputy Prime Minister himself was allowed to put out the press release. Those measures came replete with a total budget of £60 million over three years—a grand total of £20 for every unemployed young person. Or we could look at it as 5p a day to help—

Jarrow Crusade (75th Anniversary)

Jim Shannon Excerpts

Monday 31st October 2011 Commons Chamber

[Mr Stephen Hepburn (Jarrow) (Lab)]

I am delighted to have secured this debate at this very special time in Jarrow’s history. The great town of Jarrow still strongly symbolises the fight for work, dignity and respect, even 75 years after the march took place. That certainly was not the intention of the marchers at the time, however. All that they knew was that their town had been murdered by a cartel of businessmen who, backed up by the Government of the time, had closed the shipyard and thrown 70% of the town on to the dole.

The idea for the march came from a local man called Davey Riley, who persuaded first the local Labour party and then the town council that the town needed to take its case to London to persuade the Government of the day to bring jobs back to Jarrow. That is where the politics ended. The town council, which was composed of all the political parties and people from various backgrounds in the town, resolved unanimously to support the march and give it the backing of its citizens, from the bishop to the businessman, so that it could be a success.

The march caught the imagination of the people of Jarrow straight away, as it did with the rest of the public as it travelled south to London. Two hundred men were selected to march, and a petition was signed by 12,000 townspeople. With the backing of the local council, local businesses and the local clergy in Jarrow, the men set off on their 300-mile crusade. As was well documented, the march did not have the backing of the Government at the time. Disgracefully, it did not get the backing of the Labour leadership either. However, it did enjoy the support of the public wherever it went on its journey.

The men marched military style, as most of them had been in the Army in the past. With the famous Jarrow banners held aloft and the mouth organ band in the lead, they raised the hearts and spirits of everyone they came across during those bleak days of the depression. They delivered a message of hope for the people who needed hope, right across the country, at that time. To ensure that all went well en route, the then Labour agent, Harry Stoddart, and the Tory agent, Councillor Suddick, proceeded before them to ensure that the sleeping and eating arrangements were in place.

Of course, we all know what happened when the men reached London. Their pleas for work were ignored, and they were sent home with a pound in their pocket to pay for their train fare. When they got back to Jarrow, they found not only that their dole had been stopped but that the dreaded means-test men were waiting at their front doors. We all know the history: work did come back to Jarrow a few years later, when the Government saw the need for rearmament in the face of Hitler’s menace and the horrors of war.

Even today, though they failed in their attempt to help the town, the marchers are remembered worldwide. In Jarrow, the story of the crusade is passed down from father to son and from mother to daughter. In the town, we have displays, statues and murals, and streets and a pub named after the march. We have had a chart-topping song, and we have even had beers named after the march and the marchers.

If I had a pound from everyone I have met in the Palace of Westminster who, when I said I came from the town of Jarrow, asked “How did you get here? Did you walk?”, I would be a wealthy man—perhaps even wealthy enough to qualify for Mr Cameron’s Cabinet. I should also like to clarify that there were 200 marchers. Judging by the number of people who have claimed, over the years, to be a descendant of one of the marchers, anyone would think that there had been 2,000 of them, rather than 200.

[Jim Shannon (Strangford) (DUP)]

Coming from a nation of marchers, and having marched for many noble causes, may I ask the hon. Gentleman whether he thinks that 200 men walking 300 miles with 12,000 signatures on a petition could serve as a lesson for our society, and also for this Government?

[Mr Hepburn]

I agree with the hon. Gentleman, and I will come to points that I think he will agree with.

That is a brief history of the march to commemorate this great occasion. It would be wrong not to draw lessons from the great example of those men, because parallels may be drawn between those bleak times in the ’30s and today. First, there is no doubt that lifestyles today have improved vastly compared with the ’30s, but people today still live in fear of unemployment. Those without a job face a hopeless task in trying to find work; those with a job are worried sick about losing it. With nearly 3 million people out of work, and the economy becoming ever bleaker day by day as we read the newspapers and hear the economic news, people are becoming desperate.

In this day and age, people should not live in fear of the evils of unemployment. After the second world war, the country had massive debt and its infrastructure was in ruins. Soldiers who had fought side by side, with mutual respect, with people of different military ranks, different social status in society and different backgrounds, came back determined that never again would the country go back to the days of the Jarrow march, and the haves and have-nots. We built a welfare state that is the envy of the world, and we looked ahead to a future in which mass unemployment would be a thing of the past.

As it was then in the post-war era, the real challenge for the Government today is to have an economic policy in which the interests of the community and people, not the short-term interests of the bankers and financiers, come first. In the wake of the banking crisis, when more than 90% of the people of this country are experiencing the same worries and fears about losing their house and savings, now is the ideal time to bring about change for the better, just as happened with consensus after the second world war. But no, instead we are returning to the same old Tory values of us and them, and a return to the pessimism of the ’30s when the Government’s only answer to people’s pleas for work was unemployment in a divided society.

As we have seen from the spirit of the St Paul’s protesters and the young people who today are marching from Jarrow to London in a replica of the Jarrow march, people will not sit back and accept from the Government the treatment that their ancestors received. I take my hat off to those protesters, who have been criticised for their demonstrations. If anyone embarks on a peaceful protest or demonstration to highlight the plight of other people in the world, we should support them, as we did in various places through our foreign policy on Saddam Hussein and Gaddafi.

Secondly, it is little known that at the time of the Jarrow crusade there was a march by blind people, and it set off in October 1936 at the same time. Conditions for disabled people have improved vastly since the ’30s. Then, the fear was the famous—or infamous—and dreaded means test. Today, there is a parallel. The unfairness of the work capability test has been highlighted by disability groups throughout the country, and I am pleased that the Minister has commissioned a report into that. If that report identifies errors in the present system of assessing people’s mental and physical disabilities, the Minister should review all past cases assessed by Atos Healthcare when mistakes may have been made.

Finally, what is happening to the public sector now is what the cartels did to Jarrow in the 1930s. The public sector grew up following the Beveridge report when people in authority said, “Never again will we go back to the bad old days.” Public services were set up to look after people’s welfare, and they are doing a good job and delivering good services, whether in health, education or the police. Despite their success, they find themselves being carved up at the very time when the country’s top executives are receiving 50% pay rises, and a salary of £1 million is considered in some circles as low.

Being a “Jarra” lad—I was brought up and educated there, and have lived there all my life—I have always been inspired by tales of the Jarrow march. I was privileged to know some of the marchers before they passed away, and the lesson I learned from them is simple. The Government should heed the history of ordinary people standing up for their dignity because, as in the case of the Jarrow crusade, even if people’s pleas are ignored now, they will be heard in the end.

Pensions Bill [Lords]

Jim Shannon Excerpts

Tuesday 18th October 2011 Commons Chamber

[Malcolm Wicks]

I am bound to say that life expectancy is not 87. On average, a girl born in the UK will live to 82 and a boy to 77. Obviously, however, once they have survived to the age of 65 many people are likely to live into their 80s, so I understand the broad point being made.

I shall conclude later by talking about a sensitivity that we could introduce into the system that might meet some of those problems, although the Minister has so far resisted it. However, now I want to refer to the association between social class and location, which various colleagues are interested in and knowledgeable about. This is not just about the broad difference between living in Kensington and living in parts of Glasgow; even within many of our big cities there are huge class differences in mortality. Across Sheffield, for example, there is a difference in life expectancy of more than 14 years between different parts of the city, and even in Kensington and Chelsea—the borough with the highest life expectancy—there is a difference of eight years between the most and the least deprived wards—which, for those of us who know Kensington, is not so surprising. Those differences and unfairnesses are reflected in terms of where people live in our cities.

Before I mention the idea that I have been trying to persuade the Minister to accept, I want to apply some pressure elsewhere: where will the jobs come from? We are living through a period of rising unemployment, and many people, including graduates with good degrees, in their 20s, 30s and 40s, cannot get jobs. Are we confident that if we make these accelerated changes—as the Minister knows, the acceleration is the difference between what the Labour Government did and what the coalition Government are doing—the work will be available?

Now 39% of 62-year-old men and 52% of 64-year-old men are not working, which means that huge proportions of men approaching what is meant to be their retirement are effectively retired from the labour market already. Furthermore, 36% of 58-year-old women are not working. I fear that we will be extending a kind of benefit twilight zone, in which people who are ineligible for their state pension—because we are raising the pension age—will jog along on incapacity or other benefits, with no one in the jobcentre pretending that those folks will get work—even the Minister will not be able to pretend that they will—and a huge army of people living in a state of desperation in that twilight zone.

[Jim Shannon (Strangford) (DUP)]

I am sure that the right hon. Gentleman will share our concerns about last week’s unemployment figures, which showed an increase among young people and women. Is there not a concern that unemployment levels for women are rising, and does that concern not need to be expressed tonight in the House?

[Malcolm Wicks]

That is the concern. Ironically, we are having this debate while the spectre of mass unemployment—as Liberals will remember, William Beveridge called it the giant evil of idleness—rears its ugly head, yet we are accelerating the increase in the age at which people will get their retirement pension.

--- Later in debate ---

[Sheila Gilmore]

We had amendments. We tabled amendments that were not a million miles away from those that we are proposing today, because we felt that, in the circumstances, a proposal to cap the period of time for which women would have to endure this change was the best thing to do. Our amendments were not supported by either Government party in Committee, but we had clearly made proposals that ranked as transitional, because—lo and behold—four days before this final chance to debate the subject in the House, a proposal was made. It is not some complex transitional arrangement that would take civil servants hours, weeks or months to work out but fairly straightforward and involves capping the period of time. In my view, that proposal could have been made in Committee without any difficulty and it could also have been made at any time over the months that have passed since the Committee stage ended in July.

I suspect that one of the main reasons this rabbit has apparently been pulled out of the hat at the last minute is to prevent any great campaign being restarted for further change and to prevent people asking for more. Like Oliver—most of us nowadays, unlike the cruel people in Victorian workhouses, think that Oliver was right to ask for more—the women who have contacted my colleagues and me over the past few days are still asking for more because they feel that the Government’s proposals remain unfair. They have alleviated the proposals for one group of women but not for all those who are affected and, in my view, those women are right to ask for more.

The Government have been extremely calculating. By not making their announcement until almost as late as possible while still making it in any way credible, they calculated that they would foreshorten the possibility that their Back Benchers might again be contacted by many of their constituents who would argue that the proposals are still not enough. The fact that they have given the shortest amount of time to this very successful campaign is clearly tactical.

In this debate, we always come back to the money question—it happened repeatedly in Committee and in many interventions on Opposition Members today. We are asked where we will get the money and told to come up with a specific statement about where we will find it. That happens not just as regards this proposal but day in, day out—[Interruption.] It is not unreasonable for us to say that we would not start from here. That is not unreasonable because we have a very different view about the choices and the fairness arguments that it is right to make and about how to progress our public finances over the next period.

Another argument that often comes up states that one cannot borrow one’s way out of a crisis or out of debt. It seems we cannot cut our way out of a deficit either, or out of more debt, because public borrowing, far from having come down in the past year and a half, is rising. We would not start from here because our entire economic strategy would be different. Our view—as we said a year and a half ago and as it remains—is that to attempt to reduce the deficit within this Parliament was reckless, that it would not be successful and that it would risk higher unemployment and the stagnation of the economy. That is what is happening. If the economy continues to stagnate, tax revenues will fall with fewer people in work and fewer businesses thriving. Falling tax revenues are a big reason why we have a deficit in the first place. This is not simply about Government spending, as is sometimes suggested.

Tax revenues will fall and benefits payments and other outgoings will rise, and those are very important considerations. In saying that we would not start from here, it is perfectly reasonable for us to make it clear that we would not want to be in the position that the Government seem determined to drive us into.

[Jim Shannon]

Under the Labour proposals for auto-enrolment for pensions, protection was given, but under the coalition Government’s proposals the same protection is not given as there are conditions and people fall outside them. Does the hon. Lady think that that is another example of the difference between the two sides? Labour gives the option of protection and the coalition does not.

[Sheila Gilmore]

That certainly is such an example. If we are to give people the opportunity of saving for their pensions into the future, it is important that we take seriously the proposals for auto-enrolment and NEST and build them up in a way to which everybody should give their full support. Although I am sure that the Government have not officially said that they are not giving them their full support, I was struck as I read an article in The Sunday Times a week last Sunday by a suggestion that the Government might be backing off on the speed of the introduction of auto-enrolment. That might have been a piece of kite-flying, as I gather it relates to a piece of work that is being done internally for the Government, which will not be published and which we cannot see, about how to make yet more savings and attempt to grow the economy, but nevertheless that story reached the newspapers. I am sure the Minister will tell us that we have nothing to fear when we reach the relevant part of the debate.

We are constantly asked where we would find the money and, interestingly, despite the comments that Government Members made from a sedentary position a few moments ago, when my hon. Friends the Members for Cumbernauld, Kilsyth and Kirkintilloch East (Gregg McClymont) and for East Lothian (Fiona O'Donnell) made suggestions, they were pooh-poohed.

Disabled Young People (Support)

Jim Shannon Excerpts

Wednesday 7th September 2011 Westminster Hall

[Stephen Lloyd]

I agree. Sometimes the parents split due to the sheer strain—and not just of looking after a severely disabled child, which is a challenge, no matter how much the parents love them. The situation often leads to irrevocable strain between parents, which is one of the saddest things that I have seen. Like all hon. Members, I have seen a lot of desperate cases. Often, the reason why parents split up is because statutory authorities, though they often try to be helpful, are clunky, and lack consideration and co-ordination. That, as I will go on to explain, makes it much worse. It also costs a great deal of money for the family, local authorities and all the agencies. It is therefore imperative, particularly for disabled children going into transition, that we get it right first time. I am sure that the Minister and hon. Members can appreciate how complex and challenging such a scenario must be for both the disabled young adult and the parents.

I have been liaising for the debate with Mencap, which has been very helpful and supportive. It has put together a document that defines what a good transition must look like. In its view, which I share, it is defined by three stages: planning, process and destination. To be a successful transition, each stage must be followed effectively and, most importantly, tailored to the individual, but there are general principles that can be applied to each stage. It is recognised that all young people should be at the centre of their transition planning—that is incredibly obvious. That is important for parents, uncles and aunts, and children without disability, but is doubly important when working with a disabled young adult. For young people with a learning disability, a plan will be achieved only if it is timely, accessible and diverse. To be ready for the start of their transition, young people should be encouraged to think about their options in year 8, so that they are adequately prepared for their review in year 9. In the run-up to and following their review, young people should have access to appropriate information about their rights and their options regarding their future. Ideally, the options presented to young disabled adults should be limitless. For all of us and for all disabled children, transition should be an exciting time for exploration, not a restricted choice of a predefined future.

No particular Governments or Government are at fault here; this has been a challenge for a long time. Even well before I was elected, I had people in my constituency come to see me who were absolutely petrified because their child was getting to the end of teenagedom and going into young adulthood. They knew that the key worker was going and that the services that supposedly, and often do, come automatically with young disabled children would disappear. It is no exaggeration to say that they were petrified.

If choice is to be at the heart of young people’s transition, it is crucial that they be given the opportunity to explore their aspirations with the aim of reaching their potential. For young disabled people to have such aspirations, those around them must be aiming to achieve the highest quality of life for them. None of that is complicated or different—it is exactly the same for non-disabled young adults as for those who are disabled.

Throughout a young person’s transition, the process should be co-ordinated and resourced. Although young disabled adults must be the director of their transition journey, it is crucial that the services supporting them be aware of each other’s role in the process. The position of key worker for a young disabled adult is therefore vital, to keep all the professionals in the loop. Obviously, within that, it is about working very closely with the parents of someone who has a profound learning disability, because as well as the work done with the young disabled adult, the parents are best suited to help and guide the child to decide what is best. Often, profound learning disability is accompanied by communication challenges.

For each service to play its part, adequate resources must be provided, mainly that of time. Each professional involved must be prepared to work alongside the young person regularly, to offer support and advice. The transition process should, however, be as unobtrusive as possible, to allow the young disabled person to enjoy as best as possible an ordinary teenhood.

[Jim Shannon (Strangford) (DUP)]

I am sure that the hon. Gentleman and many others in the House are aware of the good work of some voluntary organisations, such as the Prince’s Trust, which I have visited and where I have spoken to some of the young people. Clearly, organisations out there are giving of their effort, time and commitment to help young people. Does he feel that the work of the Prince’s Trust ought to be recognised and complimented in this Chamber today?

--- Later in debate ---

[Kate Green]

My hon. Friend is absolutely right. As I say, many children’s conditions vary, progress and retreat much more suddenly and rapidly than those of adults. Crucially, children’s educational and social development is also taking place as they grow into young adulthood. If there are concerns about the financial support for children with medical conditions, that will also have wider developmental implications for them.

There is continuing uncertainty about children and young people in residential settings. I am particularly interested in young adults, some of whom are quite likely to want to look at residential colleges for their further education. The Minister wants to remove any duplication in funding in relation to the mobility component that people receive as part of DLA. I would be grateful if she could tell us how she expects to assess whether there is actually any duplication, because I have so far been unable to uncover much evidence of it. What assessment has she made of the implications for young people over the age of 16 in residential colleges, and particularly for their ability to participate as fully as possible in not only educational life but wider social life?

I echo the comments of the hon. Member for Eastbourne on housing benefit. I also want to highlight the concern that constituents have raised with me about the substantial costs of adapting housing and about the implications for them if the housing benefit changes and the housing benefit cap force them to move. It seems quite ridiculous that, as a result of other policies, we should disrupt families who might have had to make substantial investments to adapt their home accommodation. I hope that the Minister will indicate that there will be flexibility in the system to ensure that families of young disabled people, in particular, are not subject to great instability and do not have to move as a result of housing benefit changes. That is particularly important for the young people we are talking about, because such instability disrupts not only their social and educational networks but their medical and care networks in many cases.

[Jim Shannon]

On that point, which the hon. Lady has clearly illustrated, does she feel that the Government need a concerted policy to address housing benefit for young disabled people, considering that 10% of them will be homeless in a short period?

[Kate Green]

Clearly, that is an incredibly serious concern, which the Minister will want to take seriously. Like the hon. Gentleman, I very much look forward to hearing her reply to his suggestion.

I want to say something about employment and education. I echo other hon. Members’ comments about the need to encourage employers to be more willing to take on disabled people and to recognise the extensive capacity that many of them can bring to the workplace. However, I want to raise a few points with the Minister about the education and training environment in which young people prepare for employment.

Following the loss of the education maintenance allowance, what assessment is being made of the extent to which young disabled people in financial need can access other sources of financial support, including those provided by colleges and schools to enable people to continue and complete their education? With the loss of Connexions next year, how will the new predominantly web-based information and advice service for careers be tailored and adapted to meet the needs of young disabled people? How will the structure of integrated budgets, which are meant for young people’s living needs, be protected, so that people are not forced to dip into them to pay for their education, including transport to educational settings, books and equipment? Like other hon. Members, I am interested to hear what further steps the Minister thinks she can take in government to encourage employers to become more willing to employ young disabled people.

I am pleased to have had the opportunity to contribute to the debate. There are many more issues that I would like to raise and which I am sure colleagues would like to raise. I am pleased that the Minister is here to listen to the debate, and I look forward to her response.

Youth Unemployment

Jim Shannon Excerpts

Wednesday 22nd June 2011 Westminster Hall

[Steve McCabe]

I have acknowledged that students are part of the figures that we are discussing, and I am happy to accept that point. I will say a little more about both students and those who are not in education, employment or training later. However, I am happy to accept the Minister’s point that there are some students in the youth unemployment figures. Of course that is true.

In Birmingham, the youth unemployment figure is now about 13,000, which is quite a high figure for that city. OECD data show that Britain compares poorly with its competitors in terms of youth unemployment initiatives. NEETs are also part of that problem. That predicament not only has an effect on young people themselves, but is bad for the country, adding to the Government’s borrowing at the very time when they are concerned to reduce it. Over time, we will pay the price of this lack of activity. It has been estimated that the young people themselves suffer a long-term wage scar, earning between 8% and 15% less during their working lives than they might have done. The CBI tells us that youth unemployment costs the country about £3.6 billion per year, which is not a sum of money to be trifled with. A failure to provide initiatives or opportunities can lead to some young people disengaging completely, which clearly has a long-term impact on their employability. Persistently high unemployment, especially among younger and less skilled workers, leads to the problem that the Minister is now trying to grapple with. That problem involves people who are out of the labour market for so long that their potential to rejoin it reduces with each passing month, which explains, at least in part, some of the long-term benefit problems that he is attempting to deal with.

[Jim Shannon (Strangford) (DUP)]

There is a clear need for better co-operation and co-ordination between further education colleges, businesses and the Government to explore jobs, options and opportunities. Not everyone can be a hairdresser or a beauty consultant, but there are opportunities for engineers and in food processing. This week, Bombardier Aerospace announced a substantial investment on the home front, so the opportunities are there. Perhaps there is now a need for the Government, the further education sector and businesses to work together more closely to identify the opportunities, so that young people can gain skills and do training to get those jobs.

[Steve McCabe]

I entirely share that view. Part of my purpose here today is to argue that a greater effort is needed to respond to this problem rather than to collapse under its weight.

I was suggesting that the danger of persistent unemployment is that it makes people less employable. I was a struck by a young woman called Laura McCallum who came to see me at my advice centre the other week. She is 22 and has an excellent degree from Sheffield university, but she has been unemployed for two years, despite hundreds of applications and a number of interviews. I am told that she has an interview in three weeks’ time, so I hope that we will all keep our fingers crossed for her. Strangely enough, she wants to join the civil service—there are obviously lots of optimists around. Laura is a classic example of someone who has done everything right so far, but as the months go by her CV looks worse, because of this gap that she cannot plug.

If we look at people at the other end of the scale—not graduates but NEETs—we see a much bigger employability problem. We know that NEETs are three times more likely to end up in prison, that 50% of them are likely to suffer poorer health, that 60% are more likely to develop a drugs problem and that female NEETs are 20 times more likely to become teenage mums. Those figures were produced by the Prince’s Trust, on whose authority in this matter I am happy to rely. These young people lose out, but the country loses out, too. The most recent OECD figures suggest that joblessness in this country is more than double that in apprenticeship nations such as Germany, Austria and Switzerland.

The Minister mentioned earlier that if we look at figures we have to take account of the fact that students make up a proportion of them. I accept that, and it is also fair to say that if we look at NEETs, there are indications that some of the youngsters have additional hurdles, problems or difficulties that make it harder for them to access jobs, and I have no doubt that that is a factor. None the less, the numbers are worrying. The figure for NEETs in the west midlands is about 20%, and it is going up steadily—it currently stands at some 4% above the UK average. NEETs are a particular problem in our region.

I recognise that there are some special problems that require attention. About 10% of NEETs probably find it difficult to join the job market because they are either pregnant or parents with very young children. About 6% of them might be students on gap years, and it would therefore be reasonable to argue that we would not want to include them in an unemployment breakdown, and at any one time about 4% could be in custody. We should not, however, be complacent and say that we can discount those figures; we should instead say that we need not only measures on which everyone works together but, for particular youngsters, even more intensive measures to ensure that their potential for the job market improves.

Labour’s proposals for tackling youth unemployment merit serious consideration. It has never been entirely clear to me, as it has not been to my hon. Friend the Member for Hartlepool (Mr Wright), why, even allowing for the scale of the cuts, the incoming Government were so keen to scrap the future jobs fund and the guarantee of work or training. When there is so much public support for it, I do not know why Ministers do not look again at the idea of a tax on bankers’ bonuses, especially as the bankers continue to take money they have not earned and show, in my view, little by way of contrition for the problems that they created for all of us, which have caused the suffering of the young people that I have discussed. If we chose to tax bonuses in addition to having the bank levy, we would have the money for the kind of employment programmes that some hon. Members have already mentioned. We estimate that £600 million would fund opportunities for at least 100,000 young people—perhaps more—which might mean that as many as 10,000 youngsters in the west midlands would benefit. That is not enough, but it is a start, and it is a lot better than the present situation.

These folk are our next generation; they are the people we hope will pay taxes, produce growth and finance pensions and health care. They are the people to whom the Minister for Universities and Science claimed we have a contractual obligation in his excellent book, “The Pinch”. We are not fulfilling that obligation at the present time, but instead we are denying those people jobs, pricing them out of higher education and threatening their ambitions by preventing them from getting a foot on the ladder.

I am sure that when the Minister replies he will itemise some of the things that his Government are doing to tackle the problem, and I hope that he will also tell us what will happen to the young people’s careers advice and support agencies now that the Government have decided to abolish Connexions. I want to make it clear that I welcome some of the Government’s initiatives. The national citizen service, which launches this summer, is to be commended. It will offer about 10,000 places for 16-year-olds, although it lasts for only six weeks. It is a step in the right direction, but it is too little.

The Government say that they want to create 100,000 more apprentices, but I am not clear how they expect to do that with so few incentives for businesses to take on more apprentices. I appreciate that this is not strictly the Minister’s responsibility—the Minister for Further Education, Skills and Lifelong Learning made it clear to me last night that everything to do with apprentices is in his domain. If there are criticisms, perhaps I should direct them at him. I am sure, however, that the Minister of State, Department for Work and Pensions, the right hon. Member for Epsom and Ewell (Chris Grayling), has some views on the matter, as he thinks about the more general issue of youth unemployment.

I think that we could do more to make apprentices attractive, especially for smaller companies. The Federation of Small Businesses has argued for two specific measures. It thinks that some kind of national insurance holiday and some measure of wage support would be helpful. Its members have also made it clear that one of the biggest problems that they face is managing the administration and bureaucracy of apprenticeships. Interestingly, they are keen on apprentice training agencies, so will the Minister say something about that? Those agencies were initially a Labour initiative, but he does not have to set his face against every such thing. If it makes is easier for him, I think they originated in Australia, so he should not worry about the affiliations. They are something that the FSB wants.

It is important to recognise that only 8% of small businesses have taken on an apprentice in the past year. The figures for 2008 show that half of all apprenticeships were in companies with fewer than 50 employees, and it is vital that we make inroads in that regard.