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.

Welfare Reform Bill

Jim Shannon Excerpts

Wednesday 15th June 2011 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I commend credit unions to all Members for the work they do, but for those in financial difficulties, the crisis is already there and unless someone is already in a credit union, they cannot borrow from it. With respect, I do not believe that credit unions are an option.

[Ms Buck]

That is absolutely right. The Government mention credit unions as part of the package of alternatives that they want to see picking up the slack. They may have a role for some people, but the hon. Gentleman is right that they are not an emergency response. As I said in my opening remarks, precisely because a disproportionate number of the individuals who need crisis intervention do not have a local connection or a stable household background, they are the ones who will not be in a credit union. They are disproportionately unlikely to be in a credit union or to have the scope to be able to join one. That is precisely why the social workers—expected to be a part, although admittedly not the entirety, of the gatekeeping process for the replacement of the discretionary social fund—are so concerned. Although they will not be alone, they will be very much on the front line of gatekeeping for this dramatically reduced and very different type of service, which is patchy and might be flourishing in some cases and not in others. As I said in Committee, the consortium of community care stated a few months ago that social workers are anxious about having to deliver the social fund, knowing that applications for community care grants are already turned down in 60% of cases. They say that their role as advocates and supporters for people in need through a crisis in their lives is dangerously undermined by the new financial gatekeeping role that they will be asked to take on.

In evidence to the Committee, Councillor Steve Reed, speaking on behalf of the London Councils and the Local Government Association, said that local authorities have expressed an in-principle willingness to be part of this process. I understand why he would do that. He also told the Committee that he was worried that the localisation of the discretionary social fund should be fully funded and that it should cover all the costs, including the administration costs, which, for the community care grant alone, were £19 million in 2008-09. As we have drawn out in the debate over the past hour, the likelihood is that the administrative process for local government and the gatekeeping, which will not simply be about deciding whether to give a crisis loan or community care grant but whether to find people alternative levels of support, are likely to put an increased financial burden on local authorities.

Some Government Members on the Committee argued that social workers and others will be able to provide more intensive, personalised intervention for people in crisis, helping to end a cycle of repeated loan applications, but that is likely to make the situation worse. If the 3.64 million crisis loan applicants or 640,000 applications for community care grants have to be funnelled through a more intensive and personal level of intervention, who will do that work? Where are the social workers and the available time in local government to improve on this? The answer is that they will not be there. Local authorities are retrenching and they are on the back foot financially, and the likelihood is that they will have a smaller pot of money as they act as gatekeepers for an even wider group of individuals.

The Minister tells us that there is an expectation that there will be some form of review process, but the current review process is national and now every local authority will be expected to set up its own, leading to huge complications with differences in approach and the structure and bureaucracy of setting up a process in every local authority to determine how initial decisions will be reviewed and appealed against. I know that that causes a great deal of alarm in the advice sector.

Let me return to the vexed concern about local connection. Sample work on discretionary fund cases was carried out by the Department last year, which considered a basket of 500 different cases, and 20% of those cases involved people who were homeless. Some 20% and more of the applicants in such cases—the amount varied between different parts of the country—had no single connection with any individual local authority. That is my single biggest concern about the Government’s approach to this agenda.

One example, which was highlighted in the media last week, is the case of victims of domestic violence. A group of the women’s charities has written to the Minister for Women and Equalities, warning that some councils will not be financially able or willing to help women escape violent partners on the grounds of the provisions in this part of the Bill. The belief is that there will be an increased postcode lottery of provision that does not reflect the Government’s previous claim that tackling domestic violence is a priority and the fear is that councils could impose a local connection test that could disadvantage women fleeing domestic violence who are often, almost by definition, forced to move into another local authority area. The charities say that many women fleeing the home have to leave everything behind, including household furnishings and essential items, such as cookers, that most families take for granted to rebuild their lives in a new home. They quoted a mother from Croydon, south London, who left her abusive partner in 2003 and said that she had only been able to escape a life of domestic violence thanks to a £700 grant that helped her to rebuild her life. The chief executive of Women’s Aid said:

“The social fund is a vital resource for victims attempting to rebuild their lives after domestic abuse and, if it is not available, victims may be forced to return to their abusers.”

The director of Refuge added that if the discretionary social fund is abolished, there is a risk that

“more women will be forced to delay their escape from their partner.”

--- Later in debate ---

[Madam Deputy Speaker (Dawn Primarolo)]

Order. I do not think that the hon. Member for Witham (Priti Patel) is giving way; she has concluded her remarks.

[Jim Shannon]

I am not against the principle of welfare reform, but I am against how it affects those people who regularly come to see me. Not a week passes in the offices that I look after in which we do not see people who need crisis loans, and we hear from people who are under financial pressure all the time. With respect, I sometimes wonder whether some hon. Members have ever seen a social fund or crisis loan form. Do they know what it is like to be in financial crisis and under pressure?

I support the amendments for a number of reasons, and I hope they will be put to the vote. What happens in the House today will be sent to the Northern Ireland Assembly for its endorsement. On the principle of parity with the rest of the United Kingdom, I expect the Northern Ireland Assembly to endorse the decision of the House. The measure will then become the law for Northern Ireland as well. So if we feel concerned about it, we must oppose it here today. That is what the people I represent tell me.

Most of us are probably affluent enough to be able to borrow money from the bank if we are under financial pressure, but the people who come to me in my office seeking crisis loans through the social fund cannot do that. They do not have the option of the credit union either, because of the credit union methodology. I fully support credit unions. Everyone on the Opposition Benches who has a particular knowledge of credit unions would support them 100%, as we have in the past, but they are not an option for people in financial crisis, as the Government have suggested.

[Naomi Long]

Does the hon. Gentleman agree that part of the difficulty is that in circumstances where people’s finances are very stretched and they are very vulnerable, the crisis loan system stands between them and lenders with extortionate interest rates and loan sharks, which can impact not only on their financial welfare, but on their health and well-being more generally?

--- Later in debate ---

[Jim Shannon]

I thank the hon. Lady for her intervention. She clearly has cause to represent people in relation to social fund issues and has a good understanding of the financial crisis they face.

Many of the people who come to me in my office have health problems. If they are unable to work, possibly because of an injury at work or an accident at home, they are left facing a financial crisis. Intimidation is not rife in Northern Ireland and nowhere else; it happens in other parts of the United Kingdom as well, and there are occasions when someone has to leave home quickly, and they face financial crisis. Most of those who come to me are single people, maybe a single parent with a young child, or sometimes they are people coming out of care or out of prison, or people who have experienced family break-ups.

The hon. Member for Makerfield (Yvonne Fovargue) described the situation well, and I share her experiences as a representative. Those people are under great financial pressure and are worried about where they are going to go. They look for alternatives to borrowing money. Sometimes, as a result of their inability to pay back their loans on time, they end up in hospital. Loan sharks are probably the only people willing to lend them money but at an extortionate rate, which puts them under great pressure. I am sure other hon. Members have seen that.

[Mark Durkan (Foyle) (SDLP)]

Is my colleague, like me, at a loss to understand how some hon. Members who are prepared to commend the social fund measures are the same people who, in relation to parliamentary expenses, argue for the operational principles of clarity, predictability, responsiveness, consistency and the right to query or appeal? They demand those operational principles where it affects themselves, but they are prepared to mangle them where they affect their most marginal constituents when it comes to the social fund.

[Jim Shannon]

I thank the hon. Gentleman for his passion and his commitment. I would find it difficult to argue against those points. I should like to hear from the Minister what measures the Government intend to put in place to ensure that the people whom I have described—the single people facing financial problems or those experiencing health problems, marital break-ups or intimidation, who clearly have problems at home—will fit into the system. I do not see that they will. I see extreme difficulties for them in future.

The hon. Lady spoke about those managing debt. Not everybody has the ability to manage their financial circumstances. We meet people in my office who unfortunately fit into that category. We try to advise them or send them to someone who can give them advice and help, but in many cases they are unable to manage their financial circumstances. The crisis loan enables them to borrow and get out of the crisis that they face, and agreeing a direct debit helps them to manage their money.

For those who come to me in financial crisis, the crisis loan is their only way out. I would love to be the Northern bank or the Ulster bank and be able to lend all those people money personally, but unfortunately my resources do not go that far and it is not my responsibility to do that singly and individually. That is the responsibility of Government.

[Bill Esterson]

The hon. Gentleman makes a strong case for his concerns about the loan system. What worries me, reading the clause, are the references to discretion and appropriate decisions by the Treasury about what does or does not constitute grounds for payment on account. A constituent who came to me was denied employment support allowance and was told that he was fit for work. When he went to the jobcentre, he did not qualify. That person needed three separate crisis loans. The point about managing debt is well made. The issue of appropriateness will cause huge problems.

[Jim Shannon]

I thank the hon. Gentleman for his comments. Many Members in all parts of the House know how the system works and the importance of a crisis loan system operating through the social fund.

My final point relates to the appeals system. The proposed changes will do away with the independent appeals system or at least make it unnecessary. I fought a number of appeals for people who had applied for crisis loans through the social fund. Having the appeals system in place is critical. If they are turned down the first time, it may be because they provided the wrong information, or because all the necessary information was not available. An appeals system allows a review to take place. It is crucial that the independent appeals system is retained.

The system of crisis loans through the social fund is a crucial aspect of life in Britain today for the people who come to my office and for those I meet. It gives people hope and an opportunity to get out of sometimes dire financial circumstances. The Government, the House and we as elected representatives have a duty to make sure that the social fund and the crisis loan are retained.

[Bridget Phillipson]

I am grateful for the opportunity to speak to this important group of amendments concerning the discretionary social fund, particularly amendment 39, which calls on the Government to bring forward detailed proposals for the replacement scheme.

Discretionary social fund payments, such as crisis loans and community care grants, provide an essential safety net for some of the most vulnerable people in our communities who, at times of extreme hardship or disadvantage, need financial support. One such group I wish to talk about in detail are women fleeing domestic violence who, through no fault of their own, are forced out of their own homes and have to seek shelter elsewhere. It is because of my experience working with women affected by domestic violence and their families that I am so concerned about the Government’s proposals and what they could mean for those women.

A woman fleeing domestic violence often must leave her home with nothing more that the clothes she is standing in, without money or access to money, but she still needs access to vital items for herself and her children, from food and nappies to children’s clothing. The social fund provides a vital lifeline for those women. Although far from perfect—I admit its shortcomings—it gives reassurance to the woman that help is available should she need it so that she does not feel pressured to return home to violence simple because she has no access to money. Community care grants allow women to start afresh, with a new life and a new home, by covering some of the costs attached, such as a washing machine or a cooker.

--- Later in debate ---

[Margaret Curran]

This is embarrassing, because hon. Members are putting the argument so much more effectively than I am.

To conclude on this section of my contribution, may I make an appeal to Members of the House? We have a moment in time. We are being watched by disabled people this afternoon, and by their organisations. This goes to the heart of what we are about. People will be prisoners in residential care and prisoners in their own homes if this provision is removed from them. Many opportunities for them will also be withdrawn. I appeal to hon. Members: let us do the right thing this evening and vote for amendment 43—I also intend, Mr Deputy Speaker, to press amendments 42 and 44 to a Division when the time comes.

I shall now discuss specific aspects of the personal independence payment that should be changed to make the new benefit fairer and more effective in giving support to those who need it, and to assist a smooth transition for existing claimants to the new benefit. Amendments 44 to 47 seek to amend clause 79 and the proposed change to the required period condition for PIP. The amendments would retain the three-month period that claimants must wait before they are eligible to receive PIP, but would extend the period over which a claimant must show that they will be with that disability from six months, as is currently the case with DLA, to nine months.

In other words, for those who have not followed every single detail of the Bill like those of us who served in Committee, like the Government intend, the Opposition would extend the current DLA required condition period from nine months to one year for PIP. However, the Opposition would extend the provision after receipt of the benefit, not at the beginning. To do otherwise would be to penalise unfairly those disabled people who need extra help associated with their disability early in their treatment.

Yet again, there is some confusion about the rationale behind the change in the waiting time for PIP. In Committee, the Minister said that the change was categorically not about savings. She clearly stated:

“I will be honest and open with my answer. I would like to reassure the hon. Lady”—

meaning me—

“that the principal aim of extending the qualifying period from three to six months is not about savings. We do not expect the measure to provide any significant savings.”––[Official Report, Welfare Reform Public Bill Committee, 10 May 2011; c. 848.]

Furthermore, I have asked the Minister in a series of written parliamentary questions what the projected savings are. Again, her Department was unable to provide any sort of answer—nor do its answers so much as allude to potential savings resulting from this policy decision—yet at Department for Work and Pensions questions on Monday, the Minister appeared to backtrack, stating that “modest” savings were now part of the reasoning for pushing ahead with the change. In her response today, will she indicate the scale of those modest savings? It is a little concerning that the rationale behind changes that will make such a big difference to the lives of many disabled people in this country is, even at this late stage, being cobbled together by the Government.

If we cannot comment on savings from the policy, we can at least discuss its impact on disabled people who require PIP to help them to meet extra costs associated with their disability. In Committee, we discussed in great detail the different conditions that are likely to require early support, so I will not go into them in great depth today unless pushed to do so.

[Jim Shannon]

The hon. Lady has clearly outlined the issues in relation to the qualifying period. Is she aware, as many in the House are, that for people in poor health, it is a time of stress and anxiety? The Government are talking about increasing the qualifying period when people are under the most pressure regarding their health, so putting them under additional, financial pressure. Does she feel that such financial pressure will impact on people’s health at a time when they need less pressure and more help?

--- Later in debate ---

[Mr Tom Clarke]

I very much regret that the Minister did not give way to me on the one occasion that I asked her to do so, particularly because I had planned to ask her to make an apology. I also invite the Secretary of State—if he would just listen to the debate for a moment—to join in making that apology to the 80,000 people living in residential homes who have been threatened since the comprehensive spending review with the removal of the mobility element of their disability living allowance.

I first raised this matter in a debate in Westminster Hall on 30 November. The Minister responded to that debate, so she cannot claim that she did not know what the issues were. In a moment, I shall talk about the remarkable review that very few people know anything about. People living in residential homes, and their Members of Parliament, can tell her exactly what the situation is, even in the absence of a review. We do not like the idea that 80,000 people have been led up to the top of the hill and marched down again as a result of the various approaches of the coalition Government.

[Jim Shannon]

Does the right hon. Gentleman think that this review has a pre-determined conclusion? Is he as concerned as the majority of Members are that it is only paying lip service to the issues and that it will therefore not deliver what we want to see happening?

[Mr Clarke]

I hope to come to that point later. I welcome the fact that hon. Members from Northern Ireland have played such an excellent part in these debates, both on 30 November and since. The hon. Member for North Antrim (Ian Paisley) made an intervention on that occasion, and his arguments were as sound then as they are today. The Minister has virtually no support for her position. In a moment, I shall discuss the disability organisations.

Post Office Card Account

Jim Shannon Excerpts

Tuesday 24th May 2011 Westminster Hall

[Sarah Newton (Truro and Falmouth) (Con)]

It is a privilege to serve under your chairmanship, Mr Hollobone, and to introduce the debate this morning. I requested the topic as a subject for debate as I was concerned by the apparent lack of progress on an important part of the coalition agreement. I am delighted that the coalition Government have been so publicly supportive of both the need to provide an enhanced Post Office card account and the need to enable more income streams into the post office network to ensure the sustainability of our much trusted and widely respected local post offices.

The additional Government plans for the post office network have received a warm welcome. They include no further closures of our post offices; an extra £1.34 billion in funding for the network between now and 2015; and post offices becoming a front office for Government and offering an expanded range of financial services, including credit unions and existing high street banks giving access to personal and business accounts at post offices. Currently, an estimated 60% of accounts can be accessed through post offices. The Government aim for that to be increased to 80% of all current accounts, and they will seriously consider enabling the Post Office to become a co-operative or mutual.

I understand that, for a variety of good reasons, the Government are exploring the possibility of enhancing POCA while at the same time developing a new account that could replace it. For the purposes of this debate and brevity, I will refer to POCA covering both possibilities. Although I very much appreciate the considerable economic challenges the Government face, as well as the pressure on Ministers’ time, I hope that there is a lack only of visible progress and that the Minister today will take the opportunity to update hon. Members on the behind the scenes progress being made. That would allay the concerns in post offices and the communities that they serve around the country. Although they very much support the direction and words of the Government, they want to see action. There is significant potential for POCA to be developed into a fully transactional account aimed at low-income consumers. The account is also vital to the financial viability of post offices, which play an important role in rural areas, where the local post office is often the only access to cash for people, small businesses and voluntary groups.

To help our debate, I will provide some background information on POCA, starting with some history. The direct payment scheme was the Government programme that replaced traditional payments of state pensions and benefits by order book or girocheque over the post office counter with electronic payments made directly into an account. The programme began in 2003 and was completed in 2005. The loss of the payments of pensions and benefits cost post offices about 40% of their traditional income. The Government claimed that direct payment would help to tackle financial exclusion and provide a cheaper method of paying pensions and benefits.

Under direct payment, there were three main options for the receipt of state pensions and benefits: a current or savings account at any bank or building society; a basic bank account; or a POCA, which was introduced in April 2003. A small number of pensioners and benefit claimants were able to sign up to the exceptions service to have their payments continue to be made by the green giro.

At its peak, there were about 4.3 million POCA customers, and that was despite well documented efforts by the Department for Work and Pensions at the time to promote other payment methods and to discourage customers from opening a POCA. The account has unique features that are important to people on low incomes. In particular, there are no restrictions on who can open an account, as long as they are in receipt of a state pension or benefit, and it is impossible to get into debt. It is a straightforward product that enables benefits to be paid into accounts. In March 2010, POCA was enhanced to allow access to cash withdrawals, balance inquiries and other PIN services at post office ATMs and over post office counters.

POCAs have a great deal of public support. When in 2006 the Government announced that they would cease by 2010, the National Federation of Sub-Postmasters campaigned rigorously to overturn the decision, which led to more then 4 million people signing a petition that was submitted to Downing street. As a result, in December 2006, the Government decided to continue the accounts. Another effective campaign by the NFSP led to more than 3 million postcards being sent to MPs, which called for POCAs to be retained exclusively by the Post Office.

Both successful campaigns highlighted the importance of POCAs to sub-postmasters’ income. According to the NFSP’s most recent research, from June 2009, on sub-postmasters’ income, on average, sub-postmasters earned £220 a month—7% of net income—from POCA transactions. However, that average does not highlight the heavy dependence of certain post offices on POCA income, typically those in deprived urban or rural areas. The 2009 survey showed that 15% of sub-postmasters earned £400 or more a month from POCA transactions. When customers withdraw at a post office, they also spend money through other Post Office services, such as bill payments or mobile phone top-ups, or in the attached shop. That footfall is a key factor in maintaining the viability of thousands of post offices.

The NFSP estimates that the value of the POCA contract for Post Office Ltd has fallen from an estimated annual £195 million to £131 million in the period ending in the spring of this year.

[Jim Shannon (Strangford) (DUP)]

Further to the hon. Lady’s last point, which was very valid, there are a great many postmasters and postmistresses who have actively engaged with their local communities to ensure that POCAs are available. They have done all the hard work and are now looking at the possibility of those accounts being removed through the running-down of rural post offices. Does she agree that it would be detrimental, not only to rural communities, but to small towns, for the Government to pursue that policy?

[Sarah Newton]

I absolutely agree. It would be detrimental to the post office network if POCAs were removed, but I do not believe that that is the Government’s intention.

The reduction in the worth of the contract will be felt in the income of sub-postmasters and postmistresses. It is understandable that the DWP wants to drive down the transaction costs of benefits payments and so sees that reduction as a saving—costs have come down to about 50p from about 70p to 75p per transaction—and I understand why the Government want to look at efficiencies in that way, but there are significant implications for incomes, livelihoods and the sustainability of the network. That underlines why it is so important that the future of POCA and banking services more generally is secured. Existing and new customers would very much welcome enhanced services.

Research on POCA customers by Consumer Focus demonstrates that customers want additional transactional features and want to carry on using post office branches, which they know and trust, to access their payments. A fully transactional account could deliver significant benefits in terms of financial inclusion. Consumer Focus research shows that up to 1.75 million people are “unbanked” and could access a transactional account. By not having a bank account, vulnerable consumers can lose out time and again. Not being able to use the internet to buy goods and services or direct debit for household bills means that they pay more. They miss out on safer money management and convenient access to cash through ATMs. They find it difficult to access mainstream credit or insurance, or to save effectively, unless they are fortunate enough to have local access to a credit union or community bank. They will find it increasingly difficult to be paid for work; Consumer Focus estimates that by 2018 only 2% of employees will be paid in cash.

--- Later in debate ---

[The Minister of State, Department for Work and Pensions (Steve Webb)]

Good morning, Mr Hollobone. I join the congratulations to my hon. Friend the Member for Truro and Falmouth (Sarah Newton) on securing this important debate. I am delighted that, although this is the final day before the Whit recess, we have a good turnout and that, as has been said, we have heard perspectives from rural and urban England, rural Scotland and Wales—indeed, from around the United Kingdom.

[Jim Shannon]

rose—

[Steve Webb]

Before the hon. Gentleman seeks to intervene, I should say that, when I said the United Kingdom, I thought that I was including Northern Ireland.

There are a lot of common threads. Any community-minded constituency MP will echo much of what has been said this morning. My own constituency is a mixture of market towns and villages, most of which, notwithstanding the series of cuts over the past year, either have sub-post offices or, in some instances, have reopened them as community ventures—community shops, co-operatives and so on. I think that we all share that commitment to the post office network.

My hon. Friend the Member for Gloucester (Richard Graham) is absolutely right to say that, although money is tight, the Government should prioritise spending on the post office network. I encourage him to think about which Government Department identified £1.34 billion for the post office network, and about the other spending issues that that Department faced that raised some political issues. He will recall that there were other calls on the Department’s money, yet it prioritised the post office network, because we are about not just words, but deeds in relation to that. To be clear, in return for that £1.34 billion, Post Office Ltd must maintain a network of at least 11,500 branches and continue to adhere to the strict access criteria that mean that 99% of the population live within three miles of a post office.

Back to Work Agenda

Jim Shannon Excerpts

Wednesday 11th May 2011 Commons Chamber

[Chris Ruane (Vale of Clwyd) (Lab)]

Great changes have been introduced in the back to work agenda over the past year and many more will shortly follow. I believe that many of this Government’s decisions have been taken in haste and without a proper assessment of what does and does not work in the back to work agenda.

I have been involved in the back to work agenda in my constituency for the past nine years. In 2002, I noticed that 50% of the unemployed people in my county, Denbighshire, lived in just two of the 34 wards: the west ward of Rhyl, a traditional seaside ward with many houses in multiple occupation, and Rhyl South West, a ward with a large council estate. Indeed, that is the council estate on which I grew up and spent 26 years of my life.

In 2007, after I had convened a back to work agenda in my constituency, we heard that the Labour Government were introducing a national pilot scheme to get people back to work. It was called the city strategy. Along with Gareth Matthews of Working Links, I lobbied Work and Pensions Ministers to include Rhyl in the pilot. Rhyl was not a city—only 27,000 people lived in it—but it did have city-type unemployment problems on a small scale, as thousands of unemployed people had fled the inner cities of Manchester, Liverpool and Birmingham and come to such seaside towns. We have concentrated areas of deprivation and unemployment. I asked whether Rhyl could be the pilot for the unemployment initiatives in seaside towns, and my wishes were granted, with Rhyl becoming one of just 15 areas accepted into the city strategy.

Since 2009 Rhyl City Strategy has gone from strength to strength. It administered one of the most successful future jobs funds in Wales, putting 450 long-term unemployed people back to work, and it won a bid to become a national pilot for the fit for work scheme.

Rhyl City Strategy is supported by a consortium of more than 180 people from 70 different organisations in the public, private and voluntary sectors, and there is a management board of 25 organisations that deals with the nitty-gritty of putting people back to work. Those two parts of the organisation meet four times a year, and the consortium now meets to deal with different themes relating to the back to work agenda. Best practice is swapped, initiatives are shared and support is given. Co-operation is maximised and duplication and ignorance are minimised. It is one of the most successful organisations that I have been involved with in the past 25 years of my public life.

There are a number of reasons for that success. The board is headed by the private sector: the chair is Barry Mellor, the north Wales manager of Arriva buses. The organisation views the issues from the perspective of the employer as well as the employee. Rhyl City Strategy is a community interest company, which gives it tremendous flexibility, and decisions do not have to be referred back for months of county council committee meetings.

There is a good blend of the public, private and voluntary sectors. As the work has been going on for almost 10 years, there are bonds of trust and co-operation between and within all three sectors, each reinforcing the other and often coming together informally, outside set meetings, to help in developing initiatives. There is good feedback from the overseeing bodies at the Department for Work and Pensions and the Welsh Assembly Government, and from within our own organisation. Success is celebrated and failure is fixed.

The strategy has used a number of novel schemes to connect with the unemployed. It is not simply about sending a man or a woman in a grey suit with a big stick from the Government to tell the unemployed that they have to get back to work. In my constituency, the strategy has dealt with those furthest away from the jobs market—unemployed people who may never have succeeded in school, who have lost confidence in themselves and faith in society, who have many problems with drugs and alcohol, and who lead chaotic lives and change address regularly.

In order truly to connect with people who face such multiple barriers, we have developed a number of novel projects in conjunction and co-operation with many diverse local groups. I wish to mention a few of them. Rhyl football club operates football in the community, using unemployed people’s interest in football to sign them up for skills training and job placements in the local sports sector.

Coastal Hawks is a project to train local young people in the art of falconry. They use those skills to keep seagulls and pigeons, which blight town centres and cause damage, away from Rhyl town centre. They dress up in medieval costume while doing this, engage with the public, and are in effect a tourist attraction. They were the subject of a TV programme—but now, because of cuts, they may be disbanded.

The Hub, a youth project in Rhyl with 1,000 young people on its books, is located in the heart of the poorest community not only in Wales but, probably, in the whole country. It is self-financing, and in the past three years it has had two extensions that have been built by the local unemployed youngsters who use the centre. It has been part-financed by the 10 back to work organisations that want to gain access to those 1,000 young people. They rent office space from the Hub, and the money is then reinvested in the Hub.

A local market has been established in Rhyl town centre, and the organisers are training 10 local unemployed people to take stalls on it. The organisers provide professional training through North Wales Training and give the trainees a stall to turn that theory into practice. Some of the people on the training scheme have multiple problems and are making a valiant attempt to recover from alcoholism. A separate TV programme is being made about that project.

The Government say that they want to encourage enterprise, and I share their goal. We are doing it, and doing it successfully in Rhyl, the home of Albert Gubay’s Kwik Save and also of Iceland—two supermarket chains that changed the face of UK and world trading. We wish to rediscover that spirit of enterprise.

[Jim Shannon (Strangford) (DUP)]

It is important that young people have the opportunity of a job at the end of the day, and the hon. Gentleman says that that is happening. It is also important to instil confidence and to provide opportunities. Is it also important to have a Government who are committed to the public sector, so that the job opportunities in that are there, too, for the young people?

[Chris Ruane]

I entirely agree with the hon. Gentleman, and I shall come to that point shortly.

The Dewi Sant centre in Rhyl works with dozens of people who have massive drug and alcohol problems, some of whom have literally been taken off the streets. Its clients are then given training away from the urban centre on a 7 acre farm donated by a local business man. They are being trained in the art of bee-keeping and other rural skills. They are organising a community harvest collecting unwanted apples, pears and berries from local people and turning the fruit into preserves.

A week on Monday, I will be the master of ceremonies at the opening of a Jamie Oliver-type training restaurant called Taste. The building was empty for five years and has now been refitted to the highest standards by a top-class designer called Jamie Alcock. It will train young people how to cook, wait on tables, and generally run a restaurant. Those young people will then gain work in our local hospitality sector.

Three weeks ago I was at the first presentation night for a back to work scheme aimed at 70 unemployed young men and women to improve their child care skills. This has a double benefit in that those skills will be used by them in bringing up their own children, but will also help to increase the quality and quantity of the child care work force. The presentation evening was highly emotional, as each young person got up to give a brief personal history and then went on to say how the scheme had rebuilt their confidence, returned their pride and helped them to gain employment. Of the first 10 who had been through the scheme, eight had gained employment and two had gone back to college.

The training for many of the initiatives is supplied by a range of private sector trainers and also by Rhyl college, which was established by Labour 10 years ago. This £10 million college has had two extensions in four years—a further £7 million investment—and has won a UK beacon award for widening participation. It is located in the heart of the fifth poorest ward in Wales, and its outreach work, through many of the organisations I have mentioned, has helped virtually to eliminate the category of NEETS—those not in education, employment or training.

Our local schools have also turned themselves round under the political leadership of an independent, Councillor Hugh Evans—I give credit to him—and a new chief executive, Mohammed Mehmet. The private sector, too, has played its full part. Tesco has said that it will take 50% of its new employees from the dole register. Serco, whose Welsh chief executive, Gareth Matthews, has driven our local back to work agenda for nearly 10 years, has located a regional office not in a leafy business park, but in the middle of the street with the greatest social need in the whole of Wales, creating 35 jobs. I am proud of our local back to work agenda.

I now turn to my concerns about the Government’s back to work agenda. I am concerned that their new proposals will not recognise the good practice and progress that has gone before. They want to start from year zero and do away with all that Labour implemented—as much out of political spite as any desire to help the unemployed—and believe that any “lefty-sounding” package, such as the new deal, must be disparaged. The future jobs fund was viewed by seasoned practitioners as the best back to work scheme that has been created, because it recognised the dignity of the individual and dealt with people as individuals. It raised their confidence, gave them meaningful employment and, most of all, gave them a wage at the end of the week. The FJF was not like the skivvy schemes introduced by the Tories in their 18-year reign—but it was ended within weeks of the Government gaining power, without any independent assessment of its contribution to the back to work agenda.

I am worried by the language, tone and philosophy of the Government. They look on unemployed people as feckless scroungers who should be chased back to work with a big stick even when no work is available—even when it is the Government themselves who are laying off those people. They are putting 500,000 workers on the dole and then stigmatising them. The voluntary sector and the public sector will walk away from Government initiatives that stigmatise people. The voluntary sector has no interest in that approach.

I am worried about the directives coming from the DWP instructing local benefit advisers to trick people out of their benefits. They give advisers targets of two to three clients a week to punish by taking away their benefits. The Minister described those allegations made in The Guardian as claptrap—until he was shown the e-mail evidence that it was happening.

I am worried that the Government have no policy for dealing with areas such as mine, with nearly 50% of its workers—13,000—in the public sector. The Government want to sack between 10% and 27% of these workers, pushing them on to the dole queue. Seaside towns such as mine, with many public sector workers, could end up like the coal and steel towns of the 1980s—the towns the Tories decimated. The Government say they want private enterprise to take on those workers. But when I tabled a parliamentary question on the budgets that the Government have allocated for enterprise clubs, the answer came back that £3 million had been allocated—£3 million for 3 million workers, or £1 each.

My biggest worry is that nationally there is no growth strategy and no jobs strategy. Recent emergency meetings have been held in government to try, belatedly, to correct that, but the comprehensive spending review and the Budget did nothing to help create jobs and growth. As a result the economy, which was recovering under Labour, has flatlined for the past six months.

It is not just me, a Labour Back Bencher, who is making these points; this is also what the experts are saying. The director of the National Institute of Economic and Social Research said that we should be seeing quite a sharp recovery, but that looking back over the past six months we have had no growth in output at all, and it is very disappointing. The chief economist at the Office for National Statistics said:

“we have an economy on a plateau”.

The Office for Budget Responsibility has revised down its growth forecast for 2011 from 2.6% to just 1.7%. That will have a devastating impact on jobs and growth.

The gains in the private sector proclaimed by the Government were achieved largely as a result of what was done in the dying days of the Labour Government. The Government boast of an extra 350,000 jobs in the private sector, but most of those were created in the first quarter of their Administration.

Unemployment in my constituency was 4.7% in December 2009. It fell dramatically, to 3.9%, in the six months to June 2010 under Labour. Under the Tories it has gone back up to 4.4%—and that is before the Government sack thousands of public sector workers in my constituency. I fear particularly for the unemployed young people in my constituency. There were 735 in December 2009, and that went down by nearly 30% in the six months to June 2010, to just 530, under Labour. Under the Tories, youth unemployment in my constituency has shot back up to 730. That happened as my local FJF took 450 young people off the dole. If those people were added on, the figure would be nearly 1,200 young people on the dole. Political spite has its price.

“Panorama” is making a programme on the back to work agenda in seaside towns. It came to my town and presented me with a stick of rock, through which is written, “A JOB TO GET WORK”. It is a job to get work, because of many of the policies that the Government have introduced. The intricate web of employment opportunities that we have created in Rhyl over the past 10 years is in danger of being swamped if the Government’s plans are not properly introduced.

The Government need to end their targets to force and trick people off benefits. They need to work co-operatively with the public and voluntary sector, especially where there is a proven track record. They need to change the language through which the back to work debate is being conducted. They need to ensure that those who are furthest from the jobs market are not left behind while the more able are cherry-picked by private sector companies. They need to put aside party politics, accept what was good practice under the previous Government and carry it on. They need to develop a strategy to deal with areas with huge numbers of public sector workers, so that we do not have coal and steel town-type unemployment in the next decade. If they are serious about the private sector providing jobs for sacked public sector workers, they need to give specific help to promote enterprise among the unemployed; £3 million is not enough. Most of all, the Government need to develop a coherent strategy to promote growth and jobs across the board, not as an afterthought but as a key component of getting the country back to full employment.

Funeral Payments

Jim Shannon Excerpts

Tuesday 26th April 2011 Commons Chamber

[The Minister of State, Department for Work and Pensions (Steve Webb)]

I congratulate my hon. Friend the Member for Milton Keynes South (Iain Stewart) on securing this debate and on raising these difficult and important issues in a measured, succinct and sensitive way.

People sometimes say, “What’s the point of these Adjournment debates?”, because there is no vote at the end of them, or, “Does anything ever change?” One thing that these debates do is, quite properly, require Ministers to focus on the issue that has been brought before the House. In response to this debate being called, I have looked at my hon. Friend’s constituent’s website. As he well knows, her tragic circumstances and the death of her son five years ago led her to campaign on these issues. She has her own website, which I have looked at today. I pay tribute to her for the way in which she has sought to turn her tragic circumstances into something more positive, so that others do not have the same difficult experiences that she did in dealing, as I understand it, not just with funeral grants and the DWP, but with a range of other public bodies and organisations. The way Ms Evans has pursued the issues over the following years is enormously to her credit. I hope that I can offer my hon. Friend some reassurance this evening that that campaigning has led to changes, and that the situation that someone who has been bereaved now encounters is a good deal better than it was five years ago. Clearly there is always room for improvement—we will continue to look at that—but we have made changes even this month in response to the points that his constituent has raised with us, which I will set out more in due course.

It might be worth briefly putting on record some background to how the social fund funeral payments system works, because it is not always well understood. Essentially, the system is designed for those on a low income. The presumption is not that the state will pay for funerals for all people—or indeed pay for the full costs of funerals—but that it will make a significant contribution for people in receipt of income-related benefits and tax credits. The idea is to provide a contribution towards the cost of a simple, respectful, low-cost funeral. The payment is in two parts. We, the DWP, will pay in full the costs of a cremation or burial, including the purchase of a grave with exclusive burial rights. That is a point to which I will return, because I know that it was important in Ms Evans’s son’s case, and it is something that might not have occurred to any of us unless we were faced with that situation. I can well imagine that it must have been very difficult to discover some time after she had buried her son that she did not have exclusive burial rights. I fully accept that we must ensure that that situation does not arise again.

The scheme meets those costs in full, which can vary quite considerably between different parts of the country. In addition, we will make a maximum payment of up to £700 for other costs, such as the coffin, church and the funeral director’s fees, if appropriate. I will return to whether one has to have a funeral director—which one does not—and to making people aware of that fact and how we will take this forward. Over the months, I have received a number of letters from hon. Members who have been contacted by funeral directors in their constituencies who have made the point—entirely accurately—that £700 does not cover the full cost of a funeral. We accept that; we do not dispute it. The typical total amount that we are paying is about £1,200, which includes the other costs plus up to £700.

There is a presumption that many people will take out funeral plan insurance, because they want to ensure that they are covered and do not want to leave a financial burden for their heirs. If that has not happened, many families will meet the costs themselves, but we also need to ensure that a safety net is in place. We also want to ensure that there is additional provision for those people for whom the £700 cap is a barrier. We are therefore taking powers in the Welfare Reform Bill that is now going through the Commons that will, for the first time, bring funeral costs within the scope of the budgeting loans system. I raised this matter before Christmas in a meeting with the National Association of Funeral Directors, and with the all-party parliamentary group on funerals and bereavement. They very much welcomed the change, saying that it was a further provision that would help to ensure that people who were very short of money at a difficult time would have sources of finance available to help them to meet the costs of a decent burial and to ensure that funeral directors’ proper costs were reimbursed through the individuals. The measures will therefore be welcomed. We also need to ensure that the way in which we respond to people is correct and helpful, and that it makes life easy for them at this difficult time.

I shall go through the questions that my hon. Friend has raised and try to give him what information I can. I shall also tell him what we have changed as a result of his constituent’s campaigning. He asked for a factual breakdown of the numbers of people who received financial support towards exclusive burial rights. Unfortunately, the way in which the information is held does not allow us to provide such a breakdown, as I think I have already indicated to his constituent in writing. I can confirm, however, that in the last full financial year, 2009-10, there were 39,000 funeral payments at a total cost of £47 million. We cannot give a more detailed breakdown, because of the way in which the information that my hon. Friend has requested is stored.

The information and guidance that goes to relatives is at the heart of the issues that my hon. Friend has raised. In Ms Evans’s case, the information that came to her from the funeral director was incomplete, for whatever reason, and led to her making choices that, had she been fully informed, she would have made differently. I have made some inquiries into where the right information should come from, and the key is the fact that, on becoming bereaved, the family or its representatives will register the death. That is the point at which we aim to ensure that people get the relevant information. We will not have to rely on funeral directors to provide it. Indeed, there might not be a funeral director involved. The Government as a whole want to ensure that the information gets through to people at the point at which they register the death.

This is already being rolled out more or less nationwide, and we will continue to develop this “tell us once” service. The idea is to allow customers to report a birth or a death to multiple central and local government departments, agencies and services just once. This will help to reduce some of the complexity for customers at this particularly difficult time. The service is currently offered on a face-to-face basis by a number of local authorities, and we expect it to become a national service covering about 90% of local authorities by the end of this year. The remaining authorities will, in many cases, be remote ones for which this might not represent the right mix of services, but it will be pretty much a national service by the end of the year.

The idea is that a person can have a face-to-face session with someone from the local authority, or, if they are a DWP customer, as many people are, they can have a telephone session with someone from the Department. That one conversation will enable us to end benefits that no longer need to be paid, as well as triggering the possibility of applying for other benefits, including bereavement benefits and funeral payments. That is the crucial point. In the phone conversation with our bereavement service, for example, all the questions about what is covered and what payments are available can be answered. Our member of staff will have the latest information.

My hon. Friend has mentioned the technical information relating to what is covered and what is not, and we will have all that information to hand. In fact, the bereaved person will not have to fill in a form at all. They will be able to give all the information over the phone, which will constitute a claim that can be progressed pretty quickly. Speed is obviously of the essence, because people need to feel confident that, if they are eligible, the payment will be made. We want to do anything we can to remove delay or anxiety at this difficult time.

The “tell us once” process is being rolled out, as I say, across the country. To clarify, with the informant’s consent, information about the deceased, a surviving spouse or partner and the people dealing with the estate can be shared with up to 24 different benefits and services. It is going out far and wide. At the moment, 43 local authorities offer a service, and I believe my hon. Friend’s local authority, the Milton Keynes unitary authority, is due to offer its “tell us once” service from July this year. That will be an important step in the right direction.

My hon. Friend raised the issue of forms and paperwork. I can tell him that this month, in response to some of the points that his constituent raised with us, we have made a number of changes to the claim form for the funeral grant. Let me briefly run through them, as she would be interested to know what those changes are.

There are two documents. The first is a note sheet that accompanies the funeral payment application, and we have made three changes to it. On page 6 of the form, we have added a bullet point that says people can send

“evidence of the costs incurred if the funeral arrangements were made without using a funeral director”.

That is one of Ms Evans’s points—that people do not always realise that they do not have to use one and do not always realise that they can get their costs reimbursed if they have not used one. We have made it explicit that evidence of costs can be provided if a funeral director has not been used.

On page 7, we say, and it is worth reading into the record:

“Although most people use a funeral director to make the necessary arrangements, you may have chosen to make the…arrangements without using a funeral director. A funeral payment can be made whether or not you have used a funeral director. If you have arranged the funeral independently, you will have to provide evidence of the costs you have incurred.”

Anyone reading the notes will get the message quite quickly that they have choices and can choose how they want to proceed.

The third change we made to the explanatory notes is in the bullet point list of what can be included in the funeral payment. The second bullet point refers to

“the cost of opening a new grave and burial costs”,

and we have now added

“including any exclusive right of burial fee”.

That deals with Ms Evans’s point that she did not get the money because she did not claim it at the time because she did not incur it at the time because she did not realise the distinction. We hope that if we can get that information out at the start, the figure of about £300 or so, which my hon. Friend mentioned, would be covered in full and not be subject to the cap. We make that explicit in the notes to the form.

As to the form itself, we have made a couple of changes. On page 15, we inserted a new question:

“Have you used a funeral director to arrange the funeral?”;

and on page 20, the wording about making a payment has been amended to cover payments to claimants

“if you have not used a funeral director”.

I hope that those incremental changes—I know that Ms Evans has corresponded with my officials and others about this for some considerable time—will help. The forms are changed up to twice a year—we try not constantly to change them—and the April change has just taken place. It incorporates the important points that my hon. Friend’s constituent raised.

[Jim Shannon (Strangford) (DUP)]

I believe that the figure of 45 or 46 local authorities was mentioned. Is it the Minister’s intention to give this information out to all local authorities across the whole of the United Kingdom, including Northern Ireland? Does he also intend to ensure that the explanation given by the local authority is based on this information so that authorities can explain to people exactly what they have to do? I think that the explanation is important.

[Steve Webb]

I am grateful for that question. I will clarify the point about the scope. The idea is that local authorities would respond in a way that is tailored to their local circumstances. That is why some local authorities will adopt a particular local response, perhaps if their area is strongly rural. We also think it important, however, to give people the possibility of a face-to-face encounter. I will get back to the hon. Gentleman about whether the scope will be extended to include Northern Ireland. I am certainly aware that we are talking about the whole of Great Britain, but I will write to him about the applicability to Northern Ireland. The idea is that local authority folk can, to use the jargon, “wrap around” other support services at this important time. The DWP is concerned with bereavement payments and funeral payments, but obviously people may want or need a host of other services at the time of a bereavement. We want to ensure that local authorities can provide all the support that people need through a single point of contact. That can be done face to face, but we will also deal with specific DWP issues through the bereavement service.

My hon. Friend mentioned the Alice Barker Trust, and we are grateful for its input. It has worked closely with Ms Evans on the wording of the forms. We will certainly continue to consider its suggestions, although I do not want to give the impression that all the existing literature is rubbish. We carry out surveys and ask people what they think of the literature that they were given. We have, for instance, asked people—at an appropriate time—what they thought of a leaflet called “What to do after a death”, of which many Members will have heard. We found that 97% of people considered the leaflet to be very or quite helpful in answering their questions, and 95% agreed that it was easy to find the information that they wanted in it. There is good material out there, but I accept that more can always be done.

My hon. Friend asked about the way in which information was communicated to his constituent. Obviously I cannot comment in detail on what happened five years ago, but it is clear that the £300 was not paid because it was not claimed, and it was not claimed because exclusive right of burial was not part of the funeral. I hope that I have explained how we will try to ensure that people understand that they can claim the full amount, and that the unfortunate thing that happened to Ms Evans will not happen again.

Let me say something about funeral payment law. We provide general information, and, as my hon. Friend said, SB16 contains encyclopaedic guidance to the social fund as a whole, but we also provide leaflets which, inevitably, cannot be exhaustive. We have tried to strike a balance. Although a leaflet that covers every possible combination of circumstances is very useful, it may be off-putting for people who do not receive the key messages that they need. On the Directgov website we have tried to provide a wide range of information on what to do following a death, including arranging a funeral and registering a death. The site also lists organisations that offer help and advice following a bereavement. My hon. Friend mentioned the big society. We want to “signpost” people towards the many charities and voluntary organisations that provide effective support for people at this difficult time.

State Pension Reform

Jim Shannon Excerpts

Monday 4th April 2011 Commons Chamber

[Steve Webb]

I am grateful to the hon. Gentleman for expressing support for the proposal of the single tier on behalf of the Welsh nationalists. As for the issue of state pension ages, the Green Paper involves moves beyond the pension age of 66. The issue raised by the hon. Gentleman will be dealt with in the Pensions Bill, which will be presented to this House shortly, but, beyond that, we are trying to establish a more automatic mechanism that takes account of changes in life expectancy and, perhaps, of other factors as well, such as notice periods—which is, I think, the issue that he has raised—in a more systematic way than we or other Governments have done so far.

[Jim Shannon (Strangford) (DUP)]

There is some good stuff in what the Minister has said, but every week my office—and, probably, the office of every other Member of Parliament in the United Kingdom—receives queries about small works pensions. Although they amount to a pittance, they remove people’s eligibility for benefits. Will the Minister assure us that such people will not be disadvantaged?

[Steve Webb]

The hon. Gentleman is absolutely right. A small occupational pension can make the difference between living in poverty and living with a bit of dignity. Hitherto, given the low state pension of £97 a week, the first £35 or so of company pension has tended to offset £35 of guarantee credit, so people have been no better off. Then the savings credit has come along and given them a bit back, and it is all fiendishly complicated. The beauty of the single tier is that people are above the guarantee credit level from pound one, so the works pension is theirs to keep on top. There is still a housing benefit system and so on, but in principle the works pension will be worth more than it is under the current system.