DWP: Performance

John Glen Excerpts

Monday 30th June 2014 Commons Chamber

[Robert Halfon (Harlow) (Con)]

Three principles underlie the Government’s welfare reforms: ending dependency, establishing a ladder of aspiration, and social justice and redistribution.

In 1874, Benjamin Disraeli said—I apologise to my Liberal colleague, the Minister of State, Department for Work and Pensions, the hon. Member for Thornbury and Yate (Steve Webb)—that the Conservatives had done more for the working man in five years than the Liberals had done in 50. That continues to ring true today.

When I was elected as Harlow’s MP in 2010, there was a feeling of negativity in the town. Unemployment, and particularly youth unemployment, was rife—a hangover from the last Government’s disastrous policies which suggested that a life on benefits was a way of life. Worse than that, despite welfare spending increasing by 60% under the last Government, the number of food banks increased tenfold, and median real wages stopped growing in 2003. Notably, the Office for National Statistics says that inequality is now at its lowest level since 1986.

Since then, there has been a new optimism. Unemployment is down by one third in my constituency, with youth unemployment decreasing by 30%. There is renewed confidence in the local economy, and businesses are creating jobs. The number of apprenticeships in the town have increased by a staggering 83%. What is happening in my town is not unique; it is happening up and down the country. Employment is up and welfare dependency is down, and according to the OECD Britain is a more optimistic place than it was in 2010.

The best way to get people off welfare and into work is by creating a conveyor belt of aspiration. That starts in the family, continues in schools, and carries on into skills training and post-16 education. Excluding those in full-time education, despite what the Government have done on youth unemployment, there are still 500,000 young people out of work, so we must make it easier for young people to get the skills that they need to give them the best chance in life.

In last year’s Queen’s Speech, the Government said that it should be typical for school leavers to go to university or start an apprenticeship. Significant progress has already been made, with the Government on track to deliver 2 million apprenticeship starts. The university technical colleges are part of this ladder of aspiration, giving young people—those on low incomes, who would never otherwise have had the chance—the chance to get a state-of-the-art technical and vocational education alongside traditional academic education, and we need to bring that through. We need to ensure that doing training and vocational work and taking up apprenticeships are as prestigious as going to university.

We also need to be the party of social justice and redistribution. The Government have done a lot of work on redistributing wealth from the rich to the poor by cutting taxes for lower earners. Even the 45p rate has raised an extra £9 billion for the Treasury, and I urge the Secretary of State to lobby for that £9 billion extra to be put into a special fund that we can use to raise the national insurance threshold for the poor—part-time workers and those on lower pay. We have the money now as a result of the 45p rate, so let us redistribute the money we have gained from tax cuts to the rich and give it in tax cuts to the poor. Let us be the party of social justice and redistribution.

Finally, I want to tell two stories of what has happened to me as a constituency MP. A man came into my surgery and said, “The Government won’t let me go to the zoo.” I said, “What do you mean?” He said, “Because I don’t get enough on benefits to go to the zoo.” I said to him, “Do you realise the average wage in my constituency is £23,000 and people are paying £1,250 in their taxes on welfare benefits, not including pensions, and are you saying that those people, who struggle every day, should be paying more in taxes so that you can go to the zoo?” He said, “Yes, it is my human right to go to the zoo.” He was brought up on a diet of dependency so beloved by the last Government.

[John Glen (Salisbury) (Con)]

Does my hon. Friend agree that it is in challenging these suppositions that this Government are really making progress in the reforms they are bringing through, and that we need to look very carefully at the level of the cap as we go into the next year?

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[John Glen (Salisbury) (Con)]

All of us across the House are concerned about the most vulnerable people in our constituencies. It is deeply disappointing that many Opposition Members have implied today that universal credit, changes to the benefit system and the PIP are the function of a harsh Government who have no sympathy for the weakest among us. That is wrong: it is precisely because we have recognised that it was unsustainable to struggle on with over 50 separate benefits that did not respond effectively to minor changes in people’s day-to-day lives.

How could it be right that around 50% of decisions on disability living allowance were made on the basis of the claim form alone without a face-to-face assessment, and that changes in circumstances—for good and bad—went unaddressed by a benefits system that was not attuned to individuals and the needs of their conditions? Some 71% of DLA recipients got it for life. That was not right either for the taxpayer or for the people who had been written off callously by the state. More than 4 million working-age people were on out-of-work benefits and almost 2 million children were growing up in workless households under the last Government.

Yes, universal credit is the most ambitious programme to reform welfare in a generation and it is essential that it succeeds. However, as the Government have always said, it cannot happen overnight. It would not happen overnight under any Government. It is a task of substantial complexity. It is therefore unsurprising that there are challenges in its smooth delivery and the smooth delivery of the IT systems that are required to make it work.

Universal credit is just one part of the bigger picture. It is far from the chaos that the Opposition have presented this afternoon. Forty-five welfare reforms are under way, 42,000 people have had their benefits capped, 23,000 staff have been trained in universal credit and 550,000 participants have started a job following on from the Work programme. As we have heard, the welfare reforms are set to save £50 billion over the course of this Parliament, with the cap bringing almost £120 billion of Government spending under control. We have done all that on top of dealing with the backlog of ESA cases that was inherited from the previous Government.

It is crucial that we get universal credit right and that we do not replicate what has happened with previous programmes by rolling it out too quickly. That would be truly irresponsible. Any programme that changes a system that affects more than 7 million people will be challenging. The question is whether the Government have the courage to do the right thing, no matter how difficult, and whether they will give in when emotive political challenges are cynically deployed to give the impression that if only the Government changed, all would be well.

Where universal credit has been implemented, it is working. In the pathfinder areas, more than 60% of claimants said that it was easier to understand, provided a better financial incentive and rewarded small amounts of additional work. People on universal credit are spending twice as long looking for work each week as a result.

I say, let us continue down this difficult pathway—

[Madam Deputy Speaker (Dame Dawn Primarolo)]

Order. I call Michael Connarty.