Oral Answers to Questions Debate
Full Debate: Read Full DebateJudith Cummins
Main Page: Judith Cummins (Labour - Bradford South)Department Debates - View all Judith Cummins's debates with the Department for Work and Pensions
(1 day, 8 hours ago)
Commons ChamberI am relieved to hear that the number of young people not in education, employment or training is dropping in Harlow. The number of such people rose by a quarter of a million in the last few years of the Conservative party’s time in government, and they did absolutely nothing about it. Bringing skills into the Department for Work and Pensions gives us the chance to bring skills policy and labour market policy closer together, to help young people get that vital chance of a first job.
Mr Peter Bedford (Mid Leicestershire) (Con)
When this Government came into office, unemployment stood at 4.2%. After a brutal 18 months of job-destroying, anti-business, anti-growth policies, it now stands at 5.2%, with young people bearing the brunt—1 million of them are not in employment, education or training. We Conservatives believe in being in work and off welfare, and that is the best path to eradicating poverty. Will the Secretary of State break with the mistakes of all previous Labour Governments and commit that unemployment will be lower at the end of this Parliament than it was at the start?
I believe this may be the first time that the hon. Member has appeared at the Dispatch Box in his capacity as shadow Minister—if I am wrong about that, I am sorry; but if I am right, I welcome him to his position. He asks about the forecast for the future. It was published alongside the spring statement a couple of weeks ago, and in it the Office for Budget Responsibility forecast employment to rise in every year of the forecast period.
Steve Darling (Torbay) (LD)
Politics is all about choices. Last week, the Chancellor stood at the Dispatch Box with a choice: she could have chosen to reverse the jobs tax that is costing thousands of jobs for young people up and down the United Kingdom. Why she did she not make that choice?
The hon. Gentleman may be unaware that the proportion of foreign nationals claiming universal credit who are in work is one third higher than the proportion for people who are British or Irish claiming—[Interruption.] If he prefers to put the figures into the context that he has just suggested from a sedentary position, the figure is 10% lower in terms of people who are not in work. It is often difficult to extrapolate a specific number because universal credit figures, such as these, are calculated on a per household basis rather than on an individual basis. If I am able to provide the specific number, I will follow up with him in writing.
The working-age benefits bill is set to reach £171 billion by the end of this Parliament, yet the Government are doing nothing to get it under control. In fact, by scrapping the two-child cap, they have added another £3 billion. It is time to stop spending and get saving. The Conservatives would stop benefits for foreign nationals and save £7 billion a year. Britain cannot be a cash machine for the world. With war in Ukraine and now in the middle east, we must boost our national security, so why are the Government continuing to bankroll benefits for migrants rather than investing in defence?
We have a lot of dialogue with businesses about the nature of the growth and skills levy and how it is used. I have to say to the hon. Gentleman and to the House that we are making a choice to prioritise young people. It is precisely because the previous Government did not prioritise young people that we saw a 40% decline in apprenticeship starts. I do not think that is an argument for the status quo; it is an argument for change. That is the slogan upon which we were elected, and it is change to the system that we will bring.
Rebecca Smith (South West Devon) (Con)
When the Secretary of State and I last met like this, he lauded the roll-out of youth hubs and the introduction of the youth guarantee as the solution to tackling the scale of young people not in education, employment or training. Since then, however, apprenticeship figures have been updated. The latest figures show that apprenticeship vacancies and adverts have significantly decreased since the Labour Government took office. If we compare the latest figures from this academic year with the same period in 2024-25, apprenticeship adverts have fallen by 27% and the number of vacancies has fallen by 22%. How can the Secretary of State make the promise of a youth guarantee with this alarming reduction in the number of available apprenticeships?
Torsten Bell
I thank my hon. Friend for his question—and for the shocking news of his age. He is absolutely right to highlight both these issues. Pensioner poverty halved under the last Labour Government, but it has risen more recently. That is why it is so important that, as well as increasing the state pension, we have put in place the biggest-ever take-up campaign for pension credit and focused on the cost of essentials—most importantly, energy, where new measures will come into place in the next few weeks.
My hon. Friend is also right to focus not just on poverty, but on isolation. I am sure that all Members of the House, when we are out knocking on doors at the weekend, meet some younger, but also some older, constituents who are too isolated. They might not be happy to see the Member who comes to knock on their door, but they might be. Whatever people think about politicians knocking on their doors, we all have organisations and charities in our constituencies—such as Age Cymru in Wales and, I am sure, many in my hon. Friend’s constituency—that do important work in tackling isolation among all our communities.
I declare a similar interest to that of the hon. Member for Bury St Edmunds and Stowmarket (Peter Prinsley). I read this weekend that if we grapple with the increase in pensions and benefits, we might be able to afford 15 new frigates. It is easy for Opposition Members to attack in-work benefits; it is more difficult to question the state pension. Has the Minister seen the paper from the Institute for Fiscal Studies that says we should consider moving to a smoothed earnings link for state pensions, which would ensure that they never fall in real terms but, in the long term, always rise with earnings? He will not give me an answer now, but perhaps he can write to me about how we are going to buttress the long-term sustainability of the state pension.
Torsten Bell
The right hon. Member is right to recognise the challenge. We have around 12 million pensioners at the moment, but that will rise to 18 million over the next 50 years. Our view is that having the triple lock drive above-inflation increases, on average, among pensioners is the right thing to do for this Parliament. That is why we set it out in our manifesto, and that is what is driving the increases in the state pension. When it comes to affording the cost of frigates, I merely point him to the fact that defence spending under this Government is higher in every year than it was in a single year under the Conservative party.
Helping millions of people ensure financial security in their retirement is a cornerstone of the Minister’s Department, but in the Government’s first 18 months, they have disincentivised pension savings by introducing inheritance tax on pensions, removing pensions from their lifetime ISA reforms, forcing pension trustees into mandation and, most recently, introducing a cap on salary sacrifice savings incentives. Through their actions, this Government are pushing people to be more reliant on the state pension, rather than encouraging people to take control of their own financial future. Which will be the next Government U-turn: cancelling mandation, or abandoning salary sacrifice caps?
My hon. Friend is exactly right. This is why we need to ensure that jobcentres have really good engagement with local employers, including manufacturers. She will be pleased to know that there will be an employer roundtable at the Manufacturing Centre in West Bromwich on 17 March, with Sandwell college and manufacturing employers. There will also be an employer breakfast on 29 April, again at Sandwell college, about jobcentres and what they can offer, particularly around SWAPS—sector-based work academy programmes—and manufacturing SWAPS, which are so important.
Madam Deputy Speaker, you are no doubt familiar with the dramatic principle of Chekhov’s gun: if there is a gun on the wall in the first act, it will be fired by the final scene. Ministers say that the mandation power in the Pension Schemes Bill is merely a backstop that they do not intend to use, but once they have a power in law like a gun on the wall, how long will that intention last? Will the Secretary of State make a commitment to the House that the mandation gun will never be fired at the expense of UK pension savers?
Torsten Bell
The hon. Lady is going to be absolutely furious when she finds out what those on the Opposition Front Bench did when the Pensions Schemes Bill came through this House. There is all this sound and fury now, but, when it came to choosing whether to vote against the very power she now says is incredibly dangerous, she went for a snooze on both Second and Third Reading. She is going to be even angrier when she finds out what her right hon. Friends the Members for Salisbury (John Glen) and for Godalming and Ash (Sir Jeremy Hunt) have called for, which is the mandation of pensions schemes in the UK to invest—
Order. I remind Members and Ministers that this is topical questions—we should have short questions and short answers.
Linsey Farnsworth (Amber Valley) (Lab)
With the Minister for Skills now working jointly across the DFE and DWP, we have very clear collaboration. We have already launched eight youth guarantee trailblazers, which are testing innovative approaches to localised support for young people who are NEET or at risk of becoming NEET, including targeted SEND support. We also have the Milburn review into young people and work and how better to support them.
Steve Darling (Torbay) (LD)
Last week, Citizens Advice shared a report into Access to Work which confirmed many things that we know from our own postbags relating to disturbing delays in the system on both processing applications and reimbursement. Will the Minister share with us what recovery plan he has in place and when the Government will get up to a 28-day turnaround for these important issues?