Autumn Statement Distributional Analysis, Universal Credit and ESA

Justin Tomlinson Excerpts

Wednesday 16th November 2016 Commons Chamber

[Justin Tomlinson (North Swindon) (Con)]

It is a pleasure to contribute to the debate. Given the upcoming autumn statement and the incredibly important Green Paper, it represents a welcome opportunity for us to shape some of the decisions that will be taken. It is disappointing, however, that only two speakers so far—my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith) and my hon. Friend the Member for South Suffolk (James Cartlidge)—have actually made suggestions about where funding could come from should any changes be made.

I want to look first at the context of the debate. This Government have introduced the national living wage, benefiting 2.75 million of this country’s lowest earners, and we have committed to reach at least £9 an hour by 2020—a whole pound higher than what was in the Labour party manifesto at the election. The increase in the personal tax allowance, taking it from £6,495 to £11,000 with a commitment to reach £12,500 and then index-link it going forward, has lifted the lowest 3.2 million earners out of income tax altogether. Despite the doom and gloom of some speeches, we are delivering the strongest economic growth of any developed country, leading to record employment—461,000 more people are in work today than at this time last year. With my old Minister for disabled people’s hat on, I welcome the news that a further 590,000 disabled people are in work compared with three years ago—a 4% increase. There is still much more to be done, but we are making a genuine difference to some of those who are most desperate to be given an opportunity to work.

Wages are also increasing at 2.3% against inflation of 0.9%. I gently remind the SNP speakers, in particular the hon. Member for Ross, Skye and Lochaber (Ian Blackford), that inflation fell this week. I do not know whether that news escaped them.

[Ian Blackford]

rose—

[Justin Tomlinson]

The hon. Gentleman has had plenty of opportunities to contribute to this debate and other Members still want to speak.

We are also significantly extending childcare with a doubling of free childcare coming in.

Specifically on universal credit, the key difference is that it provides additional much-needed support. We know how important it is. Only 1% of ESA claimants came off the benefit every month despite the vast majority wanting the opportunity to work. There will be additional childcare, which will be beneficial for lone parents in particular, the provision and identification of training opportunities and specific job search help. Most importantly for me, in-work support will be offered for the first time. Many people coming off that benefit will go into low-paid jobs. They will often then stay at that low level and not benefit from a growing economy. In-work support will be provided. Someone may be told, “Look, you have been going for three months. You have turned up and been a diligent worker. Perhaps it is now time to push for greater responsibility and greater earning opportunities.” That is something that is very much welcomed by people I talk to.

My hon. Friend the Member for South Suffolk highlighted the 16-hour cliff edge. He pointed out that his staff did not want to work extra hours. That is not quite the case. They were desperate to work additional hours, but they were just unable to work them, and that was blocking opportunity for them.

On ESA, I wish to take a moment to pay tribute to the staff in the jobcentres, the Work programme providers, including Shaw Trust, plus many other organisations and charities that support those activities. They do a huge amount of work that often goes unseen. They are often not thanked, but I know that they have made a real difference to many people and we are seeing that in the jobs figures.

As my right hon. Friend the Member for Chingford and Woodford Green said, there has to be an emphasis on what people can do, rather than on what they cannot do. That is highlighted right the way through the very welcome Green Paper. I am proud to have made a small contribution to bringing that forward. It is very welcome that organisations such as Scope, Leonard Cheshire, the Royal National Institute Of Blind People, the National Autistic Society and hundreds of others are using their expertise and first-hand experience to help shape policy. I will continue to raise the importance of making them a priority in policy development and in delivering in the future.

We have already seen with the additional £60 million rising to £100 million that we will have more of a personalised and tailored approach. There will be quicker assessments, which is particularly important because 50% of people on ESA also have a mental health condition, and it is vital that we get support to them as quickly as possible. There will be a place on the new Work and Health programme, work choice for those who choose to volunteer, and additional places on the Specialist Employability Support programmes.

If anyone visits a jobcentre, they will understand how desperate people are to have those extra places. It is a bit like getting tickets for a very popular concert—first thing, once a month, it is about getting on the phone to try to grab those one or two available places. Job clubs will provide support, which will be delivered by peers, particularly those who have disabilities, who will give their first-hand experience and support. For many people, trying to return to the work environment is a very, very scary prospect.

There will be the new community partners and increased access to work for young people. There are also future opportunities, particularly through the Disability Confident campaign, which is very proactive in identifying to employers the huge wealth of talent that is out there if people will make a small change. I am particularly excited by the encouraging early results from the Small Employer Offer, which, in effect, doorsteps local employers saying that there is a wealth of talent out there. It asks what their skills gaps are and whether they can find the people to match them. Some really impressive results have been achieved.

We have seen increased funding for Access to Work. At the moment, it assists about 38,000 people. There will be funding in place for an additional 25,000 people. People who do not understand the scheme may say that it only helps 38,000. They ignore, or simply do not understand, how often we need to help people on only one occasion to then be able to get them into work. It could be by purchasing equipment, or by providing additional training. That person could then end up having a long-term sustainable career.

The other area is to make sure that the Fit for Work service supports people earlier than the four weeks, because, often, it is simple early advice, particularly to small employers, that will help keep people in work. It is far easier to keep people in work than to try to get them back in. Finally, we need to make sure that the charities are central to the delivery, because they have so much proactive experience. Their policy teams are constructive. When I was a Minister, it was a real pleasure to work with those organisations. Through the Green Paper, they can help to make a real difference.

[Several hon. Members rose—]