Liam Byrne
Main Page: Liam Byrne (Labour - Birmingham Hodge Hill and Solihull North)Department Debates - View all Liam Byrne's debates with the Department for Work and Pensions
(13 years ago)
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Mr Liam Byrne (Birmingham, Hodge Hill) (Lab)
I beg to move,
That this House believes that the Government’s policies of cutting spending and raising taxes too far and too fast have resulted in the UK economy flat-lining for 12 months, well before the recent eurozone crisis; notes that unemployment has reached a 17-year high and over-50s unemployment has risen sharply; further notes that slower growth and higher unemployment makes it harder to get the deficit down and that the Office for Budget Responsibility forecasts a further rise in unemployment to 8.7 per cent., a rise in the benefits bill of £29 billion, and an increase in projected borrowing of £158 billion; agrees with the IMF’s warning that ‘consolidating too quickly will hurt the recovery and worsen job prospects’ and that the Government should ‘have a heightened readiness to respond, particularly if it looks like the economy is headed for a prolonged period of weak growth and high unemployment’; and, in light of the Office for Budget Responsibility forecasts published on 29 November 2011, calls on the Government to reconsider its refusal to adopt the Opposition’s five point plan for jobs which includes creating 100,000 jobs for young people and building 25,000 affordable homes using funds raised from a tax on bank bonuses, bringing forward long-term investment projects, temporarily reversing the January 2011 VAT rise, a one-year cut in VAT to 5 per cent. on home improvements, and a one-year national insurance tax break for every small firm which takes on extra workers.
It is a shame that the Secretary of State for Work and Pensions has chosen not to be present for the third Opposition day debate on unemployment and living standards. We rely, I hope, on the Minister for unemployment to relay back the nature of today’s debate and discussion.
The House meets to debate the motion after more grim news on jobs this morning. Grim news on jobs this month has followed grim news on the Budget last month. Once again we have seen this morning how the Chancellor’s decision to clobber the recovery is clobbering families all over our country. Once again we have heard of families losing their jobs because of this Government’s decision to cut too far and too fast, and once again we see the consequences of this Government’s decision to stand easy while millions of people in our country are now standing idle.
Not even the Minister for unemployment could spin his way through the statistics published this morning—unemployment up by 128,000, employment down, vacancies down and the public sector now losing jobs 13 times faster than the private sector is creating them. We do not have to look very far for the root cause of this unalloyed misery for families 11 days before Christmas. The Chancellor laid it out for us just a fortnight ago. Last year he was boasting about delivering cuts that were £40 billion greater than the cuts planned by Labour. Last year he was boasting about how Britain had suddenly become a safe haven. Last year he was so pleased with himself that he said this country was out of the danger zone. How hollow those words ring today.
The autumn statement laid bare the catastrophic failure of the Chancellor’s policy—growth flat lining for a year, borrowing up £37 billion higher than the plan drawn up by my right hon. Friend the Member for Edinburgh South West (Mr Darling), welfare up by £29 billion, and debt up an extraordinary £158 billion higher than forecast, which is £6,500 more for every house in this country. Borrowing, welfare bills and national debt are all higher, but growth is nowhere to be seen.
David T. C. Davies (Monmouth) (Con)
The right hon. Gentleman appears to be criticising the Government for borrowing more money. How much more money would he have borrowed, had he been in government?
Mr Byrne
If the hon. Gentleman had been listening carefully, he would have heard me answer that question. The plan that my right hon. Friend the Member for Edinburgh South West and I set out entailed borrowing that was £37 billion lower than that outlined by the Chancellor in his autumn statement a couple of weeks ago. That is of grave concern to the number of people who are now out of work, especially young people in the hon. Gentleman’s constituency, where long-term youth unemployment has gone up by 128% this year, which must surely concern him.
The Minister of State, Department for Work and Pensions (Chris Grayling)
Will the right hon. Gentleman give way?
Mr Byrne
I will in a moment.
Amid these difficulties, people in this country expect the Minister for work to do something about it, and I think that I speak for many Members of the House when I say that most right-thinking people in this country believe that the Government should be doing more to get people back to work.
During Work and Pensions questions a month ago I pressed the Secretary of State to tell us what exactly he is doing to get Britain back to work. A vast constellation of initiatives was set out, including work clubs, work experience, apprenticeship offers, sector-based work academies, the innovation fund, the European social fund, the skills offer, the access to apprenticeships programme, Work Together, the Work programme, Work Choice and mandatory work activity. Listening to that list, I became slightly puzzled. With such sweat being worked up at the Department for unemployment, surely we could expect the country’s unemployed to be positively flowing back into jobs. Members can imagine my surprise when I saw the Office for Budget Responsibility’s forecast that, amid that blizzard of initiatives, unemployment is forecast to go up. How can that be?
We asked the Secretary of State to tell us just how many jobs have been created by this glorious expenditure of energy at his Department. This is what we were told in a written answer in Hansard. On Work Choice, no statistics will be available until spring 2012. On mandatory work activity, no statistics will be available until February 2012. On work clubs,
“the data requested are… not available.”
On work experience, a link was provided to a website that says nothing about jobs actually created. On apprenticeship offers, we were told:
“Information on the number of people placed in work through apprenticeship offers… is not available.”
On sector-based work academies, we were told that
“there is no national requirement for districts to record and report job outcomes achieved.”
On the skills offer, “information… is not available.” On Work Together,
“the data requested are not available.”
On the innovation fund,
“no young people have been placed into work at this point.”—[Official Report, 21 November 2011; Vol. 536, c. 122W.]
Here we are, with unemployment going through the roof and the OBR telling us that unemployment is forecast to rise again next year, but despite the multiplicity of schemes laid out by the Secretary of State, who cannot be bothered even to come along to the debate, he cannot tell us how many people are going into work as a result of the spending his Department has in place, with the exception of one programme. The one initiative—it is buried in his answer in Hansard—run by his Department that he can claim is actually creating jobs is the programme financed by the European Union. He said:
“European Social Fund support has achieved 75,671 job outcomes from July 2008 to October 2011.”—[Official Report, 21 November 2011; Vol. 536, c. 122W.]
No doubt that is why he is urging his right hon. Friend the Prime Minister to get the hell out of the EU.
Mr Barry Sheerman (Huddersfield) (Lab/Co-op)
Are not leadership, boldness and imagination missing from that catalogue? With 1 million young people unemployed, surely we need something that captures the imagination—for instance, by using young unemployed graduates to train other people in the community and in the environment. We need imagination now.
Mr Byrne
My hon. Friend is absolutely right, and he has been a long-standing champion of the need to get young people into work and, crucially, equip them with the skills to succeed in the workplace, but I am afraid that we have a deficit of that from the Government. It is an embarrassment for the Minister that he is unable to tell the House how many people his schemes are getting into work. The Secretary of State appears to have so much confidence in the schemes that he cannot be bothered to turn up this afternoon. However, I want to make a more substantive point about the Minister’s flagship scheme.
Mr Byrne
I will in a moment, but first I want to make one point about the Work programme.
The Work programme is a new scheme that builds on the flexible new deal. We have said that if it works and delivers value for money we will keep it in place, but the Minister must accept that worries about the programme are growing. [Interruption.] I am delighted that the Secretary of State has been able to join us to hear this important point. The Minister for unemployment has repeatedly told the House that he cannot produce statistics on how well the Work programme is doing, and I completely understand his caution. I think that he is the only Minister who has been formally warned by the chairman of the UK Statistics Authority, who last year said that the Minister’s use of figures was
“likely to damage public trust in official statistics”.
No doubt he has repented for that sin and is seeking redemption, and I understand that he apologised and is certain not to repeat the offence. If the Work programme was working, surely the Department’s statistics would show that more and more people were flowing off benefits and into work. That is a simple test we can apply, but the problem is that the figures do not show that.
Ms Gisela Stuart (Birmingham, Edgbaston) (Lab)
On that basis, how does my right hon. Friend, as a fellow Birmingham MP, react to the fact that in the past year, between November 2010 and November 2011, the number of young people in Birmingham claiming jobseeker’s allowance increased by 19%, which is the worst figure for all core cities in the country?
Mr Byrne
That is an extremely serious problem for Birmingham, and my hon. Friend is absolutely right to draw the House’s attention to it, but there is a more widespread problem if the rate of people flowing off benefits into work is not rising. Research by the House of Commons Library for my office, which we are publishing this afternoon, shows that fewer people are flowing from benefits into work than at any point since 1998. That fall coincides with the Government’s decision last year to cancel the flexible new deal and the future jobs fund. Since January, when the future jobs fund ended, the percentage of people flowing off benefits and into work has fallen by a fifth. Between May and August last year, when the new scheme was being worked up, 86,000 fewer people came off benefits and into work than the year before. Surely Government Members would accept that that is simply not good enough.
Oliver Heald (North East Hertfordshire) (Con)
Does the right hon. Gentleman not accept that the future jobs fund was not about providing long-term jobs, but about short-term work placements of six months in the public sector? What is the point of that? If he wants to talk about solid outcomes for the future, he should not be talking about the future jobs fund, because within weeks the people involved were out of work again.
Mr Byrne
Let me say as diplomatically as I can to the hon. Gentleman that since the future jobs fund closed long-term youth unemployment in his constituency has gone up by 43%. He must accept that the future jobs fund was helping to keep young people in work. We know, as Ministers accept, that keeping young people close to the labour market, close to jobs and close to the habits of work is a good thing.
Oliver Heald
We all agree that keeping young people close to the labour market is important, and the advantage of what the Government are proposing is that it is in the private sector, where the jobs will come, where those opportunities are being given. Does the right hon. Gentleman not accept that in all the years when Labour was in government the number of people not in education, employment or training stood at a very high level and barely moved, despite all the growth?
Mr Byrne
Let me repeat that when Labour was elected in 1997, youth unemployment was about 14%. It came down to about 12% before the recession and then, yes, of course it went up during the recession, as all unemployment did. But rather than sit there doing nothing, as this Government have over the past year and a half, we chose to act. That is why youth unemployment was coming down before the election and why, since this Government were elected, it has gone up to record highs and has done so again this morning. That is surely not a record of which the hon. Gentleman can be proud.
Mrs Main
If the right hon. Gentleman wishes young people to be near the labour market, does he regret presiding over the lowest number of social housing units ever developed under a prosperous Government? That means that young people cannot have social housing at an affordable level and are therefore unable to access jobs in areas where there are high house values.
John Cryer (Leyton and Wanstead) (Lab)
Will my right hon. Friend confirm that 65,000 jobs have been lost in the construction sector alone, and that that is because of the slump in building across the board?
Mr Byrne
That is absolutely right. The construction sector has taken an absolute hammering since this Government took office, not least because of their foolhardy decision to get rid of infrastructure projects and building projects such as Building Schools for the Future that would have equipped many of our young people with the facilities needed to deliver a world-class education in the years to come.
Chris Grayling
Will the shadow Minister be extremely careful about the information that he lays before the House? Last month, in our previous debate on this subject, I told him that Department for Work and Pensions statisticians had made a comparison between youth unemployment lasting for more than six months as of now and two years ago, and that on a like-for-like measure there has been virtually no change. He keeps insisting that there has been a substantial increase, but the civil service statisticians say that that is not correct. Will he please stop making that assertion to this House?
Mr Byrne
I know that, like me, hon. Members will have read last year’s letter to the right hon. Gentleman from Sir Michael Scholar. The letter was very assertive about the way the right hon. Gentleman had used statistics before. I am happy to lay the letter before the House for those who have not seen it. I am also happy to show the Minister figures produced by the House of Commons Library, which show that since January long-term youth unemployment has risen by over 90%. That is a badge of shame for this Government, and the Minister should be doing more to get our young people back to work.
Susan Elan Jones (Clwyd South) (Lab)
Does my right hon. Friend share my view that the Government seem to be stuck in an ideological Tardis in their view of the public-private divide in the economy? A case in point is what they have done to the solar panel industry. We have seen massive job losses in the private sector because of a loss of private and public sector contracts. It is amazing that the Government cannot seem to get hold of this concept.
Mr Byrne
My hon. Friend is absolutely right. We were promised that this was going to be the greenest Government ever, but a wide group of green and conservation organisations now say that the Government are comprehensively failing to meet that commitment. We all know that one of the key growth sectors for the future has to be low-carbon industries. The Government should therefore be doing more to get people into work in these sectors, not least by providing some regulatory certainty about the future.
Let me finish my point about the collapse in the rate of people flowing off benefits and into work. There is a very basic test. The Minister’s plan is not working unless it is getting more people off benefits and into work, unless the unemployment bill is coming down, and unless it is really making a difference—and right now, he is failing on every single count.
Steve Rotheram (Liverpool, Walton) (Lab)
Does my right hon. Friend agree that the 227 additional people who have joined the dole queue in Liverpool, Walton may be seen by the Conservatives as just collateral damage from their failed economic policy, but for each of those individuals, although they are a statistic to the Government, theirs is a personal tragedy? Does he agree that they are still the same old Tories who believe that unemployment is a price worth paying?
Mr Byrne
Many will draw exactly that conclusion, not least because when they see a Secretary of State who is unable to come to this House and set out how many jobs his various initiatives are creating, they must conclude that he simply cannot be bothered to find out.
I want to spell out how two particular groups are being pretty badly hit by this Government’s policies. The human cost of the Government’s failure to get people back to work, to which my hon. Friend the Member for Liverpool, Walton (Steve Rotheram) alluded, will be on everybody’s minds this afternoon. When families get together this Christmas, there will be plenty of anxious talk about the year ahead. This House has debated many times before the dangers of creating a lost generation, and today that news got even worse. Youth unemployment is up by 54,000. As my right hon. Friend the Leader of the Opposition said earlier today, long-term youth unemployment is up this year by 93%. Two hundred and seventy of us now represent constituencies where long-term youth unemployment has risen by over 100%. That is simply not good enough.
Jim Sheridan (Paisley and Renfrewshire North) (Lab)
As someone who spent three years unemployed due to the activities of the Economic League, I well understand the indignity that unemployment brings. One of the things that kept me sane during that period was the ability to go along to the jobcentre and speak to people who could help me to get back into work. This Government are now closing the jobcentres.
Mr Byrne
The Minister says that this is nonsense. I am afraid that he will be giving the House the illusion that he is not taking the figures that we saw this morning seriously enough. He went on the media this morning and said that today’s figures, which show youth unemployment rising to the highest level this country has ever seen, represented a stabilisation in the labour market. When youth unemployment is going up, overall unemployment is going up, and women’s unemployment is going up, that is not stabilisation—it is a tragedy for the people those figures represent, and he should be doing more to get them back into work.
Geraint Davies (Swansea West) (Lab/Co-op)
Does my right hon. Friend agree that it was a massive strategic error for the Government to announce over a year ago that they were going to get rid of half a million public sector jobs? Public servants spent less because they thought they were going to lose their jobs. Together with two years of a 1% pay freeze, which will reduce real incomes by 17%, and the attempt to dress up a 3% change in income tax as a pension contribution, that has massively deflated the amount of consumption in the economy and given rise to flat lining growth.
Mr Byrne
My hon. Friend makes an extremely good point. The recovery has been clobbered, and as a result the welfare bill is now going through the roof. That is a bill that the rest of us are going to have to pay.
We now have, since we last met, a youth contract on the table. That is a recognition that it was a mistake to get rid of the future jobs fund and to leave instead, for two years, no active programme for getting young people back into work. That was a grave error. The shame is that this contract was paid for by a botched deal between the Deputy Prime Minister and the Chancellor; I do not think that the Secretary of State was even in the room. He should remember that if you are not in the room, it is quite hard to influence the decision. What emerged from the quartet, as I think it is quaintly called, was a shabby settlement that took money off hard-pressed parents with children to pay for this Government’s failure to get young people back to work. In the past, the Secretary of State has talked a lot about the marriage penalty, and there are sympathisers with his argument on both sides of the House. However, he too must now recognise that he is presiding over the biggest parents’ penalty that we have ever seen introduced into the benefits system, with twice the amount of money being taken off children and families than will be taken off the bankers over the course of this Parliament. Surely Government Members cannot be proud of that.
I want to ask a couple of questions about the youth contract to which I hope the Minister will be able to respond. First, will he admit that 53,000 work subsidies this coming year is far too few for the task that we have in hand? That equates to only one opportunity for every 20 young people now unemployed. Secondly, in 2009—this is perhaps of interest to the hon. Member for North East Hertfordshire (Oliver Heald)—Labour introduced a form of work subsidy, but the take-up was not great and the Conservative party attacked it remorselessly. What has accounted for the sudden change of heart over work subsidies? Thirdly, and perhaps most importantly given the Minister’s concern about statistics, when will we find out how many people the youth contract is getting back into work? Will it be Work programme providers who operate the schemes? If so, why do so many of them appear to be completely in the dark about the scheme and its introduction? If the contract proves not to work in short order, will the Government consider reintroducing Labour’s future jobs fund, which was such a success?
Ann McKechin (Glasgow North) (Lab)
I share my right hon. Friend’s concern about the fact that we still have no details regarding the youth contract. I asked the Minister last week how much of the programme would be spent in Scotland and he could provide me with no information whatever. No one in Scotland, including Work programme providers, private employers and those in the public sector, has any idea what they have to plan with or to work with. That is simply hopeless when so many people are out of work.
Mr Byrne
That was indeed a very disappointing answer to my hon. Friend, particularly considering today’s rise in unemployment in Scotland.
I want to highlight one other group of workers who have been particularly badly hit. The over-50s are now losing jobs at a faster pace. The number of people in that group in Britain who have been unemployed for more than a year has risen by about 25% this year. Such workers often fear that they will not get back into work again and that they will be thrown on to some kind of silver scrap heap. The picture of the country that emerged this morning is terrible: long-term unemployment among the over-50s is up by 21% and in seven regions—Wales, the north-east, the east midlands, London, the north-west, the south-west and the west midlands—it is even higher. More than 50 Members of this House now represent constituencies where the rise in long-term unemployment among the over-50s is more than 50%. That is surely unacceptable and it surely demands a response from the Government.
Mr David Winnick (Walsall North) (Lab)
Will my right hon. Friend bear it in mind that that situation is very much like what happened in the 1980s? People in their late 40s, let alone those in their 50s, were made redundant when there were two major recessions. Many of them were never to work again. That is the humiliation that was heaped on our fellow citizens. Although the Government and Tory Members do not seem to be much concerned—only five Tory MPs are present, leaving aside the Parliamentary Private Secretary—the tragedy is that there is now a repeat of what occurred at that time.
Mr Byrne
My hon. Friend is right to remind us of what happened in the 1980s. Of course, that was the decade when the number of those left to languish on incapacity benefit went through the roof.
Our motion calls on the Government to change course. We call on the Government to learn from today’s figures, to remember our young people, and to listen to the worries of the over-50s. We want them to change course and give us a real plan for getting people back to work and for creating growth. We think that there is another way and that the Government need to listen, and fast.
This is perhaps the last debate that I will lead for the Opposition this year. I want to conclude by looking ahead to an important anniversary next year—the 70th anniversary of the Beveridge report. I think that it is appropriate to mark the achievement of that very different kind of alliance; an alliance that genuinely acted in the national interest. The report was commissioned by a Labour Minister, written by a Liberal and welcomed by a nation. The Beveridge report provided the foundation for the welfare state created by the Attlee Administration. It was a welfare state that freed people from fear and it was created on the proceeds of full employment. I believe that the goal of full employment should once again be our aim. I hope that next year we can celebrate the achievement of that progressive alliance by rededicating ourselves to the idea that politics can make a difference, that politics can author the policies that get this country back to work once again, and that politics once again can offer this country freedom from fear.
I commend the motion to the House.
The Minister of State, Department for Work and Pensions (Chris Grayling)
I rise to take part in episode two of the debate that we began a month ago.
Let me start by saying, once again, that this Government regard unemployment among people of all ages as bad, although youth unemployment is a particular concern. All unemployment is bad and it will remain a priority for this Government to deal with the issue, to help those who are unemployed back into work, and to create an environment in which businesses are able to grow, develop and create jobs. We will do everything that we can to tackle this genuine blight, which causes concern for Members on both sides of this House. It is a problem that we must tackle.
I must also say, however, that I have seldom in this House heard such a load of complete nonsense as I have just heard from the shadow Secretary of State. He used statistics that bear no relation to the truth and he made an argument based on achievements of the previous Government that bear no relation to reality. We need to remember that it was the Labour Government who brought us youth unemployment of nearly 1 million, unemployment of 2.5 million, a deep recession, the biggest peacetime financial deficit in our history, and a Chief Secretary to the Treasury who was best known not for his taste in cappuccino or the memos that he sent to his staff, but for the note that he left behind, saying that “there’s no money left”.
Mr Byrne
The whole House is enjoying the Minister’s frivolity with such a serious issue. Will he just remind us how much extra the Chancellor proposes to borrow over and above the plans that he set out before the House last year? Is it a figure not unadjacent to £158 billion more than he forecast?
Chris Grayling
Had we followed the economic strategy of the right hon. Gentleman when he was at the Treasury and of his former boss, the former Prime Minister, not only would we be in the same kind of financial predicament today that some of our European partners are in, but we would have unemployment that is much higher today than it is.
Chris Grayling
My hon. Friend makes an important point. From listening to the Opposition, one would believe that the problem had simply emerged in the past few months. One would not believe that unemployment among young people was almost 1 million when Labour left office. Indeed, the total number of young people not in education or employment passed 1 million during the last recession, but we do not hear about that from Labour.
Mr Byrne
The Minister can try to evade the truth as much as he likes, but he cannot duck the basic fact that youth unemployment was about 14% when Labour took office. Before the recession it came down to 12%. It did go up during the recession, but it was coming down before the election. Since the election, it has gone through the roof to a record high. He simply cannot duck that truth. Why does he not get on and do something about it?
Chris Grayling
I will explain what we are planning to do, but we should remember that youth unemployment was at almost 950,000 when Labour left office, which was higher than when it took office. We are not going take lessons from Labour and its record on youth unemployment.
I wish to set out the approach that we have put in place to try to support the unemployed.
Chris Grayling
No, I am going to make some progress now.
The first priority has to be to help get business moving and growing again. That involves having a stable financial environment in which businesses are confident that this country is not going to find itself in the economic predicament that some other nations are facing. We therefore remain determined to address the deficit challenge, bring our public finances under control and send a message to the world that Britain understands the challenges that we face and is trying to do something about them. That is why we saw such a good response in the bond markets this morning to this country’s attempts to sell its bonds, and why other countries are facing difficulties. I believe that if we had not taken those measures, businesses would not be investing in this country or considering employing people here. I believe that unemployment would be higher than it is today.
We also have to take measures that, within the confines of the financial constraints upon us, do everything possible to encourage and support business. That is why my right hon. Friend the Chancellor set out in his autumn statement two weeks ago a variety of measures designed to do just that. They include investment in infrastructure; an expansion of the regional growth fund; increased capital allowances in enterprise zones; and measures to underpin bank lending to small businesses, so that they can access the finance that they need to grow. Those are essential parts of ensuring that in exceptionally difficult times, businesses at least have the best foundations that we can possibly give them to enable them to grow.
Chris Grayling
If the hon. Lady will allow me, I will finish explaining what we are doing. Last night, we published figures showing that 20% of referrals taking place through the Work programme are being handled by the voluntary sector, so it is playing an extremely important part in our work. It is also helping us to deliver a number of other programmes, and it is an integral part of supporting both the short and long-term unemployed.
There are a number of elements to the package that we have put in place. The first is support for the shorter-term unemployed, with a particular focus on the young, through our work experience programme and sector-based work academies. The right hon. Member for Birmingham, Hodge Hill would know, had he read the figures that we published, that the first statistics, for the period up until August, showed that more than 50% of the young people going through our work experience programme moved off benefits quickly afterwards. Indeed, we know that many of those young people are staying in employment with the employers who gave them their work experience place. The scheme is a great success, and we are doubling its size as part of the youth contract.
I should like to put it on record that I am very grateful to all the employers up and down the country, large and small, that are offering young people work experience and helping to break the vicious circle whereby people cannot get a job unless they have experience, but they cannot get experience unless they have a job. The scheme is cost-effective, costing one twentieth of what was spent on the future jobs fund for a broadly similar outcome. It is a great initiative, and I pay tribute to all the Jobcentre Plus staff who are working on it.
Mr Byrne
I am grateful to the Minister, who is characteristically generous in giving way. I assume that he refers to the statistics that were published on the Department’s website about work experience, which showed that between January and August 2011, 16,360 claimants started a “get Britain working” work experience placement. That is in the written answer that he gave me. Of those 16,000, how many have got jobs?
David T. C. Davies
I have heard about this tax on bankers’ bonuses, which has already been spent in myriad different ways. In any case, the Government have already introduced taxes on banks, which are bringing in far more money. I point out to the right hon. Gentleman—I am sure he knows this, given what his last job was—that the financial services industry in this country is contributing about 10% of all the money that we have, or somewhere in the region of £50 billion. At this moment in time, we cannot do anything too much that will damage that.
Let me explain to the House what I think the Opposition party’s economic policy was. Up until October and the Chancellor’s statement, the economic policy of Labour Members was to borrow even more money than we are being forced to borrow at the moment. Since October, everything has changed and suddenly their policy is to borrow less money. Amazingly enough, they are not only going to borrow less money, but spend more money. The Opposition are going to borrow less money but somehow there will be no cuts in Government expenditure and no freezes on pensions and everyone will have a job. It is a totally incoherent economic policy, but completely consistent with what we have come to expect from Labour.
Mr Barron
The idea that we should come here and dance around about whether all the figures are accurate, when there are 2.6 million unemployed people in this country, is not sensible. [Interruption.] I do not know: I am not a Minister, and I do not study the briefs that the Minister studies. What I do, and what I have done for over 28 years, is represent a constituency that is largely poor, with far too much deprivation in all sorts of areas, whether in terms of ill health, high unemployment or anything else. I saw that change in my lifetime, over a decade, which affected the lifestyles of many people in my constituency. I see from today’s statistics and what has been happening over the past 12 months that things are returning to how they were decades ago. It is wrong and it is unfair, and I am not going to come to this place and listen to a debate about “the national economy” this or “the national economy” that. We need to look at the crucial issues of how to help the young generation.
Mr Byrne
My right hon. Friend is making a characteristically powerful speech. The truth is that the House of Commons Library is clear: in January 2011, long-term youth unemployment in his constituency was 160, but it is now 270, a rise of more than 68%. Under anybody’s definition that rise is unacceptable, and the Government should be doing more to bring it down.
Mr Barron
I agree entirely with my right hon. Friend.
If anybody wants to know the consequences of youth unemployment—not just now, but in the future—they could do worse than look at the article headed “Future costs of youth unemployment” on the BBC business news website, which refers to an academic paper by Paul Gregg and Lindsey Macmillan that sets out in great detail what happens to people who suffer from youth unemployment. It affects them for the rest of their lives, not only in terms of their jobs, but in terms of their incomes and everything else. It is not acceptable for us to sit in this House today and watch youth unemployment increasing to its current levels, which will disadvantage generations of people and their children, as well as the taxpayer, who will have to pay for it. I will not rehearse how much it will cost, but there will be a cost to the taxpayer—the cost to the individuals concerned will probably be far higher—that we should guard against.
I want to finish on this point. The Government’s ideology was about coming in and saying, “We get rid of the public sector”—I have seen the damage of that—“and we bring in the private sector.” However, for every 13 jobs lost in the public sector in the last quarter, only one has been created in the private sector. It is not good enough. The plan is not working. It is about time this Government tried to protect everybody in this nation.
Steve Webb
In a second. So when it is said that the private sector is not expanding, that is simply not right. People say that there are no jobs, but there are half a million additional private sector jobs. The hon. Lady made the point that that is looking over the whole period, so I will take her at her word. Let us look at the last month. In it, the number of people in work has risen by 38,000. Of course, we can all choose different time periods—Labour Members used the last quarter, for example—but my point is that selective use of statistics, such as that made by the right hon. Member for Birmingham, Hodge Hill (Mr Byrne), creates a highly misleading impression and talks down the British economy in a way that is in nobody’s interests.
Mr Byrne
The Minister is characteristically generous in giving way. Surely he cannot celebrate the fact that employment over the last quarter has fallen by some 63,000, and that 13 times more jobs are being lost in the public sector than jobs are being created in the private sector. He cannot tell the House today that everything is going well, surely.
Steve Webb
Of course, I did not say that everything is going well, but the right hon. Gentleman cannot deny that in the last month, an extra 38,000 jobs, net, have been created. We can choose different time periods. As my right hon. Friend the Minister of State said, the claimant count rose by 3,000 in the last month, but that is more than offset by the fact that people who were previously on incapacity benefit have been reassessed on to JSA, and lone parents have been required to look for work and moved on to JSA. In fact, without those policy changes, JSA numbers would have fallen in the last month. That is why my right hon. Friend was absolutely right to talk about signs of stabilisation in the job market.
As a number of Members on both sides of the House said—my hon. Friend the Member for Salisbury (John Glen), the right hon. Member for Rother Valley (Mr Barron) and others—every single person on the unemployment roll is a person too many, but if we overstate the doom and gloom, we talk down confidence in the economy, which is to the detriment of all our constituents.
Let me respond to the claim made by the right hon. Member for Rother Valley and others that long-term youth unemployment is up—and I quote—“93%”. Labour Front Benchers have clearly supplied all their Back Benchers with figures for their constituencies. The only problem is that all of them are wrong. Labour Members might be interested to learn that what used to happen is that under measures such as the new deal, people had to move off JSA after a certain period and were paid something else—a training allowance—or they got a temporary job; then, when they went back on to JSA, as so many did, the clock started again. Hey presto—a long-term unemployed person had been converted into a short-term unemployed person. They had not got a job; they had just been taken out of the figures. We have stopped doing that. As a result, if all the factors are taken into account—the people who were excluded from the statistics because they were on training allowances or in temporary jobs—the number of long-term claimants aged 18 to 24 is about the same now as it was in 2010.
To hear Labour Members, one would think that the numbers had doubled. The right hon. Gentleman was very angry about that, and had they doubled he would be right to be so, but they have not doubled—in fact, they are roughly the same.