Oral Answers to Questions Debate
Full Debate: Read Full DebateLiz Kendall
Main Page: Liz Kendall (Labour - Leicester West)Department Debates - View all Liz Kendall's debates with the Department for Work and Pensions
(1 day, 12 hours ago)
Commons ChamberI would like to take this opportunity to welcome the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Swansea West (Torsten Bell), to his post as Pensions Minister, and to place on record my personal thanks to his predecessor, my hon. Friend the Member for Wycombe (Emma Reynolds), for all her hard work.
Our new Public Authorities (Fraud, Error and Recovery) Bill will update the Department’s powers to tackle fraud for the first time in more than years, including enabling our serious and organised crime investigators to apply for a warrant; enter and search premises for evidence; seize items such as computers and phones; and bring criminal gangs to justice.
Does my right hon. Friend agree that tackling fraud against the taxpayer is key to setting the country’s finances on a sustainable footing and allowing the investment in public services that my constituents are so desperate to see?
I absolutely agree with my hon. Friend. We have a responsibility and a duty to use every possible measure to ensure that taxpayers’ money is wisely spent, on our schools, hospitals and police and on supporting those who are in genuine need. Our new Public Authorities (Fraud, Error and Recovery) Bill, along with fraud measures in the Budget, will save £8.6 billion over the next five years. That is the biggest fraud package ever. We were elected on a mandate for change, and that is what this Government will deliver.
In the press today there is a reference to a criminal gang who defrauded the DWP by more than £1 million and were able to abscond to a certain eastern European country. Without mentioning too many things that are happening, can the Secretary of State tell me whether there is a way, within the law of this land, of chasing those people up, getting them back here and finding out where all that misappropriated money has got to?
The hon. Gentleman is right to raise this despicable case. The new powers in the Bill—the existing powers have not been updated for 14 years—will bring us into line with other public bodies and ensure that we can investigate this properly, secure the evidence and get our money back.
To get Britain growing again, we have to get Britain working again, and supporting employers is critical to achieving that goal. That is why last week I announced an overhaul of how the DWP helps businesses, including the introduction of a dedicated employers’ team in the DWP, ensuring that there are single account managers for businesses, so they do not have to have multiple conversations with different jobcentres, and the expansion of the number of training programmes tailored to employers’ individual needs. We are working in partnership with businesses: that is how we all go for growth.
The last Labour Government reduced child poverty by nearly half, from 3 million to 1.6 million, and legislated to eradicate child poverty by 2020. Instead, under the Conservatives, the number of children in relative poverty significantly increased between 2010 and 2023. Does the Secretary of State agree that working with employers to help people, particularly parents, into decent, well-paid jobs, is essential not only to growing our economy, but to reducing poverty, including child poverty?
I absolutely agree with my hon. Friend that having more parents, including lone parents and second earners in couples, in better paid jobs is critical to tackling child poverty. There has been a big shift in the nature of poverty since our success during the last Labour Government, when we lifted over 600,000 children out of poverty, as there are now more children growing up in poverty in a working household, so improving the parental employment rate is critical to driving down those numbers.
Tu Mundo, or Your World, is a growing independent business that recently opened its third coffee shop, in Rhyl. Tu Mundo has a distinctive style, not just with the toucan motif that graces everything, including its teapots, but with its commitment to economic growth in the local area. In partnership with the local employability service, Working Denbighshire, Tu Mundo hosts work-start placements for those entering or re-entering the workplace, with several graduates going on to become permanent employees. Will the Secretary of State join me in congratulating Tu Mundo and Working Denbighshire on that work? Does she agree that that is exactly the sort of partnership work that will bring fair economic growth across the UK?
Yes. I would like to say a massive thanks to Tu Mundo for all the work it is doing. There is a lot of evidence that work placements or work experience are a really important way to encourage more people into work. Last week, I visited B&M, the fastest growing retailer in the country, to look at what it is doing with short work experience placements, which are a form of “try before you buy” for the company and the employee. The placements have a huge success rate and B&M now recruits 85% of its workers through the scheme. We want to continue such success in the future.
Apprenticeships, training and reskilling in new energy technologies will be essential to deliver growth in the hard-working Humber region. Can the Secretary of State tell us more about the training programmes that she mentioned, which will support businesses in expanding opportunities in Grimsby and Cleethorpes?
I know that my hon. Friend is passionate about helping more people into work. Youth unemployment in her constituency is almost twice the national average, so it is essential for her constituents that we sort this out. Alongside work experience, we want to expand the number of sector-based work programmes, which have tailored courses for employers. We will also hold summits in three key growth areas—construction, health and social care, and clean energy—to bring employers together with local areas so that we can really go for growth.
The ambition of the Secretary of State for an 80% employment level is bound to be made more difficult by the findings in the impact assessment of the Employment Rights Bill, which foresees a £5.4 billion increase in costs and a 53% increase in strike action, is it not?
Government Members are ambitious for people right across the country. We do not accept the situation that we inherited from the Conservative party, as the only country in the G7 whose employment rate had not gone back to pre-pandemic levels. Creating more good jobs in every part of the country and narrowing the employment gap between different areas is tough, but we believe that it is achievable, and it is no less than the British people deserve.
On economic growth, what does the Secretary of State say to businesses in my constituency that fully support fair pay and national insurance contributions for employees, but whose ability to grow, create employment, and invest is being impacted by the cumulative effect of the changes?
I say that in order to put the public finances on a secure footing, we had to take difficult decisions. I understand the pressures that businesses are under, but they know that if we do not balance the books, we cannot grow in future. We are taking action not just to put the public finances on a secure footing but to have a genuine programme to get Britain working again. We do not accept the situation that we inherited from the Conservatives, in which so many people were locked out, denied the right to work, and denied a good, well-paid job in every part of the country.
As the Minister for Employment, my hon. Friend the Member for Birkenhead (Alison McGovern), likes to say, the Department for Work and Pensions is the HR department of the Government’s growth mission, yet we inherited a situation in which only one in six employers has ever used a jobcentre to recruit. That is not good enough, which is why I announced last week five steps to put it right by overhauling what we do for employers. That includes a new dedicated employers team that has already brought more than 30 companies on board, including Swissport, Home Bargains and KFC. Soon we will host summits with businesses in key growth sectors such as construction and clean energy, as part of our plan to get Britain working and growing again.
Cornwall and the Isles of Scilly is one of 15 WorkWell pilot regions, which are a core element of the Government’s “back to work” plans to reduce economic inactivity due to ill health. I invite the Secretary of State to visit Cornwall to see how WorkWell is already making a tangible difference in helping those with health conditions to start, stay and succeed in work, and to confirm that the spending review will provide the multi-year funding necessary to sustain and expand that vital service.
I would love to visit. That is an important programme focused on keeping people in work and getting those who have recently left back into work as soon as possible. In my hon. Friend’s area, WorkWell provides advice on workplace adjustments, access to physiotherapy, and employment advice and counselling, and is working closely with the voluntary sector and employers, backed by £2 million-worth of funding. That is critical because, with more than 15,000 economically inactive people in his constituency, we must start turning that situation around.
Last week, the right hon. Lady described herself as the HR manager for the Government’s growth plan, so can Liz from HR tell me which of her colleagues should be fired for the addition of 47,000 people to the unemployment figures in December?
I am proud to say that I want to get Britain working again after we inherited a situation in which a record 2.8 million people were out of work due to health problems, because the Conservatives pushed the NHS to its knees and failed to have a proper plan to get people back into work. Our mission is to get Britain working and growing again, and that is what our plan will deliver.
Wishful thinking is all very well, but let us talk about the facts. Those 47,000 people probably spent Christmas worrying about how they would pay the bills without a job, and they are now looking for work in an employment market decimated by Labour’s jobs tax. How high does the right hon. Lady forecast unemployment will get under her Government?
The hon. Lady wants to talk about the facts. The facts are that we inherited a situation in which we will be spending £20 billion more on working-age, incapacity and disability benefits because of the mess her Government made, and in which there has been a doubling of the number of young people out of work due to health conditions, so people are more likely to be out of work due to poor health in their 20s than in their 40s. Our radical reforms will give people the right to work and the support they need, and will get the benefits bill on a sustainable footing.
I absolutely will. As my hon. Friend knows, the Government have launched the “Keep Britain Working” review led by Charlie Mayfield, the former chair of John Lewis Partnership. He is doing precisely that—looking at how we can better support employers to help keep people in work and get them back to work. Mental health is a real concern for me, with so many young people not in education, employment or training, primarily driven by mental health problems. This is an issue we have got to sort, because it is terrible for them and for their future, and terrible for the economy too.
Yes, I do commit to that, and I thank my hon. Friend for his tireless campaigning on the issue. With almost 1,000 young people unemployed in his constituency, or almost one in 10, I know what an important issue it is. His area is part of one of our youth guarantee trailblazers, meaning that every young person is earning or learning. I commit that the whole Government will continue to work with him and partners in his constituency to make sure that no young person is left behind.
Jamie from my constituency is a full-time carer, but he is also in full-time education and is therefore not entitled to carer’s allowance. Will the Government confirm that they will extend carer’s allowance to those in full-time education?