Women’s State Pension Age Communication: PHSO Report

Liz Kendall Excerpts

Tuesday 17th December 2024 Commons Chamber

[The Secretary of State for Work and Pensions (Liz Kendall)]

With permission, Mr Speaker, I would like to make a statement on the investigation by the Parliamentary and Health Service Ombudsman into the way that changes in the state pension age were communicated to women born in the 1950s.

The state pension is the foundation for a secure retirement. That is why this Government are committed to the pensions triple lock, which will increase the new state pension by more than £470 a year from this April and deliver an additional £31 billion of spending over the course of this Parliament, and it is why Governments of all colours have a responsibility to ensure that changes to the state pension age are properly communicated so that people can plan for their retirement.

Before I turn to the Government’s response to the ombudsman’s report, I want to be clear about what this report investigated, and what it did not. The report is not an investigation into the actual decision to increase the state pension age for women in 1995 or to accelerate that increase in 2011—a decision that the then Conservative Chancellor George Osborne said

“probably saved more money than anything else we’ve done”.

That comment understandably angered many women and sparked the original Women Against State Pension Inequality Campaign. The ombudsman is clear that policy decisions to increase the state pension age in 1995 and since were taken by Parliament and considered lawful by the courts. This investigation was about how changes in the state pension age were communicated by the Department for Work and Pensions, and the impact this may have had on the ability of women born in the 1950s to plan for their retirement.

I know that this is an issue of huge concern to many women that has spanned multiple Parliaments. Like so many other problems that we have inherited from the Conservatives, this is something that the previous Government should have dealt with. Instead, they kicked the can down the road and left us to pick up the pieces, but today we deal with it head-on. The Pensions Minister—the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Wycombe (Emma Reynolds)—and I have given the ombudsman’s report serious consideration and looked in detail at the findings, and at information and advice provided by the Department that was not available to us before coming into Government.

The then ombudsman looked at six cases. He found that the Department provided adequate and accurate information on changes to the state pension age between 1995 and 2004, including through leaflets and pensions education campaigns and on its website. However, decisions made between 2005 and 2007 led to a 28-month delay in sending out letters to women born in the 1950s. The ombudsman says that these delays did not result in the women suffering direct financial loss but that they were maladministration.

We accept that the 28-month delay in sending out letters was maladministration, and on behalf of the Government, I apologise. This Government are determined to learn all the lessons from what went wrong, and I will say more about that in a moment. We also agree that the women suffered no direct financial loss because of the maladministration. However, we do not agree with the ombudsman’s approach to injustice or remedy, and I want to spell out why.

First, the report does not properly take into account research showing that there was actually considerable awareness that the state pension age was increasing. It references research from 2004 showing that 43% of women aged over 16 were aware of their state pension age, but it does not sufficiently recognise evidence from the same research that 73% of women aged 45 to 54—the very group that covers women born in the 1950s—were aware that the state pension age was increasing, or research from 2006 showing that 90% of women aged 45 to 54 were aware that the state pension age was increasing.

Secondly, the report says that if letters had been sent out earlier, it would have affected what women knew about the state pension age. However, we do not agree that sending letters earlier would have had the impact that the ombudsman says. Research given to the ombudsman shows that only around a quarter of people who are sent unsolicited letters actually remember receiving them or reading them, so we cannot accept that, in the great majority of cases, sending a letter earlier would have affected whether women knew that their state pension age was rising or increased their opportunity to make informed decisions.

These two facts—that most women knew the state pension age was increasing and that letters are not as significant as the ombudsman says—as well as other reasons, have informed our conclusion that there should be no scheme of financial compensation to 1950s-born women in response to the ombudsman’s report.

The ombudsman says that, as a matter of principle, redress and compensation should normally reflect individual impact. However, the report itself acknowledges that assessing the individual circumstances of 3.5 million women born in the 1950s would have a significant cost and administrative burden. It has taken the ombudsman nearly six years to investigate the circumstances of six sample complaints. For the DWP to set up a scheme and invite 3.5 million women to set out their detailed personal circumstances would take thousands of staff years to process.

Even if there were a scheme in which women could self-certify that they were not aware of changes to their state pension age and that they had suffered as a result, it would be impossible to verify the information provided. The alternative put forward in the report is a flat-rate compensation scheme at level 4 of the ombudsman’s scale of injustice. This would provide £1,000 to £2,950 per person, at a total cost of between £3.5 billion and £10.5 billion.

Given that the vast majority of women knew the state pension age was increasing, the Government do not believe that paying a flat rate to all women, at a cost of up to £10.5 billion, would be a fair or proportionate use of taxpayers’ money, not least when the previous Government failed to set aside a single penny for any compensation scheme and left us a £22 billion black hole in the public finances.

This has been an extremely difficult decision to take, but we believe it is the right course of action, and we are determined to learn all the lessons to ensure that this type of maladministration never happens again. First, we want to work with the ombudsman to develop a detailed action plan out of the report, so that every and all lessons are learned. Secondly, we are committed to setting clear and sufficient notice of any changes in the state pension age, so that people can properly plan for their retirement. Thirdly, I have tasked officials to develop a strategy for effective, timely and modern communication on the state pension that uses the most up-to-date methods, building on changes that have already been made, such as the online “check your state pension” service that gives a personal forecast of a person’s state pension, including when they can take it, because one size rarely fits all.

As I said, we have not taken this decision lightly, but we believe it is the right decision because the great majority of women knew the state pension age was increasing, because sending letters earlier would not have made a difference for most, and because the proposed compensation scheme is not fair or value for taxpayers’ money.

I know there are women born in the 1950s who want and deserve a better life. They have worked hard in paid jobs and in bringing up their families. Many are struggling financially with the cost of living and fewer savings to fall back on. They worry about their health and how their children and grandchildren will get on.

To those women I say: this Government will protect the pensions triple lock, so your state pension will increase by up to £1,900 a year by the end of this Parliament; we will drive down waiting lists, so you get the treatment you need, with an extra £22 billion of funding for the NHS this year and next; and we will deliver the jobs, homes and opportunities your families need to build a better life. I know that many 1950s-born women will be disappointed about this specific decision, but we believe it is the right decision and the fair decision. I commend this statement to the House.

[Mr Speaker]

I call the shadow Secretary of State.

[Helen Whately (Faversham and Mid Kent) (Con)]

I thank the Secretary of State for Work and Pensions for advance sight of her statement, and I thank the ombudsman and his team for their work on this important matter.

In March this year, the Parliamentary and Health Service Ombudsman published its final report into the way that changes to the state pension age were communicated to women born in the 1950s. The report took over five years to produce and reflects the complexity of the issue. It spans a 30-year period across different Governments, dating back to Parliament’s decision in 1995 for the state pension age for men and women to be equalised, in a long-overdue move towards gender equality.

As the chief executive of the ombudsman set out, the Department for Work and Pensions fully co-operated with the ombudsman through its investigation and provided thousands of pages of detailed evidence to support it. It is because we took the work of the ombudsman so seriously that it was right for the Government to fully and properly consider the findings, and we were committed to working with Parliament to provide an appropriate and swift response. However, as the House will know, the general election was called less than two months later. Given that it has taken Labour five months since the general election to provide its findings, I am sure the Secretary of State would agree that there was insufficient time to take a considered and fair decision between the publication of the report and the election.

I am glad that the Secretary of State has picked this issue up since coming into office and has brought her statement to the House today. I will be considering it in more detail in the days and weeks to come, as well as the basis on which she has reached her conclusion. I am sure that the Government’s statement today will be a huge disappointment to WASPI women, and I recognise the strength of feeling about the issue.

As a constituency MP, I have met WASPI women who live in Faversham and Mid Kent and heard their personal stories. No doubt campaigners will note the Government’s apology for the decisions made between 2005 and 2007 that led to a 28-month delay in sending out letters, which the ombudsman identified as “maladministration”. But let us be clear: the decision to provide no compensation is the Government’s decision, and they need to own it. I am not going to let them get away with saying that there is no compensation because of a fictional black hole in the public finances. The country’s financial position now is a result of their political choices. They should not try to dodge responsibility by suggesting to WASPI women that, if times were different, they might have come to a different conclusion. Government compensation should always be based on what is fair and just.

That brings me to some questions. Given the announcement that they will not be providing financial compensation, will the Government put forward any other non-financial form of remedy for the women affected? Will the Secretary of State be involving the WASPI campaigners in the action plan she has referred to and what is the timeline for that?

The Secretary of State claimed that pensioners are better off under Labour, but let us not forget that it was the Conservatives who introduced and protected the triple lock, which has seen the state pension increase by £3,700 since 2010, and there are now 200,000 fewer pensioners living in absolute poverty. Does the right hon. Lady know how many women affected by her decision are on pension credit?

Labour’s own impact assessment shows that its decision to scrap the winter fuel payment will see 5.2 million women lose out. How many of those hit by those cuts to the winter fuel payment are also affected by today’s announcement?

Finally, given that the Government have dismissed the recommendations of the Parliamentary and Health Service Ombudsman, will the Secretary of State set out what implications she sees for the future of the ombudsman?

[Liz Kendall]

I welcome the overall tone of the hon. Lady’s comments. I am glad that she is finally considering her party’s response to the ombudsman’s report, and I am sure that the whole House looks forward to its detailed response to the findings and recommendations, which were not provided when the Conservatives were in Government.

I am sorry that the hon. Lady still fails to take responsibility for the state of the public finances. We have taken full responsibility for that and have taken difficult decisions on the public finances. We have also taken this very difficult decision in response to the ombudsman’s report and have provided that to the House as quickly as we have been able, given the huge amount of information we have had to go through.

The hon. Lady asks about next steps. We have three clear things that we intend to do. We will produce a detailed action plan. We want to work with the ombudsman on that so that we can ensure that the delay, the maladministration and the 28-month delay in sending out notifications never happens again, and I am perfectly happy to consider working with the women to make sure we get that right. It is extremely important that, wherever possible, we provide personalised, tailored information. Pensions are a hugely complicated area, and we want people to be empowered with that information and knowledge. We have to do it in all sorts of different formats, because it is individual to the person, and we need to get that right in future.

The hon. Lady also mentioned pension credit and the winter fuel payment. I will say to her, as I did yesterday, that we have seen a 145% increase in the number of claims for pension credit since we launched our campaign. More than 42,000 more people are claiming pension credit now. We want to deal with yet another thing the Conservative Government left us with, which was 880,000 pensioners not getting the pension credit or the winter fuel payment they are entitled to.

These are difficult decisions. We are a responsible Government and we face up to our responsibilities. I look forward to Members on the Conservative Benches finally doing the same.

[Gill German (Clwyd North) (Lab)]

This is clearly not a decision that the Secretary of State has taken lightly, and an apology on behalf of the Department for Work and Pensions is long overdue, but let us make no mistake: the responsibility for this lies squarely with the Conservative party, which oversaw the maladministration and kicked the can down the road yet again, for us to clear up the mess. That must be put right. Can my right hon. Friend assure my constituents that a serious case like this will not occur again, and that this Government will continue to do everything we can to support pensioners going forward?

[Liz Kendall]

I can assure my hon. Friend’s constituents in Clwyd North that we want to learn all the lessons from the maladministration that we accept took place. We have to get people timely, effective and personal communication, and not just about their state pension age but about all aspects of pensions, so that they can properly plan for their retirement. The Pensions Minister and I will go through that with a fine-toothed comb to do everything possible to make sure it does not happen again.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Steve Darling (Torbay) (LD)]

First, and for the record, the Liberal Democrats played a significant part in government in introducing the triple lock for our pensioners—it is important that people acknowledge that.

The Government’s decision is nothing short of a betrayal of WASPI women. I know that, as in my constituency of Torbay, across the United Kingdom there will be millions of women who are shocked and horrified at that decision. That the Government have inherited an awful state for our economy is no excuse. That the women are being hit by the mistakes of the Tories and that the Labour Government are now using that as a shield is utterly wrong-headed. Will the Secretary of State reflect on the decision?

The matter went to the ombudsman for its considered review, and the Liberal Democrats have long supported the ombudsman’s findings. I am shocked that the Government are taking a pick-and-mix approach to those findings, and we therefore ask the Secretary of State to seriously reconsider the decision.

[Liz Kendall]

I gently say to the hon. Gentleman, who I know was not in the House at the time, that the decision to accelerate the increase in the state pension age in 2011 was taken by the Conservative and Liberal Democrat coalition Government. It was that which angered and annoyed many women and led to the WASPI campaign. We accept that there was a 28-month delay in sending out letters and we apologise for that, but we do not agree with the ombudsman’s approach to injustice or remedy. We do not believe that the letters would have had an impact on most, as the ombudsman said, and when 90% of women knew that the state pension age was increasing, we cannot accept that that flat rate of payment of up to £10.5 billion would be a fair or appropriate use of taxpayers’ money. I know that will disappoint some women born in the 1950s, but we believe it is the right and fair decision.

[Florence Eshalomi (Vauxhall and Camberwell Green) (Lab/Co-op)]

I share the Secretary of State’s concern about the black hole that was left. This will have been a difficult decision for her to make and bring to the House today. However, I think about the many people across all our constituencies who have contacted us about the matter, including my constituent Valerie, who wrote to me and said:

“We simply cannot afford to wait any longer for justice given that more than 20,000 WASPI women have tragically died since the ombudsman’s findings were published more than 6 months ago.”

I know that Valerie and many others in my constituency will be very disappointed. The Secretary of State says that she accepts the maladministration. Does that not then mean accountability?

[Liz Kendall]

We do indeed take responsibility for the maladministration between 2004 and 2007 and a 28-month delay in sending the letters out. I want to reiterate to my hon. Friend and to the House that this is not a decision about the increase in the state pension age, which so many women were aggrieved about; it is about how that was communicated. We accept that those letters should have gone out earlier, but even if we had sent those, it would not have made a difference for most. When 90% of those 1950s-born women knew that the state pension age was increasing, we do not think that the proposed compensation scheme is fair or proportionate. That is why we have taken this extremely difficult decision.

[Dame Caroline Dinenage (Gosport) (Con)]

The Parliamentary and Health Service Ombudsman’s report says what many WASPI women across my constituency have been saying for years, which is that between 2005 and 2007 the DWP and the last Labour Government let them down. I am therefore grateful to the Secretary of State for her apology, but that will come as cold comfort to those who are in this situation in the face of no financial compensation. If I am right in what I hear, she says mitigation is too complicated and that it is someone else’s fault. That will be no comfort to those impacted. What conversations does the Secretary of State plan to have with the WASPI women to see what more support can be put in place for those most impacted?

[Liz Kendall]

I met the WASPI campaign in opposition when I was appointed shadow Work and Pensions Minister. The Minister for Pensions was the first of her kind to meet the WASPI campaign for eight years, and she is happy to meet them again. I say to the hon. Lady, who feels very deeply about the issue, that we will learn all the lessons from what went wrong with the delay in sending the letters out, but we do not agree that even if we had done that, they would have made the difference that the ombudsman claims. This is not about the matter being too complicated; we do not believe that, when 90% of women aged 45 to 54 knew the state pension age was increasing, a flat-rate compensation scheme costing up to £10.5 billion would be a fair or proportionate use of taxpayers’ money.

[Rebecca Long Bailey (Salford) (Ind)]

The all-party parliamentary group on state pension inequality has found that huge numbers of women have suffered significant financial hardship; many have even lost their homes. The Secretary of State must realise that her apology is welcome, but that it is not enough for them. Frankly, it is unprecedented for a Government to agree with the findings of an ombudsman on the one hand, but, on the other, to refuse to initiate redress when clear injustice has occurred. What will the Secretary of State say to reassure those women who have lost everything?

[Liz Kendall]

I understand the concerns that my hon. Friend raises, but I reiterate the findings from the ombudsman’s report that there was no direct financial loss. We agree that those letters should have been sent out earlier. We will learn all the lessons needed to put that right. I am more than happy to discuss precisely how we will do that with the all-party parliamentary group, so that that kind of maladministration of sending out letters never happens again.

[John Milne (Horsham) (LD)]

Last month, the word “WASPI” made it into the Collins English Dictionary, which is a credit to the campaigners behind it. Does the Secretary of State agree that she has gone through the ombudsman’s report with, to use her own words, a fine-toothed comb, in order to get the answer that she always wanted to find in the first place?

[Liz Kendall]

No, I do not agree with that. It was only when we got into government that we were able to see all the information and advice provided by the Department. I did not go into it in the way that the hon. Gentleman suggests; that is not correct. This report is not about the policy decision and women against state pension age increases. That decision was taken in 1995, agreed to by subsequent Parliaments and deemed lawful by the courts in 2020. The ombudsman’s report is not about the state pension age increases; it is about how they were communicated. I take responsibility for that and will make sure that we do everything possible to put it right.

[Katie White (Leeds North West) (Lab)]

This is undoubtedly a tough choice. It is welcome that the Government will seek to learn the lessons and develop a new strategy for clear and timely comms. Will the Secretary of State reassure the House not only that the strategy will be comprehensive, but that those with accessibility requirements are properly informed of any changes?

[Liz Kendall]

My hon. Friend raises an extremely important point, which is that a one-size-fits-all approach will not work—even if it ever did. We need to provide tailored information in an accessible way—in an easily understood and available format. We will work extremely closely with all the necessary groups to develop that information, and, crucially, give sufficient notice. The ombudsman’s report deals with the decisions made between 2004 and 2007, but what greatly concerned many women and led to the original WASPI campaign was the decision in 2011 to accelerate and bring forward increases in the state pension age. Therefore, that other commitment to give sufficient and timely notice so that people can properly plan for their retirement is extremely important.

[Sir Julian Lewis (New Forest East) (Con)]

The Secretary of State says in her statement: “Research given to the ombudsman shows only around a quarter of people who are sent unsolicited letters actually remember receiving and reading them.” I would like to know the terms of that research. Did it, for example, say on the envelope, “Important financial information affecting your pension”? If something like that were on an envelope, I think that there would be a very different response rate. Given that she is having trouble accepting that people look at serious letters that really affect them, perhaps the Chancellor could use some of her ability to get these messages across, as was so successful in the case of advising pensioners that they would be losing the winter fuel allowance.

[Liz Kendall]

I am happy to write to the right hon. Gentleman about this research and its findings, which are robust. I reflect on the fact that three of the sample cases that the ombudsman looked into had received a letter, but I am more than happy to provide him with the details of that research.

[Brian Leishman (Alloa and Grangemouth) (Lab)]

In the framing of my question to the Secretary of State, I first wish to say that I am appalled by this announcement. I have campaigned with WASPI women, as have many parliamentary colleagues, and this is an incredible let down for them. In my opinion, WASPI women certainly do not need words of disappointment and hollow statements. What they need is justice. Does the Secretary of State not agree with that?

[Liz Kendall]

I believe that this is a difficult decision, but the right and fair one. We accept that there has been maladministration. Once the Department had reached its decision, those letters should have been sent out. For the reasons that I have explained, we do not accept the ombudsman’s approach to injustice, remedy or compensation. We have to take difficult decisions in government, but this is about what I think is right and fair. I am happy to meet my hon. Friend to discuss the matter in more detail if he so wishes.

[Wendy Chamberlain (North East Fife) (LD)]

It is a gross understatement for the Secretary of State to say that 1950s women will be disappointed, especially given that this new Government are setting a precedent by ignoring an independent resolution process. I signpost constituents to the ombudsman on a regular basis; we all do. It is one of the ways that we hold the Government and Government bodies to account, and it is a core part of our democracy. Can the Secretary of State explain how we can have faith in that process if the Government choose to ignore the ombudsman’s findings? Given the fact that, as a constituent MP, the Secretary of State herself supported the WASPI campaign, can she advise whether the £22 billion black hole has had any consequence on her decision making?

[Liz Kendall]

We did campaign against the acceleration of changes to the state pension age brought forward by the Conservative-Liberal Democrat Government, but that is not what this decision is about. The decision on the state pension age has already been taken. I do value the ombudsman’s role; I refer many cases myself. We accept his findings on maladministration, but we do not accept his view on injustice. None the less, the ombudsman continues to have an important role to play for many constituency MPs, and I for one will continue to refer cases to the ombudsman, as I always have done.

[Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)]

The Government are right to have apologised to WASPI women today and my right hon. Friend is also right to have acknowledged the significant disappointment that will be felt. What is important is that this Labour Government are acting to boost pension pots across the country. Does the Secretary of State agree that it is important that, through the measures the Government are taking, we not only protect pension pots but actually enhance them, so that pensioners are better off?

[Liz Kendall]

The pension schemes Bill will do precisely that. One of the really important things that we want to do is to consolidate smaller pension pots, so that they deliver better value and better results for those in retirement. That is exactly what that Bill will do. We want to see the very best for pensioners and also the very best for UK plc, which is why our pensions reforms are so important. My hon. Friend the Minister responsible for pensions will be delivering on that in the months and years ahead.

[Kirsty Blackman (Aberdeen North) (SNP)]

Anas Sarwar said that, under his leadership, WASPI women will finally receive the justice they deserve. Is the justice they deserve being paid less than their male counterparts throughout their career? Is the justice they deserve being sacked or forced to resign from their jobs when they had children? Is the justice they deserve the removal of the winter fuel payment? Why are the Labour Government absolutely determined to take every opportunity to screw over 1950s-born women?

[Liz Kendall]

I am proud of the last Labour Government’s record on helping the lowest-paid women pensioners and of the improvements that we delivered. This is not about that issue; this is about the way that the state pension age was communicated. If the hon. Lady wants a different approach, the SNP Government in Scotland can provide that by using the £4.9 billion settlement—the biggest ever in the history of devolution—that we have provided.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

This will be a sad moment for the 4,000 women in Stoke-on-Trent Central who I have campaigned alongside for justice and a fair transition. I understand the Secretary of State’s need to balance the budget, given what was left by the previous Government, but is this a case of no compensation now because of the economic circumstances that we find ourselves in, or is it no compensation ever? If we find ourselves in the future in a much better economic state, will she consider re-addressing this issue and seeing what compensation might be available for the women who were affected?

[Liz Kendall]

We do not agree with the ombudsman’s approach to injustice or compensation. We do not believe that sending those letters earlier, even though we should have done, would have made the difference that the ombudsman claims. We do not believe that, given that 90% of 1950s-born women knew that the state pension age was increasing, a flat-rate compensation scheme costing up to £10.5 billion is a fair or appropriate use of taxpayers’ money. However, we will learn lessons from that maladministration to ensure that it never happens again.

[Sir Gavin Williamson (Stone, Great Wyrley and Penkridge) (Con)]

Every single one of us in this House relies on the Parliamentary and Health Service Ombudsman to ensure that our constituents get redress. When the PHSO made a similar judgment against Equitable Life, the Government came forward with a compensation programme. Will the Secretary of State commit to having a binding vote in this House on the decision, so that the House can decide whether what the Government are proposing is justice for WASPI women? I certainly do not believe that it is.

[Liz Kendall]

I am sure the right hon. Gentleman could have encouraged his party to do a compensation scheme when he was in government. The reason the ombudsman actually referred the report to Parliament was because he did not believe the last Government when they were running the Department for Work and Pensions would deal with it properly. This Government take our responsibility seriously, and that is why we have come to Parliament today to make this difficult decision.

[Chris Vince (Harlow) (Lab/Co-op)]

A Conservative Member said to me this morning that being the Secretary of State for the DWP is probably the hardest job in Government, and I think today we can really see that. I pay tribute to the WASPI women in my constituency, and in particular Gina, who emails me regularly about this issue. What reassurances can the Secretary of State give WASPI women such as Gina that we will do everything we can to support them and to ensure that issues like this do not happen again?

[Liz Kendall]

As I said in my statement, I understand that many women born in the 1950s face a real struggle and, on this specific decision, they may well be disappointed, but our commitment to pensioners and to the pensions triple lock will deliver an extra £30 billion into the basic state pension over this Parliament. Our investment in the NHS, about which many 1950s-born women are desperately worried, of £22 billion this year and next, shows our commitment to the issues that matter to those women. As I say, they may be disappointed and, indeed, angry about the decision, but we believe that it is the fair and right decision. However, I would be more than happy to talk to my hon. Friend in further detail so that he can pass on comments from WASPI women in his constituency.

[Rachel Gilmour (Tiverton and Minehead) (LD)]

I speak on behalf of Helen from my home town of Bampton and the 5,500 WASPI women in my constituency. They are not disappointed; they are devastated, as am I because—mistakenly, as it turned out—I believed that this Labour Government, who were supported by millions of women across this country who rightly turned their backs on the Conservatives, had some probity and decency. Does the Secretary of State agree that it turns out that they have neither?

[Liz Kendall]

No.

[Tom Rutland (East Worthing and Shoreham) (Lab)]

Many former Ministers and current shadow Ministers have made clear that they do not support a compensation scheme, so is this not just another example of this Labour Government having to take the difficult but necessary decisions that those Members ran away from?

[Liz Kendall]

It is true this was a long-running issue, spanning multiple Parliaments, that was delivered to the last Government, and we have dealt with it. We have dealt with it seriously, but also as quickly as we can. We take our responsibilities seriously. It is a difficult decision, but I believe it is the right and fair one.

[Sammy Wilson (East Antrim) (DUP)]

How long will we have this Government giving the excuse that they cannot do things because the last lot did not do them? Will the Secretary of State remember that she is now in government? When she was in opposition, she and other members of her party campaigned for WASPI women. The facts have not changed: administratively, mistakes were made and, financially, there is still an impact; and now the ombudsman has found in favour. She cannot hide behind saying that “We have no money”. We just had the Secretary of State for Energy Security and Net Zero in questions boasting that he is bunging billions of pounds to power companies, yet we cannot honour the commitments made to people who were wrongly treated in the pensions system.

[Liz Kendall]

I hate to disagree with the right hon. Gentleman, but I did not say it was only about there being no money. I said it was because we do not agree that if we had sent those letters earlier, it would have made the difference that he says, and because, when 90% of women aged 45 to 54 knew the state pension age was increasing, we do not believe a flat rate is pertinent. I say this to him: we do take the public finances seriously. We have to make difficult decisions, and we cannot spend more than we have. We will continue with that approach, but based on our values. We do not believe that what has been set out is the right or fair way forward. I have come to the House honestly to make that decision plain, but I would be happy to talk to him in more detail if he would like.

[Melanie Onn (Great Grimsby and Cleethorpes) (Lab)]

The Secretary of State says the report is about the way this was communicated to those 1950s-born women and that earlier letters would not have made a difference, but they would have made a difference to individuals’ financial planning, their retirement dates, the notice they gave to their jobs, and the wider family arrangements and commitments they had made. There have undoubtedly been losses for those 1950s-born women. My hon. Friend the Member for Stoke-on-Trent Central (Gareth Snell) just gave the Government an opportunity to reconsider that at some point in the future. Is she sure that she will not take that offer?

[Liz Kendall]

I know my hon. Friend cares passionately about this issue and many other issues related to pensioners. I repeat what I said in my statement and, indeed, what the ombudsman said, which is there was no direct financial loss for the women. This is not about the increase in the state pension age; it is about how it was communicated. The research shows that only one in four people who get an unsolicited letter remember receiving or reading it, so sending those letters out earlier would not have made the difference. We cannot justify a flat-rate compensation scheme or, indeed, an individualised compensation scheme on that basis.

[James Wild (North West Norfolk) (Con)]

When the Secretary of State was in opposition, she said she was a “long-standing supporter” of WASPI women. Given that, what would she say to the WASPI women in my constituency, the 3,300 in her constituency and those across the country who will be disappointed at her rejection of any compensation, even if not at the level the ombudsman recommended?

[Liz Kendall]

My party opposed the Conservatives’ decision to accelerate increases in the state pension age, but that is not what the report is about. It is about how those changes were communicated and, at the risk of repeating myself, that is why we have taken this decision.

[Lewis Atkinson (Sunderland Central) (Lab)]

It is no small thing for a Secretary of State to stand up with the sincerity that my right hon. Friend has and to offer an apology on behalf of the Government and accept maladministration, and I know she takes that responsibility seriously. I understand her position regarding the 90% of women who knew the pension age was going to change, but among the 10% who did not realise, people made individual decisions about their financial circumstances. Will she say more about why she did not feel that it was possible to put an individualised compensation scheme in place for that 10%?

--- Later in debate ---

[Liz Kendall]

My hon. Friend asks a reasonable question. The difficulty is we estimate that going through 3.5 million women to find out which ones knew about their state pension age increasing and would have made different decisions on that basis would take 10 times the number of staff who administer the state pension for 12 million people, and many years. We do not think that is an affordable or possible programme. The ombudsman himself goes through that point, and that is why he proposes a flat rate, but I have already said why we think that is not justified when 90% of those women knew their state pension age was increasing.

[Christine Jardine (Edinburgh West) (LD)]

One of the very first constituents who came to me after I was elected in 2017 was Helen, whose decision on her financial future was taken just before she received the letter, which came late—so it did have an impact on her. It also had an impact on the thousands of WASPI women in my constituency who have contacted me over the past seven and a half years. How does the Secretary of State think that any pensioner in this country, regardless of the triple lock, which was the creation of the Liberal Democrats with the Conservatives, can have faith in a Government who have taken away their winter fuel allowance and now do not respect the injustice done to them in not compensating the WASPI women?

[Liz Kendall]

Our commitment to the pension triple lock, which will deliver an increase of £470 in the new state pension from this April and up to £1,900 extra over the course of this Parliament, backed by over £30 billion of investment, is a serious investment in pensioners. We believe that the basic state pension is the foundation for security in retirement. If the Liberal Democrats want to come up with a costed proposal to do what the ombudsman says, they are perfectly at liberty to do so, although we think that that is the wrong approach.

[Alan Gemmell (Central Ayrshire) (Lab)]

As my right hon. Friend has noted, many women will be disappointed by this decision—including women I have met in Central Ayrshire when campaigning, since I have been an MP, and at constituency surgeries as recently as Friday—even though they know that we are cleaning up 14 years of Tory mess, dither and delay and failure. Caring responsibilities often fall on women, and an awful lot of 1950s women have spoken about the financial, emotional and physical pressures that they face in caring for a loved one. Will my right hon. Friend set out how the Government plan to support carers over the coming months and years?

[Liz Kendall]

I have been a lifelong champion of family carers, which is why I have launched an independent review of the overpayment of carers allowance, led by Liz Sayce, and why the Government have introduced the biggest ever increase in the earnings threshold for carer’s allowance. That will make a huge difference in enabling those who look after the people they love to work at the same time. I understand that many women born in the 1950s will be disappointed, but, for all the reasons I have set out, we think this is the fair and right approach. However, we will learn lessons from the maladministration—the delay and the failure to send out letters for 28 months—to ensure that it never happens again.

[Siân Berry (Brighton Pavilion) (Green)]

This is a very harsh statement. It admits wrongdoing but offers a bitter dose of nothing to a generation of women who already faced prejudices and disadvantages in their careers and were caught out by Government decisions. If the Secretary of State will not reconsider her decision despite being urged to do so by Members on both sides of the House, what else will she do to ensure that those women can enjoy levels of security in retirement closer to equal those of their male counterparts?

[Liz Kendall]

The hon. Lady raises a valid point about the state pension itself and the difficulties for women who have taken time out to look after children. We took that seriously when we were last in government, and we still do now, because we want to ensure that there is proper equality for those women. The report and this decision are not about the acceleration in the increase to the state pension age, which was at the heart of why so many women felt angry about what happened. We will ensure that we give proper notice so that people can plan for their retirement, we will support women through the pension triple lock and all the investment that we are putting into the NHS, and we will ensure that equality for women is at the heart of our proposals for pensions.

[Peter Swallow (Bracknell) (Lab)]

WASPI women in my constituency will have listened to the statement with some difficulty, as I know my right hon. Friend has accepted, but they will also have heard her offer a heartfelt from the Dispatch Box, which is quite right. Will she assure them that the maladministration that underlined this case will never happen again, and that this injustice will not be repeated by this or any other Government?

[Liz Kendall]

I thank my hon. Friend for his question. It is most important, first, that in future people have proper notice of any changes to the state pension age so that they can properly plan for their retirement, which is not what happened in 2011 under the previous Government; secondly, that we ensure that people get effective, timely and personalised information about their state pension and, I would argue, about their second pensions; and thirdly, that we reach people in many different ways, not just by sending letters, precisely because we know that the great majority of people who get unsolicited letters do not remember getting them or reading some or any of them. That is why we must ensure that our communication strategy is much more personalised, timely and effective.

[Alison Bennett (Mid Sussex) (LD)]

At a time when public confidence in politicians is so low, has the Secretary of State made an assessment of whether overruling the ombudsman’s decision at a stroke will undermine trust in that process?

[Liz Kendall]

I hope that I have been direct, straightforward and honest about why we agree with the finding of maladministration but not with the approach in other areas. People will make their judgment, but I would just say that I believe in facing up to responsibilities, looking at the facts, going through the detail and putting forward a response that is fair and proportionate, and that is what I believe the Government have done today.

[Chris McDonald (Stockton North) (Lab)]

I thank the Secretary of State for her statement and for the apology of behalf of the Government. As she has acknowledged, many of the brave and courageous WASPI women in my constituency will feel bitterly disappointed by this decision. Does she agree that the cornerstone of pensioner finances is this Government’s commitment to the triple lock? That stands in stark contrast to the Conservative Government’s breaking of the triple lock in 2022, which cost many pensioners in my constituency hundreds of pounds a year.

[Liz Kendall]

My hon. Friend states the fact that the Conservatives broke the triple lock two years ago. Indeed, their shadow Chancellor says that it is unsustainable. I am sure that his constituents will hear those comments loud and clear.

[Llinos Medi (Ynys Môn) (PC)]

Today’s announcement is a huge blow to 1950s-born women affected by state pension changes, who have campaigned tirelessly for justice and accountability, including on the maladministration that the Secretary of State has admitted took place. She promised jobs, homes and opportunities in her statement, but given that one affected woman dies every 13 minutes, can she explain exactly how that will benefit 1950s-born retired women?

[Liz Kendall]

I know that a number of women expected to be able to retire earlier than they could, but the decision to increase the state pension age has been taken. It was taken by Parliament, agreed by subsequent Parliaments, and deemed legal by the courts in 2020—that issue is settled. This is about the communication of it. As I say, we have accepted the finding of maladministration, but we do not accept the approach to injustice or compensation for all the reasons that I have set out. The Government are taking difficult decisions so that we can invest in the pension triple lock and the NHS, build homes, and get people the jobs that they need—many 1950s-born women are very concerned about those things, not just for themselves but for their families. On this specific issue, I know that many people will be disappointed and angry, but we believe that it is the right and fair decision for all the reasons that I have set out.

[Mr Joshua Reynolds (Maidenhead) (LD)]

WASPI women across the UK have been let down time and again, including by this statement. In the Budget, the Chancellor announced £20 billion of additional borrowing this year, and an average of £32 billion over the next five years. How does the Secretary of State expect WASPI women to believe that the Government cannot afford a single penny of compensation?

[Liz Kendall]

Given that sending out letters earlier, which we should have done, would not have made the difference that the ombudsman claims it would, and given that 90% of 1950s-born women knew that the state pension age was increasing, we do not believe that a compensation scheme costing up to £10.5 billion is a fair or proportionate use of taxpayers’ money.

[Stephen Flynn (Aberdeen South) (SNP)]

When it was politically convenient to do so, the Secretary of State chose to back and support WASPI women. Today, she chooses to betray them. The public voted for change, but instead they have been given more of the same—shame on you. If she is so confident in her position, why does she not let us all decide through a vote in this House?

[Liz Kendall]

I am sure that there could be a vote in the Scottish Parliament if the SNP Government decided to do that.

[Vikki Slade (Mid Dorset and North Poole) (LD)]

I am shocked and staggered that the Secretary of State has made this decision in the week before Christmas—“Bah humbug,” springs to mind. She has talked several times about making sure people get due notice in the future. Does the Secretary of State have plans to increase the pension age further?

[Liz Kendall]

No. What I am saying is that we have to be able to give people sufficient notice in future. That was at the heart of the problem with the former Conservative-Liberal Democrat coalition’s decision to accelerate the increase in the state pension age, which caused so much anger among many people. We campaigned against that, including in the 2019 election in which we proposed compensation, but we lost that election, and the courts have since ruled that that decision was legal. That is why the ombudsman’s report is not about that decision, but about how changes were communicated. We will learn all the lessons from that maladministration to make sure it does not happen in future.

[Sorcha Eastwood (Lagan Valley) (Alliance)]

I stand here today on behalf of my many constituents who will feel utterly betrayed by this decision. Just months ago, people were promised a fresh start—a new change. Does the Secretary of State agree that not only will my constituents feel short-changed, but this decision will further compound a lack of trust in politics?

[Liz Kendall]

We are delivering change, with £22 billion of extra investment in the NHS and a substantial rise in the minimum wage that will deliver a pay rise for 3 million of the lowest-paid workers, as well as the biggest ever increase in the earnings threshold for carer’s allowance to help family carers and a new flat repayment rate for universal credit to give an average of £420 per year to the poorest 1.2 million households. However, we also promised that we would be responsible with taxpayers’ money and take fair and appropriate decisions. I hear what the hon. Lady says about her constituents, but the ombudsman’s report is not about the increase in the state pension age for 1950s-born women. We will learn the lessons from the maladministration, but we do not agree with the ombudsman’s report to injustice or to remedy, which is why we have taken this decision.

[Alex Brewer (North East Hampshire) (LD)]

On the Secretary of State’s website is a picture of her holding a sign that reads,

“I will work with WASPI to identify and deliver a fair solution for all women affected”.

Does she think that today’s announcement is a fair solution?

[Liz Kendall]

May I say gently that I know what is on my website? We did campaign with WASPI women, including in 2017 and 2019, but we lost those elections. This decision is not about the increase in the state pension age, which was what that campaign was about—that decision has been taken—but about how that increase was communicated. I know that it will cause disappointment and anger among many 1950s-born women, but we do not believe that the ombudsman’s approach to injustice or remedy is right, which is why we have taken this decision.

[Shockat Adam (Leicester South) (Ind)]

In July, this country overwhelmingly voted for a change, but it is getting more of the same—more failure and more austerity. Nothing has changed apart from the excuses. It is no wonder that the Prime Minister’s approval rating has plummeted to minus 66%. Given that Labour has recently removed even more money from our pensioners’ pockets by taking away the winter fuel payment, will the Secretary of State please reconsider this betrayal and compensate the WASPI women, such as my constituents Ruth Smith and Rev. Elizabeth Maitland?

[Liz Kendall]

I am sure the hon. Gentleman supports an increase in the minimum wage that will deliver a £1,400-a-year pay increase for someone who is working full time on the minimum wage in Leicester. I am sure he agrees with the £22 billion additional investment in the NHS this year and next, and with a boost of £420 per year on average for people on universal credit in Leicester through the fair repayment rate. Those are the changes we are delivering, but on this issue, we do not believe the ombudsman’s approach on injustice or remedy is right. When 90% of 1950s-born women knew that the state pension age was increasing, we do not believe that giving flat-rate compensation is a fair or appropriate use of taxpayers’ money.

[Tom Gordon (Harrogate and Knaresborough) (LD)]

The constituents I represent include thousands of WASPI women who will be disappointed by today’s statement. A number of references have been made to the campaigning that the Secretary of State has done with WASPI women. Does she feel regret that she has led them up the garden path towards believing that they might get some compensation, and while she has apologised for the Government’s part in the maladministration, will she apologise directly to the WASPI women in her constituency?

[Liz Kendall]

We were campaigning against the increase in the state pension age, and we had all sorts of proposals in our 2019 manifesto. We lost that election, and the courts have since decided that the increase in the state pension age was legal, so this decision is not about that. All I would say to WASPI women in my constituency—I have no doubt that they will contact me—is that I believe this is the fair and right decision. We are committed to supporting the lives of 1950s-born women, but we do not believe that the ombudsman’s approach on injustice or remedy is the right way forward, which is why we have taken this decision.

[Mr Gregory Campbell (East Londonderry) (DUP)]

Many, many WASPI women will be appalled by the Secretary of State’s statement. When they look at today’s proceedings, would they be right in concluding that this Government were prepared to resolve the pensions of mineworkers, but not those of WASPI women?

--- Later in debate ---

[Liz Kendall]

We are prepared to take difficult decisions if we think that they are fair and right. That is why we have taken this approach to the issue of how the state pension age increase was communicated between 2004 and 2007. We agree with what the ombudsman says about maladministration, and I have set out our three action points: to make sure we have a clear and detailed action plan to learn all the lessons, to give people sufficient notice in future if their state pension age increases, and to have a detailed programme of communication about the state pension going forward. Those are firm actions to show that we have learned the lessons from this report.

[Claire Young (Thornbury and Yate) (LD)]

I am sure that the 69-year-old who contacted me explaining how she had missed out on being able to care for her dying mother due to needing to work longer would have welcomed a letter giving her enough notice to plan her finances to allow otherwise. What support can the Secretary of State offer WASPI women, who are still disproportionately taking on caring responsibilities?

[Liz Kendall]

The hon. Lady raises a really important point. As we get older, many of us are working while caring for our elderly loved ones or for children—sometimes both—and those family carers need support. I have already set out the action we have taken, including the biggest ever boost to the earnings threshold for carer’s allowance and a serious, independent review of carers’ overpayments, but we can and should be doing more to support family carers. I am very happy to meet the hon. Lady to talk through her ideas that she thinks would benefit her constituents, if she would like.

[Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)]

I do not think I have ever seen quite so many glum faces on the Labour Benches, not for the two-child benefit cap or the winter fuel payment—this is beyond the pale. A handful of Labour Members have stood up and spoken their mind on this issue, and I commend them on that, but the Secretary of State has not answered the question of whether this House will be given a debate and a vote, which should happen in Government time. It is not just Scottish MPs who are asking for this; other MPs from other parties have done so. I urge the Secretary of State to reconsider.

[Liz Kendall]

Back Benchers can put forward proposals for debates, as can Opposition parties. If the main Opposition party wants to do so, it would be perfectly at liberty to do so.

[Jess Brown-Fuller (Chichester) (LD)]

I and my colleagues on the Liberal Democrat Benches thought that today’s statement might be an early Christmas present for the WASPI women in my constituency and across the country. All those women will now be understandably devastated, and will be asking the same question: if the ombudsman has ruled that they were to have financial redress because of the maladministration and the Government are willing to ignore that finding, what else are this Government willing to ignore?

[Liz Kendall]

We do not ignore the ombudsman; we just do not agree with the approach he takes to injustice or to remedy. We provided research that showed that only one in four people who receive an unsolicited letter remember getting it or reading it, so even if we had sent those letters out earlier—which, as we have said, we should have done—we do not believe it would have made the difference that the ombudsman claims. When 90% of women aged between 45 and 54 knew that the state pension age was increasing, we cannot justify a flat-rate compensation scheme of up to £10.5 billion. We do not believe that that is a fair or proportionate use of taxpayers’ money.

The ombudsman plays a really important role, and will continue to do so. I know that, as I have sent countless constituents to the ombudsman to try to get redress in the 14 years that I have been an MP. We continue to back their work and effort.

[Robin Swann (South Antrim) (UUP)]

The Secretary of State has repeated time and again what this statement is not about, but what it is about is this Government not listening to the WASPI women and this Government not listening to the Parliamentary and Health Service Ombudsman. In the Secretary of State’s statement, she said she will

“develop a detailed action plan out of the report”.

Considering that the report missed two thirds of this, especially the financial redress scheme, what action plan is she developing?

[Liz Kendall]

This is about how we make sure in such a situation that, once a Department has decided it needs to provide information and to send out letters, we actually do that, and do not have a 28-month delay. It is about asking what, in the 21st century, is the modern way to get personalised information and tailored advice to individuals about their state pension, their state pension age and, I would argue, all of their pensions. It is precisely about those issues, which matter so much, and dealing with the issues about the maladministration. If the hon. Member has any ideas about what more he thinks we should do on that issue, I am sure either I or my hon. Friend the Pensions Minister would be more than happy to meet him to hear his ideas.

[Steff Aquarone (North Norfolk) (LD)]

Maladministration is a serious charge. I know the Secretary of State has taken a 360° pummelling on this, but she has declined to say that she would have compensated women if the economy were stronger, and she said it would not have made any difference if the letters had been sent. Surely, however, the overall charge of maladministration applies to the broader fact that women born in the 1950s did not know about these changes. Does she therefore agree with me that the failure is about not the channel, but the message?

[Liz Kendall]

No, I do not, because the ombudsman used the research that was provided to him—he looked at those aged 16-plus and found that 43% of them knew what their state pension age was—but he did not adequately reflect the research on the specific group of women affected. I think that is an important consideration, as part of our overall decision, which is not based on money alone. In Government, we have to look at what is a fair and proportionate use of taxpayers’ money, which is one of the elements along with the others—the impact of letters, the fact that the great majority of women knew—that has informed our conclusion, which I have set out.

[Jim Allister (North Antrim) (TUV)]

Is not the appalling message from the Government today that maladministration pays? If, as here, we have nationwide maladministration and no consequences, what other conclusion could one reach? What is the point of an ombudsman if the Government can be the judge in their own cause and dispense with the findings? Surely, the whole purpose of finding maladministration is to ensure that the maladministrator pays.

[Liz Kendall]

I think it is the precise opposite. We accept what the ombudsman found about the maladministration, and we apologise and we will learn the lessons to put it right. However, if Parliament itself decides it wants to put the parliamentary ombudsman on a different footing, it can do so.

[Brendan O’Hara (Argyll, Bute and South Lochaber) (SNP)]

I say to the Secretary of State that this is neither fair nor right; this is a betrayal. Today, my thoughts are with the brave, dogged campaigners of WASPI Argyll and the Isles, particularly Ann Greer, who has worked so hard for so many years seeking justice. The Secretary of State said in her statement that the Government are choosing to do what they are doing because it would be a “significant cost” and an “administrative burden” to do the right thing. Does she not see that that is an incredibly lame excuse for denying natural justice to women who are asking for nothing more than to receive what is owed to them and to which they are entitled?

[Liz Kendall]

I would say that the ombudsman’s report itself says there would be a huge cost and administrative burden of going through 3.5 million women individually, but I am sure the hon. Member can read the ombudsman’s report and see that quote for himself. This is not about increases in the state pension age, which is what many of the women in the campaign have been very concerned about. It is about the communication, and for all the reasons I have set out, we have decided on this approach.

[Jim Shannon (Strangford) (DUP)]

It is with great sadness that I rise to ask a question, and I am very disappointed by the statement. As the right hon. Lady will know, I stood shoulder to shoulder with many Labour Members, including the Secretary of State, in calling on the Government to do the right thing by the WASPI women. However, here we stand, six months into the new Government, and these women are poorer than ever, given the removal of the fuel allowance. Pensioners are borrowing more and paying off less, and the statement implies that the Government will do nothing. Will the Secretary of State clarify exactly what has changed for Labour Members? Six months ago, they stood up for the pensioners. I say that with great respect; the right hon. Lady will know that I speak with respect in this House. After taking advice not relevant to the report’s findings, why will the Government suppress the rights of these women once again? More importantly, when can the 5,000 WASPI women in my constituency of Strangford expect their relief—not an apology, which will not heat their room by 1°? How sad it is that today, in this House, the ombudsman’s recommendations are being ignored, and right and justice have been denied.

--- Later in debate ---

[Liz Kendall]

I am grateful to the hon. Gentleman for the tone of his questions. As he knows, I have huge respect for him. While many 1950s-born women will be deeply disappointed by this specific decision, our commitment to the pensions triple lock, our investment in the NHS, our support for family carers through the carer’s allowance, and all the other things that we are doing to help people deal with the cost of living crisis—including getting family members into jobs, and then better jobs, and into better homes—means that, on the whole, we are delivering change. The Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Wycombe (Emma Reynolds), who has responsibility for pensions, or I would be more than happy to meet the hon. Gentleman—that goes for many other Members—to go through this in more detail.

Oral Answers to Questions

Liz Kendall Excerpts

Monday 16th December 2024 Commons Chamber

[The Secretary of State for Work and Pensions (Liz Kendall)]

Our ambition is an 80% employment rate over a decade of national renewal. We will get Britain working by creating a new jobs and careers service in our overhaul of jobcentres. We will bring forward a new youth guarantee, so that every young person is earning or learning, and will give local areas the power to join up work, health and skills support to help the 2.8 million people who are out of work due to long-term health conditions.

[Kanishka Narayan]

I thank my right hon. Friend for her response, not least given the dire inheritance from the previous Government: the worst performance of an employment rate in the G7 since the pandemic. I see that inheritance in my community, in Barry in the Vale of Glamorgan, where individuals carry not the indulgence, and not the offence, but the misfortune of ill health. What is the Secretary of State doing to tackle economic inactivity, so that we give hope again, not just to those individuals, but to my community?

[Liz Kendall]

In the Vale of Glamorgan, the economic inactivity rate is almost one in four people. That is higher than the rate for Wales as a whole, and certainly higher than the UK average. From spring next year, we will launch eight trailblazers to support more people with long-term health conditions into work, including in Wales. That is backed by £125 million of additional funding. We will design the programme jointly with the Welsh Government, and we aim to launch it in the spring. We are determined to boost jobs and growth in every corner of this great country.

[Jess Brown-Fuller (Chichester) (LD)]

Fedcap, a national organisation, is running a scheme to get economically inactive people to become the next generation of solar panel engineers. More such schemes will be necessary to plug the skills gap that developers report, especially if the Government are to meet their ambitious housing target. Will the Secretary of State commit to continued funding for schemes that are delivered by such organisations via jobcentres?

[Liz Kendall]

I congratulate organisations such as the one that the hon. Lady mentions for their brilliant work, not only to keep energy costs down but to support people into work. I will work closely with the Minister for energy consumers, and others in the Department for Energy Security and Net Zero, to support those organisations, including through jobcentres. More jobs and lower bills are key to improving people’s living standards.

[Ms Polly Billington (East Thanet) (Lab)]

In communities like mine in East Thanet, there is above-average youth unemployment. It is important to be reassured that the “Get Britain Working” White Paper will be designed to help young people, particularly in coastal communities like mine, where we need a year-round economy, and support and activity to get young people into work.

[Liz Kendall]

My hon. Friend is exactly right: we have to deliver better jobs in every part of the country, including coastal communities like hers. We need to give young people the skills that they need, and job opportunities, so that they can build a better life. I look forward to working with her as we deliver our youth guarantee and “Get Britain Working” plans.

[Sir Ashley Fox (Bridgwater) (Con)]

Can the Secretary of State confirm whether she will maintain strong sanctions against those who are capable of working but choose not to?

[Liz Kendall]

If you can work, you must work, and if you repeatedly refuse to, sanctions will remain, but I know from young people in my constituency that they are desperate to get the skills and opportunities that they need. Unlike the Conservative party, that is what our youth guarantee will deliver.

[Mr Speaker]

I call the shadow Minister.

[Danny Kruger (East Wiltshire) (Con)]

It is good to hear Front-Benchers being so positive about their White Paper, much of which we are pretty familiar with. Let us look through some of the measures. The integration of employment and health support—we were doing that when we were in government. It was called WorkWell. My hon. Friend the Member for Faversham and Mid Kent (Helen Whately) led on it. What is the youth guarantee that we have been hearing about? According to the White Paper, it

“brings together a range of existing entitlements”.

It is a very familiar set of policies. The fact is that the Government’s White Paper is just a rehash of existing support, and a bit of money with no strings attached. There is, however, one thing that the last Government were doing that this Government are not: strengthening the conditionality for benefits. The Secretary of State says that she will continue the existing sanctions, but what new measures will she introduce to ensure that people who can work will work?

[Liz Kendall]

I am not sure where to start. If the Conservatives’ programmes were so successful, why do we have a record 2.8 million people out of work due to long-term health problems, and 1 million young people not in education, employment or training? I love the 15 WorkWell pilots, but we want to join up health, work and skills support in every corner of the country, not just a few places.

There will be a different approach for young people under our youth guarantee. There will be the opportunities people need, but also a requirement to take them up, not only for those on unemployment benefit, but for those young people who can work but are out of work due to a health condition. That is the difference a Labour Government make: there is work for those who can, and proper opportunities.

[Danny Kruger]

I applaud that soundbite, but we did not hear about any new measures that will be introduced, or any additional sanctions that we need. The right hon. Member talks about what the last Government were doing. We were reforming the work capability assessment. The Office for Budget Responsibility said that our reforms would have seen 400,000 fewer people on long-term sickness benefits, saving £5.4 billion over this Parliament. The Labour Government have paused that work while they hold a review. They have had 14 years. I do not know what they were doing to plan for government—not very much, it looks like. [Interruption.] They had all that time. What were they doing? I do not know where their plans are. The Chancellor is counting the savings to the welfare budget that our party would have delivered. Will the Minister commit to implementing the reforms, and if not, how will she make the savings that she is counting on?

[Liz Kendall]

The hon. Member is laughing at his own chutzpah. I am happy to talk about the past 14 years, but the work capability assessment is not working. It needs to be reformed or replaced. That is what we said in our manifesto, and we will bring forward our proposals in a Green Paper in the spring. That has to be part of a bigger programme to help people with long-term health conditions and disabilities into work. That is what our “Get Britain Working” White Paper does, and I am happy to discuss it with him more in future.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Steve Darling (Torbay) (LD)]

I hope the Secretary of State will join me in congratulating Chris McCausland and Dianne Buswell on their victory on “Strictly” this weekend. In the light of that victory, how does she plan to make the Access to Work scheme more fit for purpose, so that it can help more people with disabilities reach their full potential?

[Liz Kendall]

I absolutely join in the hon. Gentleman’s comments. It was a great joy to see that victory at the weekend. We want to see Access to Work working better. We want to get the backlogs down, and for that support to be available to more people.

Labour Members believe that disabled people have the same rights as anyone else to work, socialise and take part in life. That is what we are determined to achieve, not just through the Department for Work and Pensions, but through every part of Government. The hon. Gentleman will know that we recently announced lead Ministers for disability in every Department. That shows how important we take this issue to be.

[Susan Murray (Mid Dunbartonshire) (LD)]

3. What assessment she has made of the potential impact of trends in inflation on pensioners’ living standards.

--- Later in debate ---

[Catherine Atkinson (Derby North) (Lab)]

23. What assessment she has made of the potential impact of the youth guarantee on young people in Derby North constituency.

[The Secretary of State for Work and Pensions (Liz Kendall)]

Our new youth guarantee will ensure that every young person is earning or learning, tackling the scandal that we inherited of almost 1 million young people not in education, employment or training. Young people in Harlow, Derby North and across the country deserve the opportunity to work, get skills and build a better life, and that is what this Labour Government will deliver.

[Chris Vince]

In my constituency of Harlow, lots of fantastic organisations provide transferable skills for young people, and I thank the right hon. Member for Basildon and Billericay (Mr Holden) for reminding me of the name Jason Shaves, who is an incredible champion for that kind of work. Does the Secretary of State agree that giving local areas such as Harlow the flexibility, power and funding to engage with young people in the way that best works for them will get them back into employment quicker?

[Liz Kendall]

I absolutely agree with my hon. Friend. That is why we are going to give new powers, responsibilities and funding to local areas to deliver our youth guarantee. They know their communities best. They know the voluntary organisations, schools, training providers and businesses, and the mental health and other support that many young people need. In Harlow, I know that that approach will be key to giving young people the opportunities that my hon. Friend wants and that they deserve.

[Catherine Atkinson]

Mel was out of work and homeless, but YMCA Derbyshire saw only her potential, not her disadvantage. Now, she is at Toyota and on track for a leadership role. Its working assets programme has a 70% success rate in supporting homeless young people into employment. How will the youth guarantee help the Government join up with, enhance and champion local programmes like that?

[Liz Kendall]

That sounds like a fantastic programme by the YMCA in my hon. Friend’s constituency. That is precisely why we need to join up with what local colleges are doing, with the support provided by local councils and with supported employment programmes run by the NHS. If we join that up and base it on local needs, her young constituent and many others like her will get the chance they need and deserve to build a better life.

[Jack Rankin (Windsor) (Con)]

13. What steps she is taking to reform the health and disability benefits system.

--- Later in debate ---

[Liam Conlon (Beckenham and Penge) (Lab)]

14. What assessment she has made of the potential impact of the “Get Britain Working” White Paper on people with a long-term health condition or disability.

[The Secretary of State for Work and Pensions (Liz Kendall)]

Disabled people and people with long-term health conditions deserve the same rights as everybody else, including the right to work. Many of the 2.8 million people out of work due to long-term sickness say that they want to work, if they can get the right help and support. That is what our “Get Britain Working” plan will deliver.

[Liam Conlon]

A core objective of the “Get Britain Working” White Paper is to support disabled people into employment. As the Secretary of State knows, the blue badge scheme is an important provision in enabling people to get to work, but data released this month shows a sharp rise in blue badge theft, with badges being sold on by criminals for upwards of £500 to people who use them to avoid parking charges. Will the Minister back my campaign to tackle this injustice?

[Liz Kendall]

Yes, I think it is disgusting that some people think it is all right to steal the blue badges that so many disabled people rely on to work, but also to socialise and to see family and friends. I know that the Minister for Future of Roads, my hon. Friend the Member for Nottingham South (Lilian Greenwood), who is responsible for this issue, is a strong supporter of the campaign by my hon. Friend the Member for Beckenham and Penge (Liam Conlon). I will contact her to stress my support and that of my entire Department.

[Josh Babarinde (Eastbourne) (LD)]

The “Get Britain Working” White Paper rightly says that

“people deserve the opportunity to thrive and that sports, arts and culture are crucial to achieving this goal”,

especially for those with disabilities. The Sovereign centre in Eastbourne, where I learned to swim, provides vital sports and leisure opportunities that will help serve that aim. With the future of two of its pools being considered, does the Minister agree that to best honour the aims of the White Paper, Eastbourne borough council should engage with all interested providers who may be able to protect our fun and training pools at the centre before making any final decisions on the next steps?

[Mr Speaker]

Order. I am not sure that was a relevant question, as well as the hon. Member shoehorned it in. Secretary of State, do you want to answer? It is up to you.

[Liz Kendall]

I believe that sport, as well as art and culture, can play a huge role in engaging and inspiring people, helping them on the pathway to skills, confidence and jobs. I want to see that provision enhanced in future, because we are determined to have that at the national partnership level, and it needs to happen locally, too, to get people working and earning again.

[Connor Naismith (Crewe and Nantwich) (Lab)]

15. What steps she is taking with Cabinet colleagues to help reduce the number of people in low-paid work.

[The Secretary of State for Work and Pensions (Liz Kendall)]

Our plan to get Britain working is crucial to tackling low pay and increasing living standards in every corner of the country. When only one in six people ever fully escape low pay, the Labour party believes that is not good enough, so our new jobs and careers service, backed by £55 million of additional funding next year, will kick-start our reforms to help more people get work and get on in their work so that they boost their living standards, too.

[Connor Naismith]

Average wages in my constituency of Crewe and Nantwich—a place with a proud industrial heritage—lag behind the regional and national averages at just £686 a week before tax. Will the Secretary of State outline how the “Get Britain Working” White Paper will support growth as well as high-skilled, well-paid jobs in my constituency, not just the biggest cities?

[Liz Kendall]

The Government share my hon. Friend’s determination to boost the living standards of his constituents, so the “Get Britain Working” White Paper will ensure that every local area—including in his constituency—produces its own get Britain working plan. Alongside our industrial strategy, our plan to make work pay, the national wealth fund and Skills England, that will help people to get work and progress in their careers, with good opportunities for employment right across the country.

[Mr Richard Holden (Basildon and Billericay) (Con)]

16. What assessment she has made of the potential impact of means- testing the winter fuel payment on levels of pensioner poverty.

--- Later in debate ---

[Alison Griffiths (Bognor Regis and Littlehampton) (Con)]

T1.   If she will make a statement on her departmental responsibilities.

[The Secretary of State for Work and Pensions (Liz Kendall)]

As a lifelong champion of family carers, dealing with the problem of carer’s allowance overpayments is a priority for me and for my right hon. Friend the Minister for Social Security and Disability. Last week we set out the next steps in our independent review led by Liz Sayce, the former chief executive of Disability Rights UK. It will report by the summer and will look at how and why overpayments were built up, the changes we can make for the future and how best to help those affected. Along with the biggest ever cash boost to the earnings threshold for carer’s allowance announced in the Budget, it shows our determination to give family carers the support they need and deserve.

[Alison Griffiths]

In Bognor Regis and Littlehampton more than 23,000 people have lost their winter fuel allowance—more than 90% of former claimants. Does the Secretary of State think that it is fair that someone who has paid tax all their working life will now be taxed on their state pension as well as losing their winter fuel allowance?

[Liz Kendall]

The hon. Lady talked about the winter fuel payment, but she failed to mention our determination to ensure that the 880,000 pensioners who do not claim pension credit, but are eligible, claim it so that they can get their winter fuel payment. The £4.9 million allocated from the household support fund to West Sussex, which covers her constituency, can be used precisely for those pensioners just above the pension credit threshold who have worked hard all their lives but need extra support with the cost of heating.

--- Later in debate ---

[Helen Whately (Faversham and Mid Kent) (Con)]

How many people who should get the winter fuel payment will get it this winter?

[Liz Kendall]

We intend to ensure that everybody who is entitled to pension credit, and therefore the winter fuel payment, claims it and gets it. We have seen a 145% increase in claims—far more than was ever achieved under the last Government. If the hon. Lady was so concerned about that, perhaps she should have taken action during her party’s 14 years in government.

[Helen Whately]

Unfortunately, the right hon. Lady simply will not give a straight answer. She will not tell the House what she knows; she knew that the Government’s choices would push 100,000 pensioners into poverty and she did not tell the House that, either. Let us try this question instead. The Government’s own figures show that pensioners applying now will have to wait until the spring to find out whether they will get winter fuel money. What is her advice to a pensioner sitting in the cold and wondering if they can afford to turn on their heating this Christmas?

[Liz Kendall]

If the hon. Lady cared so much about pensioners in the cold, why did her Government leave 880,000 not claiming pension credit? Why did they first promise to bring together housing benefit and pension credit in 2011 and never deliver it? This Government are taking action—42,500 more people are receiving pension credit now than when she left government. We are determined to act; perhaps she should apologise for her failure.

[Mr Tanmanjeet Singh Dhesi (Slough) (Lab)]

T6. Many of my more senior constituents are concerned about their finances and winter fuel payments, especially those just above the threshold. In Slough, 1,688 households are currently eligible for pension credit but not claiming this vital benefit, so what steps is the Department taking to increase the uptake and ensure that those who are not eligible are not left out in the cold?

“Get Britain Working” White Paper

Liz Kendall Excerpts

Tuesday 26th November 2024 Commons Chamber

1.40 pm

[The Secretary of State for Work and Pensions (Liz Kendall)]

With permission, Madam Deputy Speaker, I shall make a statement on our “Get Britain Working” White Paper, bringing forward the biggest reforms to employment support in a generation, turning a Department for welfare into a Department for work, and taking the first steps towards delivering our bold ambition of an 80% employment rate in a decade of national renewal.

Nothing short of fundamental reform is needed to turn the page on the last 14 years, the legacy of which has left the UK as the only G7 country whose employment rate has not returned to pre-pandemic levels and with a near-record 2.8 million people out of work due to long-term sickness, and almost 1 million young people not in education, employment or training and millions more stuck in low-paid insecure work. All those problems are far worse in the midlands and the north, parts of the country that were deindustrialised in the ’80s and ’90s—the very same places that have lower life expectancy and chronic poor health that the Conservative party repeatedly promised to level up but repeatedly failed to deliver on.

The result is an economic but, above all, social crisis, paid for in the life chances and living standards of people across this country, and by a benefits bill for sickness and disability that is set to rise by £26 billion by the end of this Parliament. We have ended up here because of the failure of Conservative Members to create good jobs in every part of the country, to deliver on the NHS, and to properly reform welfare. Under our Government, that will change, with new opportunities matched by the responsibility to take them up: under this Labour Government, if you can work, you must work.

Our White Paper brings in three major reforms. First, we will create a new jobs and careers service that overhauls jobcentres: from a one-size-fits-all service that overwhelmingly focuses on administering benefits, to a genuine public employment service that provides personalised support for all. We will bring jobcentres together with the National Careers Service in England, beginning with a pathfinder early next year, backed with £55 million of initial funding. We will work closely with mayors and local leaders to ensure that our new jobs and careers service is rooted in local communities and properly joined up with local help and support. We will also work closely with employers to develop the service, because only one in six businesses has ever used a jobcentre to recruit, and that must change.

For too many people, walking into a jobcentre feels like going back in time to the ’80s or ’90s, so we will trial a radically improved digital offer using the latest technologies and AI to provide up-to-date information on jobs, skills and other support, and to free up work coach time. We will also test video and phone support—because in the 2020s, rather than go into the jobcentre only every week or fortnight, people can have a jobcentre in their pocket. Our frontline staff are our greatest asset, so we will develop the work coach and careers adviser professions, including by launching a new coaching academy.

The second major reform is our new youth guarantee, so that every young person is earning or learning. This comes alongside our commitment to provide mental health support in every school, our work experience and careers advice offer, and our plans to reform the last Government’s failed apprenticeship levy to give more young people the opportunities they deserve. Our new youth guarantee will go further, bringing together all the support for 18 to 21-year-olds under the leadership of mayors and local areas so all young people have access to education, training and employment opportunities and no young person misses out. Today I can announce that we will establish eight trailblazer areas for our youth guarantee: the Liverpool city region, the west midlands, Tees valley, east midlands, Cambridgeshire and Peterborough, west of England, and two areas within Greater London, backed by £45 million of additional funding.

I can also announce a new national partnership to provide exciting opportunities for young people in sports, arts and culture, starting with some of Britain’s most iconic cultural and sporting organisations, including the Premier League, the Royal Shakespeare Company, and Channel 4, building on the brilliant work they already do to inspire and engage the younger generation and get them on the pathway to success.

This is our commitment to young people: “We value you, you are important, we will invest in you and give you the chances you deserve; but in return for these new opportunities, you have a responsibility to take them up, because being unemployed or lacking basic qualifications when you are young can harm your job prospects and wages for the rest of your life. And that is not good enough for young people or for our country.”

The third reform in our White Paper is our new plan to drive down economic inactivity caused by poor health. The Health Secretary is already taking action to get people back to health and back to work, with extra support to drive down waiting lists in the 20 NHS trusts with the highest levels of economic inactivity. We are joining up employment and health support, expanding individual placement support to reach an additional 140,000 people with mental health problems and delivering new WorkWell services, which include GPs referring patients to employment advisers and other work-related support such as the brilliant service in the Junction Medical Practice in North London we visited recently.

However, we will go much further and faster to tackle this issue. To meet the scale of the challenge, we will devolve new funding, new powers and new responsibilities to tackle economic inactivity to mayors and local areas, because local leaders know their communities best. We will support all areas in England to produce local “Get Britain Working” plans, joining up work, health and skills support.

Today I am announcing eight trailblazer areas backed by £125 million of additional funding in south Yorkshire, west Yorkshire, the north-east, Greater Manchester, Wales, York and north Yorkshire, and two Greater London areas. In three of these areas—south and west Yorkshire, and the north-east—this will include dedicated input and £45 million of funding for local NHS integrated care systems. We are also funding a new supported employment programme called Connect to Work, backed by £115 million of initial funding for next year. This will be included in the integrated settlements of combined authorities, starting with Greater Manchester and the west midlands.

Employers have such an important role to play in helping get people into work, and crucially to stay in work, so today I can announce a new independent “Keep Britain Working” review, looking at the role of UK employers and Government in tackling health-related inactivity and creating healthy workplaces. This will be led by the former chair of John Lewis, Sir Charlie Mayfield, and will report in the autumn.

Finally, we will bring forward a Green Paper on our proposals for reforming the health and disability benefits system, so that disabled people and those with health conditions have the same rights as everybody else, including the right to work; so that we treat disabled people with dignity and respect; and so that we shift the focus to prevention and respond to the complex and fluctuating nature of today’s health conditions. We will work closely with disabled people and their organisations as we develop our proposals, which we will publish in the spring.

This White Paper starts to turn the corner on the past 14 years, putting forward the real reforms we need to get more people into work and on at work, to give young people the very best start in life and to ensure our employment and social security system understands the fundamental issue that a healthy nation and a healthy economy are two sides of the same coin. This is how we get Britain working again. It is how we get Britain growing again, and I commend this statement to the House.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Secretary of State.

--- Later in debate ---

[Helen Whately]

In the decade after we took over from Labour, we drove down unemployment and economic inactivity year after year, including youth unemployment, which went down by 400,000 after the mess we inherited from the last Labour Government. During the pandemic, we took unprecedented action to protect jobs and livelihoods, but since the pandemic we have faced a new and difficult challenge in this country: rising economic inactivity, particularly among young people. In government, we were tackling that. I know that, because as a Health Minister I was working on it. I am delighted that the right hon. Lady and the Health Secretary visited one of our WorkWell pilots just the other day. I was working on our fit note reforms, our youth offer, which helped a million young people, and our universal support scheme, which I now hear the Secretary of State has quietly rebranded as her own Connect to Work scheme.

Far from being cross that the Government are pinching our ideas, I welcome the right hon. Lady taking our work forward. She is making the right noises about how important it is to fix this area. Economic inactivity is a big problem for our economy and for each and every individual who risks being written off to a life on benefits. Knowing that, I am disappointed by the substance of what she is announcing today, because far from matching her rhetoric, it appears to be little more than a pot of money for local councils, some disparaging language about the work of jobcentres and a consultation that will be launched in the spring. Given that the Government have had 14 years to prepare for this moment, is that it?

Where are the reforms to benefits that will make material savings to the taxpayer, such as the £12 billion we committed to save in our manifesto? Where are the reforms to fit notes, which we had handed over, ready to go? Where is the Secretary of State’s plan for reforming the work capability assessments? She has banked the £3 billion of savings from our plan, but has failed to set out her own. Her big announcement is making benefits for young people conditional. Did she forget that they already are?

The fact is that the Secretary of State has dodged the tough decisions. Every day that she kicks the can down the road costs the taxpayer millions of pounds. At this rate, spending on sickness benefits will rise to £100 billion by the end of this Parliament. They are taking that money from farmers, from pensioners and from businesses. To get people off benefits, we need jobs for them to go into. Those are the very jobs that businesses are saying, since the Budget, they will no longer be hiring for. While the right hon. Lady tries to get people into work, her Chancellor is busy destroying jobs—50,000 jobs lost from her first Budget alone.

If the Secretary of State wants to get more 18-year-olds into work, she should have a word with her Chancellor, who has made it so that from April it will cost £5,000 more for a business to employ them. She should have a word with her Business Secretary, whose Employment Rights Bill will, according to the Government’s own impact assessment, make it less likely for employers to take on young people. The Government cannot solve this problem on their own. Businesses are the engine of our economy that create jobs for people to do. It is telling that I cannot see a single business representative on the new Labour Market Advisory Board.

I did hear the right hon. Lady talk about some new partnerships, but this announcement is such a song and dance about so little that I feel sure she will qualify for one of her own Royal Shakespeare Company apprenticeships. She has kicked the can so far down the road that her new partner, the Premier League, is sure to be on the phone by the end of the day.

May I for a moment cut through the word soup of the announcement? It is time for the right hon. Lady to tell the House some facts. How many people will it help into work, and by when? What is the total she is saving the taxpayer? When will she reach her 80% employment target? What return on investment is she expecting from these plans? How will she measure her success or failure? This is so far from the bold grasping of the nettle that she is making it out to be and that this country needs for our economy, for taxpayers and for the millions of people missing out on the purpose and freedom that work brings. It is simply not good enough.

[Liz Kendall]

May I say gently to the hon. Lady, who I personally like and have a great deal of time for, that the only people who dodge difficult decisions on welfare are the Conservatives? The facts speak for themselves. By the end of this Parliament, the Office for Budget Responsibility says that 420,000 more people will be on health-related universal credit benefits, rising from a third now to a half at the end of the Parliament. That is her Government’s legacy. One in eight of all our young people are not in education, employment or training. We have seen a doubling in the number of young people out of work due to long-term sickness and a doubling of young people out of work because of mental health problems. After 14 years in government, who does she think is responsible for that? I am afraid that the truth is staring her in the face: the Conservatives are now the party of welfare, and Labour is the party of work.

The hon. Lady talks about British businesses. I know only too well the pressures that many businesses face. We have spoken to the CBI, the Federation of Small Businesses and the British Chambers of Commerce, and they are keen to work with us on our proposals. They know that their members have hundreds of thousands of vacancies that they need to fill, one in three of which is because of skills gaps. They know that 300,000 people every single year fall out of work due to a health condition. They need support to try to tackle that problem. I believe that the Department for Work and Pensions and jobcentres should serve businesses’ needs and aspirations, not be the place of last resort. That is precisely what our reforms will deliver.

Finally, the biggest challenge we face today is the growing number of people out of work or at risk of falling out of work due to health problems or a disability. Our entire employment and benefits system is simply not geared up to deal with that. We will take examples of good practice from wherever we find them, but we have got to go much further. We need big reforms, not easy slogans that say people just felt a bit too bluesy to work, which do nothing to help people get to grips with the real issues in their lives. We are facing up to our responsibilities and the difficult decisions necessary to get Britain working again. It is time the hon. Lady and her party did the same.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Chair of the Work and Pensions Committee.

[Debbie Abrahams (Oldham East and Saddleworth) (Lab)]

I warmly welcome my right hon. Friend’s statement, and I look forward to reading the White Paper later. The cross-departmental approach she is taking with colleagues is essential and is a breath of fresh air, particularly in relation to tackling the root causes of economic inactivity, which she has explained predominantly relate to ill health.

In addition to the need to tackle regional inequalities in employment, my right hon. Friend will be aware that there is a 30% disability employment gap, with 2.25 million disabled people wanting and able to work. How will she tackle that real injustice? We know that disabled people are more likely to be living in poverty than other groups. What are her specific plans in that regard?

[Liz Kendall]

I thank my hon. Friend for that important question. The Minister for Social Security and Disability and I are working hard to tear down the barriers to disabled people being able to get work and get on in work. We are taking action across Government, including reporting on the disability employment gap. We need to tackle the long waits for Access to Work and the adaptations and other support that people need.

We also need brilliant supported employment programmes for people with autism and learning difficulties, such as those that I and my right hon. Friend the Health Secretary recently visited in our own NHS trusts. They really provide a pathway to work, with the right help and support. There is much more that we need to do, and I look forward to discussing these issues with my hon. Friend and other members of the Committee.

[Madam Deputy Speaker (Caroline Nokes)]

I call the Liberal Democrat spokesperson.

[Jess Brown-Fuller (Chichester) (LD)]

Under the Conservatives the UK’s was the only economy to see employment rates fall over the last five years, leaving a legacy of wrecked apprenticeships, mental health services not fit for purpose and millions on waiting lists unable to work, as well as those with caring responsibilities staying at home to provide care for their loved ones because of the failure in our social care system. The Liberal Democrats welcome steps to improve access to skills, training and education. I praise the work of Fedcap and Maximus UK, which are doing just that in Chichester in conjunction with the jobcentres, working with those who have had long periods of economic inactivity or have additional challenges in finding work. But the insecurity and short-term nature of Government funding for such projects means that both organisations had to pause their referrals this year while they waited for the Government to confirm their continued funding. I am sure that the Secretary of State agrees that to get people back into work, the organisations already trying to do that need more security from the Government.

When it comes to tackling the mental health crisis, it is not enough to reverse the Conservatives’ lack of action. The Government must be proactive in improving mental health services. I invite the Secretary of State to take the proactive ideas that the Liberal Democrats laid out in our general election manifesto such as catching more mental health conditions early on by offering mental health MOTs and the introduction of mental health hubs in every community to deliver ease of access to walk-in services and support.

It is abundantly clear that ensuring people get the NHS treatment they need is critical to getting people back to work. The NHS cannot tackle its long waiting lists unless the Government get serious about fixing the crisis in social care. We have heard a lot of words from the Government on social care but seen little action, with the increase in the social care budget totally eroded by the national insurance contribution rise. Does the Secretary of State agree that a healthy society is a productive society and that fixing the health and social care crisis will get our country back to work?

[Liz Kendall]

I thank the hon. Lady for her questions. Yes, I agree that we have got to tackle the root causes of the problem and have an NHS and social care system that is fit for purpose. We have put forward our commitments on mental health support in every school and every community. We know that many mental health problems start before someone turns 18, so we have to try to prevent those problems in the first place, but there is much more that we need to do.

We are starting to see fantastic NHS services that provide employment advice as part of care. The evidence shows that if a person is in good work, a sense of purpose and structure is good for their mental health. My right hon. Friend the Health Secretary is pushing for that to be available in all parts of the country.

I am under no illusions about the scale of the challenge. Only 3% of people who are economically inactive get back to work in any given year, so we have to prevent the problems from happening in the first place as well as doing more to help those people into work.

[Neil Coyle (Bermondsey and Old Southwark) (Lab)]

Under the last Government, the DWP faced legal action for its unlawful treatment of disabled people. How will this White Paper, with its positive vision, rebuild trust and better support disabled people going forward?

[Liz Kendall]

The Government believe that disabled people have the same rights as everybody else, including the right to work. Our mission is to break down the barriers. Many disabled people would want to work if they could get the right help and support and a job that fits their needs and concerns, with greater flexibility. This is a really important challenge. I do not blame disabled people for often being frightened and worried when they hear about these discussions after what happened over the past 14 years, but we will work with disabled people and the organisations that represent them to get the world of work and the employment support system right and get a better-functioning system of disability benefits. This is a really big challenge for our country, but with these proposals we are taking an important step forward.

[John Glen (Salisbury) (Con)]

I welcome the Secretary of State’s ambition in many of the areas she has set out, and particularly the “Geep Britain Working” initiative. As a Parliament, we must come to terms with the obesity and mental health crises, so I welcome what she is doing with the Secretary of State for Health.

May I bring to the Secretary of State’s attention the work of South Wilts Mencap? I recently met Robin Clifford, and over 14 years I have seen the work that that group of trustees does with the adult learning disabled, a particular and special group of individuals in my constituency. I would welcome the opportunity to meet the Minister for Social Security and Disability to look at programmes that could be started or pilots that could be undertaken to get the learning disabled into meaningful activity where they can make some contribution through paid work.

[Liz Kendall]

I thank the right hon. Gentleman for that important contribution. I and the Minister for Social Security and Disability would be keen to hear more about that work. I recently visited a supported employment programme—a year-long supported internship—run by my local health service for young people with autism and severe learning difficulties. It started by talking to the parents about what the young people could do, and not just what they could not do. The young people were got on the bus to get them to work. They tried three different jobs around the hospital to find the one that best matched their needs, and after that year every single young person was given a paid job. That is so successful that we are expanding it to the local university and to one of Leicester’s biggest hotel chains. These changes are possible, and I am keen to work with the right hon. Gentleman in his area to ensure that we give these opportunities.

[Gill German (Clwyd North) (Lab)]

I warmly welcome my right hon. Friend’s statement. I believe that these reforms will be transformative, and it is not before time. In my constituency, we have long recognised the gaps that exist in the system. Our local authorities have put in place the brilliant “Working Denbighshire” programme and Conwy employment hub, which really drills down into what local people need and takes them on a pathway into work. Does the Secretary of State agree that devolving power and—crucially—funding in the way she set out is key to achieving the best results we can for local people in their area?

[Liz Kendall]

This is a major change in our approach. Local areas know best their needs and the different organisations that can help achieve goals. I know that economic inactivity in my city is predominantly driven by people with caring responsibilities; in other parts of the country, it is more about physical health or mental health problems. We need different things in different parts of the country—that is the best way to get the best results. It is a big change for the Department for Work and Pensions to be a much more localised service and to be much more joined up with other parts of government, both nationally and locally, but that is how we will deliver change.

[Lewis Cocking (Broxbourne) (Con)]

Businesses in my constituency are really worried and putting off investing and creating jobs because of the Labour party’s Budget, and in particular the increase in regulations and the national insurance increase. How does the Secretary of State plan to get everyone who should be in work back to work if no jobs exist out there?

[Liz Kendall]

I understand the pressures that many businesses are under. The Budget tried to deal with a very difficult issue: if we are spending more than we are earning, our public finances are not working. Anyone who runs a business knows that they have to get the finances right, but many organisations recognise that they need to recruit more people with the skills that meet their particular concerns. They are worried about the increasing number of health conditions and people leaving work because of them. I am determined to work with and serve local businesses. I would be very happy to meet the hon. Gentleman to talk about the specific needs of businesses in his constituency.

[David Pinto-Duschinsky (Hendon) (Lab)]

I warmly welcome the White Paper. I think it is a huge step forward. Mental health challenges have been the biggest single driver of rising inactivity among the young, and we know that mental health can be hugely helped by work. One study shows that just eight hours of work a week will reduce the risk of depression and anxiety by up to 30%. Given that, what will the Secretary of State do to help support those at risk from mental health issues to get back to work?

[Liz Kendall]

I have talked about what we aim to do to prevent mental health problems from happening in the first place, with more mental health support in schools and in the community. I see this as a fundamental overhaul of the way the DWP and the NHS work together, so that support to get people with mental health problems into the right jobs becomes part of what the NHS does, by putting employment advisers into the NHS. The individual placement and support service, which began under the last Government through the NHS, has shown quite phenomenal results—40% of people are in work after five years. Their use of the health service—the number of relapses and days they spend in hospital—are also reduced. That is better for work and for mental health. This requires a big change in the way we work, but my right hon. Friend the Health Secretary and I are determined to make that happen.

[Kirsty Blackman (Aberdeen North) (SNP)]

Many disabled or ill people were terrified by the Tories’ proposals to cut £3 billion from sickness benefit. Given that Labour is continuing that cut, will the Secretary of State promise to sign up to the principle of “nothing about us without us” and ensure that disabled people, those with ill health and those with lived experience of these systems are round the table, making the decisions on how this moves forward?

[Liz Kendall]

I have always been a big champion, including when I worked in social care, of working in partnership with people to get the decisions right first time. That is really important, which is why the Minister for Social Security and Disability and I are absolutely clear that we will work with disabled people in the relevant organisations to get this system right. I want to be really clear that the system is not working. People have to wait weeks on end to get an assessment, which often is overturned at tribunal. We do not do enough to prevent people from falling out of the workplace. Ninety per cent. of people who get back into work after a bout of sickness do so within the first year, but we do not use that opportunity to provide the help and support that they need. We need change. I understand how worried people are when they hear about change, but I think they would also say that the change needs to happen, and we are determined to put that in place.

[Johanna Baxter (Paisley and Renfrewshire South) (Lab)]

I warmly welcome the statement by my right hon. Friend, because giving people the opportunity to get on in life and have dignity in good work is at the heart of what drove me to this place. Does the Secretary of State agree that helping people into work in Paisley and Renfrewshire South is about getting the economy growing again, as well as putting more money into people’s pockets? Will she say a little more about her discussions with the Scottish Government to ensure that they will play their full part in making sure that this works?

[Liz Kendall]

I am absolutely determined to get more people into better-paid jobs in every part of the country. That is the key to improving people’s living standards and to getting the economy growing again. Our new jobs and careers service will look different in Scotland because the Scottish Government are responsible for running the careers service there, but we are already in discussions about how to make sure that our plans meet the specific needs of people in Scotland, including in my hon. Friend’s constituency. I look forward to receiving her ideas and suggestions, which I know she will always provide.

[Mr Richard Holden (Basildon and Billericay) (Con)]

I want the Secretary of State to succeed, and I want her to be part of the first Labour majority Government ever to leave office with employment higher than when they started. I had hoped to hear a little more about reform, rather than just about a review, but this is a welcome step in the right direction. Businesses in Basildon and Billericay have been telling me that although they welcome some of the schemes—I am sure that some of them will do good things—they are absolutely terrified by both the taxes coming through national insurance and the hit on them through business rates. The Office for Budget Responsibility says that at least 50,000 jobs a year will go because of those changes, so where will the people who she is hoping to get off benefits and into work find that employment?

[Liz Kendall]

As I have said to other hon. Members, I am keen to talk to businesses right across the country, including in the hon. Gentleman’s constituency, about the challenges that they face. We took a decision when we got into office that we could not continue with the fantasy economics. We cannot spend more than we earn. We have to invest in the long-term physical infrastructure of the country, but also in our people, who are our best assets. We must get the NHS back on its feet. I know the issues that businesses face, but they are also thinking about the longer term—the vacancies, and how on earth they get the skills that their business needs. I would be very happy to talk to the hon. Gentleman about that, if he likes.

[Clive Efford (Eltham and Chislehurst) (Lab)]

I welcome the statement from my right hon. Friend, and particularly what she said about the coaches and assistance for young people getting into work. What she describes seems to fit neatly with what the Government propose for the green economy, and its highly skilled, well-paid jobs. How will training for those jobs play a part in getting people from unemployment into work?

[Liz Kendall]

My hon. Friend hits the nail on the head. The “Get Britain Working” White Paper is part of a much wider series of reforms that the Government are making to create more good jobs in every part of the country, including in green energy, through our modern industrial strategy, and through our plans, in the new deal for working people, to make work pay. Yesterday, I was at a college in Peterborough that is looking at how to upskill young people so that they can get the clean, green energy jobs of the future. That needs to happen in every part of the country, because we want the new jobs that we are creating to be available to those who need them most. We have not really managed to fit that together before—to get the DWP and our “Get Britain Working” plans underpinning our local growth plans. That is a big change that we have to deliver, if we are to make sure that everybody in this country benefits from the jobs we are creating.

[Christine Jardine (Edinburgh West) (LD)]

I welcome much of what the Secretary of State has said, and I am delighted that she has assured us that there will be discussions with the Scottish Government about plans for Scotland. Throughout the past two or three years, businesses in my constituency have told me that they are concerned that they cannot get people to work for them, so this strategy will be welcome. However, does the Secretary of State appreciate that many of us see a contradiction between this policy and the national insurance changes? A major employer in my constituency tells me that the changes will cost it £250,000 extra a year, and it will not take on seasonal workers because it cannot afford to. How does that damaging policy for business go alongside trying to encourage more people back to work?

[Liz Kendall]

Of course businesses face these pressures, but I think many of them understand that the Government have to look at the fundamentals. We faced a problem with the public finances when we got into government. My right hon. Friend the Chancellor took the decision that the only way we could sort out the country for the long term was to get the public finances back on a more sustainable footing. The businesses that I have met, including Tesco in my constituency, raised concerns with me, but they also said that they really want to get more young people who have mental health problems into work. Tesco has a brilliant partnership with the King’s Trust to get those young people into work and help them stay there, because it knows that the key to those young people’s future is to get those skills, so that they can grow business and make the changes that this country needs.

[Andy McDonald (Middlesbrough and Thornaby East) (Lab)]

I thank my right hon. Friend for her statement. My constituents will very much welcome the additional funding for young people in the Tees Valley, and the modernisation of jobcentres, which will benefit our wonderful jobcentre staff. Can the Secretary of State say how the changes will dovetail with the Employment Rights Bill? How will we ensure that young people are offered quality employment and training opportunities, and not pressured into accepting inadequate and insecure zero-hours jobs? Can she also say how the Government and Members can monitor and evaluate the combined authorities’ delivery of the youth trailblazer programme?

[Liz Kendall]

My hon. Friend will know of our plans to make work pay, bring in day one employment rights, end exploitative zero-hours contracts and improve flexibility at work. We need to do all those things to make sure that there are good-quality job options out there for young people. There will be new leadership roles for mayors in combined authorities, but also clear accountability for delivering the outcome that we want, which is that every young person has an opportunity to earn or learn. We will make sure that happens.

[Sir Desmond Swayne (New Forest West) (Con)]

To ensure that

“if you can work, you must work”,

will the Secretary of State familiarise herself with the works of Jeremy Bentham?

[Liz Kendall]

If I have time.

[Alan Gemmell (Central Ayrshire) (Lab)]

We have heard much about the failures of the Conservative party, but after 17 years of SNP failures, young people in Central Ayrshire are looking to this Government for the opportunity for a good job. What more will my right hon. Friend do, through today’s announcement, to help young people in Central Ayrshire and across Scotland?

[Liz Kendall]

It is hugely important that we deliver these new opportunities in every part of the country, including to people of all ages in Scotland. We will work with the Scottish Government on that, but also, really importantly, with local councils, who have a huge role to play. Our jobcentres really need to change. They need to meet the needs of employers and future employees in every part of the country. I look forward to working with my hon. Friend, to get his ideas on what will work best. Perhaps we could do a joint visit to his jobcentre.

[Wendy Chamberlain (North East Fife) (LD)]

It is all very well us talking about the Department for Work, but a challenge is often that we fail those in employment who are interacting with the benefit system. I have a number of constituents in North East Fife who are paid on a four-weekly basis but who also claim universal credit, which means that, one month a year, they lose their universal credit. Simply telling them to try to put money aside to bridge that gap is not, I think, a professional way for us to support those people. I know that has been an ongoing challenge, but will the consultation look at such issues?

[Liz Kendall]

The hon. Lady raises a really important point. We have a clear manifesto commitment to review universal credit, tackle poverty and make work pay. That issue has been raised a lot with me and the Minister for Social Security and Disability. I am sure that he will look closely at that. We need our benefits system to match the reality of people’s working lives today.

[Yuan Yang (Earley and Woodley) (Lab)]

I very much commend the Secretary of State for the youth guarantee. In my constituency, many businesses have invested in the hi-tech industries of the future. However, I speak to young people and their families who are concerned about those young people getting jobs on the first rung of the ladder. This year, there will be 3,000 undergraduates graduating from the University of Reading, and a further 3,000 people turning 18 in my constituency. What can the Secretary of State and her Department do for those young people to ensure that local jobs and training opportunities match the economic advantages of the area they are from?

[Liz Kendall]

I personally believe that we need to start much younger than 18, with good work experience and careers advice in schools. I have certainly seen that in my constituency; even in primary schools, teachers have brought in people with different jobs, in different professions, to open children’s eyes and minds to the possibilities of the world of work. We need to bring together everything that is happening in our schools, colleges and the world of work. That is how we open up possibilities for young people. I hope that the youth guarantee will do precisely that in local areas and provide the opportunities that my hon. Friend’s young constituents need and deserve.

[Jim Allister (North Antrim) (TUV)]

I note that the White Paper is called “Get Britain Working”, not “Get the United Kingdom Working”. I appreciate there are devolution issues, but when I listened to the Secretary of State’s statement, I found it very England-orientated. There are references to national partnerships, but how does the White Paper fit with getting the United Kingdom working? Will there be Barnett consequentials? And will things be left up to the sometimes failing devolved institutions?

[Liz Kendall]

I thank the hon. Gentleman for his question. Northern Ireland has one of the highest rates of economic inactivity in the United Kingdom, which is a real concern for me, and, I am sure, for him. I have already spoken to the Minister responsible. There are things happening in Northern Ireland that we can look at to see whether there are lessons that could be learned for elsewhere in the country. We will always work closely with the devolved Administrations to ensure that our plans match people’s needs in every part of the country, because that is what his constituents and the country as a whole deserve.

[John McDonnell (Hayes and Harlington) (Ind)]

Given the empty Opposition Benches, it looks like the Conservative party has adopted a policy of a three or two-day week to tackle the unemployment problem. I refer to my entry in the Register of Members’ Financial Interests as chair of the Public and Commercial Services Union parliamentary group. From the tone taken and the statement given today, my understanding is that the Government acknowledge that it will be support, not sanctions, that will tackle this issue overall, and that that support will come from new employment centres in our constituencies, staffed by fully trained, motivated and well-paid staff. The Secretary of State mentioned meeting businesses and mayors. May I ask that she also meets the trade unions? The PCS parliamentary group would welcome a meeting with her to talk through the roll-out of this programme, which will benefit both the staff and the recipients of their services.

[Liz Kendall]

I thank my right hon. Friend for his question. Our 16,000 work coaches and other frontline jobcentre staff are our biggest asset. Some have worked for the DWP for 25 or 30 years, because they care about their communities. They have been stifled by a system that had an overwhelming focus on monitoring and administering benefits. They know what their local areas want and need. I spoke to the head of the TUC yesterday about our plans. I am sure that either the Minister for Employment or I would be very happy to meet the PCS to talk about how we take these plans forward.

[Sarah Dyke (Glastonbury and Somerton) (LD)]

I thank the Secretary of State for her statement. Some 13% of jobs in Somerset are in manufacturing, and many of them are in the defence industry—in Thales in Templecombe, RNAS Yeovilton in my constituency, or Leonardo nearby. The manufacturing industry contributes £1.87 billion to our local economy, which is more than any other single industry. However, data shows that women represent only 30% of the STEM—science, technology, engineering and maths—workforce. Does the Secretary of State agree that we should be making more targeted interventions to support more women into this important industry?

--- Later in debate ---

[Liz Kendall]

One hundred per cent. I could not agree more with the hon. Lady. We need to get more women into manufacturing, engineering and all those STEM subjects. I met many apprentices yesterday on a visit to Peterborough college, including young women who said, “This is for me.” More women need to do this. They are great jobs and great careers, with great pay—100%.

[Mr Connor Rand (Altrincham and Sale West) (Lab)]

It is wonderful to hear from my right hon. Friend that Greater Manchester will be one of the trailblazer areas for these vital reforms. When I speak to businesses in Altrincham and Sale West, they tell me that the greatest challenge they face is recruiting people to fill vacancies. Can the Secretary of State outline a little further how these plans will ensure that businesses can recruit the skilled staff they need, and give young people in my constituency great opportunities in the process?

[Liz Kendall]

This is one of the biggest challenges that many employers face, and the reason that many of them are so keen on apprentices—as I was told yesterday—is that they can mould young people with the specific skills that their companies need. There are two points here. First, we are reforming the apprenticeship levy and transforming it into a new growth and skills levy, so that businesses have more flexibility in how they use it. Secondly, many young people have missed out on those basic skills of maths and English at GCSE, and cannot even get on to the apprenticeship scheme. We need that training or those foundation apprenticeships, because they are a key part of the changes that we want to make and to spread, through our youth guarantee, to areas including Greater Manchester.

[Ann Davies (Caerfyrddin) (PC)]

The Workways team, which is run by Carmarthenshire county council in my constituency, does impressive work in facilitating access to critical skills and giving career opportunities to people who are out of work. It has received funding through the shared prosperity fund, but that is due to end. Can the Minister tell me how such vital organisations in Wales will benefit from her Department’s plans?

[Liz Kendall]

The whole point of devolving responsibility and accountability to mayors and local leaders is that they will know best the organisations that they need to involve in tackling economic inactivity, delivering the youth guarantee and embedding jobcentres into local communities. There is an additional £900 million in the shared prosperity fund for 2025-26, and that is a key element that we need to join up with the rest of these measures, but if the hon. Lady will write to me with more detailed information, I shall be happy to look at it.

[Nadia Whittome (Nottingham East) (Lab)]

Barriers to employment and a lack of workplace support for disabled people remain persistent challenges, along with inadequate social security payments for everyone regardless of employment status. Can my right hon. Friend reassure disabled people that the Government’s new support measures will not be conditional on their being able to work, and that no one will be sanctioned for non-attendance at medical appointments?

[Liz Kendall]

Sanctioning people because they use the NHS to make themselves as fit and healthy as possible is completely the wrong approach. I understand why disabled people are worried when they hear talk about helping people into work or reforms of sickness and disability benefits—they are worried because of what has happened over the past 14 years—but we are determined to break down those barriers to work. I think that many disabled people, given the right help and support and the right flexibility to work, could work and would want to work. That is what we are focusing on, and that is what we are determined to deliver.

[Bobby Dean (Carshalton and Wallington) (LD)]

A fantastic local social enterprise in my constituency has been helping adults with disabilities back into work. It recently set up a café that is run entirely by adults with learning disabilities. How does the Department plan to take evidence from innovative organisations of that kind, and will the Secretary of State meet members of this organisation to find out about the work it has been doing?

[Liz Kendall]

The reason I am so passionate about devolving responsibility and accountability to local areas is that it is intended to engage precisely the kind of organisation that the hon. Gentleman has mentioned. For instance, I know the various organisations in Leicester but I do not know those in his constituency, so I believe that we need a much more localised system. If he will write to me with the details, I shall be very keen to look at them.

[Claire Hughes (Bangor Aberconwy) (Lab)]

Measures such as the young person’s guarantee, which are already working successfully in Wales, are welcome. Could the Secretary of State tell us a bit more about how she will work with the Welsh Government to deliver on the plan to make work pay?

[Liz Kendall]

As my hon. Friend says, there is already a young person’s guarantee in Wales. The jobcentre reforms will look different in Wales because the Welsh Government are responsible for the careers service, but we want to work with them and with employers to overhaul their approach, to unleash the ideas of our work coaches and free up their time to focus on those who need help the most, and to ensure that our jobcentres become the first port of call, not the last, for employers to recruit their next star employee. We want employers to be much more joined up with local skills support and health support. We will be having those conversations with the Welsh Government, and I am keen to receive my hon. Friend’s input as well.

[Alison Bennett (Mid Sussex) (LD)]

My constituent Diana has a daughter who has autism and lives independently with some low-level support. She previously had a part-time role while living in Bath, with help from an employment support job coach, and she wishes to do the same having now moved to my constituency. However, she has found that much harder since moving, and is yet to find similar support in Sussex. How will the Secretary of State tackle the postcode lottery that exists for those in need of extra help to get into employment?

[Liz Kendall]

I am very sorry to hear that Diana’s daughter has not received the level of support that she had before. It is clear that with the right support she will be able to engage with the world of work as well as leading an independent life, which is what she wants. Our reforms are intended to ensure that such support is available everywhere. If the hon. Lady wishes to forward the details of that case, I shall be happy to take a look at them.

[Richard Burgon (Leeds East) (Ind)]

It is vital that people are helped into fulfilling, well-paid work so that they can realise their potential. The Secretary of State rightly mentioned the importance that she places on discussing these changes and reforms with disabled people and disabled people’s groups. In the course of her discussions, will she ask those people and groups about the work capability assessment? Many people who visit my constituency surgery feel degraded and demeaned by the WCA tests, and many of the decisions that are made turn out to be wrong and are successfully appealed against later.

[Liz Kendall]

As my hon. Friend will know, that is why the manifesto on which we were all elected said that we would reform or replace the work capability assessment. People wait for that assessment, and for the personal independence payment, for an average of between 14 and 18 weeks, and about 70% of decisions on the WCA and PIP can be overturned at tribunal. We need a system that gets the decision right first time, because that is what disabled people need and deserve.

[Siân Berry (Brighton Pavilion) (Green)]

The Secretary of State has given us some positive new spending plans today, but she has also given some mixed messages to young people, with some investment on the one hand and new conditions, which she calls responsibilities, on the other. Will she commit herself to working with and empowering young people to shape this new spending in local areas and potentially challenge any new conditions on support? I am thinking in particular of neurodiverse young people, whose perspectives are vital and who are worried about what this will mean for their wellbeing and life chances.

[Liz Kendall]

The White Paper will provide for a new youth employment panel so that we can genuinely engage with young people in developing our proposals. I believe that it is vital for people to be in education, employment or training when they are young, because if they are not, the impact can be lifelong. To those who lack basic skills, today’s world is brutal, and being unemployed when young can have a permanent impact on someone’s job prospects and earnings potential. Alongside genuine new opportunities, there should be a responsibility to take them up—and do you know what? I have never met a young person who did not want to work, who did not want to obtain skills, who did not want a chance. We will fulfil our side of the bargain, and meet our responsibilities to provide those opportunities. I believe that, just as they did when the last Labour Government set up the new deal for young people and the future jobs fund, young people will take up those chances.

[Sam Carling (North West Cambridgeshire) (Lab)]

I thank the Secretary of State for coming to the House to announce these measures. I am pleased to see that Cambridgeshire and Peterborough has been included as one of the areas for trailblazing the new youth guarantee. On Friday, I held a roundtable with local businesses, and one of the main themes that emerged was the lack of ability to recruit skilled people locally. Will the Secretary of State explain how these measures will help to address the situation?

[Liz Kendall]

I thank my hon. Friend for his question. I have already spoken quite a lot about changes to the apprenticeship levy, which are important, but there are many other things that we can do. We have seen real success with sector-based work academies, which are run by jobcentres. Those are short, six-week courses that give the specific skills an employer needs, alongside guaranteed work experience for the potential employee and a guaranteed interview. They have had huge success for people looking for work and for employers, because they get someone with the skills they actually need. We are committed to doing that this year, and I hope we will roll it out further. That is just one of many examples of how we can change our jobcentres and the DWP to better serve employers and their needs.

[Lisa Smart (Hazel Grove) (LD)]

Stepping Hill hospital in Hazel Grove has a huge repairs backlog, which is reported to cost £130 million. We have had buildings knocked down because they are no longer safe, medics wading through flooded corridors and, most recently, a light fitting falling down in a delivery suite when the couple were in active labour. This situation has a massive impact on waiting lists and, consequently, on how much my residents can work, including Anthony, who got in touch yesterday to say that he is waiting for rehab after having a heart attack in June. Can the Secretary of State confirm that any extra funding will go towards what local communities need in order to get back to work? Many of my constituents are as keen as mustard to do so, but they are on waiting lists. Even the most wonderful work coach can do very little when somebody is awaiting surgery.

[Liz Kendall]

The hon. Lady raises a massively important point, and I am really sorry to hear about what her constituents are experiencing. We have to get people back to health and back to work. It is no wonder that so many people are out of work due to long-term sickness, given that waiting lists are at near-record levels. That is why my right hon. Friend the Health Secretary is sending in extra help, including doctors, to drive down waiting lists in the areas that need help the most. It is a no-brainer that we have to get people off waiting lists to get them back to work. That is what I mean when I say that a healthy nation and a healthy workforce are two sides of the same coin.

[Jen Craft (Thurrock) (Lab)]

Thurrock Lifestyle Solutions in my constituency is an excellent example of good practice in helping disabled people enter and stay in the workplace. It is particularly successful because it embodies the maxim, “Nothing about us without us”, as it is run by, led by and designed by disabled people themselves. Will the Secretary of State commit to taking such examples of best practice into consideration, and to ensuring that the voices of disabled people and those with long-term health conditions are put at the very heart of the strategy?

[Liz Kendall]

Yes. What my hon. Friend and many hon. Members have highlighted today are lots of individual examples of really good working, but we are not joining them up. They are not a central part of our employment system, but they absolutely should be. We know that we need extra investment, and the Chancellor has put £240 million into this endeavour, but we are not getting the most out of the money we are spending because it is not co-ordinated and joined up. That is what we mean by delivering investment and reform together. If it is locally led and involves people who are doing all this fantastic work, we can make a really big difference.

[Sammy Wilson (East Antrim) (DUP)]

I welcome the initiatives and recognise that this is not a problem that has been created by the Government; it has been with us for a long time and started long before July this year. Northern Ireland has the highest level of economic inactivity in the UK, despite the fact that I can think of many initiatives in my own constituency for people with learning difficulties, for apprenticeships in certain sectors, for the work of local colleges and so on. Despite all that, the problem persists—and that is in a place with almost full employment. Can the Secretary of State give an assurance that, despite a Budget that will make it more difficult to recruit, she can set objectives for the number of people she believes can be brought from unemployment into work as a result of the initiatives?

[Liz Kendall]

The right hon. Gentleman raises many important points. As I said earlier, it is absolutely the case that Northern Ireland has the highest level of economic inactivity in the UK. We will set clear objectives for our plans as we work with the devolved Administrations, and at local level, to get the levels of economic inactivity down. That will be challenging because, as I said earlier, only 3% of people who are economically inactive get back to work each year. We need to increase that, and the only way we can do it is by more fully joining up work, health and skills support. Too much of the focus of welfare reform over the past 14 years has been on the benefit system alone. Clearly, the benefit system can incentivise or disincentivise work. We want it to incentivise work, but we also know that we need to join up work, health and skills if we are to get every part of the United Kingdom working again.

[Madam Deputy Speaker (Caroline Nokes)]

This statement will run until 3 o’clock, so short questions and short answers would be very helpful.

[Andrew Lewin (Welwyn Hatfield) (Lab)]

It is a sad reality that there are fewer people in work today than in 2019, before the pandemic, so I am under no illusions about the scale of the challenge. When I talk to young people in Welwyn Hatfield, the thing that most concerns me is that they often cite problems with their mental health as being a barrier to getting into work or progressing in work. Can my right hon. Friend reassure me that she will work in lockstep with the Health Secretary? We on the Labour Benches understand that investment in a healthy workforce is a down payment on future prosperity for us all.

[Liz Kendall]

In the interests of brevity, yes.

[Ian Sollom (St Neots and Mid Cambridgeshire) (LD)]

St Neots in my constituency is the largest town in Cambridgeshire, and it does not have a jobcentre; residents have to travel up to Huntingdon each week for their benefits. In the absence of a jobcentre, social enterprise has taken place. Last week I attended the launch of the St Neots citizen hub, which aims to connect individuals with opportunities and employers with talent. It provides a safe space in the heart of the community to address the fundamental issues of skills gaps—including life skills—social isolation and financial insecurity, and it is a great example of the new model for jobcentres. Will the Secretary of State ensure that staff at the jobcentre in Huntingdon can come down for one day a week so that residents do not have to keep making the journey up to Huntingdon?

[Liz Kendall]

That is a really important point. We want to see more of our work coaches going to where people are, rather than always expecting them to come in. If all that help and support is being provided at the St Neots citizen hub, it sounds like exactly the sort of place where our work coaches should be based, and I will certainly bring that up with them.

[Amanda Martin (Portsmouth North) (Lab)]

These changes are fantastic and are much needed to get Britain back to work after 14 years of dismissal and neglect of real lives and real people under the last Government. However, areas such as Portsmouth North do not have a devolution deal yet. Can the Secretary of State provide details on how those not in work in Portsmouth North will be able to get support and get back into work, and on how we can make our jobcentre accessible, to lift children out of poverty and to lift people back into the community?

[Liz Kendall]

I reassure my hon. Friend that it is the same for me and my city—we do not have a devolution deal. We are overhauling our jobcentres, and tackling economic inactivity with local “Get Britain Working” plans and our youth guarantee. Regardless of whether people are part of a mayoral or combined authority, that work will be led locally, including through the local council. We are determined to deliver in every corner of the country, because we believe that everybody deserves an opportunity to work. That is what our country needs to get growing again.

[Richard Foord (Honiton and Sidmouth) (LD)]

Steven Tysoe from east Devon used to be a Metropolitan police officer in London, and he showed me footage of his involvement in the riots in the capital over a decade ago. He was severely injured and was regarded by the DWP as disabled. Under the new right of disabled people to work, will the Secretary of State ensure that public servants who have been injured in the line of duty will not get hounded repeatedly by assessors?

[Liz Kendall]

I do not want to see people being hounded. If they are able to work, I want them to get the support they need to do that. That is the big challenge that we face. There are more disabled people working than ever before, but for many others their conditions might fluctuate and the world of work and the benefit system need to understand that. I am interested in providing people with support not hounding them—there should of course be conditions and responsibility within the social security system, as has been the case since it was set up—and I hope that is not happening to the hon. Gentleman’s constituent. If it is, perhaps he will write and tell me more about it.

[Shaun Davies (Telford) (Lab)]

Those who can work should work, but so should the support services. I welcome the Secretary of State’s statement on transforming that public service, which embraces many of the principles of the work done by the Local Government Association on “Work Local”. In Telford and Wrekin, where I was council leader, we were driving down youth unemployment under the previous Government, but we were expected to pay a charge to the DWP to share data. Will the Secretary of State assure me that that will not happen under these plans to work local?

[Liz Kendall]

It seems to me to be completely the wrong approach to put barriers in the way of data sharing. Some of the best innovations—I am thinking particularly of Barnsley council—have shared data between the health service, the jobcentre and the DWP about people facing barriers to work and what needs to happen to put that right. We have to enable that to happen everywhere. I want to tear down those barriers, not put more up, so I will definitely take away that issue.

[Jim Dickson (Dartford) (Lab)]

I welcome the innovation and energy in the White Paper. It will make a huge difference to people and businesses across the country. In relation to the welcome announcement of eight trailblazer schemes, can the Secretary of State set out how young people in areas without mayoral combined authorities will see support, including my residents in Dartford and across the Thames estuary, where we want to see the fair growth that the Government are offering?

[Liz Kendall]

I 100% want young people, and all my hon. Friend’s constituents in Dartford, to have the same chances. As I said earlier, I do not have a combined authority in my city, so I am acutely aware of this issue. This will be for local councils to lead. They will be developing local “Get Britain Working” plans. They will be the responsible and accountable body over our youth guarantee. We have to deliver this everywhere because talent is everywhere but opportunity is not, and that is what we all came into politics to change.

[Andrew Pakes (Peterborough) (Lab)]

This is a momentous White Paper by a momentous Secretary of State. Yesterday, I had the great privilege to take my right hon. Friend to Peterborough college to meet excellent businesses and apprentices doing brilliant work, including EML, Baker Perkins, Taylor Rose, Codem and Gen Phoenix. Those businesses and learners are excelling in a system that has failed too many of our young people. Apprenticeships are down and youth unemployment is up in my city. Can my right hon. Friend tell us how quickly we can get going on these new trailblazers?

[Liz Kendall]

I thank my hon. Friend for an amazing visit yesterday, and I hope he will pass on my thanks to Rachel at the local college and to all the local businesses and apprentices. I agree with him: the number of apprenticeship starts for young people dropped by 38% under the previous Government’s apprenticeship levy, and in Peterborough more than 1,350 young people are claiming benefits, with the majority not in work, so we must act swiftly, and we will. These programmes are starting immediately in the new year. I look forward to working with him and all those businesses and the college in Peterborough to put our plans into action, because we are determined to deliver.

[Katrina Murray (Cumbernauld and Kirkintilloch) (Lab)]

I draw the House’s attention to my entry in the Register of Members’ Financial Interests and to the work that I did prior to prior to entering this place. It is difficult enough for a disabled person to enter employment; it is even more difficult for a disabled person to remain in employment if the employers are not aware of or not accommodating their disabilities and the reasonable adjustments that they might need. Within the debate on this White Paper, will the Secretary of State ensure that the work of exemplar employers is picked up and credited? There must be a recognition of the value that disabled people can bring to all workplaces. I also invite her to come and meet my old team in the employability service within NHS Lanarkshire, who have worked not just with Project Search but with disabled—

[Madam Deputy Speaker]

Order. I call the Secretary of State.

[Liz Kendall]

The issue that my hon. Friend raises is so important, and Sir Charlie Mayfield, who will be running our “Keep Britain Working” review, will indeed look at best practice among some great employers who understand what needs to happen to help disabled people get work and stay in work. If my hon. Friend writes to me about that exemplar working, I will make sure that he sees it.

[Dr Scott Arthur (Edinburgh South West) (Lab)]

Yesterday I was proud to host a reception from the Royal National Institute of Blind People, at which I heard that, across the UK, people with failing eyesight are not getting the support they need from the health service, from local authorities or from employers, and that they are falling out of work because of this. Can this be addressed as part of the programme being outlined today?

[Liz Kendall]

We will certainly speak to the RNIB to ensure that those points are included as we take our “Get Britain Working” White Paper forward.

[Blair McDougall (East Renfrewshire) (Lab)]

If we search the record of this place, we see the phrase “no child left behind” mentioned over and over again, but during the pandemic, children were left behind. They have been washing up on the shores of social work, of the police sometimes, and of childhood mental health services, and I know from visiting my jobcentre in Barrhead that they are now washing up on its shores as well. What will this White Paper do to help that covid generation who were left behind?

[Liz Kendall]

When I visited my jobcentre in Leicester after being appointed to the work and pensions role in opposition, the very first thing its manager said to me was that the big problem was young people and mental health—the covid generation. They deserve more opportunities to earn and to learn. The country must do this. For me, the most concerning problem that we face is the rapid increase in young people not in education, training or employment. We know that we can deliver the youth guarantee, as we did the new deal for young people and the future jobs fund when we were last in government. This is a version of that, facing the problems of today and tomorrow to give that pandemic generation the chances and choices they need to build a better life.

[Mr Mark Sewards (Leeds South West and Morley) (Lab)]

May I start by welcoming the statement and the White Paper? The Secretary of State has confirmed that we are the party of work. There is so much good stuff in the statement and the White Paper, including reforms to jobcentres, the youth guarantee and joined-up health and job support, but I particularly welcome the talk of a right to work. Disabled constituents tell me that they are desperate to get into employment but cannot find employers who meet their needs. Without knowing the specifics, what general assurances can my right hon. Friend give those constituents that they will be able to find work under this White Paper?

[Liz Kendall]

This Government understand the importance of whether the benefit system incentivises or disincentivises work, but we must also address people’s skills, the barriers to work, including for disabled people, and the need to work much more closely with employers so that they understand the benefits of keeping people in work or getting them back to work. This is a huge agenda, and I think the DWP has been too centralised and too siloed in not joining up all this support. Our work coaches are desperate to make this happen, and under these reform programmes that is exactly what we will do.

[John Slinger (Rugby) (Lab)]

Does my right hon. Friend agree that supporting people into work, through Government action nationally and, of course, locally, is an important part of being pro-business? Will she expand briefly on how the measures she has set out will benefit businesses of all sizes in my constituency, and will she reassure them that we are not only the party of work but a pro-business party?

[Liz Kendall]

Businesses in Rugby and across the country always say that they are desperate to recruit people with the right skills. If they do not have the right people, they will not be able to expand and thrive. This is a pro-business strategy to get Britain working again, so that we get Britain growing again. My hon. Friend the Minister for Employment says that we are the human resources department of the growth mission. I hope businesses in Rugby will see that and work with us to make sure we get it right.

[Paul Waugh (Rochdale) (Lab/Co-op)]

I warmly congratulate the Secretary of State on all her hard work to deliver this White Paper, which proves not only that hers is a Department for work but that Labour is the party of work. Whereas, judging from the sea of green opposite, the Tories are a party of slackers.

I warmly welcome the fact that Greater Manchester is one of the trailblazer areas. What is the Secretary of State most excited about in Andy Burnham’s plan to help tackle this massive problem in Greater Manchester?

[Liz Kendall]

Under Andy Burnham’s leadership, Greater Manchester is pioneering some of the changes that we want to see by fundamentally joining up work, health and skills support, by commissioning new talking therapy services for people seeking work, and by creating a new service to broker connections between jobseekers and employers. This will make sure that employers get the staff they need while also making the necessary adjustments.

We want to build on that and expand it, because we are indeed the party of work. We believe that work brings self-respect, dignity, control and improved living standards. I am very proud of that, and I hope and believe that these reforms will deliver in every corner of this great nation, so that we invest not just in Great Britain but in great Britons—this country’s greatest asset.

“Get Britain Working” White Paper

Liz Kendall Excerpts

Tuesday 26th November 2024 Written Statements

[The Secretary of State for Work and Pensions (Liz Kendall)]

Today, the Government have published the “Get Britain Working” White Paper—bringing forward the biggest reforms to employment support in a generation, and turning a Department of welfare into a genuine Department for work. This takes the first steps towards delivering our bold ambition of an 80% employment rate, through a decade of national renewal.

The UK is the only country in the G7 whose employment rate has not returned to pre-pandemic levels. We have a near-record 2.8 million people out of work due to long-term sickness or disability. Almost a million young people are not in education, employment or training. Millions are stuck in low paid, insecure work.

To turn the page on this, nothing short of a fundamentally different approach is needed. Our White Paper brings in three major reforms to:

Create a new jobs and careers service, overhauling jobcentres from a one-size-fits-all service that overwhelmingly focuses on administering benefits into a genuine public employment service providing personalised help and support. We will bring jobcentres together with the National Careers Service in England, beginning with a pathfinder early next year. We will work closely with mayors and local leaders to ensure the new service is rooted in local communities and properly joined up with local health and skills support. We will work closely with employers, so that it better meets their needs. We will also test, trial and develop a radically improved digital offer, using the latest technologies and AI to provide up-to-date information on jobs, skills and other support, and to free up work coach time. This is backed with £55 million of initial funding.

Establish a new youth guarantee in England to ensure that every young person is earning or learning. We will bring together all the different support for 18 to 21-year-olds, under the leadership of mayors and local areas, to ensure that all young people have access to education, training, and employment opportunities once they reach 18, and that no one misses out. Backed with £45 million of funding, we have announced eight trailblazers for our youth guarantee—in Liverpool City Region, the West Midlands, Tees Valley, East Midlands, Cambridgeshire and Peterborough, West of England, and two areas in Greater London. We have also announced a new national partnership to provide exciting new opportunities for young people in sports, arts and culture. We will invest in young people and give them the choices and chances that they deserve, but in return, they will have a responsibility to take up the training or work that is on offer.

Address the growing and unsustainable problem of people being out of work due to poor health. We are already taking action to drive down waiting lists, including with targeted support at the 20 NHS trusts with the highest economic inactivity. We are joining up employment and health support, for example by expanding individual placement support and piloting new WorkWell services. However, we need to go much further and faster to tackle this issue.

To meet the scale of the challenge, we will devolve new funding, powers and responsibilities to tackle economic inactivity to mayors and local areas. Because local leaders know their communities best, we will support all areas in England to produce local “Get Britain Working” plans, joining up work, health and skills support. Today we have announced eight trailblazers, backed by £125 million of funding—in West Yorkshire, North East, South Yorkshire, Greater Manchester, Wales, York and North Yorkshire, and two Greater London areas. To kick-start this work, we are funding a new supported employment programme called “Connect to Work”—backed by £115 million of initial funding for next year.

Alongside this action, we have announced an independent “Keep Britain Working” review. This will look at the role of UK employers and Government in tackling health-related economic inactivity and creating and maintaining healthy workplaces. This will be led by the former chair of John Lewis, Sir Charlie Mayfield, and will report in the autumn.

And we will bring forward in the spring a Green Paper setting out proposals on reforming the health and disability benefits system. This will ensure that disabled people and those with health conditions have the same rights and opportunities as everybody else, including the right to work; that they are treated with dignity and respect; and that the system responds to the complex and fluctuating nature of the health conditions that so many people are living with today. We will work closely with disabled people and representative organisations as we develop our proposals.

Many of the policy areas described in this White Paper are devolved in Northern Ireland, Scotland and Wales. Where this is the case, the focus of this paper is on the actions that the UK Government will take in England. The UK Government will work closely with the devolved Governments to maximise positive outcomes and learning across the UK, while respecting devolution settlements. Within Great Britain, we will work with the Scottish and Welsh Government to ensure that all aspects of our new approach to delivering employment support partner effectively with devolved provision. That includes, but is not limited to, skills, health and careers, as well as Scottish and Welsh Government funded employment support.

To deliver change, we need action across Government, which is why this White Paper has been developed with the Chancellor of the Exchequer and the Secretary of State for Education, and with input from the Department for Health and Social Care and many other Departments.

Our “Get Britain Working” White Paper brings forward the real reforms needed to help more people into better jobs, to give young people the chance of a better life, and to make sure that our employment and social security system understands that a healthy nation and a healthy economy are two sides of the same coin. This is how we get Britain working again, and how we get Britain growing again.

[HCWS252]

Oral Answers to Questions

Liz Kendall Excerpts

Monday 11th November 2024 Commons Chamber

[Tracy Gilbert (Edinburgh North and Leith) (Lab)]

6. What recent estimate she has made of the level of child poverty in Edinburgh North and Leith constituency.

[The Secretary of State for Work and Pensions (Liz Kendall)]

This morning the nation fell silent to pay tribute to all those who have served and continue to serve in our armed forces, and those who have made the ultimate sacrifice. Today we honour and remember them. I quote the words inscribed on Lutyens’ beautiful Arch of Remembrance in Leicester from the hymn “O Valiant Hearts”:

“All they hoped for, all they had, they gave to save mankind—themselves they scorned to save”.

Some 4.3 million children are growing up in poverty—700,000 more than in 2010. That is why the work of our cross-Government child poverty taskforce is so urgent, and why we will use all levers available to increase family incomes, reduce family costs and give every child the best start in life.

[John Slinger]

I have had the privilege of assisting the brilliant volunteers at the Make Lunch organisation in Rugby, which provides holiday lunch clubs with play activities for entire families, including those with complex needs. Last summer it fed 25 families, last Christmas it bought slow cookers for families and this Christmas it is offering hampers. They treat families with dignity. As with food banks, is it not an indictment of the record of the last Government that such charitable support is needed in the first place?

[Liz Kendall]

Make Lunch sounds like an absolutely brilliant charity, and I ask my hon. Friend to pass on our great thanks for its fantastic work. That work is urgent, because the Child Poverty Action Group estimates that a quarter of children in my hon. Friend’s constituency are growing up poor. Our child poverty strategy will be published in the spring, but we will not wait to act. That is why the Budget announced a new fair repayment rate to slash universal credit deductions and give 1.2 million of the poorest households £420 on average a year, lifting thousands of children out of poverty.

[Tracy Gilbert]

Previous Labour Governments have tackled not only poverty but its root causes. Can my right hon. Friend outline how the child poverty taskforce will identify and tackle the root causes of poverty in my constituency and across the UK, to ensure a permanent end to child poverty?

[Liz Kendall]

I am sure that, like me, my hon. Friend thinks that it is unacceptable that an estimated one in six children in her constituency is growing up poor. We have taken immediate action to help the poorest families in Scotland through our fair repayment rate, which will benefit 110,000 households in Scotland. We are tackling the root causes of poverty with our reforms to make work pay, tackle exploitative zero-hours contracts and create more good-quality jobs in every part of the country.

[Patrick Spencer (Central Suffolk and North Ipswich) (Con)]

Child poverty is a scourge in British society, and I am grateful that the Secretary of State is bringing forward a child poverty strategy. Has she decided how to measure child poverty? May I warn her against using the much discredited relative measure, which, as we know, shows poverty decreasing during times of economic decline and increasing during times of economic growth? I implore her to use an absolute measure, which has a much better record of showing deprivation and long-term increases and improvements in living standards.

[Liz Kendall]

I am afraid I will disappoint the hon. Gentleman: we will look at relative poverty after housing costs, but we will go further and look to alleviate the very deepest poverty. It is appalling that hundreds of thousands of families are forced to rely on food banks—something that I know only too well from my time chairing Feeding Leicester. We will look at relative poverty, deep poverty and what it will take to give every child the very best start in life, by bringing together support from public services, charities and other groups. That is the way to bring down poverty and make the changes sustainable.

[Jim Shannon (Strangford) (DUP)]

Northern Ireland has some of the highest child poverty figures in the whole of the United Kingdom of Great Britain and Northern Ireland. I am sure that the Secretary of State wants to help. We have had a 70% increase in food bank usage in my constituency in the past 12 months, which is an incredible indication. Will she kindly tell me what discussions she has had with her counterpart in the Northern Ireland Assembly on what more can be done to help?

[Liz Kendall]

The Minister from Northern Ireland is a member of our child poverty taskforce. I hope to visit soon and the co-chair of the taskforce, the Secretary of State for Education, my right hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson), also plans to visit. We have introduced the new fair repayment rate to slash the level of universal credit deductions because, as food banks in my constituency have told me, that really pushes people into poverty. That is not what the Government should be doing, and that is why we have taken action. I look forward to coming to Northern Ireland to talk to the hon. Gentleman, his constituents and the organisations fighting poverty to see what more we can do.

--- Later in debate ---

[The Secretary of State for Work and Pensions (Liz Kendall)]

The legacy we inherited is almost 1 million young people not in education, employment or training—nearly one in eight—with all the long-term consequences we know that can bring for their future earnings, job prospects and health. That is why our new youth guarantee will ensure that every young person is earning or learning, which is better for them, better for the economy and better for our country as a whole.

[Andrew Pakes]

The DWP has described Peterborough as a national youth unemployment hotspot. In September, the youth claimant count was running at nearly double the national average. Places like Peterborough college, through its Jobsmart provision, are already pulling together a coalition to respond to that challenge. I welcome the Government’s youth guarantee and “Get Britain Working” plans to ensure that young people in places like Peterborough are given the opportunity to earn or learn. Will the Secretary of State please confirm a timetable for the publication of the White Paper?

[Liz Kendall]

The “Get Britain Working” White Paper will be published imminently, backed by £240 million of investment announced by the Chancellor in the Budget. I look forward very much to talking to my hon. Friend and the organisations that are working so hard locally, because I believe that the man, or even woman, in Whitehall can never know what is best in Peterborough, Leicester or Leeds.

[Mr Richard Holden (Basildon and Billericay) (Con)]

A small business in my constituency to which I have spoken over the last few weeks has raised concerns about the impact of the national insurance rises in the Budget on, in particular, those in lower-paid work, who in many cases are young people starting their jobs. What impact do the Government think that those rises will have on young people and youth unemployment?

[Liz Kendall]

Just last week I visited a very large employer in my constituency, Tesco, and saw the fantastic work that it is doing with the King’s Trust to ensure that more people get into work and stay in work. It is determined to work with us and our local schools, and employment and other providers, because they know that rather than writing off nearly a million young people, which led to the situation that we inherited, this new Government have a plan to get people into work, enable them to get on in work, and ensure that every young person has the chance in life that he or she deserves.

[Mr Speaker]

I call the new shadow Secretary of State, and welcome her to her post.

[Helen Whately (Faversham and Mid Kent) (Con)]

May I say how nice it is to be sitting opposite the right hon. Lady again, albeit, regrettably, having swapped places with her? I enjoyed our exchanges on social care during the last Parliament, and appreciated our constructive conversations during the pandemic, although, given how well she knows the care brief, I suspect that she was gutted, as I was, to see the incoming Government abandon the care cap and scrap more than £50 million of funding for social care training. The consistent feedback from jobcentres was that the biggest barrier to young people taking up job opportunities in social care was lack of career progression, hence our reforms to create a career path for care workers and investment in training. Has the right hon. Lady spoken to her counterpart in the Department of Health and Social Care about the impact of those social care cuts on her ambitions to get more young people working or learning?

[Liz Kendall]

I, too, welcome the hon. Lady to her post. As she has said, while we will always have our political differences we have also worked closely and constructively on issues that matter across the House, such as the terrible problems facing social care during the pandemic. I will continue that work, and I hope that the hon. Lady will as well, in her new role.

The hon. Lady asked about the impact of what is happening in social care on people’s opportunities and chances to learn. I have already had many discussions with, among others, members of integrated care boards, and they are passionate about the opportunities that exist to get more people into work and enable them to get on in their work, including jobs in social care. Joined-up working between the Department of Health and Social Care and the Department for Work and Pensions will be at the heart of our plans to get Britain working, because, unlike some Opposition Members, we do not find it acceptable for 2.8 million people to be locked out of the workforce owing to long-term sickness. We have a proper plan to get Britain working and growing again.

[Helen Whately]

The right hon. Lady will know that under the Conservative Government youth unemployment fell by 380,000, and that we were tackling inactivity with our WorkWell programme, helping people to stay in work or return to work, which I am delighted to see the right hon. Lady continuing. Unfortunately, however, as a result of her Government’s Budget and Employment Rights Bill, businesses will slash the number of their employees. Moreover, the Government have just broken another promise and hiked up university fees. What advice would the right hon. Lady give a young person who is currently out of work and education, and must choose between worse job prospects and more expensive university degrees thanks to her Government’s choices?

[Liz Kendall]

The hon. Lady’s party left nearly a million young people not in education, employment or training, and almost a record number of people—2.8 million— out of work owing to long-term sickness. They failed to introduce reforms to join up work, health and skills properly, and they have not learnt from those mistakes. I am proud that this Government are investing an extra £240 million to get Britain working again, giving people the opportunities that they need to work and build a better life.

[Lewis Atkinson (Sunderland Central) (Lab)]

4. What steps she is taking to increase uptake of pension credit in winter 2024-25.

--- Later in debate ---

[Samantha Niblett (South Derbyshire) (Lab)]

13. What steps she is taking to improve support for carers.

[The Secretary of State for Work and Pensions (Liz Kendall)]

As a lifelong champion of unpaid family carers, I am proud that the first Labour Government in 14 years have given unpaid carers the biggest ever cash boost to the amount they can earn while still receiving carer’s allowance. That means family carers can earn an extra £2,000 a year and still keep their allowance. That is the difference this Labour Government are making: supporting families who do the most important thing, which is caring for the people that they love.

[Samantha Niblett]

I have spoken to many people in my constituency of South Derbyshire who are taking on caring responsibilities for loved ones. I know how hard that is and I am so grateful for the job they do, but it is often a thankless task. I am glad that the Government have taken action to support people in our communities who take on caring responsibilities, but it is disproportionately women who do so. Will the Secretary of State outline how the increase in the threshold will benefit women and allow them greater freedom to work?

[Liz Kendall]

My hon. Friend is right: 60% of unpaid carers are women, but women spend more hours caring, so they are disproportionately represented when it comes to receiving carer’s allowance. This is a small, but significant and important, step forward. It is a signal that the new Government understand that as people live for longer and care for longer, we will have to do more to help families balance work and caring responsibilities. That is the truth of family now: it is as much about caring for our elderly and disabled loved ones as it is about caring for our own wonderful children.

[Clive Jones (Wokingham) (LD)]

14. What estimate her Department has made of the number of pensioners eligible for Pension Credit but not claiming it.

--- Later in debate ---

[Calum Miller (Bicester and Woodstock) (LD)]

T1. If she will make a statement on her departmental responsibilities.

[The Secretary of State for Work and Pensions (Liz Kendall)]

The Budget took the first steps in this Government’s plan to drive up opportunity and drive down poverty in every corner of the country: it included an additional £214 million for our plan to get Britain working, a new fair repayment rate in universal credit to help over 1 million of the poorest households, and the biggest ever package to reduce fraud and error in the system, ensuring that every pound of taxpayers’ money is wisely spent. There is much, much more to do, but in the Department for Work and Pensions, change has begun.

[Calum Miller]

My constituent Kevin had to stop work in 2018 due to a medical condition. He is desperate to find a job, but has consistently found that he is not eligible for support from his local jobcentre. Kevin asked me, “How does someone who has fallen out of work get back into work?” Will the Secretary of State or a Minister meet me to discuss Kevin’s case, and see if, together, we can answer his question?

[Liz Kendall]

The hon. Gentleman raises an extremely important point. It is not right that his constituent, who wants to work, has suffered from a mental health problem but does not have the support that he needs. In parts of the country, steps have been taken to help provide the healthcare and other support that people need, but we need to go further, faster. My hon. Friend the Minister for Employment will indeed meet the hon. Gentleman. Let’s get cracking on this and see what we can do.

[Josh Dean (Hertford and Stortford) (Lab)]

T2. On my recent visit to Hertford and Ware food bank, hard-working volunteers raised with me the damaging impact of rules introduced under the previous Conservative Government, which prevent jobcentres from referring benefits claimants to food banks. Does my right hon. Friend agree that those changes prevent some of the most vulnerable people in our communities from accessing support in an emergency, and will she set out the steps that the Department will take to reverse them?

--- Later in debate ---

[Helen Whately (Faversham and Mid Kent) (Con)]

The Conservatives are the party of work and aspiration, and once again, we left office with unemployment at a historic low. We all know that Labour always leaves unemployment higher than when it came into office, but rarely has it seemed in such a hurry to achieve that. Its first Budget will, according to the Office for Budget Responsibility, cost the country 50,000 jobs in the next few years alone. What assessment has the right hon. Lady made of the cost to her Department of those job losses?

[Liz Kendall]

May I gently say this to the hon. Lady? She should be apologising, because we have record numbers of people out of work due to long-term sickness; one in eight young people is not in education, employment or training; and people are locked out of the world of work because the Conservatives failed to make proper plans to get people into work and on in their work. Until Conservative Members face up to their responsibilities, and to the cost to the taxpayer of their mistakes in not getting people with long-term sickness into work—£25 billion extra over the course of the forecast period—they will remain on the Opposition Benches.

[Helen Whately]

I wonder if the Secretary of State did not hear my earlier question; I said that I was grateful that she is continuing the work that we did in government, through the WorkWell programme, to help people in ill health into work by joining up healthcare and employment. However, the point I was just making, to which she did not respond, was that 50,000 jobs will be lost as a result of Labour’s Budget. That is not the only thing frightening the life out of businesses at the moment—

--- Later in debate ---

[Mr Speaker]

Order. I did make the suggestion that you might come to the end of your question, but you decided to carry on reading, so I will have to stop you. I call the Secretary of State.

[Liz Kendall]

I am very proud of a Budget that invests in the long-term growth that this country needs, that gives a pay rise to the 3 million lowest-paid workers, and that invests in the NHS so that people can get back to health and back to work. That is the change that this country desperately needs.

[Ben Goldsborough (South Norfolk) (Lab)]

T3. As a proud member of the Union of Shop, Distributive and Allied Workers, I want to raise with the Minister the amazing work that it has done to produce the estimate that around three quarters of workers in typically low-paid sectors are paid weekly, fortnightly or four-weekly, rather than monthly. That is not recognised by universal credit. Will the Minister promise to meet USDAW and other trade unions to make sure that this matter is investigated?

Income Tax (Charge)

Liz Kendall Excerpts

Monday 4th November 2024 Commons Chamber

[The Secretary of State for Work and Pensions (Liz Kendall)]

The first Labour Budget in 14 years—the first ever Budget delivered by a woman Chancellor—shows the difference that this Labour Government are already making. We are fixing the foundations of the public finances to bring the stability that our economy needs, putting more money into people’s pockets after the worst Parliament for living standards on record, beginning to turn the corner on our vital public services, with more appointments in the NHS and more teachers in our schools, and making the long-term investments in infrastructure and skills that our country needs in order to grow our economy and seize the jobs and opportunities of the future.

In the Department for Work and Pensions, the message from this Budget is clear: we will tackle the unacceptable levels of fraud that we have inherited, because every pound of taxpayers’ money must be wisely spent and go to those who need help the most. We will drive up opportunity in every corner of the country with our plan to get Britain working, because this Labour Government believe that work is the key to building a better life and to growing our economy. We have made a start on driving down poverty too, because, unlike Conservative Members, we know that children cannot fulfil their potential without food in their bellies and a roof over their heads, and our country cannot fulfil its potential when the talents of so many bright children and young people are being denied.

Getting a grip on the public finances is the first step in delivering all these changes. Without strong foundations, we cannot deliver a thriving economy, decent public services or sustainable increases in living standards for families and pensioners. We did not choose to inherit the mess that we found in the public finances and our public services, but we have chosen to level with the public about the scale of the challenges and how we intend to deal with them.

Conservative Members have still not faced up to their responsibility for the state in which they left the country. There is a £22 billion black hole in the public finances this year, with billions of pounds overspent on a failing asylum hotel system. New hospitals, roads and train stations were announced, without the money to pay for them. Vital compensation schemes for infected blood and the Horizon scandal were set up, without the funds to deliver them. The country’s reserves were spent three times over.

That is before we even get to the state of our public services. Millions of patients have been left waiting for NHS treatment, often in agony and pain. Victims have been left waiting months or even years for justice in our courts. Our prisons are overflowing, and our schools literally crumbling. As my right hon. Friend the Chancellor of the Duchy of Lancaster has said, this could have been a Budget where we looked at the state of the country but ducked the difficult decisions. We could have tried to kid the voters, paper over the cracks and then hope that something better somehow comes along. But we chose not to do that, because that is precisely the approach that got us into this mess in the first place, and because in politics, as in life, you do not deal with a problem by ignoring it, ducking it or pandering to it; you deal with problems by facing them head on.

We have chosen to get the public finances back on track, to protect the payslips of working people, to start turning the corner on our public services and to invest in the long-term infrastructure our country needs. In order to deliver that, we have made tax changes, which is never easy to do, and asked some businesses and wealthier people to pay some more. Hand in hand with this balanced approach, however, the Chancellor has set out tough new productivity, efficiency and savings targets of 2% this year for every single Department. Under this Labour Government, investment in our public services will always go hand in hand with reform, because we cannot keep spending taxpayers’ money on the same problems without changing the way we tackle them, and because public expectations and developments in AI and new technologies are transforming the way people interact in many aspects of their lives, and the public sector must respond to those changes, too.

The need for reform in our system of employment support and social security is urgent and it is real. I want to spell out clearly and honestly for the House the facts of the previous Government’s legacy of failure. Some £35 billion of taxpayers’ money has been lost to fraud and error since the pandemic—now standing at £10 billion a year. Our employment rate is still not back to pre-pandemic levels, making us unique in the G7 group of wealthy countries, and not in a good way. We have near-record levels of people trapped out of work due to long-term sickness—a staggering 2.8 million people, with rates far higher in some parts of the country such as the midlands and the north—and 420,000 more households are predicted to claim universal credit health benefits over the next five years, increasing from a third to a half of all universal credit claims. That is the legacy of the Conservatives. One in eight of all our young people are not in education, employment or training, with all the terrible long-term consequences we know that brings.

It is not just the economic cost of this failure that is unacceptable, with a predicted £26 billion increase in sickness and disability benefits over the next five years. Above all, there is the human cost to individuals and communities when millions of people are denied the opportunity to work and earn a decent standard of living, to make connections, to get skills and to build chances for a better life, with all the benefits that that brings. We do not accept that as the future for our country or our fellow citizens.

Instead, we choose a different path. It starts with our determination to deliver value for money for every pound of taxpayers’ money, so we will bring forward a new plan to drive down fraud and error in the welfare system. Our new Fraud, Error and Debt Bill will update the Department for Work and Pensions’ powers for the first time in 20 years, so that we can keep up with the new ways that fraudsters, including organised criminal gangs, are using to take public money, and so that our powers are brought into line with other public bodies such as His Majesty’s Revenue and Customs.

We will use technology to alert us to people trying to scam the system, and to prevent errors from happening in the first place. We will recruit 3,000 more staff to crack down on fraudsters, with a focus on serious case reviews, and we will bring in new powers to recover debt, all with independent oversight and a guarantee that a human being will always take the final decision in any fraud case, to give everyone confidence in the system—something that the Conservatives utterly failed to do.

[Jim Shannon (Strangford) (DUP)]

Many of us understand the need to have a more focused fraud law, and that is very important, but every other week people I represent come along to me and say that they have been overpaid for their employment and support allowance, their personal independence payments or their disability living allowance. They find themselves in an incredibly difficult position, not because they are trying to defraud or take money away from anyone; it is just a simple issue of their getting it wrong. What will be done to protect those people? This is really important. We are going to have a new fraud law, but let us make sure that we protect the innocent people who make a mistake.

[Liz Kendall]

I absolutely agree with the hon. Gentleman. The technology we will put in place will be precisely so that we drive down not only fraud but errors in the system. He will know, for example, that we are trialling a new system for carers in which we text them if they are about to go over their allowance, so that we do not have the scandalous overpayments that caused such a problem under the previous Government.

The second major reform that we will bring in is our plan to get Britain working again. Our White Paper, which will be published in the coming weeks, will bring forward the biggest reforms to employment support in a generation, backed by an additional £240 million of investment. This will help us meet our ambition to achieve an 80% employment rate and to turn what is in reality a Department for welfare into a genuine Department for work. First, we will create a new jobs and careers service, overhauling our jobcentres so that they no longer focus predominantly on monitoring and assessing benefits but are a genuine employment service working with employers, colleges, public services and local leaders to help people to get work and get on in work.

Secondly, we will devolve powers to Mayors and local areas to join up the fragmented patchwork system of employment, skills and, crucially, health support to drive down economic inactivity and drive up employment, boosting jobs and growth in every corner of the country—because the man, or even woman, in Whitehall does not know what is best in Leicester, Liverpool or Leeds. Last, but by no means least, we will bring forward our new youth guarantee, so that every young person is earning or learning—no ifs, no buts—because we do not accept having a generation of young people without the skills or jobs they need to succeed, and we will never write off young people before they have even begun.

Our determination to help people get work and keep work does not stop there. I know only too well from my constituents and my friends how often women in their 50s and beyond are now caring for elderly and disabled relatives but wanting to work at the same time. I am proud that we are giving family carers the biggest ever boost to the amounts they can earn while still receiving carer’s allowance. That will allow them to increase their hours to the equivalent of 16 hours at the national living wage, so that they can balance work and family life. This comes on top of the independent review into the scandalous overpayment of carer’s allowance that I have already announced, led by the former chief executive of Disability Rights UK, Liz Sayce, to ensure that we learn the lessons from what happened so that it never happens again. As a lifelong champion of family carers, I am proud that we have made that announcement. Our plan to get Britain working is crucial to driving up opportunity and driving down poverty—a key priority of this Labour Government.

The fact that over 4 million children are now growing up poor, with more than 800,000 living in households forced to rely on food banks, is a stain on our society. My right hon. Friend the Education Secretary and I have already set out the framework for our bold, ambitious, cross-Government strategy to tackle child poverty. We will publish the results in the spring, but we will not wait to act, particularly for those facing the deepest poverty.

We have extended the household support fund and discretionary housing payments, with an additional £1 billion this year, so that local authorities can help families and pensioners who face the greatest hardship. Furthermore, we have introduced our new fair repayment rate to cap the level of debt repayments that can be taken from universal credit, putting an average of £420 a year into the pockets of 1.2 million of the poorest households, which will lift thousands of children and families out of poverty. When I was chair of Feeding Leicester, food banks told me that debt driven by universal credit deductions was one of the biggest reasons why people had to use food banks, which is why I know this is such an important change.

We are also substantially increasing the income of pensioners who have worked hard all their lives and who deserve security in retirement. Our commitment to the pension triple lock throughout this Parliament means that spending on the state pension is forecast to rise by over £31 billion. This includes a more than £470 rise in the new state pension from next April.

Unlike the previous Government, who left over 800,000 pensioners missing out on the pension credit to which they are entitled, we are delivering the biggest-ever drive to increase uptake. For the first time, we are contacting 120,000 people on housing benefit who may be eligible for pension credit and, to guarantee even greater uptake, we will merge pension credit and housing benefit for new claimants from 2026. The Conservatives first promised this in 2011, but they never delivered. That is the difference a Labour Government make.

There is still much more to do, but this Budget starts to turn the corner: fixing the foundations of our economy and public services, driving up opportunity and driving down poverty in every corner of the land. We are honest about the challenges we face and optimistic about the opportunities ahead. This is a real plan for real change. I commend this Budget to the House.

[Madam Deputy Speaker (Judith Cummins)]

I call the Opposition spokesperson.

--- Later in debate ---

[Mel Stride]

The number of children in poverty fell by 100,000 in total. I will come to the record of this Government in a moment, but first I give way to the Secretary of State.

[Liz Kendall]

Figures from the Department that the right hon. Gentleman used to be responsible for show clearly that 700,000 more children now live in relative poverty after housing costs. Does he accept that? Yes or no?

[Mel Stride]

As the right hon. Lady knows full well, it is accepted that the key measure is absolute poverty after housing costs. She cannot flit between one measure and another when it suits her. The reality is that it is projected that 100,00 more children and 300,000 more adults will be in poverty as a consequence of the Budget.

State Pension and Benefit Rates

Liz Kendall Excerpts

Wednesday 30th October 2024 Written Statements

[The Secretary of State for Work and Pensions (Liz Kendall)]

I have concluded my statutory annual review of state pension and benefit rates under the Social Security Administration Act 1992. The new rates will apply in the tax year 2025-26 and will mainly come into effect from 7 April 2025.

I am pleased to announce that the basic and new state pensions, and the standard minimum guarantee in pension credit, will be increased by 4.1%, in line with the increase in average weekly earnings in the year to May-July 2024.

This demonstrates our commitment to supporting pensioners, by protecting the triple lock, which benefits over 12 million pensioners. From April, the full yearly rate of the new state pension will increase by over £470.

Other state pension and benefit rates covered by my statutory review will be increased by 1.7%, in line with the increase in the consumer prices index in the year to September 2024.

This includes universal credit and other benefits; statutory payments linked to participation in the labour market; and additional state pension and pension credit elements other than the standard minimum guarantee.

These increases will apply across Great Britain.

In England and Wales, personal independence payment and other benefits to help with additional needs arising from disability, and the rate of carer’s allowance, will also increase by 1.7%. In Scotland, these are devolved matters.

All of social security, including state pensions, is a transferred matter in Northern Ireland.

I will place the full list of proposed state pension and benefit rates for 2025-26 in the Libraries of both Houses in due course.

Although not covered by my statutory review of state pension and benefit rates, I can also inform the House that local housing allowance rates for 2025-26 will be maintained at the 2024-25 levels, following their increase in April 2024; and that the benefit cap has not been reviewed for 2025-26 and will also be maintained at the 2024-25 levels.

[HCWS175]

Tackling Child Poverty

Liz Kendall Excerpts

Wednesday 23rd October 2024 Written Statements

[The Secretary of State for Work and Pensions (Liz Kendall)]

Today, the Secretary of State for Education, my right hon. Friend the Member for Houghton and Sunderland South (Bridget Phillipson) and I are pleased to announce that we are publishing, “Tackling Child Poverty: Developing Our Strategy”.

Since 2010, child poverty has increased by 700,000, with over 4 million children living in poverty in the UK, and 800,000 children using food banks to eat. This is a scar on our society, which holds back children’s life chances and damages our country’s prospects. Breaking the link between background and success in life is at the heart of our opportunity and growth missions.

The Prime Minister has tasked us to develop an ambitious child poverty strategy which will be published in spring 2025. This is a shared endeavour across all parts of the UK, and we can learn from action being taken in Scotland, Wales and Northern Ireland.

Our Government will tackle overall child poverty, assessed by the leading and internationally recognised measure of poverty, but also go beyond that to focus on children in deepest poverty lacking essentials, and what is needed to give every child the best start in life.

Today, our publication sets out how we will develop the strategy which will harness all available levers to deliver a reduction in child poverty this Parliament as part of an ambitious 10-year strategy which addresses root causes including:

Supporting households to increase their income, including considering social security reforms that support people into work and alleviate poverty.

Helping to bring down essential household costs.

Increasing financial resilience by tackling problem debt and helping families manage financial shocks through savings and affordable credit.

Alleviating the negative experience of living in poverty, including through supporting families and the role of public services.

Over the coming months, the child poverty taskforce will hear directly from experts on each of the strategy’s themes including children and families living in poverty and work with leading organisations, charities, and campaigners.

In October, we have invited partners in industry, regulation and the charity sector to share evidence and ideas on options to reduce essential costs for low-income families.

In November, employers, trade unions and think tanks will be invited to discuss options to increase incomes and financial resilience in low-income households.

In December, experts on children’s health, early years and education and representatives from civil society will be invited to share experience and expertise on ensuring low-income families are able to access quality services to tackle the impacts of poverty.

Ministers will take part in engagement events across the nations and regions of the UK, bringing together a diverse range of voices. A new forum of parents and carers living across the UK will be set up to ensure the experiences of children in poverty, including disabled children and those with special educational needs, are included. They will feed directly into the strategy.

Living in poverty not only harms children’s lives now, it damages their future prospects and holds back our country. Children living in poverty are denied the opportunities that should enable them to achieve and thrive. And Britain cannot see maximum economic growth when the talents of so many children are being lost. Our ambitious child poverty strategy will reduce child poverty, tackle the root causes, and give every child the best start in life.

[HCWS158]

Carer’s Allowance Overpayments: Independent Review

Liz Kendall Excerpts

Wednesday 16th October 2024 Written Statements

[The Secretary of State for Work and Pensions (Liz Kendall)]

I would like to advise the House of my intention to bring forward an independent review into the issue of overpayments of carer’s allowance, in cases where earnings have exceeded the entitlement threshold.

Many unpaid carers have been pushed to breaking point looking after the people they love. It is essential that we provide eligible carers with the support they need at the time they need it. This includes support for carers on low incomes through universal credit, and for all unpaid carers through carer’s allowance.

The review will investigate how overpayments of carer’s allowance have occurred, what can best be done to support those who have accrued them, and how to reduce the risk of these problems occurring in future. I am delighted to announce that Liz Sayce OBE has agreed to lead the review.

The independent review will focus on quickly gripping the issue of carer’s allowance overpayments.

Carer’s allowance is a devolved matter in Scotland, and a transferred one in Northern Ireland. The review will therefore cover England and Wales, but we will discuss with the Scottish Government the position with respect to people in Scotland who are or have been receiving carer’s allowance while DWP has been delivering it there on behalf of the Scottish Ministers.

Further details on the timelines for the review and terms of reference will be published in due course and a copy placed in the Libraries of both Houses.

[HCWS141]

Fraud, Error and Debt Bill

Liz Kendall Excerpts

Tuesday 8th October 2024 Written Statements

[The Secretary of State for Work and Pensions (Liz Kendall)]

I would like to advise the House that the Government will bring forward a new Fraud, Error and Debt Bill in this Parliamentary session to be tough on criminals, fair for claimants and provide confidence to the taxpayer.

Fraud and error in the social security system currently costs the taxpayer almost £10 billion a year and, since the pandemic, a total of £35 billion of taxpayers’ money has been incorrectly paid to those not entitled to the money—including to criminal gangs. Just as we do not tolerate tax evasion, this Government will not tolerate those who defraud the social security system. We will ensure that every pound of taxpayers’ money is spent with the same care with which working people spend their own money.

The measures in this Bill are expected to save up to £1.6 billion over the next five years and will extend and modernise the DWP’s powers to stop fraud in its tracks, recover money lost to fraud and, crucially, help protect claimants who may already be on the edge financially from racking up debt.

The Government are determined to prevent incorrect payments where we can, so the DWP will be given new powers to better identify and prevent potential overpayments. These will help officials to ensure eligibility criteria are being met—including being able to see sooner where they are not—which will mean fewer claimants accruing debts and getting into financial difficulty. This will also serve to ensure every claimant is treated fairly.

We will ensure that these powers are proportionate. We will introduce safeguarding, reporting mechanisms and independent oversight, to give greater confidence to claimants that the powers are being used fairly and effectively. DWP staff will receive training on the use of any new powers. We will rely on codes of practice where they already exist and, where they do not, we will consult on and produce new codes of practice to provide further reassurance on the safe use of the powers.

Some of the DWP’s fraud powers have not been updated for over 20 years and we are currently misaligned with other Government Departments and public bodies such as HMRC.

The measures in this Bill will remedy that, giving the DWP powers to:



Better investigate suspected fraud and new powers of search and seizure, so the DWP can take greater control of investigations into criminal gangs defrauding the taxpayer.

Make changes to the penalties system, so that no one found to have committed fraud against the social security system avoids punishment, bringing increased fairness for claimants who do the right thing.

Allow the DWP to recover debts from individuals who can pay money back but have avoided doing so, bringing greater fairness to debt recoveries.

Through our eligibility verification measure, require banks and financial institutions to examine their own datasets to highlight where someone may not be eligible for the benefits they are being paid. This will help the DWP identify incorrect payments, prevent debts from accruing for the claimant and help identify where there may be fraudulent activity. Banks will only share very minimal information, and this will only be used by the DWP to support further inquiry, if needed, into a potential overpayment.

The powers in this Bill will be legal, proportionate and targeted to reduce overpayments, detect and prevent fraud, ensure prompter investigations and bring greater fairness to the system.

The eligibility verification measure will not give the DWP access to any bank accounts, nor any information on how claimants spend their money. The proposed new power instead helps verify benefit eligibility, using very limited information from banks and financial institutions. A human being will always be involved in any investigations and any decisions taken afterwards that affect eligibility or benefit awards, as they do now. This measure will not be used on the state pension.

This legislation will support the delivery of the Government’s manifesto commitment to safeguard taxpayers’ money and demonstrates the Government’s commitment that they will not tolerate fraud or waste anywhere in public services, including the social security system.

Further details on the legislation will be set out when the Bill is introduced to Parliament shortly.

[HCWS114]