“Get Britain Working” White Paper
Debate between Liz Kendall and Caroline Nokes(3 weeks, 6 days ago)
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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.
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
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.
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—
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.