Income Tax (Charge)
Debate between Liz Kendall and Mel Stride(2 weeks, 6 days ago)
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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.
Oral Answers to Questions
Debate between Liz Kendall and Mel Stride(1 month, 2 weeks ago)
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Liz Kendall
In 2017, the right hon. Gentleman’s party manifesto promised to means-test winter fuel payments. Until Conservative Members know that they have to apologise to the British people for the 200,000 extra pensioners in poverty over the past 14 years, and for a £22 billion black hole in the public finances, which we are now putting right but that has put the public finances at risk, they will remain on the Opposition Benches and we will remain on the Government Benches.
Mel Stride
I think I need to correct the right hon. Lady: there were actually 200,000 fewer pensioners in absolute poverty under the previous Conservative Government. She quite rightly is pressing the uptake of pension credit, but if all those who are eligible for it take it up, that will cost £3.8 billion, which is substantially more than the saving that is scored at £1.4 billion. If she is successful in her aspiration, the costs will substantially outweigh the savings; if she is not successful, potentially millions of pensioners will be plunged further into poverty. May I ask her which it is?
Liz Kendall
There are 200,000 more pensioners in poverty, and I am happy to put those figures into the public domain to set the record straight. The savings we have put forward take into account the increase in uptake that we foresee. Unlike Conservative Members, we are determined and will do everything possible—they should perhaps ask themselves why they first announced the merger of pension credit and housing benefit in 2012 and then put it off until 2028—to change things and get people the money they are entitled to. We will bring that forward to ensure that all the poorest pensioners get what they are entitled to.
Mel Stride (Central Devon) (Con)
On 10 September, two days before recess, I led a debate in this Chamber, secured by the Conservative party, on the winter fuel allowance. The right hon. Lady spoke just now about transparency, but there was no equality impact assessment made available for that debate. Indeed, on 30 August, by way of a written question, my hon. Friend the Member for Hinckley and Bosworth (Dr Evans) established that the Government had no intention of publishing that particular report. Yet on 13 September—two days after the debate and the vote, and one day after Parliament had risen—the report was made available. It was clearly, in my opinion, deliberately withheld. Does the right hon. Lady agree?
Liz Kendall
That is not true. The Conservative Government did not even allow the Office for Budget Responsibility to do an analysis of Liz Truss’s disastrous mini-Budget and sat on 31 publications that, under their own rules, should have been published. We published an equality analysis. The right hon. Gentleman will know that that was never done for secondary legislation when he was in government, but this Government will be open and transparent, which is what we are already doing.
Women’s State Pension Age
Debate between Liz Kendall and Mel Stride(8 months ago)
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Liz Kendall (Leicester West) (Lab)
I thank the Secretary of State for giving me advance sight of his statement, and thank the ombudsman and his staff for all their hard work. This is a serious report that requires serious consideration. The ombudsman has rightly said that it is for the Government to respond but that Parliament should also consider its findings. Labour Members will look carefully at the report too, and continue to listen respectfully to those involved, as we have done from the start.
The Secretary of State says that he will provide a further update to the House on this matter. When will he do so after the House returns from its Easter recess? This has been going on for years. He rightly says that issues around the changes to the state pension age have spanned multiple Parliaments, but those of us who have been around a little while will remember that the turning point that sparked the Women Against State Pension Inequality campaign was the Pensions Act 2011, in which the then Chancellor, George Osborne decided to accelerate the state pension age increases with very little notice. His comment that this
“probably saved more money than anything else we’ve done”
understandably angered many women. At the time, Labour tabled amendments that would have ensured proper notice was given so that women could plan for their retirement, which would have gone some way towards dealing with this problem.
The ombudsman began investigating how changes to the state pension age were communicated in 2019. In the same year, the High Court ruled that the ombudsman could not recommend changes to the state pension age itself or the reimbursement of lost pensions, because that had been decided by Parliament.
The ombudsman’s final report, published last week, says that, in 2004, internal research from the Department for Work and Pensions found that around 40% of the women affected knew about the changes to the state pension age. Does that remain the Government’s assessment? What is their assessment of the total number of women who would receive compensation based on the ombudsman’s different options? How many of them are the poorest pensioners on pension credit? How many are already retired or have, sadly, passed away? Given the Department already knew there were problems with communicating changes to the state pension age, why did the Government press ahead with the changes in the 2011 Act in the way they did, and in the way that sparked the WASPI campaign?
The Government are currently committed to providing 10 years’ notice of future changes to the state pension age, but Labour’s 2005 pension commission called for 15 years’ notice. Have the Government considered the merits of a longer timeframe, and how they would improve communications in future? Labour is fully committed to guaranteeing that information about any future changes to the state pension age is provided in a timely and targeted way that is, wherever possible, tailored to individual needs. Will the Government now do the same?
Crucially, the Secretary of State omitted to say that the ombudsman took the rare decision to ask Parliament to intervene on this issue because the ombudsman strongly doubts that the Department will provide a remedy. In the light of these concerns, and in order to aid Parliament in its work, will the Secretary of State now commit to laying all the relevant information about this issue, including all impact assessments and related correspondence, in the House of Commons Library so that lessons can be learned and so that Members across the House can properly do their job? Our current and future pensioners deserve nothing less.
Mel Stride
I thank the hon. Lady for her response, not least on the apparent points of agreement between us. We accept that there are strong feelings about these complex issues, and she is right to say that they must be given serious consideration and that we should listen respectfully to all those affected. She asks when the Government will return to the House with a further update, and I can assure her that there will be no undue delay.
The hon. Lady made a slightly political point about the 2011 Act, and I gently remind her that the ombudsman’s report focuses on the period between 2005 and 2007, when her party was in government.
The hon. Lady asked a series of questions about various assessments based on the findings in the report. Of course, that goes to the heart of my response, which is—and I think she agrees with this—that we should look closely at the report in order to make those assessments.
On the hon. Lady’s specific point about notice of changes to state pension age, it has always been the position that that should be adequate. Indeed, in the last review that I undertook of it, there was a delay in the decision to increase the state pension age to 68 into the next Parliament. Among other reasons, that was to allow for just that point to be addressed.
What is particularly important now is that we will fully engage with Parliament, as we did with the ombudsman. On the hon. Lady’s point about the ombudsman, its chief executive stated on Sky News on Thursday, the day the report was published:
“The Government, the DWP, completely co-operated with our report, with our investigation, and over the period of time we have been working they have provided us with the evidence that we asked for.”
That is our record in this particular matter, but may I once again assure the House that the Government will continue to engage fully and constructively with Parliament, as we have done with the ombudsman?
Oral Answers to Questions
Debate between Liz Kendall and Mel Stride(8 months, 1 week ago)
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Liz Kendall (Leicester West) (Lab)
In the Budget, the Chancellor said that he wants to end national insurance contributions because the
“double taxation of work is unfair.”—[Official Report, 6 March 2024; Vol. 746, c. 851.]
People’s NICs records help to determine their entitlement to the state pension, so if national insurance is scrapped how will they know what pension they will get?
Mel Stride
I am not surprised that the hon. Lady brings that up, because I am well aware of the position that her party has taken on the announcements that we have made. She will be clear in her own mind that the Chancellor has not guaranteed that we will reduce at one stroke national insurance contributions; it is an aspiration that has been spoken about as occurring over a number of years, if not Parliaments, so the problems that she is conjuring up to frighten pensioners are nothing short of political scaremongering.
Liz Kendall
The Secretary of State can bluster and deny all he likes, but the Prime Minister told The Sunday Times:
“We want to end this double taxation on work”.
It is there in black and white, so let me try again. How will people’s pension entitlement be determined if NICs are scrapped, and if the Government are going to merge NICs with income tax what will that mean for pensioners’ tax bills? Is the truth not that their unfunded £46 billion plan to scrap NICs is yet more chaos from the Conservatives, and Britain’s pensioners deserve so much better?
Mel Stride
The hon. Lady quoted from The Sunday Times, and I scribbled it down:
“We want to end this double taxation”.
Of course we do, but that is not the same as a near-term pledge; it is a longer-term aspiration—[Interruption.] We have been quite upfront, quite unlike—[Interruption.] If she would care to hear me out, it is quite unlike the £28 billion firm commitment that her party made, and subsequently U-turned on, which was nothing short of fiscally reckless, and would have led to increases in interest rates, inflation, unemployment, and so on.
Budget Resolutions
Debate between Liz Kendall and Mel Stride(8 months, 3 weeks ago)
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Liz Kendall (Leicester West) (Lab)
Thank you, Mr Deputy Speaker. Yesterday, the Conservative Government’s seventh Chancellor gave his second Budget—thankfully, the last before the general election. Ministers have repeatedly claimed that the economy has turned a corner, but they have driven it into a dead end. Our economy is smaller now than when the Prime Minister entered Downing Street. Not only was GDP per person down in every quarter last year, but it will be lower at the end of this year and lower, too, in four of the next five years. In this Parliament, we have had the biggest hit to living standards on record, and we have the highest tax burden for 70 years.
But people in this country do not need statistics to tell them the dire state we are in or that they are paying more but getting less. They see it every day in the higher cost of the weekly shop and in their gas and electricity bills. They see it in higher mortgages and rents and in soaring childcare costs. They see it in their crumbling school buildings and in the 8 am scramble to see their GP.
The argument I want to make today is that one of the central reasons why the Government have failed on the economy is that they have failed on work. For all the claims made by Ministers, the OBR lays bare the scale of their failure and the appalling cost to the British people.
The official unemployment rate is low, but that is not because a record proportion of people are in work. We are the only country in the G7 whose employment rate has not returned to pre-pandemic levels. Yesterday, the Office for Budget Responsibility revealed that our employment rate will be lower by the end of this year than it forecast in November; that the rate will be lower in five years’ time; and that in 2028-29 it will still not be back to where we were before the pandemic. That is the truth of what another five years of the Conservatives will bring.
The reality is that increasing numbers of people are leaving the labour market and not even looking for work. Whatever the Secretary of State says—he repeated it today—the OBR says that economic inactivity is increasing, not declining. It says that economic inactivity is proving more persistent than it previously thought. It is no longer declining from the post-pandemic high and has instead rebounded to a total of 9.3 million people—the highest in over a decade.
Much of the problem is driven by poor health, an issue raised by many hon. Members in this debate. On the Labour side of the House, we know that a healthy nation is critical to a healthy economy and that the Government are failing on both. Some 2.8 million people are now not in work because of long-term sickness—an all-time high. Many of them are over 50: often women struggling with bad hips, knees and other joints, often caring for elderly parents at the same time.
There has been an extremely worrying increase in young people out of work due to mental health problems, with many lacking basic qualifications. As the Centre for Cities has shown, all those problems are far worse in northern towns and cities, which the Conservatives promised to level up, but which have once again borne the brunt of their economic failure. In places such as Blackpool, Blackburn, Middlesbrough and Hull, if we include the hidden unemployed in the figures, it takes the official unemployment rate from 5% to 20%. The Labour party thinks that unacceptable.
The waste of individual potential is appalling, as hundreds of thousands of people who want to work are written off and denied help to get back on their feet. This is a waste for British businesses, which are desperate to recruit and need the talents of everyone in our country to grow and succeed. It is an appalling waste of taxpayers’ money, too. Over the next five years, 600,000 more people will be on sickness and disability benefit, which will cost an extra £33 billion—more than our day-to-day expenditure on defence.
The impact on our economy is profound. Yesterday, the OBR said that
“higher and rising levels of inactivity”
are offsetting increases in the size and growth of our population, and will leave GDP in five years’ time
“unchanged…and the level of GDP per person…lower.”
There it is in black and white: the Conservatives’ failure on work is a drag on the economy, a drag on growth, and a drag on living standards and money for our vital public services. That is not good enough.
Mel Stride
I thank the hon. Lady. She is rightly not happy with the level of economic inactivity; that is why we are bearing down on it. Given that the level of economic inactivity was higher during every year of the last Labour Government, would she like to comment on their record on it?
Liz Kendall
I will not take any lessons from a Government who are overseeing economic inactivity at record levels. The number of people out of work due to sickness is at a record level, resulting in soaring costs for individuals and livelihoods. If I were the Secretary of State, I would put in place a proper plan for reform, not offer half-baked programmes, rehashed and re-announced schemes, and more of the same empty rhetoric on benefits.
Mel Stride
If our plans are half-baked and rehashed, why has the OBR confirmed that by the end of the forecast period, 371,000 fewer people will be receiving the long-term sickness and incapacity benefits to which the hon. Lady refers? If our plans are half-baked, why will 371,000 fewer people be on those benefits?
Liz Kendall
The OBR says that there will be 600,000 more people on those benefits, and the total cost will be £33 billion. The Secretary of State tries to deny that the schemes are rehashed. Well, let us look at the reform to fit notes announced in 2023. Back in 2017, what did the Chancellor, then Health Secretary, announce? Reform to fit notes, taking them beyond GPs. The Government recently announced that there will be mandatory work placements. In 2011, what did they announce? A mandatory work activity programme. In 2017, the current Chancellor, as Health Secretary, said:
“We will appoint an Expert Working Group on occupational health.”
They are the same policies with the same failure. It is absolutely time for a change.
We do not have to go down this road; we can choose a different path. Under a Labour Government, we will do so. Our back to work plan will tackle the root causes of worklessness by driving down waits for NHS treatment, and we will recruit 8,500 more mental health staff. We will ensure that employment support is tailored to individual and local needs, by overhauling jobcentres to end the tick-box culture, and devolving employment support to local areas. In every part of the country, we will create more good jobs in clean energy and through our modern industrial strategy. We will make work pay and improve the quality of work, by ensuring a genuine living wage, banning exploitative zero-hours contracts, and strengthening rights to flexible working. And we will do more.
There are now 850,000 under-24s who are not in education, employment or training—one in eight of all our young people. That is a terrible waste for them and for our country as a whole. Given that half of all mental health problems start before people turn 14, we have to intervene earlier, so the first part of our offer to young people is about providing specialist mental health support in every school, and walk-in access in every community. That way, we will tackle one of the key drivers of worklessness before it takes hold. Secondly, we will deliver 1,000 new careers advisers, and good-quality work experience, so that young people leave school ready for work and ready for life.
Thirdly, we will overhaul skills by creating new technical excellence colleges and reforming the Tories’ failed apprenticeship levy, which has seen apprenticeship starts by young people fall by a third. Our new growth and skills levy will help young people to get the skills that they need, including by offering them a second chance at basic skills and pre-apprenticeship training if they did not get the right qualifications at school. Fourthly, we will provide new employment advisers for young people in our young futures hubs. They will offer joined-up specialist help and support, because the old, one-size-fits-all approach will not work when it comes to tackling this problem. Finally, we will overhaul access to work for young disabled people who want to work, so that they know what equipment, adaptations or personal support they will get before they start, giving them the confidence to take the plunge.
Our proposals are fully costed and funded, and will be paid for by scrapping tax breaks for private schools and closing the tax loopholes enjoyed by private equity fund managers. That is our offer to young people. This year, they and the rest of the British public face a choice: another five years of stagnation, low growth, high costs and worklessness under the Tories, or a long-term plan to get Britain building again, growing again and working again under Labour. The public know it is time for change. Let us have an election, and let us have the guts to have it now.
Oral Answers to Questions
Debate between Liz Kendall and Mel Stride(9 months, 3 weeks ago)
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Mr Speaker
Order. I remind Front Benchers that this is topical questions, which are meant to be short and punchy, and they should stick to the rules. Do we understand each other?
Mel Stride
The hon. Lady refers to the latest weighted numbers just released by the Office for National Statistics, which show that unemployment as a percentage is lower than originally forecast. She cannot get away from the fact that there are 330,000 fewer people in economic inactivity since the peak. As a result of our work capability assessment reforms, the Office for Budget Responsibility has scored us as having 371,000 fewer people on long-term sickness benefits than would otherwise have been the case.
Liz Kendall
The former health Minister Lord Bethell says that he is “gobsmacked” by the figures, and that
“the economic hit will be hard”.
The Minister would do well to listen to his words. Yesterday, the Education Secretary said that the Government cannot guarantee that their promises will be met on childcare, which parents need in order to work. Today, their Prime Minister admitted that he has failed on NHS waiting lists, which the long-term sick need dealt with if they are to get back to work. Why does the Secretary of State not do the decent thing and admit that he has failed too, and adopt Labour’s plan to cut waits, roll out breakfast clubs, overhaul jobcentres and get Britain working again?
Mel Stride
We are getting Britain working, unlike the Opposition, under whose last Administration unemployment increased, youth unemployment went up by 40%, some 25% more women were unemployed and 1 million people or thereabouts were stuck on long-term benefits for almost a decade. That was a disgrace.
Autumn Statement Resolutions
Debate between Liz Kendall and Mel Stride(12 months ago)
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Liz Kendall (Leicester West) (Lab)
My constituent David has a 30-year-old son with autism and severe obsessive compulsive disorder. David says that despite all the challenges his son faces, he has recently moved into independent living and is working really hard to try to find a job. David’s son has lots of skills, especially in computing and research, but because of his autism and, particularly, his OCD, he needs an employer who understands his conditions and will give him a real chance and offer him the work flexibility that someone in his situation needs. He is doing everything he possibly can to find work. He recently applied for a job at Tesco and was really pleased to get an interview, but because the job required a lot of overtime and there are limits on how many hours he can take because he is on employment and support allowance, he could not take up the offer.
This is the reality facing many sick and disabled people across Britain today. They want to work not just for the money, but for the sense of purpose, dignity, independence and self-respect that work brings. They deserve a Government who back their efforts and aspirations and who will tear down the barriers to their success, but under this Government nothing could be further from the truth.
The last few weeks have seen the Prime Minister, the Chancellor and the Work and Pensions Secretary railing against the soaring numbers of people out of work due to long-term sickness. It is as if, after 13 long years, this has nothing to do with them, but these problems have happened on their watch and they only have themselves to blame. Britain remains the only country in the G7 where the employment rate still has not returned to pre-pandemic levels, and 2.6 million people are now shut out of work due to long-term sickness, which is the highest number since records began. What do the Government expect when they have driven the NHS into the ground and let waiting lists soar to 7.8 million, and when social care has been forced to its knees?
And what is the result? There are more and more people over 50 out of work due to long-term sickness, with people struggling with bad hips, knees and joints left stranded on NHS waiting lists and waiting for treatment in discomfort and pain. Many of them are women who are trying to care for their elderly parents or other sick and disabled relatives at the same time, with precious little help from an unreformed social care system after 13 years of this Government.
The number of young people out of work due to long-term sickness has doubled over the last decade and now stands at more than 230,000. Much of that is driven by mental health problems, but it is compounded if such a young person lacks basic qualifications and lives in a part of the country—often a town or coastal area outside our large cities—that is struggling economically.
We know from brutal experience the terrible consequences that long-term youth unemployment brings, and all these problems are far worse in poorer parts of the country. The grim reality is that someone is twice as likely to be out of work due to ill health if they live in the most deprived fifth of areas in England than if they live in the least deprived fifth, with rates of worklessness due to long-term sickness among the over-50s rising three times faster in the north of England than in the south.
This is the reality of Conservative Britain, and it is such an unforgivable waste. It is a waste of individual talent and potential when millions of people who want to work are written off because they cannot get the support they need to get back on their feet. It is a waste for British businesses, which desperately need to recruit staff and use the skills and experience of everyone in our country to thrive and succeed. It is an appalling waste of taxpayers’ money too, with taxpayers paying an extra £15.7 billion a year in higher benefit bills and lost tax revenues compared with before the pandemic.
What are Ministers proposing to deal with a problem so serious that the OBR says it is a significant risk to fiscal sustainability, driving higher taxes and weakening our growth prospects? We heard a lot last week about how more sick and disabled people can work from home. Let us put to one side that, barely 18 months ago, the last Prime Minister but one, the then right hon. Member for Uxbridge and South Ruislip, said that working from home does not work, and the right hon. Member for North East Somerset (Sir Jacob Rees-Mogg) claimed that homeworking reduced productivity and led to higher taxes. I am a strong supporter of home and hybrid working but the reality is that by far the highest levels of homeworking are among people earning £50,000 a year or more. Two thirds of people who work from home have a university degree, compared with only around one in 10 of those with no qualifications. Did we hear anything from the Government about getting sick and disabled people the degrees and professional qualifications they need to secure these high-paid work-from-home jobs, or about how to get the internet access, computers, home adaptation aids and other support that they need, given that so many disabled people are living in poverty? We did not.
Instead, as I am afraid the Secretary of State repeated today, we heard a rehash of old plans that would not be needed if they had worked in the first place, and of measures so inadequate, unambitious and ineffective that they will fail to tackle the root causes of worklessness and get Britain working again.
The much-lauded reforms to fit notes and the new “expert group” on occupational health to drive improvements in employee health at work were both announced six years ago, in the “Improving lives” strategy that the Chancellor published when was he was Health Secretary back in 2017. The new mandatory work placements were first announced back in 2011, when the Government said jobseekers who need initial support to get back to work can be referred on to mandatory four-week work placements. I am all in favour of work placements and better occupational health, which I have campaigned for in my constituency for years, but reannouncing old programmes that clearly have not worked is not a plan for success.
As for the Government’s changes to the work capability assessment, Labour has been warning for years that benefit assessments are not fit for purpose and should be replaced with a simpler, clearer system that gets decisions right the first time and focuses on what people can do, not just what they cannot, as part of much wider reforms that give practical help and support to get people into work and to stay in work. But that is not what the Government are proposing and their plans are not a recipe for success.
That is not just my assessment, or the assessment of disabled people’s organisations and charities; it is what the Office for Budget Responsibility says in its response to the autumn statement. A reasonable person might think that the results of a successful back to work plan would probably start with fewer people out of work due to long-term sickness and disability, but that is not what the Government’s plans achieve: the OBR says that 600,000 more people will be on sickness and disability benefits after the Government’s plans. Might we expect a higher overall employment rate? Sorry, wrong again: the OBR forecasts that this will remain static at just 60.6%. What about lower spending on sickness and disability benefits overall? I am afraid we would be wrong again; the OBR says that spending on sickness and disability benefits will increase by a staggering £33 billion over the forecast period—that is up by a whopping 75%. That is the result of the Government’s plans.
Britain desperately needs an alternative plan to get Britain working again, and that is what Labour will deliver. Our top priority will be ensuring that everyone who can work, does, because rights to taxpayer support must go hand in hand with the responsibility to take up work and training when they are offered. Conditions have always been part of the social security system since the original Beveridge report, and under Labour that will always remain the case. But Beveridge also said that the state has a responsibility to do everything within its power to help people get back on their feet, including through an NHS that focuses as much on prevention and rehabilitation as on cure, and an economy that delivers full and productive employment across the country. That is why Labour’s fully costed, fully funded plan will tackle the root causes of worklessness, drive down NHS waiting lists, overhaul jobcentres, transform skills, reform social security and make work pay.
That starts with our long-term plan for the NHS, because we know that a healthy nation is the key to a healthy economy. We will invest an extra £1.1 billion a year, paid for by abolishing the non-dom tax status, to provide 2 million more NHS appointments and clear the NHS backlog. We will recruit 8,500 more mental health staff, with support in every school and in every community to tackle mental health problems early on, paid for by closing private equity bonus loopholes, because when half of all serious mental illness starts before the age of 18, we have to get that help and support early on.
We will go further still. We will overhaul jobcentres, so that they provide personalised help tailored to individual needs—not the one-size-fits-all approach that drives too much of what the Government do. Jobcentres will also have new duties to work in partnership with the local NHS, employers and others. There will be a new focus on helping people to progress out of low pay, because we do not just want people to get a job; we want them to get on in their job and to use their talents and skills to the full. That is crucial to improving productivity and putting money in people’s pockets.
Mel Stride
The hon. Lady has substantially described our plan. What she has not said is whether she supports it. Does she support our plan?
Liz Kendall
I do not support a plan that leads to £33 billion more spending at the end of the forecast period and 600,000 more people on sickness and disability benefits because the Government have failed to tackle the root causes of worklessness or to put a proper plan in place. I know that the Secretary of State is desperate to say that people on the Opposition Benches do not support conditions or the requirement to work, but work is our party’s name. We believe that the benefits of work go beyond a payslip to the dignity and self-respect that good work brings. We will devolve employment support, so that it works for local issues and local needs, because the man, or even woman, in Whitehall can never know what is best in Leicester, Liverpool or Leeds.
Instead of demonising disabled people, we will put in place a proper plan to ensure that those who can work, do. Our “into work guarantee”, backed by the Centre for Social Justice and the Social Security Advisory Committee, will provide real incentives for sick and disabled people, allowing them to try work without fear of losing their benefits if things go wrong. It seems that the Government have finally nicked our proposals, just as they did with our NHS workforce plan. I have no idea what took them so long. Unlike the Government, however, who have let waits for Access to Work support soar, we will drive those waits down so that people can get the adaptations, equipment, travel and other support when they need it, rather than having to wait for weeks on end.
That is not all. Our mission to break down the barriers to opportunity will overhaul skills, so that no one is ever written off, whatever their age, including with new technical excellence colleges and by reforming apprenticeships. We will make work pay with a real living wage and by banning zero-hours contracts and fire and rehire. We will help parents balance work and family life with breakfast clubs in every primary school and more rights to flexible working through our new deal for working people.
Above all, our driving mission in government that will drive everything we do will be getting growth across every part of our country, because that is the key to our future success. We will get Britain building again by overhauling planning with ambitious new housing targets and first dibs for first-time buyers. We will get Britain investing again, providing the long-term certainty and stability that businesses need, which have been so fatally undermined by this Government. With our national wealth fund, we will leverage private sector investment to create the jobs of the future and make Britain a clean energy superpower. We will get Britain innovating again with our modern industrial strategy and plans to make this country the best place to start up and grow a business.
This autumn statement, hot on the heels of the damp squib of a King’s Speech, proved—if proof were ever necessary—that after 13 long years, the Government have run out of road and run out of ideas. Conservative voters, and even Conservative Members, could be forgiven for wondering what on earth their party is for. They say that they are the party of lower taxes, but the tax burden is the highest for 70 years, and working families are paying £4,000 a year more in taxes in this Parliament alone. They promised to take back control of our borders and stop the boats, but so far this year 27,000 people have arrived on small boats this year, their flagship Rwanda policy is in tatters, and, at 745,000, net migration is the highest recorded in history.
The Conservatives claim to be the party of home ownership, but home ownership has fallen under this Government, with couples now having to spend on average a decade saving for their first deposit, up from only three years under Margaret Thatcher. The armed forces have been cut and cut again, with the Army now employing a third fewer troops than it did in 2010, despite all the risks and threats that we face. Our criminal justice system is on its knees, with violent crime rising, court backlogs soaring and judges being told not to jail convicted criminals because the Tories have failed to build enough prisons. So much for being the party of law and order. That is before we even consider the dire state of our public services, where our schools are literally crumbling, patients are left dying in ambulances, and local government is on its knees.
Britain deserves so much better than this. I know from talking to people across the country, from Hastings to Erewash and from Swindon to Selby, that they are desperate for change, but the Conservatives cannot be the change from 13 years of their own failure. Under the leadership of my right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer), we have changed the Labour party, and we stand ready to change the country. Let us have a general election, and let us have it now.
Building an NHS Fit for the Future
Debate between Liz Kendall and Mel Stride(1 year ago)
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Mel Stride
I have just set out for the right hon. Gentleman two very significant actions that this Government have taken: £2 billion of additional funding compared with just four years ago, and a staff increase of some 20% since 2010.
I have to pick up on the non-doms point, because we hear it so often from the Opposition. Those poor old non-doms are going to be paying for the entire British economy over and over again. They pay UK taxes on their UK income, and it is just not realistic to expect to be gaining more tax in the longer term as a result of taxing them.
We have heard much about waits for NHS services. We have been working very hard on that issue, and it has to be recognised that we have had a pandemic, as well as a considerable amount of industrial action. Frankly, if the Opposition had done more with their trade union paymasters to encourage them to go back to work, we would have had smaller backlogs than we do at the moment. We have already largely eradicated the 18-month waits; the two-year waits have already been abolished; and we are rolling out all sorts of approaches to make sure we have more provision going forward, including 140 new surgical hubs. When Labour tells us about their plans, we need only to look at Wales, where we can see the results of Labour’s stewardship of the health service: on average, waiting times in Wales are five weeks longer than in England.
The hon. Member for Leicester West spent some time discussing employment, an area in which we have a first-class record. Economic inactivity, which she raised, is almost 300,000 lower than it was at its peak during the pandemic: it is below the average level of the OECD and the average level across the European Union. Unemployment is at a near-historic low, the number of those in payroll employment is at a near-historic high, and youth unemployment is down 44% on 2010. What happened under the Labour party? As Opposition Members know, it went up by almost exactly the same amount—another 44%. Labour is the party of unemployment; it has never left office with unemployment anything other than higher than when it came in. Under Labour’s stewardship, 1.4 million people were languishing on long-term benefits for over a decade, and that is a disgrace.
Liz Kendall
The Office for Budget Responsibility has said that
“A sustained rise in health-related inactivity poses a significant risk to fiscal sustainability by reducing the UK’s medium-term economic growth prospects and tax receipts”.
Does the Secretary of State disagree with the OBR?
Mel Stride
I do not, inasmuch as I recognise that long-term sick and disability has been on a rising trend for at least five years now. The hon. Lady knows that, but that is not the point that I was making; neither was it the point that she was making when she referred to the figures on economic inactivity.
That brings me to what this Government are doing. In the previous Budget, the Chancellor set forth plans for £2 billion to go towards resolving issues around long-term sickness and disability. We have consulted on occupational health across businesses to get upstream of this issue. The hon. Lady will know of our White Paper and the structural reforms that will make sure that, for the 2.5 million people on long-term sickness and disability benefits, we always focus on what those people can do, not on what they cannot do. The universal support we are rolling out is there to place people into work and give them a whole year’s worth of support, so we can make sure that those people stay in work. She will be aware of the pilots that we are now rolling out under the Work Well banner, which are there to bring people together with work. We believe that is one of the answers to mental health issues alongside medical support. Of course, we have just concluded our work capability assessment consultation, in which we are looking at how we can further help those people who can and want to work to go into employment, because we believe that that, ultimately, is in the best interests not just of the economy and of society, but very much of those people themselves.
This Government are not afraid to take long-term decisions in the national interest. The next generation of welfare reforms that I am bringing forward are part of this Government’s mission to deliver a better future for everyone across the country. It is a future that brings together employment support and healthcare to help disabled people and those with health conditions to realise their full potential. It is a future in which, thanks to the decisions we are now taking, the NHS can deliver better care in a changing world. It is a future that sees the first smoke-free generation become a reality, a future in which the most vulnerable in society continue to be the Government’s priority and are protected, and a future where work grows our economy, but perhaps more importantly still, changes lives, with thousands more people enjoying all the financial, social and health benefits that employment brings.
Ordered, That the debate be now adjourned.—(Mr Mohindra.)
Debate to be resumed tomorrow.
Oral Answers to Questions
Debate between Liz Kendall and Mel Stride(1 year ago)
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Liz Kendall
I would like to make the Secretary of State an offer. If he is serious about getting Britain working, why does he not swallow his pride, do the right thing and adopt Labour’s back to work plan?
Mel Stride
The reason for that—I am feeling rather less generous—is that we have seen Labour’s plans in the past, and no Labour Government have ever left office with unemployment anything other than higher than when they came to office. Under the last Labour Government, we saw 1.4 million people parked on long-term benefits for over a decade, with many of them exactly as the hon. Lady described: long-term sick and disabled. Under this Government, we have near-record low unemployment, and we have 4 million more people on payroll employment than we had in 2010.
Liz Kendall
I am afraid that the Secretary of State is living in cloud cuckoo land. Record numbers of people are out of work due to long-term sickness. We are the only country in the G7 whose employment rate has not gone back to pre-pandemic levels. It is not just young people but the over-50s. The Office for Budget Responsibility said that the rise poses a serious risk to our prospects for growth and the stability of the public finances. Where on earth is the Secretary of State’s plan to sort it out? Perhaps I am being a bit unfair, because it turns out that the Government can get the over-50s back to work, but only if they are former Prime Ministers.
Work Capability Assessment Consultation
Debate between Liz Kendall and Mel Stride(1 year, 2 months ago)
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Liz Kendall (Leicester West) (Lab)
I thank the Secretary of State for early sight of his statement.
I know from talking to disabled people in my constituency and across the country that work can bring dignity and self-respect through the choice, control and autonomy from having money in their pocket and making the contribution they want to make in life. Work is the reason for my political party, and supporting working people is why Labour Members get up in the morning. That belief is shared by the British public, including hundreds of thousands of people who currently feel shut out of the workplace and trapped on benefits when they could work if they had the right help and support.
On this Government’s watch, a staggering 2.6 million people are now out of work as a result of long-term sickness. That is the highest number ever, up almost half a million since the pandemic alone. This is a serious challenge for millions of our constituents and for the economy, and it deserves a serious response, but that is not what we have seen today.
Labour has been warning for years that benefit assessments are not fit for purpose and, crucially, that unless we have a proper plan to support sick and disabled people who can work, even more will end up trapped in a degrading benefit system, costing them and the taxpayer far more. Labour has already set out plans to transform the back-to-work help that is available by personalising employment support and tackling the huge backlogs in our NHS and social care. Our “into work guarantee” will let people try work without fear of losing their benefits. Our plan is backed by the Centre for Social Justice, the Social Security Advisory Committee and disabled people’s organisations. Why not the Secretary of State?
We will ensure that employment support meets specific local needs through proper devolution to local areas and, when disabled people get a job, we will make sure they get the support they need to keep them there as soon as they need it, rather than having to wait for months on end.
We will study the consultation carefully, but I see nothing in the statement that matches Labour’s vision or scale of ambition. It does not even deal with the glaring problems in the current system. Eighty per cent of personal independence payment decisions are overturned at tribunal, of which only 2% are because new evidence has become available. How will the proposals make any difference to the totally inadequate decision making that causes untold stress to disabled people and wastes millions of pounds of taxpayers’ money?
The backlog of Access to Work assessments has trebled to 25,000 since the pandemic. How will the proposals help to bring that down? Where is the plan to help slash waiting lists for help with anxiety and depression, which we know is a major problem, or to get the carers that families need to look after sick and disabled relatives so that they themselves can work?
This is not a serious plan. It is tinkering at the edges of a failing system. If you run your NHS into the ground for 13 years and let waiting lists for physical and mental health soar, if you fail to reform social care to help people care for their loved ones and if your sole aim is to try to score political points rather than reforming the system to get sick and disabled people who can work the help they really need, you end up with the mess we have today: a system that is failing sick and disabled people, failing taxpayers and failing our country as a whole. Britain deserves far better than this.
Mel Stride
I thank the hon. Lady for her remarks. It is gratifying that she agrees with much of the premise I set out. She recognises the importance of work and that 2.5 million people, or thereabouts, are on long-term sick and disability benefits—we are all equally concerned that the number is growing. She also argues that the work capability assessment, in its current form, is not fit for its required purpose, which is exactly why we are coming forward with these reforms. She refers to the PIP assessment requirements, which are not relevant to the work capability assessments that we are discussing and that are subject to the current consultation.
We clearly have a plan. The hon. Lady has been in her position for a very short period, and I respect and understand that. I invite her to look closely at the announcements that were made—the £2 billion-worth of support at the last fiscal statement, including our White Paper reforms in exactly the area where she is seeking progress; the universal support; and the WorkWell programme. She mentioned working with local providers, and there is a huge drive on that. As for mental health, we are consulting on occupational health across businesses to make sure that we get in right at the start where people may otherwise end up on a long-term health journey. We are also working closely with the NHS on getting employment advisers involved, for example, in talking therapies, which we know are so effective in addressing mental health concerns.
Oral Answers to Questions
Debate between Liz Kendall and Mel Stride(1 year, 2 months ago)
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Liz Kendall (Leicester West) (Lab)
Thank you, Mr Speaker, and I thank the Secretary of State for his kind words. However, whatever he says about economic inactivity, it remains a serious problem in this country, with the UK lagging behind all other G7 countries in terms of workforce participation since the pandemic. Indeed, last month, the number of people off work due to long-term sickness hit an all-time high. What is this Government’s response? The Chancellor tells the over-50s to get off the golf course, and the DWP Secretary tells them to literally get on their bike. Is not the truth that this Government’s failure to cut waiting lists, sort social care and have a proper plan for reforming our jobcentres is harming individuals and our economy as a whole?
Mel Stride
To the extent that the hon. Lady was suggesting that economic inactivity was worse in our country than in all other economies, or all similar economies—I think that is what she said—that simply is not the case. It is true that economic inactivity spiked during the pandemic; none the less, as I said earlier, the average rate is lower than the average across the OECD, the EU and the G7.
The hon. Lady mentioned those who are long-term sick and disabled. That is why we are bringing forward pilots such as WorkWell and rolling out universal support, to make sure we bring the world of work together with the world of health, to the betterment of those who we look after.
Liz Kendall
This is not just about the over-50s. Is the Secretary of State aware that the biggest relative jump in economic inactivity due to sickness is among young people, with mental health being the biggest concern? Labour has a plan to transform mental health in this country, paid for by closing private equity loopholes. When will this Government act and put a proper plan in place?
Mel Stride
There is a proper plan in place. I invite the hon. Lady to spend some time looking more closely at the announcements that have been made, particularly at the time of the last fiscal statement, and especially those about WorkWell, universal support, and the work we are doing with the national health service and other agencies to make sure—as I say—that we bring together the world of work and the world of health and provide support, particularly for those with mental health conditions.