Labour Market

Lord Forsyth of Drumlean Excerpts

Monday 8th September 2025 Lords Chamber

[Baroness Sherlock (Lab)]

The answer to the noble Lord’s question is no. The Government have had to take tough decisions and we knew that they would have some impact. However, all the signs are going in the right direction—there are real signs of progress out there. When it comes to part-time workers, I assure the noble Lord that one of the good things about the way in which the DWP is now organised is that it is tailoring and personalising the employment support it gives people in two ways: first, to get those who are not in jobs into them; and, secondly, to get those in jobs moving on within them, whether that is through more hours, better work or more skills. For example, through our new jobs and careers service, we bring together people who are not on benefits at the moment—perhaps they are working at the margin only for a few hours and do not need to claim—to be part of that. As a country, if we are to have economic growth, we will need a skilled and motivated labour force. I am confident that we are doing that well.

[Lord Forsyth of Drumlean (Con)]

My Lords, if people are better off not working and being on benefits than they are working at the minimum wage, is the Minister surprised that we have millions of people who should be working and who are not?

[Baroness Sherlock (Lab)]

My Lords, I presume the noble Lord is referring to the stories about universal credit. The structure of universal credit was created by the last Government. It was designed to operate in and out of work. We have become aware that there were some imbalances in the system. As the noble Lord will be aware, the Universal Credit Bill that we put through just before the recess has rebalanced the rates of universal credit by halving the amounts that will be paid in future to those who are out of work on grounds of illness or disability. It will increase the standard allowance to help raise incentives to work. I think most people want to work and have a fulfilling life. Our job is both to put the incentives in the right place and to make sure that the jobs are there and that people are skilled to do them. We are determined to do all this.