Welfare Benefits Up-rating Bill

Marcus Jones Excerpts

Tuesday 8th January 2013 Commons Chamber

[Alun Cairns]

I will in a moment but I want to develop my argument a little further. Presumably in an effort to drive the landscape even further to the left, tax credits increased dramatically—strangely—in the run-up to the 2005 general election, and, by coincidence, in the run-up to the 2010 general election.

[Mr Marcus Jones (Nuneaton) (Con)]

Given the political manoeuvring and increases in tax credits that my hon. Friend describes, which took place under the previous Government, is there a direct correlation between the time that tax credits started, the start of the financial crisis, and the substantial rise in the deficit created by the Labour party?

[Alun Cairns]

My hon. Friend makes an excellent point. The previous Prime Minister knew exactly what he was doing and he did it for party political ends rather than to support and help families who needed tax credits.

--- Later in debate ---

[Mr Marcus Jones (Nuneaton) (Con)]

Thank you for calling me to speak in this important debate, Mr Deputy Speaker. I have been here since the start and have heard a lot of rhetoric, particularly from Opposition Members. For me, this Bill and this debate are about striking a balance between the state providing a safety net for those who need that support and not putting the burden of any changes on to those least able to react to reductions in income, and taking into account the hard-pressed taxpayer.

I fully support the decision to retain the uprating of long-term disability benefits at the rate of inflation, as I support the triple-lock guarantee for the basic state pension. Those benefits are paid to groups that in general would find it impossible to increase their income, and it is right and proper that we fully protect them. That brings me to the people who will be mainly affected by the Bill. They broadly represent two groups in our community: those on out-of-work benefits and those receiving benefits in work.

I shall take the former first. No doubt, it is a terribly difficult decision to limit the increase to 1%, but, that said, unemployment benefits, by definition, should be a short-term safety net. The Government and Parliament should do all they can to get people back into work as quickly as possible. I know from my constituency that things are starting to work in that regard, and I am delighted now to see more bespoke help through Jobcentre Plus and the Work programme, and measures such as the enterprise allowance, the work experience programme, the Youth Contract and the push on apprenticeships are all starting to make a difference. Couple that with the universal credit, and 3.1 million people will benefit from increased support for getting into work. That will make a huge difference.

I turn to those affected who are in work. Again, in an ideal world it would be fantastic to uprate working benefits in line with inflation, but in the world of inevitable reality we all know that that is unsustainable. The creation of the tax credit system unleashed a bureaucratic leviathan on the country, and billions have now been spent on bureaucracy: £4 billion has been written off in errors and bad debts already and, as we heard today, another £4 million is likely to go the same way. It is far simpler to put people in a position where they pay less income tax, and I am glad and proud that the Government are doing that. Personally, I would like to see that extended, so that we can continue to move away from that bureaucracy.

The deficit, which is the most important issue facing the country, has to be dealt with in a way that is fair to the taxpayer. There is no doubt that difficult decisions have to be made to deal with it, and I am mindful that many people’s wages have been frozen, uprated at below inflation or even cut. We need to acknowledge that the taxpayer cannot bear the burden indefinitely.

[Christopher Pincher (Tamworth) (Con)]

My hon. Friend is right to say that taxpayers cannot continue to bear the burden. Does he agree that the 258% increase in tax credit spend between 2003 and 2010 was unsustainable?

[Mr Jones]

I thank my hon. Friend for his comment. He is absolutely right that we are in a difficult position that we can no longer sustain.

That brings me on to another point. This afternoon, I have observed a certain mood among the Opposition. Far from being pragmatic, they have been completely ideological. What puzzles me is that before the last general election Labour pledged to cut spending roughly in line with the coalition’s current rate of deficit reduction, but since then they have opposed virtually all the cuts, including £80 billion of savings proposed to welfare. The question for the Opposition, therefore, is: if all those changes are unacceptable, what do you propose to do? Do you want to cut the NHS? Do you want to make more cuts to policing? Do you want to cut local government? Do you want to cut education?

[Mr Deputy Speaker (Mr Nigel Evans)]

Order. I do not want to do any of those things. Will the hon. Gentleman please use the third person?

[Mr Jones]

I apologise, Mr Deputy Speaker. I was referring to Opposition Members, whose other options might be to put 13p on a litre of fuel, increase council tax, impose other tax rises or—as has always been the case—give the country more debt.

[Nick de Bois]

Does my hon. Friend agree that it is time for the Opposition to set out their full deficit reduction plan, as specified by Labour’s previous Chancellor?

[Mr Jones]

I thank my hon. Friend for his comments because they bring me neatly on to my next point. I suspect that today we will hear nothing from those on the Opposition Front Bench about what they will do. As with the rest of the measures that they have opposed, the Opposition will not reverse the measures put forward today, even if this country should have the misfortune of having another Labour Government. I look forward to, I hope, receiving answers from those on the Opposition Front Bench, but I fear that the hon. Member for Kilmarnock and Loudoun (Cathy Jamieson) will be completely silent on that point.

To conclude, I will go through the Lobby this evening mindful of the fact that I am making an extremely important and difficult decision for many of my constituents. In the absence of a credible plan being put forward by any other party in this House—that is particularly true of the alternative being put forward this evening—I will be backing the Bill’s Second Reading and supporting the Government.

Oral Answers to Questions

Marcus Jones Excerpts

Monday 5th November 2012 Commons Chamber

[Mr Hoban]

The right hon. Lady might be weary of that charge, but she will have to get used to hearing it. This Government are taking forward the changes that are necessary to get this system to work well. I think all Members on both sides of the House recognise one thing, however: as the evidence demonstrates, it is better for people to be in work where possible so that they can look after their families and provide dignity. That is exactly what we are trying to do in getting this process right. We are making progress, and we await Professor Harrington’s third review, which is due in the near future. Let me just say this to the right hon. Lady: when Atos bid for the PIP contract, it made it very clear that it would look to work with disability organisations to improve outcomes. We should try to work together on these matters, rather than make partisan political points.

[Mr Marcus Jones (Nuneaton) (Con)]

7. What steps he has taken to introduce a new sanctions regime for jobseeker’s allowance.

[The Minister of State, Department for Work and Pensions (Mr Mark Hoban)]

A new sanctions regime for jobseeker’s allowance was introduced on 22 October. The new regime is clearer and tougher. For example, someone who has turned down a reasonable job offer three times in a year will lose their JSA for three years. Those who can work should work.

[Mr Jones]

I thank my hon. Friend for that answer. In my constituency, many low-paid, hard-working people get more than frustrated with this cohort of people who continually refuse to take up work. Will he go into a bit more detail about the sanctions now in place to deal with able-bodied jobseekers who continually refuse to take up work they are able to undertake?

[Mr Hoban]

My hon. Friend is right to highlight the frustration among those who are working at seeing people who can work turn down jobs and simply get away with it. That is why we have introduced a new, tougher regime of sanctions, so that someone who turns down a job without good reason for the first time will lose their benefits for 13 weeks. That then escalates so that someone who turns down a job three times in a year will lose their benefits for three years. That is a very clear sanction, it is a very clear deterrent and it sends a very clear message that we expect people who have reasonable job offers to work and pay their own way.

Universal Credit and Welfare Reform

Marcus Jones Excerpts

Tuesday 11th September 2012 Commons Chamber

[Mr Duncan Smith]

I was going to deal with a lot of that in my speech, so the hon. Gentleman is helping me to speed up. Let me deal with monthly payments. I genuinely believe that we need to get people on to monthly payments, for a very good reason. Right now, about 75% of the work force are on monthly payments. We looked at this issue—as I am sure others have—when I was at the Centre for Social Justice. One of the biggest stumbling blocks we found is that when people are out of work, everything is paid directly to them every fortnight, but when they go back to work they really struggle—particularly those who have been out of work for a little time—to cope with the first few months in work. We are looking to get as many people as we possibly can on to a monthly payment, so that when they go into work they have already completed that process and it is not a big break for them.

Of course we will want to identify—working with councils and local groups, and so on—those in real difficulty. Now, here’s the thing. Until now, nobody has really bothered much about them, unless someone—maybe an MP—makes a specific effort to try to get something resolved for them. What we are doing will make us look at why those people cannot cope and then start to surround them with support. It might be about their ability to budget; it might be that the family has serious drug problems, in which case we will need to get to that. So, we start looking at the reason, then we can resolve that and move them into the process. We will allow for the ability to settle at two weeks where we think it vitally necessary, but the mainstream will go to monthly payments. However, I am happy to talk to the hon. Gentleman further about that and help him out.

[Mr Marcus Jones (Nuneaton) (Con)]

I thank my right hon. Friend for giving way and I wholeheartedly support the outcome he is seeking in implementing the policy. One of the greatest impediments to getting back into work, particularly for low earners, is child care. Will he outline what more the Government can do to support people with child care costs?

[Mr Duncan Smith]

The whole idea behind the universal credit is that it allows us not to cherry-pick child care. That is, we will support child care up the various hours, because at the moment the system is set so that people get it only at certain points. Universal credit allows us to do that, and we are putting another £300 million behind that. That is a major positive. Universal credit is also a major positive for lone parents seeking work, because of the increased ability of the first earner back into work to receive that money. That should benefit them enormously.

Let me try to address one other point that was made and then conclude. The Opposition have expressed some concerns about the universal credit and HMRC’s real-time information project, but the scheme will deliver a net reduction of £300 million in administrative burdens on employers. That is important, because the project will help enormously with the way we flow information, together with HMRC—and I stress “together”. The right hon. Member for Birmingham, Hodge Hill has made the point about that, both today and to me in the past, but I say to him simply: I am not letting this one go, as with some other Departments. We are locked into this. In fact, we have now placed one of the DWP people in the team working on real time information, which will report at the same time as the others. We believe that we are making good progress on getting RTI moving in the right direction.

The right hon. Gentleman asked what was to be done with the 20,000 housing benefit staff. We are dealing with this matter sensitively. We recognise that staff across the country will have concerns about the impact of the new benefit, which is why we are consulting local government right now. Although housing benefit will be absorbed into universal credit, we must not forget that that will not happen overnight. I am sure that any impact on job roles will be counterbalanced by, for example, changes to localised council tax benefit, which will require a number of staff. The administration of the social fund is also being moved down to local authorities, and there will be other work, too. This is a matter for us to discuss with the councils, but it can be dealt with sensitively. I do not think that we should get too concerned about it, but we need to deal with it. I think that there is scope for all of them.

I was asked earlier about the business case. We are constantly reshaping and remodelling it, and I do not think that we need to publish it. As I said to the right hon. Members for Birmingham, Hodge Hill and for East Ham, I am happy to discuss any issues surrounding it at any time. They are always invited in; it is always good to have a drink with them and discuss these matters.

Oral Answers to Questions

Marcus Jones Excerpts

Monday 10th September 2012 Commons Chamber

[Mr Mark Spencer (Sherwood) (Con)]

8. What recent steps he has taken to prevent benefit tourism.

[Mr Marcus Jones (Nuneaton) (Con)]

11. What recent steps he has taken to prevent benefit tourism.

[Gareth Johnson (Dartford) (Con)]

16. What recent steps he has taken to prevent benefit tourism.

--- Later in debate ---

[Mr Duncan Smith]

My hon. Friend is of course right that we want to support people who, through no fault of their own, fall out of work, and we want to do that for our own citizens. We also accept that for those who have been here for a period of time—hence the habitual residence test—because it is important to support those who are genuinely resident in the UK and delivering something for the UK economy. His constituents will understand fully that it is right to do that. However, it is not right for us to end up with a system—other countries agree on this—in which someone can literally arrive here and, only days after, decide that they are not working and, therefore, they are eligible for benefits. That would be quite wrong for the British taxpayer.

[Mr Jones]

My constituents will be horrified with this proposal from the EU Commission but heartened by the robust stance my right hon. Friend is taking. Does he not agree that, in addition to a consensus across Europe on the issue, we need a firm and robust consensus across this House? Therefore, what representations has he received from the Labour party in this regard?

[Mr Duncan Smith]

I actually have not received any representations from the Labour party but, to be fair, I did not ask for any. I always look forward to seeing my opposite number over a drink, although we have not had one recently, and he is more than welcome to make representations. He should know that we have had good representations from other countries that were not part of this, including Portugal, Slovakia and Slovenia. I want to put it on the record that the costs of the proposal could be enormous. If we did not have the British residency test, it is estimated that right now the cost would be something in the order of £155 million, although that could change.

Oral Answers to Questions

Marcus Jones Excerpts

Monday 25th June 2012 Commons Chamber

[Mr Duncan Smith]

I am not aware that any would lose their jobs. I am aware that, as I said to my hon. Friend the Member for Shipley (Philip Davies), the housing benefit changes that we have introduced are already leading to a large number of those who were not in work now seeking work. That is the difference between us and the Opposition—we believe that these changes should be about helping people to become independent; they think welfare is about making people dependent on them.

[Mr Marcus Jones (Nuneaton) (Con)]

T2. If he will make a statement on his departmental responsibilities.

[The Secretary of State for Work and Pensions (Mr Iain Duncan Smith)]

Today I am announcing the Department’s plans better to support jobseekers allowance claimants who are members of Her Majesty’s reserve forces. We plan to amend the JSA regulations with effect from next month so that claimants who are in the military reserve can attend their required 15-day annual training camp without having to terminate their claim. This will mean that Jobcentre Plus can actively encourage claimants to join the Territorial Army without facing unnecessary and burdensome administration difficulties.

[Mr Jones]

I thank my right hon. Friend. In Nuneaton and the north of Warwickshire, unemployment has decreased since the last general election. Not being complacent, my hon. Friend the Member for North Warwickshire (Dan Byles) and I are running a jobs fair this Thursday, where a number of local and regional companies will be offering 220 jobs and 50 apprenticeship placements. Will my right hon. Friend welcome this and give a message of support and encouragement both to those companies and to the people in our constituencies looking for work?

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

I am very much aware of the event being held by my hon. Friend and his colleague. This is another great initiative by Members on the Government Benches. There have been a number of extremely successful jobs fairs. This one is poised to be another, with really good jobs on offer to unemployed people. I commend my hon. Friend enormously. I am grateful to all the organisations taking part. It is a credit to the community in his area that they are coming together to help the unemployed.

Work Experience

Marcus Jones Excerpts

Tuesday 13th March 2012 Westminster Hall

[Mr Marcus Jones (Nuneaton) (Con)]

It is a pleasure to serve under your chairmanship, Mr Howarth. I am delighted to have been able to secure this important debate on work experience. I am also delighted to see so many hon. Friends and hon. Members from throughout the House in the Chamber today, to debate a subject that not only is topical and relevant to the recent newsfeed but has seen the concept of work experience turned into a matter of political ideology, rather than of pragmatism in how to help our young people and create opportunity for them. I bring the subject to the House in all seriousness, and out of concern for many of our young constituents whose future well-being could lie in the debate around work experience. I therefore ask right hon. and hon. Members to approach the debate in the spirit of helping our young people into work from a pragmatic rather than what I might describe as an ideological standpoint.

I come to the debate as a parent with two young children. Despite their ages, I am not prevented from being a little concerned about their future and what the employment market will look like by the time that they step into the big, wide world of work, whether from school, college or university. I suspect that many of my thoughts are not far removed from those of most parents throughout the country, which is why I wish to consider briefly what the Government are already doing to tackle youth unemployment, and to put that into the context of the importance of work experience, which will be the focus of the majority of my comments.

[Guy Opperman (Hexham) (Con)]

I congratulate my hon. Friend on securing this important debate. Does he agree, on pragmatism, that MPs can lead the way? I employ an apprentice, as part of my team working in the House of Commons, but we can also have work experience in our constituency offices—we had 40 in the Hexham office over last summer.

[Mr Jones]

My hon. Friend is absolutely right. MPs can certainly show the way practically and, as I will come on to, by supporting people who are willing to give work experience opportunities to our young people.

Youth unemployment is not a new phenomenon in this country, and it has been on an upward trend since 2004, when we were in a better economic position, although getting young people into work should be a priority for any Government regardless of the economic situation. Tomorrow we will see the latest unemployment figures, and we wait to see the figures on youth unemployment with bated breath. The current figures indicate that we have more than 1 million young people unemployed and out of work, which equates to 22% of young people in the country.

[Tony Baldry (Banbury) (Con)]

It is excellent that my hon. Friend has initiated this debate but, given what he has just said, is it not extraordinary that we are having to have what is a needless debate? It is extraordinary that anyone out there should be opposed to young people getting work experience.

--- Later in debate ---

[Mr Jones]

My hon. Friend is absolutely right. It is incumbent on Members of the House to support work experience and any tool that we can put into the toolbox to reduce the shocking number of young people who currently lack opportunity.

To return to our 1 million unemployed young people, if we compare our situation with that in many European Union countries, we will probably see our figures compare reasonably favourably. We should, however, never be satisfied or content to have one in four young people unemployed. For that matter, we should never be content to have any young people out of work. Recently, we have started to see policies put in place by the Government to increase opportunity for our young people. For example, places for apprenticeships have increased by 50% over the past year, to 440,000; my constituency, I am glad to say, has had a 56% increase in apprenticeship take-ups, more than half by young people. The youth contract, starting in April, will also see many more opportunities, including financial incentives for businesses to take on young people, which I hope will mean the creation of up to 160,000 opportunities—as quoted, I believe, by the Department for Work and Pensions, in particular given the £2,275 wage subsidy to support young people.

Under the youth contract, a number of opportunities are coming along in April, but we should also realise that, although we have many opportunities and however many schemes we have, there is always a cohort of young people who struggle to take up such opportunities, often because the education system has failed them and sometimes because they have low self-esteem or no experience or track record in employment. They might have previously experienced employment but had a poor experience.

[Guy Opperman]

Does my hon. Friend agree that the advance of academies and free schools, such as the enterprise school being set up in Newcastle, next to my constituency, will provide greater skills and address youth unemployment problems?

[Mr Jones]

My hon. Friend is absolutely right. For far too long a cohort of young people has been failed by the education system in this country, and we need to ensure that such people have the maximum opportunity to gain a high-quality education. Hopefully, we will reduce the number of people who need work experience. Until that happens, however, it is incumbent on us all to support the principle of work experience, because we need to reach that cohort. Figures from the International Labour Organisation show that, of the young people out of work in this country, more than 50,000 have never had a formal job and 20,000 have poor or no formal qualifications. If we are to reach out to that cohort of young people and if we are serious about getting them back into work and engaging them to become part of the mainstream work force, work experience is an essential tool to have in the toolbox.

[Gloria De Piero (Ashfield) (Lab)]

Can the hon. Gentleman define the difference between work experience and an internship, because the two phrases are becoming increasingly blurred? There is definitely a difference and it is important to state it. What is it, in his view?

[Mr Jones]

I thank the hon. Lady for her comments. There is a distinction. With work experience, we are talking about a short-term opportunity for young people; they can be given some short-term experience of work to allow them to get into mainstream employment, often with employers who are keen to take on a certain number of those who have been on work experience and to put them into proper employment. There is a distinction from internships, which have traditionally been used as a method of giving people experience in this place, but also in law firms and all sorts of other professions. There is a distinction, and we need to be alive to that.

Over recent weeks, I have been pretty dismayed by the response to the current Work Experience scheme offered by the Government in partnership with many of our best companies in this country. I have been dismayed by the vitriol towards employers, who have not sought to create a free supply of labour but, on the contrary, have shown a genuine will to give experience and a chance to young people who, for whatever reason, have not been given that chance elsewhere.

[Sheila Gilmore (Edinburgh East) (Lab)]

I was open to the hon. Gentleman’s comments about not being ideological, so I hoped that he would rebut some of the interventions that he has already had, which were extremely ideological. On the specific question of the Work Experience scheme, does he agree that the work experience must be relevant to the needs and previous experience of the participants?

[Mr Jones]

It does have to be experience, but I hope that the hon. Lady is not taking us down the route of demeaning certain types of employment—I will come on to this in a moment—or of being what I call a job snob. I am sure that she is not seeking to do that at all. Over recent weeks, however, we have seen a small cohort of people who have been willing to show a great deal of vitriol towards some of those companies which were willing to give young people an opportunity. In the debate today and over the past few weeks, we have seen what I consider to be the huge red herring of whether work experience is compulsory or voluntary, and that has been a huge distraction from the real issue.

[Glyn Davies (Montgomeryshire) (Con)]

I associate myself with my hon. Friend’s disappointment at what has happened in recent weeks. Does he condemn those organisations that have sought to spread fear, and have organised letter-writing campaigns, with no basis? They have made the scheme, which should have been a great success, questionable. Does he welcome the fact that we seem to have dealt with the issue, that the argument seems to have turned around, and that the scheme is now being welcomed?

[Mr Jones]

I thank my hon. Friend for his intervention, and I agree absolutely. A small number of people—I emphasise that it is a small number—have put their political ideology before the best interests of disadvantaged young people, whom the Government and employers who have taken part in the Work Experience scheme are seeking to help. That is disgraceful, and an indictment of the methods that some of the people in that extremist group use. I hope that today we will hear from the shadow Front-Bench spokesman that the Opposition do not support such groups, and that they support the Government’s scheme to give young people opportunities. It is incumbent on the House to provide as many routes as possible for our young people.

[Brandon Lewis (Great Yarmouth) (Con)]

I thank my hon. Friend for being so generous with his time. To follow on from the point made by the hon. Member for Edinburgh East (Sheila Gilmore), does he agree that a key reason why the scheme is so important and why young people who have taken part speak so highly of it is that the experience that they get and where they are placed is based on the experience they want in an industry that they are interested in going into?

[Mr Jones]

My hon. Friend hits the nail on the head. Most of the placements that have been offered to the cohort of young people are relevant to them, and it is important to bear that in mind.

On the debate about the Work Experience scheme over the past few weeks, and the fact that there has been a red herring, or an elephant in the room, about whether it is compulsory, we all know that it is voluntary, and that the only sanctions relate to conduct, and willingness to see the placement through when someone has embarked on that route. That is not irrelevant, but it is not the most relevant issue. The most relevant issue is to give young people, sometimes with what some people call tough love, the opportunity to go out and get themselves into a position where they can compete in the labour market.

In a moment, I shall discuss employers, but before doing so I want to tackle negativity and ideology, which are damaging opportunities for our young people. Later, I shall use the word “unskilled” with extreme caution. There is no doubt that there is a skill in doing any job properly. I am worried about the rhetoric from some people who seek to demean jobs such as shelf-stacking, because there is no doubt that all jobs are important. We all need to start our career somewhere. For some, that may be shelf-stacking. For some that may be their niche, but regardless of that we in the House should show that any job that is legal and above board should be respected. We need to drive the job snobs out and to promote the fact that we support all people who work, whatever they choose to do or whatever they have to do to make a living and to achieve self-respect.

[Simon Hart (Carmarthen West and South Pembrokeshire) (Con)]

My intervention is now three or four minutes out of date, but I will make it anyway. Does my hon. Friend agree that work experience is the ultimate job interview for a job that might not exist initially? I am a former employer of work experience people. Does he also agree that the great value is that enthusiastic and willing people become part of the team?

[Mr Jones]

I thank my hon. Friend for his positive comment, and he is absolutely right. It is important that businesses seek to grow their own. Many receive a lot of benefit from bringing young people on in that way. He makes the important point that work experience is often a job interview. We are discussing people whose CV may arrive by post in a pile of 20 or 30 other CVs, and the employer may just put it into the filing cabinet, or write back saying that perhaps they will contact the applicant if a suitable vacancy comes along, or it may end up in a filing cabinet on the floor, which is usually a bin. We must ensure that we provide opportunities to people who need a leg-up.

[Chris White (Warwick and Leamington) (Con)]

I thank my colleague from Warwickshire for securing this important debate. Since I have been a Member of Parliament, I have had 16 people doing work experience in my office, and I welcome Thomas Hart, who is in the Public Gallery today. Some employers ignored the protest activity. How can we encourage more employers to ignore it, and to take on the scheme in greater numbers?

[Mr Jones]

I thank my hon. Friend, who, as a fellow Warwickshire MP, knows the importance of getting young people in our area into work. He is absolutely right that we must encourage employers, and ensure that they are not frightened of the vocal minority who seem to put political ideology before young people. Hon. Members on both sides of the House should support the Work Experience programme. It is not a panacea for the whole youth employment issue, and is probably applicable to only a small cohort of people who are difficult to get into work. We should all support the programme, and back employers to the hilt in supporting it.

No matter how unskilled—I have said that I am worried about using that word—a role may be, new staff cannot be brought into a business, whether or not they are doing work experience, without providing training. Some young people will pick up that training more quickly than others, but regardless of that, people must be trained. All employers will say that. So they must invest time, provide training, perhaps buy a uniform, and generally invest in that young person, who may be a member of staff for only a few weeks.

[George Hollingbery (Meon Valley) (Con)]

Does the issue not go even deeper than that? The House should celebrate the fact that some companies are a force for social good. They do not just make profits for the shareholder, but provide an enormous amount of employment across the piece, and ensure that this country is put on a sound financial footing. We should celebrate that.

[Mr Jones]

As ever, my hon. Friend is absolutely right. When I go out and speak to businesses in my constituency, I detect that people are becoming alive to the issue of youth unemployment, and that there is a real will in businesses to try to give young people opportunities, whether through the apprenticeship route, work experience or other parts of the Government’s Work programme. We should embrace the good will in businesses throughout the country and ensure that we fully support them, not demean them or try to make out to the public that they are trying to get something for nothing. At the end of the day, we rely greatly on the good will out there, and we must not spoil or stymie that. If we start to go down that route, we will defeat the object. Given some of the ideologies expressed, however, it seems that some people are willing to see that happen just because the current Government may not be of the same colour as them, and that seems pretty disgraceful.

[Claire Perry (Devizes) (Con)]

Will my hon. Friend widen his thinking on the issue to women returning to work? I know from my experience of being a stay-at-home mum for seven years that it is unbelievably difficult to get the confidence to return to the workplace. For me, work experience was the best way to build up work attachment and work habits. Will my hon. Friend join me in urging Ministers to ensure that opportunities for work experience are offered to older people—particularly women—who are an economic force to be reckoned with?

[Mr Jones]

I totally agree with my hon. Friend. There is a cohort of people who have perhaps looked after children but are willing and able and capable of returning to the labour market although they may lack confidence. In time, the Work Experience scheme could be widened in the way that she suggests.

I also wish to focus on some of the ladies and gentlemen of Her Majesty’s press who have perhaps not given this issue the fairest of hearings. I appeal to them to dismiss any rhetoric or old-fashioned and outdated views from the far left that they may have, and to think about young people and look to support this policy. By setting out to try to destroy work experience, all they will do is destroy a route to work and an opportunity for our young people. Work experience is not the be-all and end-all for young people, but it is a route into employment nevertheless, and Members of this House should seek to provide as many such routes as practicable to help our young people into work.

[Harriett Baldwin (West Worcestershire) (Con)]

As I am sure my hon. Friend will agree, it is welcome that many media outlets, notably the BBC, ITV and The Guardian, offer work experience to young people.

[Mr Jones]

I think that is absolutely fantastic. It is a shame, however, that some of those who work for the publication to which my hon. Friend referred may not share the same view as that taken by their employer. That is sad, and I hope that people will think a little more carefully before making the sorts of comment that may destroy the life chances of the most vulnerable young people in this country.

Safeguards must be in place and we must ensure that we protect young people who may be vulnerable. No hon. Member would want any young person to be exploited, but that does not detract from the fact that employers need positive support and encouragement to be offered through the leadership of this House and its Members. It is, therefore, incumbent on Members of Her Majesty’s Government and Opposition to do all they can to encourage employers to offer work experience, and to fight against the small minority of people who seem intent on putting their ideology before the needs of the most vulnerable people in society who need a little extra help to get on the work ladder and into a job.

I will conclude by saying that we must move this debate away from the discussions of the past couple of weeks and towards the political centre ground and a sensible viewpoint that is shared by most people in this country. Most people are supportive of this policy, and I look forward to hearing from the Minister about how the Government intend to support it and ensure robustly that we do not give in to that small minority. I also look to the Opposition Front-Bench spokesman to back the policy to the hilt and do the right thing for young people in our country.

[Sheila Gilmore (Edinburgh East) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Howarth. I congratulate the hon. Member for Nuneaton (Mr Jones) on securing this debate, although despite his claims that he would not be ideological, I think that he was ideological throughout.

Last Friday, I met a young man in a local community café that is run entirely by volunteers and opens for two hours a week. It is quite new, but it has been very successful. The young man started to volunteer in that café through an arrangement with his school, as he was soon to be a school leaver and had some learning difficulties. He has since left school, although he has continued to volunteer. He told me that as a result of that volunteering experience, Debenhams had offered him the opportunity for paid work in its city café for four hours a day. I thought that that was a great story and a wonderful example of what work experience can do.

When I served on Edinburgh council, we started a scheme called JET—jobs, education and training—first in one high school, although it was subsequently rolled out to others. It was for a cohort of pupils who were in their final year at school but who were likely to emerge with very little to show for it, probably because they hardly ever attended. The pupils and their families were approached and asked to sign up for the scheme. They had a reduced school timetable; they spent one day a week doing work experience and one day a week at a college doing training that was related to that work experience. There were about 20 of those pupils in each school, and although I cannot say that they all came out with jobs at the end of the scheme—we discovered that a lot of them had deep-rooted personal problems—it was a good programme that involved a period of work experience and, importantly, was related to training.

I therefore refute absolutely the allegations that Labour Members are somehow against work experience or even—this is the allegation repeated by the hon. Member for Nuneaton—that we are content to leave people stuck in unemployment. That is totally wrong.

[Mr Marcus Jones]

Will the hon. Lady say whether she supports the Government’s work experience programme that I spent about 20 minutes outlining?

[Sheila Gilmore]

I was about to come on to that, but I wanted to establish the importance of correctly managed work experience.

What is wrong with the current scheme? To me, the most important thing is that work experience moves people away from their current situation and towards employability, whether or not that involves a job right away. As Ministers and others have said, it is essential to get people away from lying in bed or watching daytime TV—anyone who has been the parent of a teenager, particularly a teenage boy, will say amen to that. However, there is no one-size-fits-all solution.

The first, but by no means that last, example of the scheme was related to me by a constituent. She was still quite young and had worked in the past. She had qualifications and had done holiday jobs, but she had then become unemployed. Her complaint was that she was expected to do eight-weeks’ work experience—the shelf stacking that everybody goes on about—and wondered how that related to moving her to where she wanted to be or make her more employable. I do not think that that is being a job snob. We are mixing up two things.

--- Later in debate ---

[Stephen Timms]

Let me tell the right hon. Gentleman what I suspect is the source of the confusion. It arises from the decision maker’s guide, which any Member of the House can read on the website for the Department for Work and Pensions. That guide says:

“JSA may not be payable or it may be payable at a reduced rate to claimants who are entitled to JSA and have...after being notified by an Employment Officer of a place on a Work Experience scheme, refused without good cause or failed to apply for it or to accept it when offered, or...neglected to avail themselves of a reasonable opportunity of a place on Work Experience.”

A Jobcentre Plus adviser who is doing their job and looking at the official guidance discovers that that is what the guidance is—a clear description of a mandatory scheme.

It is no wonder, therefore, that Jobcentre Plus staff have been so confused and have contradicted what the Minister has said. Of course, as we know, a number of businesses also lost confidence in the scheme. But the muddle goes even further, because the DWP’s provider guidance for the Work programme says:

“Where you are providing support for JSA participants, which is work experience, you must mandate participants to this activity. This is to avoid the National Minimum Wage Regulations, which will apply if JSA participants are not mandated”.

The DWP was saying that until a few weeks ago, but that particular statement has now been deleted from the guidance on the website.

Therefore I want to ask the Minister three specific questions. First, now that there are no sanctions in work experience other than for gross misconduct, will he amend the decision maker’s guide? Secondly, how will he ensure that the policy is now implemented in line with what he has announced? Thirdly, what has changed in the legal position so that work experience no longer has to be mandated to “avoid”—to quote the guidance that was on his Department’s website—the national minimum wage rules?

The Work Experience scheme is too valuable to let this muddle continue. And as we have already heard in the debate, there are other schemes apart from the “Work Experience” scheme. In fact, Inclusion says that there are seven different current work experience schemes, which may be part of the reason for the muddle. At the time that some claimants are starting on the “Work Experience” scheme, others start on mandatory work activity, which was the scheme referred to by the hon. Member for Great Yarmouth. That may well be another source of the confusion. As the name of the mandatory work activity scheme suggests, it is not voluntary. It is designed for people who are a long way from the labour market and who have no experience of work or the work ethic. Placements are for a similar period to those in the Work Experience scheme, and they are sourced through private welfare-to-work providers. The total value of the contracts for mandatory work activity is £32 million. I have repeatedly asked the Minister to tell the House what the average cost of such a placement is, and various other details. He has repeatedly refused to answer those questions, claiming that it is “Commercial in Confidence” although heaven knows why.

[Mr Marcus Jones]

The right hon. Gentleman has talked a lot about “confusion”, but from where I sit in Westminster Hall today I am extremely confused about the position of his party in relation to the Government’s work experience programme. On the one hand he says that he supports work experience, but on the other he seems to be coming up with all sorts of “confusion” in his argument to try to get away from supporting that programme. Does his party support the current Government’s work experience programme and will he commit to supporting those employers that are doing a fantastic job in giving our young people this type of opportunity?

[Stephen Timms]

I very strongly support work experience and I strongly support the contribution of employers. However, what I regret and deprecate is the extraordinary muddle and confusion that the Government’s handling of the Work Experience scheme and the six other similar schemes has created.

On mandatory—[Interruption.] Time is running out and I want to give the Minister every chance to respond to these points, so let me just tell the House about one of my constituents. She was put on to mandatory work activity. She was not a long way from the labour market; indeed, after I inquired about her, she received a phone call to say that she should never have been put on mandatory work activity in the first place. The letter that was sent to her initially was a classic of incomprehensibility; I sent a copy of it to the Minister. It instructed her, a resident of east London, to go to an obscure Sheffield postcode, and it said that if she had any queries she should ring telephone number 000. Her placement was at a charity shop. When she arrived, there were 14 other people on mandatory work activity who had also been sent to the same charity shop to help out. There was nowhere near enough work to go round, although presumably all 15 of those people attracted a payment to the provider from the Minister’s Department.

Experiences such as that will not help anybody into work. I ask the Minister: what checks is he making on placements to mandatory work activity? In fact, does he know if his Department is being ripped off on a large scale, as the example that I just gave suggests? Also, why does he insist on secrecy about all of this, when the openness that is being promoted by the Cabinet Office would help to resolve all these problems? This Minister has some form on this. He has been officially rebuked for misusing statistics—I think more than any other Member of the House—including on three separate occasions since he has been a Minister. That is a pretty extraordinary record.

Oral Answers to Questions

Marcus Jones Excerpts

Monday 5th March 2012 Commons Chamber

[Maria Miller]

The hon. Gentleman will already be aware that if students fall ill they are eligible for student finance for up to 60 days—I am sure that he will have advised his constituent of that. I can assure him that as PIP is developed and we consider the issue further, we will be talking to colleagues in other Departments. The important thing is that we have the right support in place for long-term sick and disabled students.

[Mr Marcus Jones (Nuneaton) (Con)]

4. What effect he expects the Government’s youth contract to have on the number of unemployed young people.

[Mark Menzies (Fylde) (Con)]

16. What effect he expects the Government’s youth contract to have on the number of unemployed young people.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

We are in the final stages of preparing for the launch of the youth contract in April. We believe that it will have a positive impact on youth unemployment, providing nearly half a million support opportunities for young people. We and employers are working together to give young people the support they need to gain employment.

[Mr Jones]

At a meeting with business people in my constituency some months ago, there were calls for a small tax break, or some other form of support from the Government, to help them take on young people. I am therefore delighted that 160,000 job subsidies worth up to £2,275 will now be available for each business that employs an 18 to 24-year-old through the Work programme. Can the Minister comment on the level of interest in the scheme so far?

[Chris Grayling]

There is already considerable interest in what is planned, and I hope that it will give unemployed young people a leg-up in the workplace. We hope that the challenge that they face owing to a lack of previous experience—which we were talking about earlier—will be ameliorated, at least to some degree, by the incentive payment that we will provide, and that the result will be far more young people getting their first opportunity to get into work.

Oral Answers to Questions

Marcus Jones Excerpts

Monday 23rd January 2012 Commons Chamber

[Steve Webb]

I think the hon. Gentleman was a Minister in our Department under the previous Administration, and as he knows they chose not to cap charges but to give themselves powers to cap them if it proved necessary. At the moment, our judgment is that the early roll-out of auto-enrolment will deal with big firms who will give good deals and low charges and that we have more competition than was perhaps expected, with NEST coming in at around 0.5% and other providers at or below that point. We are encouraged by developments in the market but we are absolutely prepared to use the capping powers if it proves necessary.

[Mr Marcus Jones (Nuneaton) (Con)]

16. What recent progress he has made on the youth contract.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

Since the launch of the youth contract, we have been engaging with employers, providers and stakeholders to give them an active role in shaping the delivery of the new offer. As a result, employers are now starting to sign up to support the delivery of the youth contract and we remain on track to implement it in April as planned. Let me pay tribute to all the employers that are currently and have committed in the future to offering places in our work experience programme and in sector-based work academies and to offering in other ways to support what we are trying to achieve.

[Mr Jones]

I thank the Minister for his response. I welcome the youth contract and I am sure it will help many of our young people into employment, but having spoken recently to a number of local business people, particularly from small businesses, I have concerns about the general level of awareness of the policy. Will my right hon. Friend assure me that he is doing all he can to raise awareness of this crucial policy with employers?

Benefits Uprating

Marcus Jones Excerpts

Tuesday 6th December 2011 Commons Chamber

[Steve Webb]

I know that the hon. Lady was a Minister in our Department, and she will understand that the way the housing benefit system works is that people in the social rented sector, provided that they are not over-occupying, get their full rent, whether it is increased by CPI or RPI. The fact remains that including mortgage interest in a measure of inflation for pensioners when, as she rightly says, most pensioners do not have an outstanding mortgage, is the wrong thing to do.

[Mr Marcus Jones (Nuneaton) (Con)]

How much better off will the average pensioner in Nuneaton be following the introduction of the triple lock guarantee and the restoration of the link between earnings and pensions?

[Steve Webb]

For someone retiring this year on a full basic state pension, the triple lock, we estimate, will benefit them to the tune of about £13,000 over the course of their retirement. That is a very significant change whose effects we are not yet seeing in full because earnings growth is depressed, but as it returns to more normal times, pensioners in Nuneaton and elsewhere will see real increases year after year.

Youth Unemployment

Marcus Jones Excerpts

Wednesday 9th November 2011 Commons Chamber

[Mr Byrne]

Let me remind the hon. Lady that under the previous Government, even at a time of recession, youth unemployment and long-term youth unemployment were coming down. That is because in the face of a crisis we chose to act. The question that she has to answer—

[Mr Marcus Jones (Nuneaton) (Con)]

Will the right hon. Gentleman give way?

[Mr Byrne]

I might finish responding to the hon. Lady first.

The question that the hon. Lady has to answer for her constituents is why under Labour, even in recession, youth unemployment was coming down by 38%, and now, over the course of this year, long-term unemployment is up by 68%—on her Government’s watch. What is she going to say to those on the Treasury Bench about what further action they must take?

[Mr Jones]

The right hon. Gentleman tells us how well the previous, Labour Government did on youth unemployment, but that is not how the figures look to me. From 2004, youth unemployment was rising, and when the Labour Government left office it was higher than when they took office in 1997. How does he work that one out?

[Mr Byrne]

The hon. Gentleman is an astute observer of current affairs, and he will have noticed that the worst international financial recession was under way—

[Mr Jones]

rose—

[Mr Byrne]

Let me just answer the hon. Gentleman’s question. He will know that the worst global recession since the 1920s was under way, yet despite that, before the election, youth unemployment was coming down. He must answer this question: how is it that this Government are doing so well, when since the beginning of this year long-term youth unemployment has risen by 68%? Hundreds of constituencies around the country have seen long-term youth unemployment double. If he has the right plan, can he explain exactly what is going so well?