Oral Answers to Questions

Mark Hoban Excerpts

Monday 10th December 2012 Commons Chamber

[Julian Smith (Skipton and Ripon) (Con)]

5. What plans he has to increase access to the new enterprise allowance.

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

We have recently taken steps to increase access to the new enterprise allowance by extending eligibility to day one of an individual’s jobseeker’s allowance claim and increasing the number of mentoring places available by 30,000.

[Julian Smith]

Take-up of the scheme in Yorkshire has been excellent, but how do we ensure that those considering taking it up are given the best possible advice on developing their nascent business ideas?

[Mr Hoban]

My hon. Friend is right to highlight take-up in Yorkshire. In his constituency, 40 claimants have started with a mentor, and so far 30 have started training. That is a good result—better than the national average—so clearly people in his constituency are getting good advice. We need to ensure that the quality of advice increases. We want more people to see self-employment as a way into the work force.

[Bill Esterson (Sefton Central) (Lab)]

The Minister is right that more people should go self-employed; the problem with the way the system has been set up is that it assumes people earn the minimum wage for every hour worked, when that is far from the truth, as he will know. Will he assure me that he will make changes where they are needed to ensure that self-employed people can take advantage of the scheme and not be disadvantaged, which is a potential problem at the moment?

[Mr Hoban]

The new enterprise allowance is there to help people to make the transition from unemployment into self-employment. It is absolutely right to give them the support they need not just to earn the minimum wage but to go beyond that. We have seen some good examples of people taking up the new enterprise allowance who have started their own businesses and are now employing others.

[Andrew Percy (Brigg and Goole) (Con)]

I join my hon. Friend the Member for Skipton and Ripon (Julian Smith) in saying that take-up in Yorkshire has been excellent. Indeed, in my constituency there has been demand to access the scheme earlier, but one issue needs to be addressed. In many areas there is a lot of other potential support for businesses, but jobcentre staff are not necessarily aware of it. Can we ensure that the advice given is as tailored as possible, taking into account the various funding streams available locally?

[Mr Hoban]

My hon. Friend is absolutely right. The advice given is not given by Jobcentre Plus staff: we get private and public sector contractors in to give that support. We need to ensure that people setting up their businesses are signposted to other sources of advice and funding to give them the best possible start in getting their businesses off the ground.

[Jonathan Ashworth (Leicester South) (Lab)]

6. What assessment he has made of the effectiveness of the Work programme in reducing long-term youth unemployment in (a) Leicester and (b) the UK.

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

Nationally, more than 57,000 young people on the Work programme have found work and just under 10,000 have been in work for six months. Of those, about 80 are in Leicester.

[Jonathan Ashworth]

Unemployment and youth unemployment are higher in Leicester South than they were at the general election. The latest statistics show that about 3% of people have found work as a result of the Work programme. Many employers who took advantage of the future jobs fund tell me that they are shunning the Youth Contract or that they are sceptical about the Work programme. Given that the Minister’s own Department has said that the future jobs fund was of benefit to society, employers and those on it, does he now regret abolishing it?

[Mr Hoban]

The evidence from the future jobs fund demonstrated that the taxpayer was never going to recover the money that was spent on it and that it was 20 times more expensive than the work experience scheme, which is similar to it and from which we are getting good outcomes. Taking into account Labour’s fiddled figures, youth unemployment is lower today than it was in May 2010.

[Stephen Timms (East Ham) (Lab)]

In the invitation to tender for the Work programme, the Minister’s Department said that if there was no programme at all 5% of people would secure job outcomes within 12 months. We now know that, under the programme, the figure was 2%. For people on employment and support allowance, it was 1%. Of the 9,500 people on employment and support allowance who used to be on incapacity benefit and who were referred to the Work programme in its first 14 months, only 30 secured job outcomes. The Minister told The Daily Telegraph that Work programme providers needed to “get their act together”. Why does he think that they are to blame?

[Mr Hoban]

The Work programme providers are responsible, and they are paid to get people into work. This is a much better value programme than its predecessors, but we need to get providers to raise their game. The figures released at the end of last month showed that job outcomes were rising and that the longer the programme had been functioning, the more people were getting into work. This is a good start, and it is a much more effective programme than the schemes introduced by the previous Labour Government.

[Mr Philip Hollobone (Kettering) (Con)]

7. How many people have come off benefits after joining the Work programme in (a) Kettering constituency, (b) Northamptonshire and (c) England to date.

[Mr David Amess (Southend West) (Con)]

15. How many people have come off benefits after joining the Work programme to date.

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

Last month, we published data showing that 57% of claimants who joined the Work programme in June 2011 had spent some time off benefits. The figures showed that the programme was moving people off benefits and that, as claimants spent longer on the programme, more of them came off benefits.

[Mr Hollobone]

I recently visited A4e, which is helping to provide the Work programme in Kettering, and I was impressed by its commitment to getting unemployed people back into work. Is the Minister aware, however, that the two biggest barriers to finding permanent employment in my constituency are travel costs and child care difficulties? What can Her Majesty’s Government do to solve those two problems?

[Mr Hoban]

There is a range of ways of helping people with their travel costs in order to get them back into work. Jobcentre Plus can provide money through the flexible support funds, and Work programme providers can provide support to help people to reduce the cost of their travel. There is also funding available to help people who want to work to get free child care.

[Mr Amess]

Will my hon. Friend confirm that figures just released by the Employment Related Services Association show that the Work programme has been even more successful in taking people off benefits than the figures released by his own Department suggest?

[Mr Hoban]

My hon. Friend is absolutely right. The figures produced by the ERSA last month show that more than 200,000 people have found work through the Work programme. They also show that the programme is effective at moving people into work and that job entries are rising from month to month. They clearly show improvements in performance as the programme matures.

[Kate Green (Stretford and Urmston) (Lab)]

The DWP’s own evaluation has shown that the Work programme is proving less successful at getting women than men into work, that it is particularly poor at getting lone parents into work, and that the black box approach is failing to deliver substantive personalised support. What is the Minister going to do to ensure that the Work programme genuinely meets the needs of those furthest from the labour market?

[Mr Hoban]

The Work programme has been designed to allow providers to use a range of ways to help people back into work. We give them that flexibility. In return, they are paid only when they are successful. That contrasts with the schemes introduced by the previous Government, in which most of the money went in up front and providers were not paid by results. I am sure that the hon. Lady will welcome the fact that, under this Government, there are more women in work than ever before.

[Luciana Berger (Liverpool, Wavertree) (Lab/Co-op)]

16. I listened carefully to the Minister’s response a moment ago about the success of the Work programme. Does he acknowledge, however, that of the almost 9,500 people who were in receipt of employment and support allowance who used to receive incapacity benefit and who were referred to the Work programme in its first 14 months, only 30 received job outcomes? What are the Minister’s plans for making the Work programme work?

[Mr Hoban]

As I have already made clear in answer to a similar question, the Work programme is improving its performance, and the longer the scheme is in operation the more people are getting into work. That will lead to more job outcome payments in future. We are in the early stages of the scheme, but there is solid evidence to demonstrate that it is getting people off benefits and into work.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

21. What steps has the Minister taken to improve the performance of Work programme providers?

[Mr Hoban]

We have taken a range of actions to improve the performance of Work programme providers. We are working with them to establish best practice, particularly in areas such as helping people on employment and support allowance into work. The Department has also written to a number of providers advising them that we want to see a step change in their performance and asking them to produce performance improvement plans, which we will monitor carefully. Programme providers know that they could lose their contract if their performance does not improve.

[Sheila Gilmore (Edinburgh East) (Lab)]

For the last year, the Secretary of State and all his Ministers have said they could not give us any information about what was happening with the Work programme because the data was unverified. Now we are getting a stream of unverified data, but does that mean we can now see inside the black box? May we have clear information about what services are given to people when they are referred?

[Mr Hoban]

The hon. Lady will be aware that the minimum service standards for each provider are published. Last month, we saw data produced on off-benefit flows and on the number of people getting six months’ work. The trade association ERSA—Employment Related Services Association—produced details on the number of job starts. I think that a huge amount of data has been published, and I am surprised that the hon. Lady is complaining about it.

[Mr David Hanson (Delyn) (Lab)]

9. What discussions he has had with the Welsh Government on the implications of his proposed changes to housing benefit.

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[Sarah Newton (Truro and Falmouth) (Con)]

12. What assessment he has made of Professor Harrington's third review of the work capability assessment.

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

We welcome Professor Harrington’s invaluable contribution to our efforts continually to improve the fairness and effectiveness of the work capability assessment. We published our response on the day of the publication of his third review. We accepted five recommendations outright, and the sixth in principle.

[Sarah Newton]

I greatly appreciate the Government’s continuous efforts to get this process right—it is a very difficult process to get right—and it is great news that all Professor Harrington’s recommendations have been adopted. May I ask the Minister to join me in urging Opposition Members to stop scaremongering and frightening disabled people in my constituency who are being deterred from coming forward to claim the benefits to which they are entitled?

[Mr Hoban]

My hon. Friend has made an important point. There has been a great deal of scaremongering about the work capability assessment, and a great deal of criticism, most of it unfounded. Let me inform the House of two facts. First, decisions about eligibility are made not by Atos but by the Department’s decision makers, and, secondly, we have established that in only 0.4% of cases in which tribunals have overturned DWP decisions has Atos been the cause.

[Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)]

I am not sure whether some of those last remarks were aimed at me, but may I ask whether the Minister agrees with Professor Harrington’s comment:

“The appeals process remains an area of considerable concern”?

As a number of charities have pointed out, many people who were given zero points in the initial assessment discovered, following appeals, that they had at least 15. How many people have found themselves in that position in the last year?

[Mr Hoban]

If the hon. Gentleman feels guilty, perhaps he ought to examine his conscience in relation to remarks that he himself has made.

In his report, Professor Harrington said:

“All they call for is a scrapping of the WCA but with no suggestion of what might replace it.”

He added that to

“recognise that things are beginning to change positively in the best interests of the individual… would be helpful.”

This process is an important part of the way in which we help people to get back into work, but the scaremongering that we hear undermines people’s confidence in it, to the detriment of those who are trying to claim employment support allowance.

[Greg Mulholland (Leeds North West) (LD)]

When the last Government placed the contracts with Atos, they omitted to ensure that work assessment centres were fully accessible. In 31 of them there is no ground-floor access for wheelchairs, which is clearly absurd. What is the Department doing to deal with that?

[Mr Hoban]

My hon. Friend has made an important point. We are working with Atos to ensure that as many centres as possible have ground-floor, accessible medical examination rooms, but when they are not accessible, we will try to make arrangements with claimants to ensure that they have access to suitable locations for their assessments.

[Paul Maynard (Blackpool North and Cleveleys) (Con)]

13. What plans he has to improve the Access to Work scheme for disabled people.

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[Dan Jarvis (Barnsley Central) (Lab)]

T7. The DWP recently published an evaluation that confirmed a net benefit of £7,750 per participant from the future jobs fund, a scheme that originated in my constituency. That can be set alongside Barnsley college’s successful sector-based work academy, which is already demonstrating its effectiveness in getting long-term unemployed adults into work. Does the Minister understand why, when it comes to reducing long-term unemployment, my constituents have more faith in those schemes, which originated in Barnsley, than they do in the Work programme, which came from his Department?

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

The hon. Gentleman should reflect on the fact that the sector-based work academy is part of the Youth Contract. It is effective and is an idea put forward by this Government. I am pleased that it is working well in Barnsley. The other thing in the Youth Contract that is working well is work experience, which is as effective as the future jobs fund but 20 times cheaper. The Government can demonstrate that we are giving help to get people into work, and are giving much better value to the taxpayer.

[Mr Robert Buckland (South Swindon) (Con)]

T8. What further measures is the Department taking to ensure that the benefits assessment process takes into account applicants with invisible disabilities, such as autism, that are often accompanied by speech, language and communication problems?

[Mr Hoban]

My hon. Friend makes an important point. That is why, for example, we encourage people who feel that they cannot communicate at an assessment to take a friend or a carer with them to help in that process, and we gave support to people to help them to complete the ESA50. We want to make the process of assessment as easy and as straightforward as possible by giving vulnerable claimants the help that they need.

[Huw Irranca-Davies (Ogmore) (Lab)]

In my constituency, organisations such as Yellow provide accommodation solutions for young people under 25 so that they can get into work. In his deliberations on the future of housing benefit for the under-25s, how will the Secretary of State identify those youngsters who have suffered traumatic family break-ups, dysfunctional families, and sexual and physical abuse and separate them from the others? It is a genuine practical question.

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[Mike Freer (Finchley and Golders Green) (Con)]

T10. People with HIV report poor levels of understanding of their condition by Atos assessors. This may be because the guidance is outdated and lacks information on living with HIV. Will Ministers be monitoring the guidance issued on such conditions?

[Mr Hoban]

My hon. Friend makes an important point. One of Professor Harrington’s recommendations was that the medical directors of charities review the guidance and some of the bases of assessment for conditions. I can assure him that the guidance for HIV/ AIDS is being reviewed by the medical director of the Terrence Higgins Trust.

[Nic Dakin (Scunthorpe) (Lab)]

The hon. Member for North Devon (Sir Nick Harvey) was right to draw attention to the rising tide of real concern and anxiety among those threatened by the bedroom tax. How many households will be directly affected by the bedroom tax?

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[Mark Pawsey (Rugby) (Con)]

Getting to a job interview can sometimes be a challenge for people looking for work, so many jobseekers will be pleased to hear about a new scheme launched today called Bus for Jobs, which provides free travel, initially during January, for those seeking work. In my constituency that will be Stagecoach Midlands. Does the Minister agree that the scheme is an innovative approach by the Government to help people to find work?

[Mr Hoban]

My hon. Friend is absolutely right. This is important. As we heard earlier, for some people the cost of travel is a barrier to employment, and I am delighted that the major bus companies have worked together to provide free travel in January. That is on top of the additional support that Jobcentre Plus and Work programme providers offer to ensure that we get as many people as possible into work.

[Barbara Keeley (Worsley and Eccles South) (Lab)]

Yesterday on the Directgov website, DWP job ID 438253 advertised for female presenters for Loaded TV working at home on internet babe chat. The advert has now been removed from the website, but does the Secretary of State think that DWP should be accepting and promoting jobs for internet babe chat? What does it say about this Government’s values on work?

[Stephen Lloyd (Eastbourne) (LD)]

I congratulate the Government on extending Access to Work to disabled people on work experience and on removing the need for small companies who employ fewer than 49 people to pay for Access to Work. Will the Minister look seriously at extending Access to Work to disabled people on the Work programme because of the additional cost of their disabilities?

[Mr Hoban]

My hon. Friend has a great track record of championing the rights of people with disabilities. I will look carefully at the proposals he has made and work with the Minister responsible for disabled people to get the best possible outcome for people with disabilities. It is important to help them get into work.

[Several hon. Members]

rose—