Oral Answers to Questions Debate
Full Debate: Read Full DebateMel Stride
Main Page: Mel Stride (Conservative - Central Devon)Department Debates - View all Mel Stride's debates with the Department for Work and Pensions
(8 months, 1 week ago)
Commons ChamberMy Department does a great deal to support the long-term sick and disabled, including through universal credit and its health element, and through the personal independence payment, which is a contribution to the additional costs of sickness and disability.
My constituent Jenifer Picton is currently undergoing extensive treatment for cancer and is consequently unable to work. I wish Ms Picton all the very best with her treatment. She has come to my office, which has helped with universal credit, PIP and the new-style employment and support allowance. She has now managed to get PIP, but given that she is seriously ill, why should she have to come to my office for help? Why do we make it so arduous and difficult for people who need treatment to get help?
I thank my hon. Friend for his question and the typical assiduity with which he takes up his constituency case. May I send my best wishes, and I am sure those of the whole House, to Ms Picton? I am happy to meet him to discuss in more detail the circumstances that he has described.
Data in responses to my written questions on PIP appeals shows that more than 50,000 ill or disabled people had their appeals upheld at tribunal without the need for new evidence. Given that the UK Government will be examined today by the UN Committee on the Rights of Persons with Disabilities following its 2016 special inquiry that found that the threshold had been met for grave and systematic violations, is it not time to replace the flawed and outdated PIP system with a framework that is fit for purpose?
Of course, we always keep all benefits under review at the Department, including PIP and the assessment processes. As the hon. Lady points out, there is rightly an appeals process for those who are not happy with the conclusions of those assessments. We keep those under review, and I can reassure her that they represent a relatively small proportion of the total number of applications.
Jobcentre Plus provides a variety of different support to encourage and support people into work, including training and one-to-one, face-to-face counselling by work coaches.
In February, there were 615 claimants aged 18 to 24 out of work in Sittingbourne and Sheppey. Does my right hon. Friend agree that it is important that schools and businesses work together to ensure that young people have the qualifications and skills they need to progress into work once they finish full-time education?
I could not agree more with my hon. Friend. It is exactly why we have youth hubs providing advice and support on not just getting into work but other important matters to young people, such as housing, their health and debt management.
I was talking to the Royal National Institute of Blind People, which represents the blind and partially sighted. It told me of an employee who said,
“I am newly employed and I am unable to fulfil my role. It has been extremely stressful and frustrating”,
and this is because of Access to Work. Does the Minister agree that without having Access to Work in place within the first four weeks of someone entering work, it is incredibly difficult for them to maintain that position?
I am pleased that the hon. Lady raises Access to Work, because it is extremely effective. The grant can be there year in, year out and be up to a maximum of £66,000. Along with other approaches, it has very much led to our meeting our employment goal for disabled people in half the time that we set in 2017—over a million more disabled people were in work by 2022.
What are the Government doing to use apprenticeships to help young people engage with the labour market, to tackle levels of economic inactivity and to give them the opportunities they need to get the careers that they want?
My right hon. Friend raises economic inactivity, which is lower in our country than in the United States, France and Italy. It is below the average of the OECD, the G7 and the European Union. Apprenticeships play a very important part in producing those good figures, though there is of course always more to be done, not least through our approach of engaging extremely closely with employers, both at the national level and through our jobcentres.
As somebody who has fought really hard over the last four years to overcome the difficulties presented by long covid, I am sure that the Secretary of State will appreciate that a significant number of the people not in work because of health conditions will have some form of post-viral fatigue linked to long covid. What assessment has he made of the effect of long covid on the workforce, and what is he doing to help people who have it get back to work?
The hon. Gentleman specifically raises long covid, which is one of many health pressures in our society and post covid in many other countries that were also affected by the virus. We have a number of approaches, including universal support, which places people in employment and gives them critical support for up to 12 months. We also have WorkWell, and we are looking at occupational health and what tax incentives we might put in place to encourage employers to do more on that front. We are doing a great deal.
Arguably, the biggest barrier to growth in the UK and to turning around the Prime Minister’s recession is the supply of labour. Following the Chancellor’s “Back to work Budget” in the autumn and all the measures unveiled since then, some of which the Secretary of State has just reeled off, did the Office for Budget Responsibility upgrade or downgrade its forecast on employment growth in the Budget 12 days ago?
One of the most important figures in the spring Budget economic and fiscal outlook was a recognition by the OBR that there will be a net 200,000 more people in employment as a consequence of that fiscal event and the one that preceded it in the autumn. What the hon. Lady cannot get away from is that economic inactivity in our country is at a lower level than in every year under the last Labour Government.
What the Secretary of State cannot get away from is the fact that, as has already been said, our employment rate has not returned to the post-pandemic level. He cannot answer the question because the truth is that the OBR downgraded its forecast: the unemployment forecast is worse. The reason for that is a truth that the British people have known for a long time now: these Ministers sitting on the Treasury Bench have no idea, no plan for jobs, no plan for growth. They are done; it is time for a general election.
I have already referred to the 200,000 additional jobs that the OBR suggests in its forecast, but the hon. Lady cannot get away from the fact that we have record levels of payroll employment in our country, and near record low unemployment. Let us contrast that with Labour’s record: it always leaves unemployment higher than when it comes into office. Economic inactivity was higher than it is now in each year of the previous Labour Government, and we had more people in absolute poverty after housing costs under Labour as a direct consequence.
We are bringing forward a number of important reforms to our welfare system at pace. Phase 1 of our universal support has already been activated, and phase 2 will be later this year. Next month we will announce 15 WorkWell areas—about a third of England—that have been successfully selected, and will be rolled out live this autumn.
I thank the Secretary of State for listing all those reforms. The data is clear that after 13 weeks out of work, the chances of someone finding work starts to fall off rapidly. Therefore, there is a need for more intensive and tailored support. Could he update the House on the additional jobcentre support roll-out, and when my constituents might get access to those benefits?
We are keen to do that. AJS, to which my hon. Friend refers, has been rolled out in parts of the country at six weeks, but shortly will be extended and strengthened for two weeks at the 13-week stage of the unemployment journey. That is part of the more intensive conditions that we apply to ensure that we help—and in many circumstances, require—people to go back into work.
Some of the poorest people I know in my constituency work for themselves. Hill farmers have seen a 41% drop in their income over the last four years. The welfare system does not work for them, because they are paid less than the minimum wage. Access to universal credit is less for them, because of the minimum income floor. Will the Secretary of State urgently look at that, so that small business owners—especially hill farmers in my constituency —are not made even poorer because of the Government’s rules?
The hon. Gentleman is right inasmuch as universal credit for the self-employed has to recognise the fact that sometimes there are inconsistent levels of income month to month. That is why we have a minimum income floor and the arrangements around that. I know he has a rural, agricultural constituency; I recognise some of those issues, and I am looking closely at them.
Food banks are independent organisations, with DWP having no direct role in their operation. We do, however, monitor the use of food banks through the family resources survey, and the next instalment of that will be later this month.
Nearly 50,000 people needed help from Ealing Foodbank last year. Some 38% of them were children under 16. It is amazing that the food bank and its volunteers are there to help, but it is a national shame that it is needed. What are the Government’s plans to reduce dependence on food banks?
This is the Government who have overseen a 400,000 reduction in the number of children in absolute poverty since 2010. Despite the chuntering from the Opposition Front Bench, unfortunately the figures were far worse under the last Labour Government than they may be at the moment. The hon. Gentleman asks directly what we are doing. We are again putting up the national living wage by substantially more than inflation this April. The Chancellor has already brought in national insurance cuts that will be worth £900 to the average earner. Benefits themselves are going up by 6.7% next month. We have also changed the arrangements for local housing allowance, which means that 1.6 million people, many of whom are on very low incomes, will be better off by an average of £800 a year.
While on the campaign trail, I met the Daylight Centre and SERVE Rushden. Both have seen their service users increase in number, even with the extension of the household support fund, which they both welcome. What can the Secretary of State do to expand the eligibility of the fund, improve uptake and increase the value of the healthy start payment?
May I welcome the hon. Lady to her place? In answer to her question, I will simply point out that there was much speculation before the spring Budget about whether the housing support fund was going to be extended. In my opinion, the Chancellor took exactly the right approach, and the fund has now been extended for a further six months.
The most important thing is that this Government recognise that the best way out of poverty, and the best way to address the circumstances that the hon. Lady describes, is through work. That is why the Chancellor reduced taxation, making work pay ever more, and why the national living wage is to be increased by close to 10% this April, following a similar increase around this time last year. Benefits are going up by 6.7% and increased by 10.1% this time last year. I have already mentioned local housing allowance, and of course we have now had eight consecutive months of real wage growth as inflation has fallen.
We are bearing down on poverty, not least by incentivising work within the benefit system. As the hon. Gentleman will know, we have reduced the universal credit taper, for example, which has led to a record level of payroll employment and near record low unemployment.
I commissioned a poverty report for the Arfon constituency from the highly respected Bevan Foundation—copies are available online in Welsh and English. One finding is that, of the people receiving both universal credit and housing benefit in Arfon, 35% are paying the bedroom tax, compared with 21% across Wales. This is cushioned to some extent by the Gwynedd local authority’s discretionary help, but will the Minister review the differential negative effects of the bedroom tax between communities, particularly those with a diminished housing stock because of, for example, high levels of holiday homes?
I thank the hon. Gentleman for referring to that report, which I will look at with interest. Of course, there is no such thing as a bedroom tax, as it is not a tax at all; it is a spare room subsidy. It is there for very good reason: to free up additional space for those who need it. On the housing front, as I said earlier, local housing allowance has been improved such that 1.6 million people on low incomes in the private rented sector will be, on average, £800 a year better off come April.
One of the best ways to tackle poverty in rural areas such as Ynys Môn is through jobs fairs. Will the Secretary of State join me in thanking Alwen Gardiner and my brilliant Ynys Môn DWP team for organising an excellent tourism and hospitality jobs fair, which was attended by over 150 jobseekers in Llangefni and companies such as Tredici Butchers & Deli in Beaumaris, and the Breeze Hill in Benllech? Diolch yn fawr.
I thank my hon. Friend for drawing attention to her jobs fair. She is a local dynamo in standing up for her constituents. When I arrived there recently thinking I was very special to support yet another jobs fair—a disability jobs fair—I was quickly reminded of the fact that I was the 32nd Minister to have been to her constituency in, I think, the past 12 months.
We are reducing child poverty through the use of a large number of measures, not least ensuring that work pays, hence our increase in the national living wage in April and the reduction in the national insurance tax that my right hon. Friend the Chancellor announced recently.
A total of 100,000 children will be kept clear of poverty this year thanks to the Scottish Government’s policies—primarily the Scottish child payment. Surely the Secretary of State must now look to rolling out some of our policies in other parts of the UK and, at the very least, ditch the two-child limit, which deliberately forces children into poverty.
The limit to which the hon. Gentleman refers is there for a very good reason, which is that people in those circumstances should face the same basic decisions as those not on benefits. That is an important matter of fairness across those who receive benefits as well as the many who are paying tax. As for the number of children in poverty, that has fallen by 400,000 since 2010.
Many of those people are in work, Secretary of State. Some £14 million has been paid to more than 10,000 children’s families in Renfrewshire thanks to the widely praised Scottish child payment. Praise has come from the Institute for Public Policy Research Scotland, which says that the Scottish Government are making employment for parents central to their child poverty strategy, but it says that devolved employment support programmes are
“held back by responsibility being split across governments and a reserved Jobcentre system which is more often focused on compliance than helping people reach their full potential.”
It recommends the full devolution of employment support to tackle child poverty. Will the Secretary of State listen to the experts?
I am always very interested in listening to the hon. Gentleman and any ideas that he has about how we should improve our welfare system, but I point to the fact that this country has seen a considerable drop in absolute child poverty, after housing costs, of 400,000 since 2010.
What correlation does the Secretary of State see between children in poverty and workless families? Given that there is no age restriction on most apprenticeships, and today’s announcement that there will be 20,000 more apprenticeships and that the apprenticeship levy can be spent on greater numbers of contractors and sub-contractors, what opportunities does he see for his Department to highlight those opportunities for people who are of working age and who may have children in poverty?
My hon. Friend refers to workless households. He is absolutely right about the correlation: a child is five time more likely to be in poverty if they are growing up in a workless household. He was right to draw attention to the announcement that has been made today about even greater investment in apprenticeships, and also the change in the way that the apprenticeship levy works so that supply chains can benefit to a greater degree.
May I join the House in saying happy birthday to the Minister for Employment, my hon. Friend the Member for Bury St Edmunds (Jo Churchill)? It should be a national holiday as far as I am concerned—perhaps that is an idea for a private Member’s Bill, or something similar.
I am pleased that, since the last questions, we have published our review into autism employment, and I place on record my thanks to my right hon. and learned Friend the Member for South Swindon (Sir Robert Buckland) who did such excellent work in bringing that useful report forward.
Looking forward from April, we will see benefits generally rising by 6.7%, the state pension by 8.5%, the national living wage by around 10%, and the next tranche of the household support fund being brought forward. As I have already set out, our plan is working. It means more employment, historically low unemployment and an economic inactivity rate below countries such as the United States, France and Italy.
The economic inactivity rate is now very high, with 2.8 million people citing long-term sickness as a reason. Some 17 million days of work are lost, at a cost of £13 billion to the economy. Has the Secretary of State seen the Policy Exchange report published today, with policy proposals backed by two of his predecessors, David Blunkett and my right hon. Friend the Member for Norwich North (Chloe Smith)? What steps are the Government taking to improve the provision of workplace health services through occupational health pathways and vocational rehabilitation, and will he consider the 15 proposals in the Policy Exchange report?
I will of course look closely at the report that my right hon. Friend refers to; indeed, I reached out to him recently to invite him to the Department to discuss that and other matters. With regard to long-term sickness and disability, we are working on an array of interventions, including occupational health support within businesses; WorkWell, bringing together medical interventions with work coaches; universal support to help people into work, and to stay in work with that support; and fundamental reform of the work capability assessment, such that the OBR says that 371,000 fewer people will go on to those benefits going forward.
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?
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.
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?
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.
The Resolution Foundation highlights that scrapping the two-child limit would be one of the most efficient ways to drive down child poverty rates, and would lift 490,000 children out of poverty overnight. Surely one child growing up in poverty is one child too many. The Secretary of State should reverse course on this, and the Labour party should also commit to scrapping the two-child limit. Does the Secretary of State agree that no child should grow up in poverty, and will he take action to ensure that that stops now?
The hon. Lady raises the same point as her colleague, the hon. Member for Cumbernauld, Kilsyth and Kirkintilloch East (Stuart C. McDonald), about the two-child limit. I will not detain the House by repeating exactly the same answer, other than to agree passionately with her that one child in poverty is one too many, and to say that, although we have further to go, it is important to recognise that we have reduced the number of children in absolute poverty, after housing costs, by 400,000 since 2010.
I thank my hon. Friend and near neighbour for her question—I know that she cares deeply about the issue that she has raised. We work closely with other Departments. For example, we work with the Department of Health and Social Care on NHS talking therapies, of which we have announced 400,000 more over the next five years, as well as on WorkWell, which I have mentioned, and on fit note reform. With the Department for Levelling Up, Housing and Communities, we are working closely on housing—I have spoken about the local housing allowance changes coming through—and with the Department for Education we are working on SWAPs, and on training and apprenticeships.
Schools, general practitioners, social services, charities and housing associations can all refer their clients to a food bank in an emergency, yet this Government, who are responsible for benefit sanctions, have ordered DWP staff to stop referring claimants to food banks. How can Ministers justify this decision to the families of the 4,027 children living in poverty in my east Durham constituency?
I thank my hon. Friend for raising this matter. I obviously cannot comment on an individual case. However, I am very happy to look closely into the matter he has raised, and either I or a relevant Minister will be happy to meet him.
The number of the long-term sick has risen from 2.1 million pre-pandemic to 2.8 million today. This huge increase started in spring 2021, at the same time as the roll-out of the experimental, emergency-use vaccines—or does the Secretary of State have an alternative explanation for the unprecedented rise in long-term sickness in the UK since spring 2021?
Among the major drivers of the increase to which the hon. Gentleman refers are mental health issues and musculoskeletal issues. I am not entirely sure that he is accurate when he says that the upward trajectory in the number occurred just as vaccination occurred—I think it predated that moment—and I certainly do not subscribe to the view that vaccination is in any way unsafe.
The last Labour Government lifted 1 million children out of poverty. After 14 years of Tory Government, we have 1 million children in destitution. What has gone wrong?
I have to take issue with the hon. Gentleman. He needs to look more closely at his party’s record in government. Fact No. 1 is that the Labour party always leaves office with higher unemployment. Fact No. 2 is that economic inactivity in our country is lower than in any year in his party’s time in office. Fact No. 3 is that absolute poverty has declined in our country since his party was in office. Fact No. 4 is that there were more children in workless households on his watch than there are on ours. Perhaps most tellingly of all, during his party’s time in office, over 1 million people languished on long-term benefits for almost a decade. That is a disgraceful record.