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
(11 months, 3 weeks ago)
Commons ChamberIt is good to be back, Mr Speaker. I trust that you had at least some rest during the recess. Let me also extend my welcome to the new Members who have just taken their seats.
The regional employment rate gap is 7.7 percentage points, which is 1.2 percentage points less than the gap in 2010 and a low figure by historical standards.
As the Marmot review shows, there is a strong correlation between indices of deprivation and addiction. This issue affects all regions, but especially the poorer regions. What policies are in place across the regions to address the issue of addiction and to help more people remain in and enter employment, particularly in the north-west?
The hon. Gentleman will be aware of universal support and the WorkWell pilots. In exactly the areas to which he has referred, they are bringing together healthcare and help with seeking work, which my party believes to be one of the best ways to remedy the issues he has mentioned, including mental health issues.
It is 87 years since the Jarrow march against unemployment, and my constituents are still being let down. We have a higher percentage of people claiming unemployment benefits than the national average, and the reality is shown to be worse when hidden unemployment is factored in. According to the Centre for Cities, nine in 10 of the places with the highest hidden unemployment rates are in the north. Instead of continuing their false rhetoric on levelling up, when will the Government stop neglecting and start investing in our northern communities?
I have no problem at all with defending the Government’s record on employment. There are now nearly 4 million more people in employment than there were in 2010, including about 2 million more women, and unemployment across the country, including in the north, is at a near-historic low.
In his blog today on ConservativeHome, Lord Ashcroft says:
“On the cost of living, two thirds of voters...thought the Government could do more to help but was choosing not to.”
Given the regional disparity in earnings, does the Secretary of State accept that the roll-out of fair pay agreements providing sectoral minimum terms, as outlined in Labour’s “A New Deal for Working People”, would not only boost the economy but address the blight of in-work poverty and insecure work that is having an impact on so many households in my constituency and throughout the country?
The hon. Gentleman raises the issue of support during the cost of living squeeze that we are experiencing. My Department has been responsible for distributing millions of payments to the most vulnerable people, including £900 in total to 8 million low-income households, £150 to 6 million disabled people and the £300 payment to pensioners. On the question of work, we put up the national living wage by over 9% to £10.42 this April.
In parts of my constituency, the healthy life expectancy is now just 53 to 54—a true regional inequality if ever there was one. That means that people—even those in the Minister’s age group—are dropping out of work far too early, which is not good for them or the economy. What steps is the Department taking as a consequence of the health and disability White Paper to address this serious inequality?
I have already mentioned the measures that we brought forward at the last Budget, including universal support and WorkWell. The Government are of course constantly looking at how we can go further in that respect. On the over-50s specifically, the midlife MOT that we are running, the returnerships and the changes to the pension tax arrangements are all helping to bear down on economic inactivity in that group.
The good news from Kettering is that, at 3.6%, the overall unemployment rate is below the national average of 3.7%. The bad news from Kettering is that there are 420 18 to 24-year-olds without work and the youth unemployment rate is 6.2%, versus the national average of 4.7%. What is the Secretary of State doing to address youth unemployment?
My hon. Friend will be pleased to know that since 2010, youth unemployment has fallen by over 40%, which is the mirror image of what happened under the last Labour Government when it rose by over 40%. On his specific question, I point him towards the youth offer, which we have recently announced we will be expanding to even more young people.
I thought the Secretary of State understood that, while unemployment is at a historic low, economic activity is the big challenge before us, particularly when it comes to regional economic inactivity and the huge, near 10-point gap across the regions. The east midlands, London, the north-east, the north-west and the west midlands all have higher inactivity rates than the south-east. The Tories have had 13 years to close that gap, so can I ask the Secretary of State: is his plan really to make levelling up a reality by leaving it to Labour?
Given that there has never been a Labour Government who have left office with unemployment anything other than higher than they found it in the first place, I do not think I would leave employment to Labour. On the hon. Lady’s point, economic inactivity is important and it is a major focus for my Department. It has of course reduced substantially since its peak during the pandemic, having fallen by around 350,000.
We continue to bear down on fraud and error. It decreased by 10% in 2022-23. There is of course still more to be done, which is why we are investing £900 million to reduce that figure still further by £2.4 billion by 2024-25.
During the pandemic, the Government rightly got support out to people as quickly as possible, but that inevitably meant that errors were made and some people took advantage of the situation. What is being done to clamp down on fraud and errors in universal credit?
A huge amount, including the targeted case review, which over the next five years will review hundreds of thousands of universal credit claims to look for fraud and error. Of course, we use emerging new technologies for that purpose as well.
I thank the Secretary of State for that answer. I absolutely support the principle that those who carry out benefit fraud must be made accountable, but what I find in my office—I think that others in the Chamber will probably find this as well—is that many people have filled in an application form, document or review and inadvertently ticked the wrong box. By doing so, they have left themselves in a very difficult position where they find that they have to make a repayment. Sometimes people need help at the initial stages to ensure that they get it right. What can be done to help those people so that they do not get into debt that they did not expect to be in?
There is help within jobcentres. There is also Citizens Advice, and a help to claim process available there. When people make genuine errors and when they have been overpaid for various reasons, we are of course sympathetic, to ensure that we do not put them in a position where it is incredibly difficult for them to repay those amounts.
We are doing a great deal to bear down on economic inactivity. As of August this year, the figures show that over half the increase in economic activity that occurred during the pandemic has since unwound. That is more than 300,000 people into work.
The Secretary of State’s comments suggesting that unemployed over-50s should consider becoming delivery riders clearly show that the Government are failing to help older workers into stable employment. Rather than glorifying precarious work in the gig economy, will he commit to rolling out a plan that gives older workers the dignity, respect and support they deserve to rejoin the workforce?
I think it is very unfortunate when any Member of this House looks down on a certain category of job that is employing hundreds of thousands of people perfectly satisfactorily. In fact, in that interview I said:
“I think as a department we shouldn’t be prescriptive,”—
referring to the over-50s—
“so we’re not here to start pontificating about whether people should or should not go back into work”.
Hopefully that has put the record straight. We are doing a huge amount to support those over 50 who have retired prematurely, including the midlife MOT, returnerships and the tax changes we have made around pensions, and we will continue to support people. That is why we are seeing those inactivity rates above 50 declining quite strongly.
Sickness and sick pay are an anchor when it comes to getting people back into work, as well as helping to grow the economy. That is why the Centre for Progressive Change produced an excellent report that has support from Members across this House. Will my right hon. Friend therefore meet me and my right hon. Friend the Member for Witham (Priti Patel), who has also supported it, to look at the proposals made, so that we can really help to improve sick pay—something that has the backing of 75% of British businesses?
I would be very happy for either myself or the relevant Minister to meet my hon. Friend or my right hon. Friend the Member for Witham (Priti Patel).
We all want to see both unemployment and economic inactivity as low as possible, but the Office for National Statistics, quoted approvingly by the Minister a few minutes ago, reports that this spring’s quarter showed a large fall in the number of people moving from economic inactivity into employment, and that the net movement from employment to economic inactivity was the largest since the covid autumn of 2020. Given that this is the Department’s priority, what assessment has he made of why this is going wrong?
My assessment of economic inactivity is that it is falling; it has fallen by around 350,000 or more since its peak during the pandemic. That leaves us below the average rate of economic inactivity across the G7, the European Union and the OECD. We are making real progress and will continue to do so.
Sickness, and supporting those who are sick in the workplace, is an important focus for the Department, which is why we are consulting on occupational health and ensuring that more businesses take it up as something to offer their employees.
Seventeen million working days are lost every year because of negative workplace cultures and staff wellbeing. That is partly down to bullying, which is prevalent across many workplaces. What steps is the Secretary of State taking to consider workplace cultures, particularly bullying at work, and will he meet me to discuss my bullying and respect at work Bill, which would put a recourse into law?
Like the hon. Lady, I and my ministerial colleagues take bullying in the workplace extremely seriously. There is no place for that in our country. I would be very happy for her to have a meeting with the relevant DWP Minister.
May I begin by welcoming my new opposite number, the hon. Member for Leicester West (Liz Kendall), to her post? I know she will agree that it is an honour and a privilege to be associated with this Department, whether on the Opposition Benches or the Government Benches, and the very important mission of looking after the most vulnerable, which I know we both share. I look forward to a constructive engagement with her in the weeks and months to come.
My Department continues to focus on supporting the most vulnerable through cost of living payments, pension credit and the benefits system more generally; bearing down on fraud and error; and promoting work and, in particular—as we have been discussing—reducing economic inactivity.
Will the Secretary of State join me in welcoming the recent decision on the national disability strategy, which allows us to get on and improve the lives of so many disabled people?
I thank my hon. Friend for his question. I very much welcome the Court of Appeal’s decision in July, meaning that the national disability strategy is lawful. The Government are now able to continue with the important work of implementing that long-term strategy, and I can confirm that my hon. Friend the Minister for Disabled People will shortly come forward with further details of some of the individual commitments we will be making around that strategy.
Thank you, Mr Speaker, and I thank the Secretary of State for his kind words. However, whatever he says about economic inactivity, it remains a serious problem in this country, with the UK lagging behind all other G7 countries in terms of workforce participation since the pandemic. Indeed, last month, the number of people off work due to long-term sickness hit an all-time high. What is this Government’s response? The Chancellor tells the over-50s to get off the golf course, and the DWP Secretary tells them to literally get on their bike. Is not the truth that this Government’s failure to cut waiting lists, sort social care and have a proper plan for reforming our jobcentres is harming individuals and our economy as a whole?
To the extent that the hon. Lady was suggesting that economic inactivity was worse in our country than in all other economies, or all similar economies—I think that is what she said—that simply is not the case. It is true that economic inactivity spiked during the pandemic; none the less, as I said earlier, the average rate is lower than the average across the OECD, the EU and the G7.
The hon. Lady mentioned those who are long-term sick and disabled. That is why we are bringing forward pilots such as WorkWell and rolling out universal support, to make sure we bring the world of work together with the world of health, to the betterment of those who we look after.
This is not just about the over-50s. Is the Secretary of State aware that the biggest relative jump in economic inactivity due to sickness is among young people, with mental health being the biggest concern? Labour has a plan to transform mental health in this country, paid for by closing private equity loopholes. When will this Government act and put a proper plan in place?
There is a proper plan in place. I invite the hon. Lady to spend some time looking more closely at the announcements that have been made, particularly at the time of the last fiscal statement, and especially those about WorkWell, universal support, and the work we are doing with the national health service and other agencies to make sure—as I say—that we bring together the world of work and the world of health and provide support, particularly for those with mental health conditions.
In all honesty, I probably ought to declare an interest, but pensioners living in Edinburgh and Glasgow do not face the same sorts of increases as pensioners living in a remote and faraway constituency such as mine when it comes to living costs such as running a car, buying groceries and heating the house. Will the Government look at ways of targeting these particularly hard-hit people?
We of course look at particularly targeting harder-hit pensioners through pension credit, and the Pensions Minister, my hon. Friend the Member for Sevenoaks (Laura Trott), has done a huge amount to promote that. But we are always open to receiving further ideas and having discussions, and if the hon. Gentleman would like to come forward with further ideas, we will certainly look at them.
I have been contacted many times each month by parents left seriously out of pocket by their ex-spouses’ failure to pay child maintenance owed. What steps are the Government taking to ensure parents are able to receive their child maintenance on time so that many families are not left subjected to coercive control by their ex-spouses or left out of pocket?