(2 years, 1 month ago)
Commons ChamberI had the great pleasure of visiting my hon. Friend’s jobcentre in April. Since then, it has been closed temporarily, I believe, and moved to Gloucester. I am sure there is no connection. [Interruption.] I am really sure, I can reassure the hon. Member for Cambridge (Daniel Zeichner). Of course, it does a fantastic job in matching jobs through work coaches, jobs fairs, recruitment days and an extensive skills offering.
Work experience is often really hard to nail down—places go to those with friends and family in the sector, and employers are really busy. That is particularly so for small skilled manufacturing businesses in Stroud, so I am working with employability experts Finito to launch a campaign for low-fuss shadowing work experience across the board. We want to allow everybody, young and old, to find out more about weird and wonderful jobs, and to allow employers to assess candidates. Is that something my right hon. Friend is interested in, and will he meet me to discuss it?
I thank my hon. Friend for the question, and I would be delighted for either me or the relevant Minister to meet her. I know the terrific work she has done, particularly with organisations such as Finito, in getting young people ready for work. Indeed, I believe she set up the all-party parliamentary group on the future of employability. I am very happy to have a meeting.
The Government are committed to increasing employment. Payroll employment is at a near record high of 30.2 million, which is up 1.2 million on the pre-pandemic level. The Office for Budget Responsibility forecasts that our back to work plan will see 30,000 more people in work over the forecast period.
The OBR revealed at the time of the autumn statement that after more than 13 years of this Conservative Government, 600,000 more people will be on health and disability benefits by 2028-29. Far from it being a back to work Budget, the Secretary of State knows that that is not anything like the truth and that the Tories are failing the employment market in this country.
I cannot agree with that. In fact, I point the hon. Gentleman to the figure of 371,000, which is the number of people fewer the OBR forecasts will be on those very long-term sickness and disability benefits because of the reforms that this Government are bringing in.
Last week, the Office for National Statistics published figures showing that 6.6% of people of working age in Bradford are claiming out-of-work benefits, which is the highest rate in the Leeds city region. Does the Secretary of State believe that the Government’s back to work plan is working for people in my constituency of Bradford South?
The back to work plan has billions of pounds-worth of investment behind it, including the £3.5 billion announced by the Chancellor in the spring Budget. Such things as extending restart, bringing forward mandatory placements after 18 months to ensure that people get into work and doubling universal support are important measures that will see increased numbers in work.
All we hear from the Secretary of State on employment is smoke and mirrors, but thankfully the OBR has published the numbers. We have just heard what he believes is happening with employment because of his policies, but when the OBR looked at his policies, did its forecast show the employment rate, compared with today, to be going up or down in 2024-25?
I have already shared the figures with the House, which are that payroll employment is at a near historic high and unemployment is at a near historic low. As the hon. Lady will know, we have never had a Labour Government leave office with unemployment lower at the end of their term than when they started. Youth unemployment went up 45% under the Labour party, whereas under this Conservative Government it has reduced by 45%.
You can always tell the Conservatives are struggling to answer the questions, Mr Speaker, because they go back to those same old things about what happened under the last Labour Government. After 13 years, they have nothing to be proud of. If what the Secretary of State said was true, we might expect that after a little time some of his policies would work, but is it not true that it is not just next year that the OBR forecasts the employment rate to be down, but the year after that, too?
We will continue to bear down on the level of unemployment. As the hon. Lady knows, economic inactivity has reduced, and we have 300,000 fewer people in economic inactivity than at the peak during the pandemic. We have a plan. Is it not the reality that the Opposition have no plan and no ideas as to how to get those numbers down? We do, and it is working.
In 2022-23, fraud and error fell by 10%. We are investing £900 million in addition to that which we have already put forward to prevent £2.4 billion of fraud and error by 2024-25.
I thank the Secretary of State for his answer and welcome the measures the Government are taking. On the new powers to search through bank accounts to look for fraudulent transactions, can he confirm that the Government will seek to use them only where fraud is suspected and will not, as some people have suggested, search every state pensioner’s bank account to look for something that almost certainly will not be there?
I thank my hon. Friend for what is a very important question, because there has been a great deal of scaremongering about what exactly these powers are about. I can make it categorically clear from the Dispatch Box that these powers are there to make sure that, in instances where there is a clear signal of fraud or error, my Department is able to take action. In the absence of that, it will not.
The cost of living payments are a vital means of support during the cost of living crisis, but my constituent has lost out, through no fault of her own, because of the well-known issue whereby two of her work paydays fell within the assessment period used to assess eligibility. Will the Government review the eligibility process for the third cost of living payments to ensure that no one else misses out?
This is a long-standing issue that crops up every few years. It is not something on which the Government intend to take specific action. We trust people to manage their finances, such that they can cope with the occasional eventuality where there is an additional year within any one calendar year.
The Government are, of course, fully committed to protecting the most vulnerable, which is why we rolled out £104 billion in cost of living payments across the period from 2022 to 2025. It is why, as the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies), has repeatedly stressed, we increased the rates for the LHA housing support, and why benefits increased by the full 6.7%.
It is absolutely heartbreaking that in the world’s sixth-richest country we now have 4 million people living in destitution. We know that disabled people are more likely to live in poverty, yet this winter disabled people will not be getting any additional help with the cost of living after the separate disability cost of living payment was quietly dropped. The cost of living for disabled people is still going up, so will the Secretary of State commit to reinstating the payment, and at a level that meets the extra living costs faced by disabled people?
I am not sure precisely which disability payment the hon. Gentleman is referring to, but certainly the cost of living disability payment has been paid this year, in addition to the increase in the national living wage, tax cuts and national insurance tax cuts, all of which help people, particularly those on low pay. That is why, under this Government, the level of absolutely poverty has fallen by 1.7 million since 2010, with 400,000 fewer children in poverty.
Tim Loughton (East Worthing and Shoreham) (Con)
May I begin by welcoming my new team to the Front Bench? Joining the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies), and Lord Younger in the other place are the new Minister for Employment, my hon. Friend the Member for Bury St Edmunds (Jo Churchill), and the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Blackpool North and Cleveleys (Paul Maynard). I know that they will make a great contribution to the Department. Let me also thank those who have departed, my right hon. Friend the Member for Sevenoaks (Laura Trott) and my hon. Friends the Members for Corby (Tom Pursglove) and for Hexham (Guy Opperman), who have important other duties in Government.
This has been a year of considerable achievement for my Department. We have already heard about the cost of living payments, the support for the most vulnerable, the 6.7% increase in working-age benefits, the 8.5% increase in respect of the triple lock for pensioners, welfare reform, near-record levels of payroll employment and almost historically low levels of unemployment, and rising real wages.
I welcome the Government’s decision to boost childcare payments for parents on universal credit by almost 50%, which the Work and Pensions Committee pushed for. I have asked the Department to review childcare rules for parents in training and education, but can my right hon. Friend outline the other ways in which the Government are supporting low-income families in Stroud?
My hon. Friend is being too modest in laying all the progress at the door of the Select Committee, because it was she in particular who pushed for those reforms to childcare within universal credit, and I believe that she was quite rightly name-checked by the Chancellor in his Budget statement. We of course have the back to work plan, the extension of restart, the doubling of universal support, the greatest-ever increase in the national living wage and the reductions in employee national insurance, all of which are there to drive further employment.
During the recent covid inquiry, the former Health Secretary, the right hon. Member for West Suffolk (Matt Hancock), said that statutory sick pay was “far too low” and that if he had a magic wand, he would fix it. Given that the Secretary of State has the magic wand, as the Minister responsible for this, when is he going to fix it?
I am certainly not going to start making policy up on the hoof at the Dispatch Box this afternoon or promising more money for statutory sickness pay. That would require discussions across Government, but I note the point that the hon. Gentleman has made.
As the hon. Lady will know, these are matters for the Treasury, and specifically for the Chancellor of the Exchequer. He and I have conversations on these matters and others. Announcements will be made in due course, but of course the household support fund will be in place until the end of March.
Twenty months ago, the Equality and Human Rights Commission issued a section 23 agreement request to the Department, following concerns regarding breaches and potential discrimination against disabled people. Why has the Department still not reached an agreement?
As the hon. Lady will know, there are ongoing discussions on these matters. By virtue of the legislation that underpins those interactions, the discussions are necessarily held in private. I am informed that they have resulted in positive engagement, and that the Department and the EHRC will come forward with a response as soon as possible.
In 2010 there were 117,000 16 to 24-year-olds on long-term sickness and health benefits. That figure now stands at a massive 235,000. Why is that, and what are the Government doing about those appalling figures?
The hon. Gentleman is right. There has been a marked increase in the prevalence of mental health conditions, particularly among those aged 16 to 24, which is why we are bringing in measures such as universal support and talking therapies within the national health service, for which 400,000 additional places were announced by the Chancellor at the autumn statement. We have introduced measures such as WorkWell, and others, to address exactly these issues.
I have patiently sat through questions, and I have not heard Disability Confident mentioned once. Disability Confident was, and I hope still is, a very successful scheme that I launched when I was a Minister—I went around the country with Simon Weston. Can I have confidence that the scheme is still in place?
After the UK Government appallingly downgraded the dedicated role of disabilities Minister, Scope’s executive director, James Taylor, wrote to the Prime Minister saying that
“the UK’s 16 million disabled people deserve so much better than this treatment.”
It is a clear message that the UK Government do not view disabled people as a priority. Will this Government urgently reverse their decision and reinstate the role?
That is a complete misunderstanding; the hon. Lady refers to reinstating the role, but all the responsibilities of the previous disability Minister have been taken over by the current one, the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex (Mims Davies), who happens to be the most experienced Minister in my Department. She is extraordinarily capable; she absolutely understands the issues and will do a fantastic job.
I warmly welcome the new disabilities Minister, as I know she shares my passion for closing the autism employment gap. Will she work with me, as we reach the closing stages of my independent review of autism and employment, to make sure that the publication of the report will be the beginning of a process whereby we can dramatically tackle the scandal of having fewer than three in 10 autistic adults in employment?
The Trussell Trust has recently reported that in the past year there has been an 80% increase in the number of children in Stretford and Urmston being supported with food parcels. Can the Minister tell me why it believes that is the case?
The record speaks for itself: this Government have been behind £104 billion-worth of support for the most vulnerable over the period 2022 to 2025; poverty in absolute terms, after housing, has fallen by 1.7 million since 2009-10, when the hon. Gentleman’s party was last in office; we have 400,000 fewer children and 200,000 fewer pensioners in absolutely poverty—under the last Labour Government, we had the fourth highest level of pensioner poverty in Europe; and we have put the national living wage up by 9.8% and cut taxes as well.
Tim Loughton (East Worthing and Shoreham) (Con)
May I add my warm welcome to my near neighbour, the Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Mid Sussex, as the new disabilities Minister? Does she acknowledge that one feature of covid has been a big increase in the incidence of mental health issues, particularly among younger people? What is her Department doing to tailor its programmes to get those non-working parts of the population who have not been working since covid and are suffering from mental health challenges back into the workforce?
(2 years, 2 months ago)
Commons ChamberSecuring good jobs for more people is the best way out of poverty, and the best route to raising living standards. That is why, in his autumn statement, the Chancellor announced a cut in the main rate of employee national insurance from 12% to 10%. That is why we have raised the national living wage, representing a boost of more than £1,800 to the annual earnings of a full-time worker. That is why we are delivering the next generation of welfare reforms to help thousands more people into work. That is why, Madam Deputy Speaker, we on the Conservative Benches will never tire of reminding Opposition Members of our record since 2010: nearly 4 million more people in work; numbers on company payrolls at a near-record high; the unemployment rate around halved; more than a million fewer people in poverty; and UK economic inactivity lower than the G7, the EU and the OECD average, and down nearly 300,000 from its pandemic peak.
As Conservatives, we believe in making sure that those who can work have every opportunity to do so. Indeed, that is precisely how we can afford a strong welfare safety net for those who are unable to work and support for the most vulnerable in our society.
If we were to insist on work visas being given only to people who are on average UK earnings, would that not create a virtuous circle by which only skilled people came here, and care homes would be forced to pay proper wages, ensuring that more people came off my right hon. Friend’s books and got into productive work?
My right hon. Friend is attempting to tempt me into matters that I know are under discussion at the highest levels of Government at the moment around the policy that we should adopt on immigration, but I will not be drawn immediately in that direction.
I am grateful to my right hon. Friend for giving way. Let me return to the record of the past 13 years. At various points in that time, there has been no shortage of people in this House and outside who have been very quick to predict an explosion in unemployment—whether that was when we were introducing the public spending restraint under the coalition Government or when we were coming out of the covid pandemic. Does not the fact that those predictions were wrong demonstrate two things? The first is the underlying resilience of the British economy and labour market, and the second is the success of the measures taken by numerous Ministers in his Department over the years always to make work pay and to make sure that our welfare system is reformed to encourage work incentives?
As usual, my right hon. Friend makes characteristically insightful remarks about the UK economy, not least about unemployment, where he is right: the expectation during covid was that unemployment would rocket up to the kind of levels that we last saw in the 1980s. The fact that no such thing happened is a testament to many of the Ministers, as my right hon. Friend suggests, and not least to our current Prime Minister, who as Chancellor came forward with the furlough scheme and the support for business.
Our commitment to supporting the most vulnerable is clear, including in the substantial the Government have provided to help families with the cost of living. That includes the millions of cost of living payments, landing directly into the bank accounts of those on the lowest incomes, as well as to millions of pensioners and disabled people. Of course, one of the most important actions that we have taken to help families is to deliver on the Prime Minister’s pledge to halve inflation. A compassionate Government recognise that, for the poorest families, cost of living pressures remain, which is why we are increasing universal credit and other benefits by 6.7% from next April in line with September’s inflation figure.
A compassionate Government recognise that rising rents are affecting private renters on the lowest incomes, which is why we are increasing the local housing allowance to the 30th percentile of local market rents from April next year. A compassionate Government back their pensioners, which is why we are honouring the triple lock, with an increase to the full state pension of 8.5 %. That is the second biggest ever increase, following last year’s increase of 10.1%.
Will the Secretary of State comment on the number of deaths that are anticipated, as I mentioned last week, due to elements of the policy proposals around forcing people into work, and taking their benefits off them if they are unable to fulfil that?
I will come to benefit reform momentarily, but let me assure the hon. Lady—I know that this is a particular concern of hers, and she is right to be concerned about these matters—that my Department is extremely concerned to ensure that all changes in our benefit reforms are proportionate and are introduced in the most sympathetic and supportive way possible. Underlying those reforms, however, is a simple belief: we believe that where people want to work—where they have the ability to work—work is good for them. We want to open our door to as many people as possible, including many who are currently long-term sick and disabled, to give them exactly that opportunity.
I have declared my business interests in the Register of Members’ Financial Interests. Noting the good words from the Chancellor in favour of self-employment, and noting the national insurance measures to help, are there things that the Department for Work and Pensions is doing, or can do, so that self-employment is an option for people who are currently without work but who may have a lot to offer?
My right hon. Friend is right to draw attention to the self-employed and to the national insurance changes that my right hon. Friend the Chancellor announced in his autumn statement. Of course, my Department does a huge amount to support the self-employed. Many of our programmes are open to self-employed people to ensure that we are there to support them with the wages that they are able to bring home in self-employment, and we will continue to do exactly that.
A compassionate Government also need to be honest about the significant challenge that we face with the rising number of people leaving the labour market due to ill health or disability. Around 2.6 million people are currently off work with a long-term physical or, increasingly, mental health condition. Given the positive impact that work has, not just on finances but on health and wellbeing, there is a clear need to do more to help and encourage those people. In a tight labour market, with employers looking to fill nearly 1 million vacancies, there is also a wider economic imperative. Every time someone returns to work, they benefit and everyone benefits. It helps the economy to grow, debt to fall and inflation to decline still further.
Just as importantly, given the waste of human potential that inactivity often represents, there is a moral case to act. That is why, with the £2.5 billion-worth of investment over the next five years, our back to work plan will help thousands of disabled people and those with health conditions to stay in work, or if they fall out of it, to move quickly back with the right support. A key part of our approach is bringing together employment and health support, because we know that work and health go hand in hand.
What steps is the Secretary of State taking to ensure that Access to Work schemes will be readily available, funded and put in place much more quickly than they are now?
The Access to Work scheme is a fantastic scheme for encouraging those with disabilities to go into work. It is one of the reasons why disability employment is an area in which we have had so much success. In 2017, we set a 10-year target of getting 1 million more disabled people into work. We exceeded that target by 40% in just five years. Access to Work is part of that. The funding for Access to Work, as the hon. Lady will know, can exceed £60,000. It is an enormous commitment by a caring and compassionate Government to ensure that those who may need the assistance actually receive it.
That approach is at the heart of our new WorkWell service, which is integrating employment and health support at the local level. We will reform the fit note process to ensure that it is not a simple pass to sickness absence, but more of a prescription for the right support that is needed to keep someone close to work or to resume work after a period of illness. We are also doubling the number of placements available on our universal support programme, to help 100,000 people each year into roles, with up to 12 months of ongoing wraparound support to help ensure that they stay in work.
I applaud my right hon. Friend and the Chancellor for bringing in all these new initiatives to make people get back to work. Grimsby has a higher unemployment rate than the national average, although it is coming down. Will he or one of his Ministers commit to meeting me to talk about what we can do to encourage more employers to become disability confident and to offer work placements to those people who are currently out of work, but are capable of getting back in to work?
I know my hon. Friend is a very powerful champion for employment in her Great Grimsby constituency and I will indeed make sure that a Minister is available for the discussions she has sought.
Given that we know how important high-quality occupational health is for helping people with health conditions to stay in work, we will support businesses to develop voluntary minimum levels of intervention that employers can adopt to help to improve employee health.
My right hon. Friend the Secretary of State for Health and Social Care is also introducing measures to reinforce our efforts to join up employment and health support by tackling one of the main reasons for sickness absence. Our expansion of access to mental health services will support almost 400,000 extra people through NHS talking therapies, and an additional 100,000 places will be made available through individual placement and support to help people who experience severe mental health conditions to start and stay in employment. With that significant expansion of extra support, we are breaking down the barriers that for too many have been a roadblock to the rewards of work. That requires bold reform.
While the world of work has transformed significantly in recent years, the way we assess someone’s ability to work, or to prepare for work, has not changed for over a decade—not since the work capability assessment was last comprehensively reviewed in 2011. Since then, we have seen the rise of flexible working and new legislation giving workers the right to request it from day one of a new job. We have seen big increases in hybrid and home working, and there is a much greater understanding on the part of employers of the importance of reasonable adjustments and how to support disabled people in the workplace.
Those changes have opened many more opportunities for disabled people and those with health conditions to participate in work, and for employers to benefit from their talents, but the fact is that too many people who could work are being denied access to those opportunities because they are deemed not fit to work or even to prepare for work. The proportion of people going through a work capability assessment and receiving the highest level of health-related benefits, where there is no requirement to look or prepare for work, rose from 21% in 2011 to 65% in 2022.
However, crucially, one in five in that group would like to work in the future with the right support, and more than half of those who felt that they could work within the next two years saw a fear of not being able to return to benefits as a barrier to work. With our new chance to work guarantee, we are removing that barrier and that fear for millions of disabled claimants who want to try work.
The reform will effectively abolish the work capability assessment for the vast majority of existing claimants who have already been assessed and do not have any work-related requirements. They will be free to do some work without the prospect of having to be reassessed and potentially losing their benefits if a job does not work out. It brings forward a major part of our longer-term plan, set out in the health and disability White Paper published earlier in the year, which will see the work capability assessment abolished completely.
In the meantime, for new claimants, we are ensuring that the work capability assessment is fit for the modern world of work and reflects the greater opportunities for disabled people. To that end, we are updating some of the criteria we use to assess whether someone can work or prepare for work, including the “mobilising” and “getting about” activities, as well as the substantial risk rules. Those reforms will come in from 2025, and it is important to emphasise that we will continue to protect the most vulnerable and those with the most significant limitations.
The changes will help many more people who can work—who want to work—to gain all the benefits of a job. That is my mission. It is a mission that extends to helping anyone who falls out of work, for whatever reason, to get back into work quickly. It is a mission to ensure that a spell out of work does not turn into the scourge of long-term unemployment, because we know that the longer someone remains out of work, the harder it is for them to return. That is why we are ensuring that people who are deemed fit to look for work are put on a stronger path to employment, rather than being parked on benefits indefinitely.
Another scheme intended to help ensure that people can get back into work is the expansion of childcare. Last week’s report showed us that the Office for Budget Responsibility believes that the Government’s childcare reform will mean a reduction in welfare spending, and that the £5.2 billion pledged to childcare will need to be only £4.6 billion—a reduction of more than 10% in the funding available for childcare. We all agree that childcare will help people back into work, so will the Secretary of State take this opportunity to pledge on the record that the Government will put directly into childcare the full £5.2 billion that our constituents were promised in March?
I was expecting a devastating, killer intervention, given how keen the hon. Lady was to intervene, but it never quite arrived. She will know that in the Budget, the Chancellor made a substantial investment—the hon. Lady mentioned the figure £5 billion—in childcare. In my Department that is huge, because it means that we will deal with the retrospective nature of the first month’s payment, and that the amount available to those wishing to take advantage of childcare will be increased by some 49%.
Through our back to work plan, we are phasing in more intensive support and more rigorous requirements on jobseekers much earlier in their claim. We are accelerating the point at which claimants are required to undergo a more intensive 12-month work-search regime, which will kick in six months, rather than nine months, after the start of a claim. Anyone who has not moved into work by the end of that will be required to accept a mandatory work placement or other intensive activity to improve their chances of employment.
For those who refuse that support, it is right that there should be consequences. If a claimant does not accept those new conditions without good reason, their universal credit claim will be closed. As a result, no claimant should reach 18 months of unemployment in receipt of their full benefits if they have not taken every reasonable step to comply with jobcentre support. We will back that up with closer monitoring to ensure that the rules are being followed, including by tracking claimants’ attendance at jobs fairs and at interviews organised by jobcentres. That will mean that work coaches have the information that they need to know whether claimants are meeting their commitments. As part of this more rigorous approach, we will continue looking at the impact of more intensive support at seven weeks into a claim being delivered through our additional jobcentre support.
These back to work reforms strike at the heart of the quid pro quo that defines the contract between the state and individual. We are saying, “The Government will provide you with the support you need to move into work, but if you fail to keep your side of the bargain—if you refuse to engage or ignore available job opportunities —we will stop your benefits.”
I do not think that many people will object to the idea that those who can work should work, and that the Secretary of State’s measures to get people who are capable back into work should be adopted. However, he will be aware that the Work and Pensions Committee has recently been considering vulnerable people who are entitled to benefits but do not get them. What safeguards can he provide to guarantee that the health of people who are ill is not made worse by the pressure that some jobcentres will apply in trying to meet his targets?
The hon. Gentleman raises a really important point. I have great respect for him, and I have appeared before the Select Committee and been cross-examined by him. He is right to raise those kinds of concerns. They are concerns that we think about on a daily basis in my Department, to make sure that we get it right.
The regime I am outlining is for people who have been intensively supported for 18 months during their job search, who are fit and able—so they are not the people the hon. Gentleman described—and who, when presented at that point with the opportunity for work, decline that work. I think most people up and down the country would feel that it is right that there are consequences at that point.
When it comes to those who cannot work—those who are long-term sick or have significant disabilities—I want more than anybody else, and as much as any other person in this House, whichever side they may be on, to make sure that, as a civilised society, we are there to support them, no questions asked. But we can only do that for the most vulnerable in our society if we have a fair system that carries the support of the general public and can fund itself in the way we need it to.
Our back to work plan is about putting fairness at the heart of our welfare system: fairness for claimants who play by the rules and try their best, and fairness for taxpayers who contribute to the system. Contrast that with the Opposition, who have no plan. The only serious proposal they have for welfare reform is to water down benefit claimants’ requirements to work, which could cost £2 billion. That is not just reckless but unfair. It is no wonder that Labour has never left office with unemployment lower than when it entered it. It is no wonder that under Labour, youth unemployment rose by over 40%, unemployment increased by over 1 million, and more than 1 million people were left to languish on out-of-work benefits for almost a decade. That was not a record in office; it was a national disgrace. On Labour’s watch, countless lives were left to ruin.
The puddle of nihilism that is the Opposition Front Bench has no plan. Labour Front Benchers carp and vacillate from the sidelines, suck their teeth and dither, transfixed on the one hand by the fairer approach that they know in their heart the public demand, but frightened stiff on the other hand by the rank and file behind them. Is the truth not rather simple, Mr Deputy Speaker? They have no plan because compassion demands courage, and by their omissions they tell us that they have neither. This autumn statement protects the poorest and most in need, rewards work by cutting taxes and increasing pay, and takes the long-term decisions on welfare reform by helping people into work, growing the economy and changing lives.
My constituent David has a 30-year-old son with autism and severe obsessive compulsive disorder. David says that despite all the challenges his son faces, he has recently moved into independent living and is working really hard to try to find a job. David’s son has lots of skills, especially in computing and research, but because of his autism and, particularly, his OCD, he needs an employer who understands his conditions and will give him a real chance and offer him the work flexibility that someone in his situation needs. He is doing everything he possibly can to find work. He recently applied for a job at Tesco and was really pleased to get an interview, but because the job required a lot of overtime and there are limits on how many hours he can take because he is on employment and support allowance, he could not take up the offer.
This is the reality facing many sick and disabled people across Britain today. They want to work not just for the money, but for the sense of purpose, dignity, independence and self-respect that work brings. They deserve a Government who back their efforts and aspirations and who will tear down the barriers to their success, but under this Government nothing could be further from the truth.
The last few weeks have seen the Prime Minister, the Chancellor and the Work and Pensions Secretary railing against the soaring numbers of people out of work due to long-term sickness. It is as if, after 13 long years, this has nothing to do with them, but these problems have happened on their watch and they only have themselves to blame. Britain remains the only country in the G7 where the employment rate still has not returned to pre-pandemic levels, and 2.6 million people are now shut out of work due to long-term sickness, which is the highest number since records began. What do the Government expect when they have driven the NHS into the ground and let waiting lists soar to 7.8 million, and when social care has been forced to its knees?
And what is the result? There are more and more people over 50 out of work due to long-term sickness, with people struggling with bad hips, knees and joints left stranded on NHS waiting lists and waiting for treatment in discomfort and pain. Many of them are women who are trying to care for their elderly parents or other sick and disabled relatives at the same time, with precious little help from an unreformed social care system after 13 years of this Government.
The number of young people out of work due to long-term sickness has doubled over the last decade and now stands at more than 230,000. Much of that is driven by mental health problems, but it is compounded if such a young person lacks basic qualifications and lives in a part of the country—often a town or coastal area outside our large cities—that is struggling economically.
We know from brutal experience the terrible consequences that long-term youth unemployment brings, and all these problems are far worse in poorer parts of the country. The grim reality is that someone is twice as likely to be out of work due to ill health if they live in the most deprived fifth of areas in England than if they live in the least deprived fifth, with rates of worklessness due to long-term sickness among the over-50s rising three times faster in the north of England than in the south.
This is the reality of Conservative Britain, and it is such an unforgivable waste. It is a waste of individual talent and potential when millions of people who want to work are written off because they cannot get the support they need to get back on their feet. It is a waste for British businesses, which desperately need to recruit staff and use the skills and experience of everyone in our country to thrive and succeed. It is an appalling waste of taxpayers’ money too, with taxpayers paying an extra £15.7 billion a year in higher benefit bills and lost tax revenues compared with before the pandemic.
What are Ministers proposing to deal with a problem so serious that the OBR says it is a significant risk to fiscal sustainability, driving higher taxes and weakening our growth prospects? We heard a lot last week about how more sick and disabled people can work from home. Let us put to one side that, barely 18 months ago, the last Prime Minister but one, the then right hon. Member for Uxbridge and South Ruislip, said that working from home does not work, and the right hon. Member for North East Somerset (Sir Jacob Rees-Mogg) claimed that homeworking reduced productivity and led to higher taxes. I am a strong supporter of home and hybrid working but the reality is that by far the highest levels of homeworking are among people earning £50,000 a year or more. Two thirds of people who work from home have a university degree, compared with only around one in 10 of those with no qualifications. Did we hear anything from the Government about getting sick and disabled people the degrees and professional qualifications they need to secure these high-paid work-from-home jobs, or about how to get the internet access, computers, home adaptation aids and other support that they need, given that so many disabled people are living in poverty? We did not.
Instead, as I am afraid the Secretary of State repeated today, we heard a rehash of old plans that would not be needed if they had worked in the first place, and of measures so inadequate, unambitious and ineffective that they will fail to tackle the root causes of worklessness and get Britain working again.
The much-lauded reforms to fit notes and the new “expert group” on occupational health to drive improvements in employee health at work were both announced six years ago, in the “Improving lives” strategy that the Chancellor published when was he was Health Secretary back in 2017. The new mandatory work placements were first announced back in 2011, when the Government said jobseekers who need initial support to get back to work can be referred on to mandatory four-week work placements. I am all in favour of work placements and better occupational health, which I have campaigned for in my constituency for years, but reannouncing old programmes that clearly have not worked is not a plan for success.
As for the Government’s changes to the work capability assessment, Labour has been warning for years that benefit assessments are not fit for purpose and should be replaced with a simpler, clearer system that gets decisions right the first time and focuses on what people can do, not just what they cannot, as part of much wider reforms that give practical help and support to get people into work and to stay in work. But that is not what the Government are proposing and their plans are not a recipe for success.
That is not just my assessment, or the assessment of disabled people’s organisations and charities; it is what the Office for Budget Responsibility says in its response to the autumn statement. A reasonable person might think that the results of a successful back to work plan would probably start with fewer people out of work due to long-term sickness and disability, but that is not what the Government’s plans achieve: the OBR says that 600,000 more people will be on sickness and disability benefits after the Government’s plans. Might we expect a higher overall employment rate? Sorry, wrong again: the OBR forecasts that this will remain static at just 60.6%. What about lower spending on sickness and disability benefits overall? I am afraid we would be wrong again; the OBR says that spending on sickness and disability benefits will increase by a staggering £33 billion over the forecast period—that is up by a whopping 75%. That is the result of the Government’s plans.
Britain desperately needs an alternative plan to get Britain working again, and that is what Labour will deliver. Our top priority will be ensuring that everyone who can work, does, because rights to taxpayer support must go hand in hand with the responsibility to take up work and training when they are offered. Conditions have always been part of the social security system since the original Beveridge report, and under Labour that will always remain the case. But Beveridge also said that the state has a responsibility to do everything within its power to help people get back on their feet, including through an NHS that focuses as much on prevention and rehabilitation as on cure, and an economy that delivers full and productive employment across the country. That is why Labour’s fully costed, fully funded plan will tackle the root causes of worklessness, drive down NHS waiting lists, overhaul jobcentres, transform skills, reform social security and make work pay.
That starts with our long-term plan for the NHS, because we know that a healthy nation is the key to a healthy economy. We will invest an extra £1.1 billion a year, paid for by abolishing the non-dom tax status, to provide 2 million more NHS appointments and clear the NHS backlog. We will recruit 8,500 more mental health staff, with support in every school and in every community to tackle mental health problems early on, paid for by closing private equity bonus loopholes, because when half of all serious mental illness starts before the age of 18, we have to get that help and support early on.
We will go further still. We will overhaul jobcentres, so that they provide personalised help tailored to individual needs—not the one-size-fits-all approach that drives too much of what the Government do. Jobcentres will also have new duties to work in partnership with the local NHS, employers and others. There will be a new focus on helping people to progress out of low pay, because we do not just want people to get a job; we want them to get on in their job and to use their talents and skills to the full. That is crucial to improving productivity and putting money in people’s pockets.
The hon. Lady has substantially described our plan. What she has not said is whether she supports it. Does she support our plan?
I do not support a plan that leads to £33 billion more spending at the end of the forecast period and 600,000 more people on sickness and disability benefits because the Government have failed to tackle the root causes of worklessness or to put a proper plan in place. I know that the Secretary of State is desperate to say that people on the Opposition Benches do not support conditions or the requirement to work, but work is our party’s name. We believe that the benefits of work go beyond a payslip to the dignity and self-respect that good work brings. We will devolve employment support, so that it works for local issues and local needs, because the man, or even woman, in Whitehall can never know what is best in Leicester, Liverpool or Leeds.
Instead of demonising disabled people, we will put in place a proper plan to ensure that those who can work, do. Our “into work guarantee”, backed by the Centre for Social Justice and the Social Security Advisory Committee, will provide real incentives for sick and disabled people, allowing them to try work without fear of losing their benefits if things go wrong. It seems that the Government have finally nicked our proposals, just as they did with our NHS workforce plan. I have no idea what took them so long. Unlike the Government, however, who have let waits for Access to Work support soar, we will drive those waits down so that people can get the adaptations, equipment, travel and other support when they need it, rather than having to wait for weeks on end.
That is not all. Our mission to break down the barriers to opportunity will overhaul skills, so that no one is ever written off, whatever their age, including with new technical excellence colleges and by reforming apprenticeships. We will make work pay with a real living wage and by banning zero-hours contracts and fire and rehire. We will help parents balance work and family life with breakfast clubs in every primary school and more rights to flexible working through our new deal for working people.
Above all, our driving mission in government that will drive everything we do will be getting growth across every part of our country, because that is the key to our future success. We will get Britain building again by overhauling planning with ambitious new housing targets and first dibs for first-time buyers. We will get Britain investing again, providing the long-term certainty and stability that businesses need, which have been so fatally undermined by this Government. With our national wealth fund, we will leverage private sector investment to create the jobs of the future and make Britain a clean energy superpower. We will get Britain innovating again with our modern industrial strategy and plans to make this country the best place to start up and grow a business.
This autumn statement, hot on the heels of the damp squib of a King’s Speech, proved—if proof were ever necessary—that after 13 long years, the Government have run out of road and run out of ideas. Conservative voters, and even Conservative Members, could be forgiven for wondering what on earth their party is for. They say that they are the party of lower taxes, but the tax burden is the highest for 70 years, and working families are paying £4,000 a year more in taxes in this Parliament alone. They promised to take back control of our borders and stop the boats, but so far this year 27,000 people have arrived on small boats this year, their flagship Rwanda policy is in tatters, and, at 745,000, net migration is the highest recorded in history.
The Conservatives claim to be the party of home ownership, but home ownership has fallen under this Government, with couples now having to spend on average a decade saving for their first deposit, up from only three years under Margaret Thatcher. The armed forces have been cut and cut again, with the Army now employing a third fewer troops than it did in 2010, despite all the risks and threats that we face. Our criminal justice system is on its knees, with violent crime rising, court backlogs soaring and judges being told not to jail convicted criminals because the Tories have failed to build enough prisons. So much for being the party of law and order. That is before we even consider the dire state of our public services, where our schools are literally crumbling, patients are left dying in ambulances, and local government is on its knees.
Britain deserves so much better than this. I know from talking to people across the country, from Hastings to Erewash and from Swindon to Selby, that they are desperate for change, but the Conservatives cannot be the change from 13 years of their own failure. Under the leadership of my right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer), we have changed the Labour party, and we stand ready to change the country. Let us have a general election, and let us have it now.
(2 years, 2 months ago)
Written StatementsThe Department for Work and Pensions will today publish its response to the consultation on changes to the work capability assessment to reflect the modern world of work and greater employment opportunities for disabled people and people with health conditions.
Through a new “chance to work guarantee”, we will effectively abolish the work capability assessment for most existing claimants who are not expected to look for, or prepare for, work. This will remove the fear of re-assessments and give people the confidence to try work, while providing continuity of service for vulnerable claimants.
This brings forward a key part of our reforms announced earlier this year in “Transforming Support: The Health and Disability White Paper”, which sets out our future direction to completely abolish the work capability assessment and introduce a new personalised, tailored approach to employment support.
Ahead of these longer-term plans, we need to ensure that the work capability assessment delivers the right outcomes, and reflects changes in work since the WCA activities and descriptors were last comprehensively reviewed in 2011.
Over this time, the labour market has changed significantly, as evidenced by the increase in flexibility, and the availability of hybrid and home working jobs. At the same time, the proportion of people assessed to be entitled to the highest tier of health-related benefits, without any requirement to look or prepare for work, has risen from 21% in 2011 to 65% in 2022. Yet we know that one in five people who are not expected to engage in work preparation would like to work at some point in the future, if the right job and support were available.
To help inform our decisions on how we intend to take forward changes to the work capability assessment, we have carefully considered all the consultation responses and feedback from our public events and engagement. We received 1,348 written responses from disabled people and people with health conditions, as well as the organisations that represent and support them. We also engaged directly with clinical experts, employer groups and disability organisations across the country.
To reflect new flexibilities in the labour market and to ensure that more people are supported to move closer to work, from 2025 we will:
remove the “mobilising” activity used to assess “limited capability for work and work-related activity”;
reduce the points awarded for the “getting about” descriptor used to assess “limited capability for work”; and
ensure that the criteria used to determine a substantial risk to health of a claimant found capable of work-related activity is used only in exceptional circumstances so it is in line with the original policy intention.
We will continue to protect the most vulnerable and those who have the most significant limitations. We have determined not to make any changes to the continence or social engagement activities.
We will also change how we describe our health benefit groups in future. We will no longer refer to people’s limitations and will instead focus on what they can do. From 2025, the term “work preparation” will replace “limited capability for work”, and “health group” will replace “limited capability for work and work-related activity”.
Alongside these measures, the Government’s recently announced back to work plan will help more disabled people and those with a long-term illness to overcome barriers to work. This includes, through our new WorkWell service, bringing together work and health support locally and an expansion of universal support to place more people in roles and provide ongoing wraparound help.
By making these changes, we will ensure fairness for both claimants and taxpayers, step up the support on offer to the most vulnerable claimants, and remove barriers to work.
[HCWS64]
(2 years, 2 months ago)
Written StatementsI have concluded my statutory annual review of state pension and benefit rates in Great Britain. The new rates will apply in the tax year 2024-25 and come into effect on 8 April 2024.
I am pleased to announce that the basic and new state pensions will be increased by 8.5%, in line with the increase in average weekly earnings in the year to May-July 2023. This delivers on our “triple lock” commitment to increase these rates in line with the highest of growth in prices, growth in earnings or 2.5%. This year’s increase is the second highest on record—and means that the full annual rate of the basic state pension will be over £8,800 from next April. The full rate of the new state pension will rise to over £11,500.
The standard minimum guarantee in pension credit will also increase by 8.5%, as will the weekly earnings limit in carer’s allowance.
Recognising the upward pressure in rents, despite the challenging fiscal context, the local housing allowance rates will be increased. These rates for universal credit and housing benefit will cover the lowest 30% of local rents; and the national maximum caps will be increased, so claimants in inner and central London will also see an increase in their housing support payments.
Other state pension and benefit rates covered by my review under the Social Security Administration Act 1992 will be increased by 6.7%, in line with the consumer prices index for the year to September 2023. This includes universal credit and other benefits for people below state pension age; benefits to help with additional needs arising from disability, such as attendance allowance, disability living allowance and personal independence payment; statutory payments including statutory sick pay and statutory maternity pay; and additional state pension. The pension credit savings credit maximum amount will also increase by 6.7%.
Uprating of devolved benefits in Scotland is a matter for the Scottish Government. Some of these—such as attendance allowance, carer’s allowance, disability living allowance and personal independence payment—are being temporarily delivered by the Department for Work and Pensions on behalf of Scottish Ministers under agency agreements. In these cases, the Scottish Government will bring forward corresponding uprating legislation in the Scottish Parliament.
Social security is a transferred matter in Northern Ireland. Corresponding provision for state pension and benefit uprating will be made by the Department for Communities there.
I will place the full list of proposed state pension and benefit rates for 2024-25 in the Libraries of both Houses in due course.
[HCWS63]
(2 years, 2 months ago)
Ministerial CorrectionsThere are certain things that the shadow Secretary of State, the hon. Member for Leicester West (Liz Kendall), and I can agree on, and smoking is one of them. I was interested to learn that she is a former smoker. They always say that former smokers have a passionate desire to stop other people smoking, and she certainly demonstrated that. We know that one in four cancers is caused by smoking.
[Official Report, 13 November 2023, Vol. 740, c. 474.]
Letter of correction from the Secretary of State for Work and Pensions.
An error has been identified in the speech I gave in the Debate on the Address. The correct statement should have been:
There are certain things that the shadow Secretary of State, the hon. Member for Leicester West (Liz Kendall), and I can agree on, and smoking is one of them. I was interested to learn that she is a former smoker. They always say that former smokers have a passionate desire to stop other people smoking, and she certainly demonstrated that. Smoking causes a quarter of deaths from cancer.
(2 years, 2 months ago)
Written StatementsLater today, the Chancellor of the Exchequer, the Secretary of State for Health and Social Care and I will announce a new back to work plan. This is a package of employment-focused support that will help people to stay healthy, to move off benefits and to move into work, which will form part of the Chancellor’s autumn statement on 22 November.
The number of people economically inactive due to long-term sickness has risen to a record high of 2.6 million, and the number of people who are on unemployment benefits is expected to grow over the coming years. With almost 1 million vacancies in the economy, it is vital we ensure that every opportunity is given to those who can work.
Our back to work plan will tackle economic inactivity by addressing the rising flow of people out of work due to long-term sickness and enhancing back to work support for the long-term unemployed.
Our back to work plan will not only help disabled people and those with a long-term illness to overcome barriers to work; it will also provide support for people currently employed to take preventive action and help them stay in or return to work quickly. Fast access to the right type of joined-up work and health support can prevent people falling out of work, ensuring they reap the physical, financial and mental benefits of being in work.
To address the rising flow of people out of work, we are formally launching our new WorkWell service, announced at the spring Budget. This will be delivered by my Department, and the Department of Health and Social Care, and will support almost 60,000 long-term sick or disabled people to start, stay and succeed in work through integrated work and health support. A prospectus launched in the coming weeks will provide information for all integrated care systems across England to develop their localised work and health strategies. The service will then be delivered in approximately 15 pilot areas.
Our flagship universal support programme will also be expanded to reach more people. It is a new, voluntary employment programme for economically inactive long-term sick or disabled people who are experiencing additional barriers to employment. Universal support offers individuals up to 12 months of “place and train” support from a dedicated keyworker, helping them to find a suitable role and offering personalised support. In addition, we will explore reforming the fit note process to provide individuals whose health affects their ability to work with easy and rapid access to specialised work and health support.
The Secretary of State for Health and Social Care will also introduce measures that reinforce our efforts to join up employment and health support and expand access to mental health services, tackling one of the main reasons for sickness absence. This includes a significant expansion in access to NHS talking therapies and individual placement and support, building on the evidence that these programmes deliver positive health and employment outcomes.
The back to work plan will also support more people on unemployment benefits who are able to work to get back into work. This means earlier, more intensive support for those who find themselves out of work, reducing flows to long-term unemployment. We will provide upskilling, job search support, practical work experience and tailored advice to support claimants to sustain themselves and actively participate in growing our economy. This will include a phased roll-out where we will expect claimants to either take up a job, take up mandatory work placements, or engage in a programme of intensive activity to get them off benefits and into jobs. This also means more intensive contact with claimants and smarter case monitoring to make sure that they are not forgotten and that they do not fall behind in their journey back to work.
There are some unemployed people who resolutely refuse to engage in job-seeking activities and continue to receive benefits. They are able to work, and it is not fair on taxpayers who contribute to our welfare system. For this reason, we are toughening the application of sanctions for those who fail to comply with expectations on job searching. Our welfare system should be a safety net for those genuinely not able to work or only capable of limited work, and provide a springboard for those capable of working to help them back into employment as quickly as possible. As a result of these reforms, no claimant should reach 18 months of unemployment in receipt of their full benefits if they have not taken every reasonable step to comply with jobcentre support.
This package will help up to 1.1 million people over the next five years: rewarding fairness; boosting labour market participation; growing our economy; and just as importantly, changing lives.
[HCWS43]
(2 years, 2 months ago)
Commons ChamberWe take the challenges of the menopause very seriously, which is why the Government appointed Helen Tomlinson as the menopause employment champion for England. In terms of progress, I point my hon. Friend to the report, “No Time to Step Back”.
I welcome the work by campaigners and Devon’s NHS to improve access to menopause services in Devon. Almost 80% of menopausal women are in work, yet all too often support can be lacking. What steps is my right hon. Friend taking to raise menopause awareness among employers?
I thank my hon. Friend for his question and for his extensive work as my constituency neighbour, pushing for proper support in all GP practices across the county. We lead by example: 64% of the Department’s staff are female and we have a menopause and workplace policy, which sees 350 menopause ambassadors across our DWP network.
Almost 900,000 women in the UK have quit their jobs due to the menopause. The right to flexible work is a key part of tackling economic inactivity, and it would particularly benefit people managing menopause symptoms. What conversations have taken place between Cabinet colleagues on removing the onus on employees to request flexible working and instead ensuring that that is provided as a day one right, by default?
The hon. Lady’s question is best directed to the Department for Business and Trade rather than DWP, as it relates to employment legislation and regulation. However, I am pleased to tell her that we have our 50PLUS champions, work champions in our jobcentres, the Midlife MOT and many other measures that are there to help exactly the people she describes.
We have a number of projects that use artificial intelligence within the Department to drive performance, efficiency and the service we provide to our customers. One important point to bear in mind is that we never replace a human when it comes to judgments relating to a claim or an appeal.
Will my right hon. Friend tell the House what assessment he has made of the potential merits of the use of AI in fraud protection? How will his Department ensure that appropriate safety measures are in place?
Let me take the second of my hon. Friend’s points first. As I have outlined, there is always human intervention when it is appropriate. None the less, he is quite right to raise the issue of fraud and error. We have seen a reduction in the Department over the past year of some 10% across the benefit system, and much of that has been driven by machine learning and data analytics.
Child poverty and its reduction is absolutely core to the mission of my Department, which is why we have focused on cost of living payments, why we have put up benefits across the board by 10.1% and why the Chancellor announced £3.5 billion in the spring statement to support our back to work programmes to raise people out of poverty.
One of the crowning achievements of the previous Labour Government was to lift 1 million children out of poverty. How does the Secretary of State think that that compares with the Conservatives’ record given that new figures show that children are experiencing destitution, and that that has actually tripled since 2017?
I think that our record is extremely clear. Since 2010, we have 1.7 million fewer people in absolute poverty, 400,000 fewer children in absolute poverty, and 200,000 fewer pensioners in absolute poverty. Under Labour’s watch, we had 1 million people parked on long-term sickness benefits for more than 10 years.
There has been a shameful increase in the level of destitution in the UK, with 1 million children not having their basic needs met. In my constituency of Blaydon, nine children in every classroom are living in poverty. Across the north-east, there has been a 12% increase in emergency food bank parcels in the past year. Does the Minister agree that his Government have completely failed the most vulnerable children in the UK?
No, I am afraid that I cannot agree with that at all. I have just gone through the various figures pointing to the decline in the level of absolute poverty, including 400,000 fewer children in absolute poverty since the hon. Lady’s party was last in Government. The cost of living payments, the increase in the level of benefits, and the £3.5 billion that the Chancellor has made available to help people back into work are helping to drive poverty figures in the right direction.
Fleur Anderson
The Minister’s responses are disappointing. If the Government do not recognise the problem of child poverty in this country, how will they fix it? One million children experienced destitution in the UK last year. Organisations such as Chantelle’s Community Kitchen, Little Village and Wandsworth Foodbank in my constituency work tirelessly to fill in the gaps, but they say that there is increasing hardship and they are worried about the winter ahead. What impact does the Minister think that crashing the economy and unleashing a cost of living crisis have had on child poverty?
The common theme in all the questions that we have had on this substantive question is a lack of memory as to what happened under the previous Labour Government. Under that Government, we had 1 million more workless households and 680,000 more children in those workless households.
In the past six months, the Trussell Trust has issued 769 emergency food parcels for children in my constituency. In some schools that I visit, teachers bring food from their homes to feed hungry kids. Will the Minister step up and take responsibility for this, or, instead, move out of the way for a Labour Government committed to making child poverty a thing of the past?
Heaven forbid that we do have another Labour Government, Mr Speaker, because I have just set out the case against the last one and their appalling record on poverty. When it comes to cost of living payments, those went to 8 million low-income households and to 6 million people with disabilities. There will be further payments of £300 for pensioners alongside the winter fuel payment in the coming months.
I wish to draw your attention, Mr Speaker, to a very distressing case in my Slough constituency. A single mother, a victim of domestic violence, is struggling to pay her rent and meet basic needs due to cuts in her universal credit after being compelled to find part-time work. Her living conditions, including mould in her home, are very badly affecting the health of her children. Will the Secretary of State explain how current policies are helping to support such vulnerable families, and what immediate measures will he put in place to ensure that we do not have such dire situations of destitution?
I cannot comment on the specific case that the hon. Gentleman has put forward, other than to say that what he has described is of concern to me and I will want us to look into that extremely carefully. I will be happy to make sure that he has the appropriate time with the appropriate Minister—I think the Minister for Employment—to look into those matters.
In “A Christmas Carol”, published 180 years ago, Charles Dickens wrote of a world where children lacked shelter, clothing, heating and food. They were represented by a boy called Ignorance and a girl called Want. Dickens died in 1870 and we live in the sixth-largest economy in the world, so why, in 2022, according to the Joseph Rowntree Foundation, did 1 million children experience the type of destitution he chronicled long ago? We have heard the Minister quote figures and programmes, and launch attacks on previous Governments, but simply, as a human, would he not agree that just one child living in destitution is one child too many?
I completely agree with the hon. Gentleman that one child in destitution is one too many. One person in poverty is one too many. One person who is unemployed and badly wants a job to support their family is one too many. The question we have to ask is how best to go about improving those situations. I say it is through encouraging people into work and through those cost of living transfer payments for those targeted through universal credit, which his party originally opposed, so that we can help those who are most vulnerable and most in need.
The cost of living crisis is plunging many families into destitution. We know from the JRF that 1.8 million households and 1 million children were plunged into destitution last year. Will Secretary of State use the upcoming autumn statement to bring forward the mortgage interest tax relief and action to tackle soaring food prices, and to reintroduce that £400 energy bill rebate? Otherwise, more and more children will fall into destitution. He has the power—will he respond at the autumn statement?
The hon. Gentleman raises mortgage payments in particular; we have extended the scope of the support for mortgage interest arrangements, particularly for those who have not long been on universal credit. I cannot comment on what may or may not be in the autumn statement, but I can assure him that the kind of issues he has raised are always at the centre of our thinking.
Given that remembrance is still fresh in all our minds, I take the opportunity to pay tribute to the armed forces champions who work across our jobcentre network looking after armed forces personnel and their families. They do a fantastic job, and we should be very proud of them.
These are financially challenging times, but the DWP is up to that challenge, hence all the cost of living payments that we have been hearing about during questions. Inflation is coming down and real wages are beginning to move up. We continue to take a balanced and fair approach to encouraging employment, which has resulted in economic inactivity falling by about 300,000 since its peak, and almost three quarters of a million since 2010.
The Trussell Trust has reported a 68% increase in the number of emergency food parcels provided to Portsmouth people in just one year. Does the Secretary of State agree that more and more people being pushed into poverty is not a lifestyle choice and that urgent Government action is required to tackle the cost of living crisis ahead of another difficult winter for constituents in my patch?
I certainly agree with the hon. Gentleman that poverty is not a lifestyle choice. We have gone through various statistics during questions, with 1.7 million fewer people in absolute poverty since 2010, 200,000 fewer pensioners in poverty since 2010 and 400,000 fewer children in poverty since 2010. We have also gone through the cost of living payments, the increases to the national living wage and all the other support that the Government are providing.
I would like to make the Secretary of State an offer. If he is serious about getting Britain working, why does he not swallow his pride, do the right thing and adopt Labour’s back to work plan?
The reason for that—I am feeling rather less generous—is that we have seen Labour’s plans in the past, and no Labour Government have ever left office with unemployment anything other than higher than when they came to office. Under the last Labour Government, we saw 1.4 million people parked on long-term benefits for over a decade, with many of them exactly as the hon. Lady described: long-term sick and disabled. Under this Government, we have near-record low unemployment, and we have 4 million more people on payroll employment than we had in 2010.
I am afraid that the Secretary of State is living in cloud cuckoo land. Record numbers of people are out of work due to long-term sickness. We are the only country in the G7 whose employment rate has not gone back to pre-pandemic levels. It is not just young people but the over-50s. The Office for Budget Responsibility said that the rise poses a serious risk to our prospects for growth and the stability of the public finances. Where on earth is the Secretary of State’s plan to sort it out? Perhaps I am being a bit unfair, because it turns out that the Government can get the over-50s back to work, but only if they are former Prime Ministers.
Very briefly, I have set out our employment record, which we are proud of. In his last Budget, the Chancellor set aside £2 billion to fund measures to tackle long-term sickness and disability. That includes a consultation on occupational health, the roll-out of universal support and Work Well, about which the hon. Lady will hear more presently.
I thank my hon. Friend for his typically astute question and for his advice in this area over a number of months. We have gone out to consultation on the work capability assessment. We have not come to our conclusions on how to move forward, but right at the centre of that will be a strong belief that if people can work, with our support and encouragement, that is the best of all outcomes.
The freeze on local housing allowance is having a devastating impact on housing providers. Scotland’s Housing Minister wrote to the Secretary of State on 25 May to make that point and to make the case for restoring it to the 30th percentile. Why has he not replied? Will the Government use the autumn statement to raise it back to the 30th percentile?
I will certainly look into the letter to which the hon. Gentleman refers, but I assure him that LHA and other housing matters are under constant review, and form part of the discussions that my Department has with the Treasury from time to time.
Those Trussell Trust figures published last week made grim reading. Does the Secretary of State recognise that if working-age benefits are uprated by less than September’s rate of inflation in April next year, there will inevitably be another big surge in food bank demand and destitution?
The right hon. Gentleman has raised an important point. I take the uprating process extremely seriously, and, as he will know, I look at a number of factors, including the effects on poverty. However, as he will also understand, I am not able to comment on a parliamentary process that has not yet been concluded.
May I ask a question about auto-enrolment and pensions? What can the Secretary of State do to build on our good record by extending and increasing the total amount that young people—I see that there are schoolchildren in the Public Gallery—who retire on defined-contribution pensions are likely to be able to save in their retirement?
(2 years, 5 months ago)
Commons ChamberWith your permission, Madam Deputy Speaker, I will make a statement on our proposed changes to the work capability assessment, which aim to ensure that no one who can work is permanently written out of this country’s strong labour market story. It is a story that has seen nearly 4 million more people in work compared with 2010, 2 million more disabled people in work than in 2013 and record numbers of people on payrolls. But although the overall number of people who are economically inactive has fallen strongly from its pandemic peak, there remain over 2.5 million people who are inactive because of long-term sickness and disability. Yet we know that one in five people on incapacity benefits who are currently not expected to prepare for work want to work in the future if the right job and support were available, and the proportion of people going through a work capability assessment who are being given the highest level of award and deemed to have no work-related requirements at all has risen from 21% in 2011 to 65% last year.
This situation is excluding significant numbers of people from receiving employment support to help them to move closer to work opportunities. It is holding back the labour market and the economy, but perhaps most important of all, it is holding back human potential. I want to ensure that everybody who can do so benefits from all the opportunities that work brings—not just the financial security, but all the physical and mental health benefits too. No one who can work should be left behind. That is why, earlier this year, we announced an extra £2 billion-worth of investment to help disabled people and those with health conditions to move into work. That includes bringing in our new universal support employment programme, which will assist disabled people and those with health conditions to connect with vacancies and provide support and training to help them to start and stay in a role.
Through our individual placement and support in primary care programme, we are investing £58 million to help more than 25,000 people to start and stay in work. We are modernising mental health services in England, providing wellness and clinical apps, piloting cutting-edge digital therapies and digitising the NHS talking therapies programme. We have also published fundamental reforms to the health and disability benefits system through our health and disability White Paper. That will see the end of the work capability assessment and a new personalised tailored approach to employment support to help everyone to reach their full potential.
The scale of our reforms means that it will take time to implement them, but there are changes we can make more quickly that will also make a difference. So before the White Paper comes in, I want to make sure that the work capability assessment—the way we assess how someone’s health limits their ability to work, and therefore the support they need—is delivering the right outcomes and supporting those most in need. Today my Department is launching a consultation on measures to ensure that those who can work are given the right support and opportunities to move off benefits and towards the job market. As I have said, we know that many people who are on out-of-work benefits due to a health condition want to work and, assisted by modern working practices, could do so while managing their condition effectively.
We have seen a huge shift in the world of work over the last few years, a huge change that has accelerated since the pandemic. This has opened up more opportunities for disabled people and those with health conditions to start, stay and succeed in work. The rise in flexible working and homeworking has brought new opportunities for disabled people to manage their conditions in a more familiar and accessible environment. More widely, there have been improvements in the approach many employers take to workplace accessibility and reasonable adjustments for staff. And a better understanding of mental health conditions and neurodiversity has helped employers to identify opportunities to adapt job roles and the way disabled people and people with health conditions work.
The consultation I am publishing is about updating the work capability assessment so that it keeps up with the way people work today. The activities and descriptors within the work capability assessment, which help to decide whether people have any work preparation requirements to improve their chances of getting work, have not been comprehensively reviewed since 2011, so it is right that we look afresh at how we can update them given the huge changes we have seen in the world of work.
For instance, the work capability assessment does not reflect how someone with a disability or health condition might be able to work from home, yet many disabled people do just that. Our plans include taking account of the fact that people with mobility problems, or who suffer anxiety within the workplace, have better access to employment opportunities due to the rise in flexible working and homeworking.
We are consulting on whether changes should be made to four of the activities and descriptors that determine whether someone can work, or prepare to work, to reflect changes in working practices and better employment support. This includes looking at changing, removing or reducing the points for descriptors relating to mobilising, continence, social engagement and getting about. We are not consulting on changes to the remaining descriptors, which will remain unaltered. These changes will not affect people who are nearing the end of life or receiving cancer treatment, nor will they affect the majority of activities for those with severe disablement, such as if a person has severe learning disabilities or is unable to transfer from one seat to another.
We are also consulting on changes to the provision for claimants who would otherwise be capable of work preparation activity but are excluded from work preparation requirements on the basis of substantial risk, most commonly on mental health grounds. The original intention for substantial risk was for it to be advised only in exceptional circumstances. It was intended to provide a safety net for the most vulnerable, but the application of risk has gone beyond the original intent. We are therefore consulting on how we might change how substantial risk applies, so that people can access the support they need to move closer to work and a more fulfilling life. We are also considering the tailored and appropriate support that will be needed for this group, safely helping them move closer to work.
These proposals will help people to move into, or closer to, the labour market and fulfil their potential. We are consulting over the next eight weeks to seek the views of disabled people, employers, charities and others on our proposed changes. If the proposals were taken forward following consultation, the earliest we could implement any change would be from 2025, given the need to make changes to regulations and to ensure appropriate training for health assessors.
These plans are part of our wider approach to ensuring that we have a welfare system that encourages and supports people into work, while providing a vital safety net for those who need it most. A welfare system that focuses on what people can do, not on what they cannot do, and that reflects the modern changes to the world of work. It is time to share the opportunities of work far more fairly. It is time for work to be truly available to all those who can benefit from it. It is time to get Britain working.
I commend this statement to the House.
I call the shadow Secretary of State.
I thank the Secretary of State for early sight of his statement.
I know from talking to disabled people in my constituency and across the country that work can bring dignity and self-respect through the choice, control and autonomy from having money in their pocket and making the contribution they want to make in life. Work is the reason for my political party, and supporting working people is why Labour Members get up in the morning. That belief is shared by the British public, including hundreds of thousands of people who currently feel shut out of the workplace and trapped on benefits when they could work if they had the right help and support.
On this Government’s watch, a staggering 2.6 million people are now out of work as a result of long-term sickness. That is the highest number ever, up almost half a million since the pandemic alone. This is a serious challenge for millions of our constituents and for the economy, and it deserves a serious response, but that is not what we have seen today.
Labour has been warning for years that benefit assessments are not fit for purpose and, crucially, that unless we have a proper plan to support sick and disabled people who can work, even more will end up trapped in a degrading benefit system, costing them and the taxpayer far more. Labour has already set out plans to transform the back-to-work help that is available by personalising employment support and tackling the huge backlogs in our NHS and social care. Our “into work guarantee” will let people try work without fear of losing their benefits. Our plan is backed by the Centre for Social Justice, the Social Security Advisory Committee and disabled people’s organisations. Why not the Secretary of State?
We will ensure that employment support meets specific local needs through proper devolution to local areas and, when disabled people get a job, we will make sure they get the support they need to keep them there as soon as they need it, rather than having to wait for months on end.
We will study the consultation carefully, but I see nothing in the statement that matches Labour’s vision or scale of ambition. It does not even deal with the glaring problems in the current system. Eighty per cent of personal independence payment decisions are overturned at tribunal, of which only 2% are because new evidence has become available. How will the proposals make any difference to the totally inadequate decision making that causes untold stress to disabled people and wastes millions of pounds of taxpayers’ money?
The backlog of Access to Work assessments has trebled to 25,000 since the pandemic. How will the proposals help to bring that down? Where is the plan to help slash waiting lists for help with anxiety and depression, which we know is a major problem, or to get the carers that families need to look after sick and disabled relatives so that they themselves can work?
This is not a serious plan. It is tinkering at the edges of a failing system. If you run your NHS into the ground for 13 years and let waiting lists for physical and mental health soar, if you fail to reform social care to help people care for their loved ones and if your sole aim is to try to score political points rather than reforming the system to get sick and disabled people who can work the help they really need, you end up with the mess we have today: a system that is failing sick and disabled people, failing taxpayers and failing our country as a whole. Britain deserves far better than this.
I thank the hon. Lady for her remarks. It is gratifying that she agrees with much of the premise I set out. She recognises the importance of work and that 2.5 million people, or thereabouts, are on long-term sick and disability benefits—we are all equally concerned that the number is growing. She also argues that the work capability assessment, in its current form, is not fit for its required purpose, which is exactly why we are coming forward with these reforms. She refers to the PIP assessment requirements, which are not relevant to the work capability assessments that we are discussing and that are subject to the current consultation.
We clearly have a plan. The hon. Lady has been in her position for a very short period, and I respect and understand that. I invite her to look closely at the announcements that were made—the £2 billion-worth of support at the last fiscal statement, including our White Paper reforms in exactly the area where she is seeking progress; the universal support; and the WorkWell programme. She mentioned working with local providers, and there is a huge drive on that. As for mental health, we are consulting on occupational health across businesses to make sure that we get in right at the start where people may otherwise end up on a long-term health journey. We are also working closely with the NHS on getting employment advisers involved, for example, in talking therapies, which we know are so effective in addressing mental health concerns.
I strongly support the initiative to help more people who are long-term sick and disabled into work where they wish to do that. My query is: why on earth is it going to take so long? We need to be doing this now, to ease our workplace shortages and to give those people earlier support and hope. Will my right hon. Friend please work with his officials to speed it all up?
I share my right hon. Friend’s keenness to see these proposals—whatever may or may not emerge—come forward as soon as possible. They will require a lot of work on IT systems and changes to systems. The providers will have to incorporate the changes that may or not come forward as a result of this consultation. Let me reassure him that, given the benefits there will be to many people who will otherwise not benefit from work, I am as anxious as he is to make sure that we move forward at speed.
I call the Scottish National party spokesman.
The big difference between the SNP and the Conservative and Labour parties is that we do not approach this from the point of view that people are somehow on the make and on the take; we do not assume that when somebody comes for an assessment they are somehow trying to cheat the Government. That is why it is important that the Select Committee on Work and Pensions noted in its recent report the concerns that disabled people are still experiencing psychological distress as a result of undergoing these health assessments.
Let me show just how perverse some of those assessments are. One of the first constituency cases I dealt with as an MP involved someone literally being asked at an assessment whether they still had autism. That gives us an idea of how fundamentally flawed this whole process is. Has the Secretary of State read the Institute for Public Policy Research report that came out today? It makes a specific recommendation to:
“Limit conditionality to facilitate person-centred support on universal credit.”
It says:
“People with health conditions, single parents and parents of young children on universal credit should be exempt from requirements or financial penalties under any circumstances.”
Has he seen that?
Will the Secretary of State also agree to look again at the Access to Work scheme? Far too often, the Government’s own Committee has received evidence that shows that Access to Work simply is not working. I come back to my fundamental point: will the Government change their philosophy—this deep suspicion that somehow claimants are on the make and on the take? All they actually need is support from their Government.
I respect the hon. Gentleman; having appeared before the Select Committee, I know how seriously he takes the matters that he has raised. However, I cannot accept being described as bearing down on those who are
“on the make and on the take”.
If he can find any example of myself or my Ministers making those assertions, I would like to see it. In the absence of that, I hope that he will be big enough to withdraw those comments.
The hon. Gentleman does not like the assessments, but we hear nothing about alternatives or what the SNP’s plan is to replace assessments. If there are inherent problems with assessments, presumably the logic is that he is not going to assess anybody at all. So we do not know what his plan is. He refers to conditionality, so let me make a point about that. There are those whose health and disability situation is such that I passionately recognise that they should not be expected to undergo any work to look for work or to carry out work itself. As a compassionate society, we should be there to support those people, and we will continue to do so. But where somebody can work, there is a contract between the state and the individual: if people are to be supported and they can work, it is right that they should be expected to do so. In those circumstances, the conditionality should apply.
The hon. Gentleman made specific reference to Access to Work. That programme provides up to about £65,000 for each individual involved to bring forward adaptations to the workplace to accommodate that individual into employment. It is a huge commitment on the part of this Government, and I can inform him that the latest figure I have is that 88% of those applications are being processed within 10 days.
It is greatly welcome that we are trying to get the assessment to give people the outcome they deserve, but it is intriguing to make what sounds like a fundamental change to an assessment that we are going to try to scrap in a few years’ time. Will the Secretary of State set out how many of the 2.5 million people he cited as being in this situation he thinks would not be in the same group after these changes? How many of them will have a chance to be reassessed before we scrap the assessment entirely?
I dealt in my statement with my hon. Friend’s question about why we are doing this, given that we will be getting rid of the WCA in due course: I said that there is no reason why we cannot bring forward these benefits earlier, even though we are going to be removing the WCA altogether. As for the numbers impacted, we know that about one in five people on those benefits do want to work, given the right support. Until the consultation is concluded and we know the exact nature of the policy changes that we may or may not be making at that point, we will not be able to assess the numbers exactly.
This will lead to a lot of fear among disabled people. I appreciate the tone that the Secretary of State has taken, but the record of the past 13 years has been one of excluding the most vulnerable disabled people from more support than they need. We know that disabled people are a group who are living in huge poverty. We also know that some of them have died, not just through suicide, but because of the lack of safeguarding in the Department and how it operates. So I urge him to ensure that the safeguarding system within the Department ensures that people are protected. I agree with the SNP spokesperson about Access to Work; we are talking about 4 million disabled people able to work and 35,000 being provided with it through Access to Work.
I listen to the hon. Lady’s remarks with great respect; having appeared before her at the Select Committee, I know how serious she is about the issues she raises and how strongly she promotes her ideas and concerns. She mentioned the lack of support available for the people in the situation we are describing, which is precisely why I want to start providing more support to them by making these reforms. Let me make an important point in an area where I am in agreement with her: we need to do this in the right way. We need to listen carefully to those who will be affected by any changes we may bring forward, which is why we have a full eight-week consultations. My Ministers and I will be engaging closely with the various stakeholders, disabled people and so on. We will of course welcome her comments as part of that process.
When I was a Minister, whenever I went on a visit I would ask young disabled people what they would do if they were the Minister. They said that they would always want to have the same career opportunities as their friends. I therefore welcome any moves to make more personalised and tailored support available, to build on our record disability employment. However, we lose more than 300,000 people a year from the workplace and the majority of long-term health conditions and disabilities develop during the working age. So during this consultation I urge the Secretary of State to work with employers to see what more support and advice they need to make sure that people do not ever have to even enter the WCA system.
I thank my hon. Friend for that typically sensible and astute intervention. May I personally thank him for the advice and input he has given over the preceding months, particularly in this area? He is right that we should be proud of our record of assisting disabled people into work—2 million more in work since 2013. Equally, he is right about addressing the hundreds of thousands of people with these kinds of difficulties and challenges who are leaving businesses and the workforce every year. I recognise that it is essential to get help to those people as early as possible, before they progress too far along that health journey. That is why we are already consulting on occupational health, so that we can make sure that is rolled out more effectively across large and medium-sized businesses.
In his statement, the Secretary of State mentioned that four descriptors would be reviewed, but there were no plans for any other changes. He certainly did not mention adding any descriptors. At yesterday’s Westminster Hall petition debate on disability assessment, one of the key issues discussed was remitting and relapsing conditions, particularly fatigue. Will the Secretary of State commit to looking at fatigue, and either adding it as a descriptor or telling us what he is going to do about it instead?
Nothing in the consultation excludes bringing forward exactly the point that the hon. Lady makes. I hope she will do just that, and encourage others to do so as well.
The Secretary of State is quite right to refer to the 2 million additional people with disabilities who have come into work since 2010. He will recall that the first Disability Confident event, held in 2013, was in Gloucester. His Department worked closely with charities and employers to ensure that more opportunities happened. I have met many people who benefited from that programme, so I support him in the principle. Can he confirm that he will engage closely with charities and organisation such as Seetec Pluss, which has a lot of experience in helping to bring people with disabilities back into the workplace?
I thank my hon. Friend for all the passion and intelligence he brings to these issues. I can confirm that our door will be open to Seetec Pluss. In fact, I will go further and make sure that our officials reach out to my hon. Friend to ensure that that happens.
In a key paragraph of his statement, the Secretary of State appears to envisage that he will either remove or reduce the descriptors giving access to benefits for people who have problems with mobility or are incontinent. Will he explain what he means by that? Will he also tackle problems on the other side of the world of work, including rogue employers exploiting people through low-paid part-time or temporary jobs? One in nine workers are in poverty as a result. Is it not time that he took on the employers rather than the poorest in our society?
That sentiment of taking on the employers is probably not conducive to having an economy that is generating the jobs that have occurred under this Government. As to the descriptors—indeed, the activities—that the hon. Gentleman refers to, there is a plethora of information out there about exactly what those mean. If he has trouble finding that, I would be very happy to have my Department point him in the right direction.
The Secretary of State rightly points to the tripling of the number of people receiving the highest award after a work capability assessment. Does he share my concern that a false assumption is growing not only that those people cannot work, but that they should not work, which therefore writes them off? Do we not have a serious moral obligation to remove all sorts of barriers that come between those individuals and the workplace? His approach is exactly right in trying to target those obstacles that most get in the way of people enjoying the agency and autonomy that activity in the workplace brings.
I thank my hon. Friend for the advice and support he has given me when we have discussed these issues over the last few months. I know he is extremely knowledgeable in this area. He is absolutely right that we do not want people to be trapped, to use that expression, on benefits. We want to help people to move into the labour market and work. That is better for the economy and the labour market, but most importantly it is better for the physical and mental health of the individual concerned, as shown by all the evidence.
I declare an interest as the chair of the all-party parliamentary group on myalgic encephalomyelitis. The Secretary of State has said that the work capability assessment is not fit for purpose, and many disabled people with invisible or fluctuating conditions would agree with him entirely. They report not being believed, their medical evidence being disregarded and leaving the assessment feeling as though they have been belittled by the assessors. The Department of Health and Social Care is undergoing a massive change in the way it deals with people with ME and other conditions like ME. Can he provide an assurance that his Department will look at how people with ME and other invisible disabilities are being considered through work capability assessments?
I can give the hon. Lady exactly that assurance when it comes to ME. I point her to the White Paper that we published in March, in which we made a clear commitment on fluctuating conditions and said that we would test and trial around those conditions, as part of the White Paper process.
I welcome the Secretary of State’s statement and thank him for his offer of more personal, tailored support for disabled people, who we must always do our best to help and support. Given that this is the 21st century and there have been huge advances in medical treatments, adaptations of buildings to help disabled people, improvements in mobility devices and a rapid rise in digital connectivity, it is staggering that the proportion of people going through a WCA who are deemed to have no work-related requirements at all has gone up from a fifth to almost two thirds in just over a decade. Why does the Secretary of State think it is like that?
It is correct that we have gone from 21% to 65% in that short space of time and I recognise that that statistic is simply unacceptable. We know that one in five people in that group wants to work, given the right support, and we need to do something about that. Quite rightly, my hon. Friend also raises the fundamental change in the way that work is conducted in the modern world. The last time the work capability assessment was reviewed for reform was 10 years ago. That is inadequate and it is now time to make appropriate changes.
There are 76,000 people in Wales with a severely limiting condition. New research this summer shows that four in 10 of them are having to skip or cut down on meals or have gone without heating. Is the Secretary of State confident that the proposed changes will remedy that?
It is a fact that people are better off, on average, being in work than being on benefits. I pay tribute to my predecessor who introduced universal credit, which makes that the case. Bringing people into work who would not otherwise be in work means that they will, on average, be better off. This Government have increased the national living wage by over 9%—it has been £10.42 since April—and have introduced cost of living support for 8 million low-income households, 6 million disabled people, pensioners and so on. In response to the hon. Gentleman, the proposed changes are another step in exactly the right direction.
In response to my hon. Friend the Member for Kettering (Mr Hollobone), the Secretary of State referred to the statistic of 65%. It strikes me that out of that 65% of people, a number of them could work, should work or want to work, because that is the best thing for them. Building on the 2 million people with disabilities who we have got back into work, is it not the case that there must be people who are trapped in that 65%? Is it not imperative for the Secretary of State and his officials to get those people into the world of work as soon as possible?
My hon. Friend has used exactly the right word: it is imperative that we get those people into the world of work. If somebody is on benefits—and we know that one in five of those people would, with the right support, like to get into work—it is our duty as a Government and as a society to do whatever we can to support them.
In 2011, this Government said that they would help 100,000 disabled people into employment through dedicated personalised support, such as Access to Work. In the 12 years since, the number of disabled people supported by Access to Work has risen from 37,000 to 38,000. Given the Department’s failure and the wider context of cuts, would disabled people not be forgiven for thinking that this is just further cuts dressed up as modernisation?
Not at all, Madam Deputy Speaker. I have set out very clearly the principled reason why we are bringing forward these measures. As the hon. Gentleman will know, when it comes to more disabled people moving into the workforce, we set a target for the 10-year period from 2017 to see a million more disabled people in employment. We broke that target in half that time, reaching 1.3 million in addition after just five years.
The number of people who are economically inactive due to long-term sickness has reached a record high of 2.55 million, which is very concerning. Given the Secretary of State’s fanfare today, what level of reduction in those figures would he measure as a success in supporting disabled people into secure and sustainable employment? What specific improvements does he envisage to the sorely inadequate Access to Work scheme to prevent the disability employment gap widening even further?
I have addressed the issue of Access to Work—what a significant programme it is and the recent improvements in the processing of those particular awards. On economic inactivity, I make two points. First, compared with the EU, the OECD and the G7, economic activity overall is below the average across those different groups. Secondly, it has declined by about 360,000 since the peak that occurred during the pandemic, and that in substantial part is due to the policies of this Government.
It is very noticeable that the Secretary of State did not answer the question of the hon. Member for Wellingborough about why he believes that there has been a trebling of the number of people who are now getting the maximum verdict under the work capability assessment. I have helped many of my constituents who have had problems with their WCA, and not one of them has come to me and said that it is the WCA that is keeping them out of work. Many of them have said that it is not nuanced enough to understand the issues, and I welcome the fact that it is to be replaced. However, can the Secretary of State tell us what assessment he has made of how many people are likely to win their appeals after the changes that he has brought in, and what percentage are winning them now? At the moment, huge numbers are winning their appeals, which makes it clear that the work capability assessment is not working.
I feel duty bound to correct the hon. Gentleman. It was my hon. Friend the Member for Kettering (Mr Hollobone) who asked the question to which he referred. Of all the Members in this House, he is probably the one who promotes his constituency the most, and he should be lauded for doing so.
The bottom line is that we know that one in five, or thereabouts, of those who are receiving these benefits at the moment actually want to do some work, if they are supported in doing so. That means that we have a duty to look at the way that the WCA operates and to look at reforming it to make sure that, in every case that somebody can do some work to the benefit of themselves and the economy, we facilitate that.
I have been supporting a disabled student who has not been able to access universal credit because their work capability assessment was not completed before they started their studies. They are now at risk of dropping out of university, because they cannot work to support themselves through their course because of their disability, and they cannot access social security either. That means that they cannot improve their skills and abilities, when that might lead to an opportunity of employment in the future. What resources or flexibilities, if any, are featured in this consultation and the Department’s plans so that my constituent can carry on with their studies, and others will not face the same situation in future?
The hon. Gentleman is able to feed into the consultation and I encourage him and his constituents, as appropriate, to do so. I cannot comment on the individual case that he raises, but if he would like to get in touch with me and my private office, I would be very happy to look at the circumstances that he has raised.
I think all of us in this place would welcome an improvement to the work capability assessment. Like many others here, I have had a number of constituents who currently receive PIP payments coming through my door. They have contacted the DWP to advise officials that their situation has significantly deteriorated. They now face lengthy delays of several months before their payments are taken over by Social Security Scotland and their change in circumstances is considered. Can the Minister assure us that, in the work being undertaken and in the consultation, there will be discussion between the DWP and the Scottish Government to make sure that payment recipients in Scotland are not put at a significant disadvantage, and that the upheaval that they are currently undergoing is taken into account?
I thank the hon. Lady for her question. Just to clarify, there are no plans on the part of the Government to make any changes to the way in which PIP operates—and she did refer specifically to PIP. On the broader point, which is an important point about the interaction between my Department and the Scottish Government, I assure her that I have written today to my Scottish counterpart to open my door to whatever discussions they wish to have. The Minister for Disabled People will also be having his regular engagement with the Scottish Government next week.
I am almost tempted to say another week, another consultation. Disabled charities come to me regularly with real doubts and worries about the way disabled people are being treated. I visited Project Search in my constituency last week. It was wonderful and inspiring—they practically had to throw me out the door. It is a programme that takes in young people, often from college, with severe disabilities and learning issues and gets them into work and then continues to support them. The support that is offered once people get into work is crucial to the success of any programme the Government undertake, and how they treat these people is vital. What is the Government going to change? How are they going to change these work capability assessments to benefit the recipients, and how will they treat the people that they force into them?
I believe that my hon. Friend the Minister for Disabled People will be meeting the hon. Lady very shortly. That is in the diary, so those matters can be discussed in greater detail then. Specifically, she asks what support we will be providing. It will be exactly the kind of support to which she has just alluded. There will be universal support to help train and place individuals in work, and it will stay with those individuals for up to 12 months to make sure that they get the support to hold down that job.
I thank the Secretary of State for his statement.
(2 years, 5 months 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?
(2 years, 6 months ago)
Written StatementsTogether with my right hon. Friend the Secretary of State for Health and Social Care, later today, I will publish a Command Paper launching the public consultation entitled “Occupational Health: Working Better.”
Tackling economic inactivity due to long-term sickness is a top priority for the Government. Increasing labour force participation supports the Prime Minister’s priorities of halving inflation and growing the economy. The Chancellor announced £2 billion at the spring Budget 2023 to support disabled people and people with health conditions to work. This consultation, together with the HM Treasury-led consultation to assess the case for further support through the tax system, represents a significant opportunity to work in partnership with employers to increase the coverage of occupational health provision.
Expert-led impartial advice, and interventions such as OH, can help employers provide appropriate and timely work-based support to manage their employees’ health conditions. However, OH coverage across Great Britain is currently at 45% of workers, which is substantially lower than international comparators.
This consultation brings together employers, the healthcare sector, and local communities by seeking their views on ways to increase OH coverage, specifically by exploring:
Voluntary standards and best-practice sharing, to help provide a simple and clear baseline for quality OH provision for all employers, particularly Small Medium Enterprises (SMEs).
Best practice from other countries and other UK-based employer models that enable employers to provide support for their employees.
How we develop and support a multidisciplinary workforce in work and health, including expert OH workforce. This will build on our existing work with the OH sector and explore the opportunities this can offer businesses and providers.
Together, these consultations will inform potential policy options to support the success and prosperity of businesses, particularly SMEs and OH providers, to support individuals to remain and thrive in work, contributing to reducing labour market inactivity in the UK.
I invite employers, particularly SMEs, OH providers, healthcare professionals and non-healthcare professionals to respond to the consultation and share their views. A large print and Welsh version of the consultation are available. Further, a British Sign Language version will be made available.
[HCWS989]