Working People’s Finances: Government Policy Debate

Full Debate: Read Full Debate
Department: HM Treasury

Working People’s Finances: Government Policy

Mims Davies Excerpts
Tuesday 21st September 2021

(2 years, 7 months ago)

Commons Chamber
Read Full debate Read Hansard Text Read Debate Ministerial Extracts
Mims Davies Portrait The Parliamentary Under-Secretary of State for Work and Pensions (Mims Davies)
- Parliament Live - Hansard - -

I thank all right hon. and hon. Members who have taken part in this important and wide-ranging debate. I will endeavour to respond to as many points raised as possible in the time I have. First, the Opposition have focused on benefits today, but the reality is that this debate is about working people. It is about people in work getting the right support that raises them out of poverty, and benefits are our safety net.

Let me turn to my hon. Friend the Member for Hartlepool (Jill Mortimer), who made her maiden speech. She spoke about the value she will bring to this place as the first Conservative elected for her constituency, and about her unwavering determination to be here. The fact is that she will be a strong voice in this House, and we welcome her heartily.

The hon. Member for Swansea East (Carolyn Harris) spoke about the price of food. I know the incredible strength of her community and what the pandemic has done across many of our communities. We have all worked together to support those communities. Let us commend all the communities and people who have stepped forward.

My hon. Friend the Member for Devizes (Danny Kruger) spoke about the important investment this Government have made in young people, our support for restart and the emergence of the global economy, which is creating challenges for everybody.

The hon. Member for Islwyn (Chris Evans)—and I thought this was a very important matter—raised the issue of water prices, but also his deep frustration about the impact of loss of water. I have seen that in my own constituency, and that was welcome to hear.

There was an excellent contribution from my hon. Friend the Member for Bury North (James Daly), who spoke about the business support in this area, the protection of jobs and the fact that there had been hardship help with council tax bills. He said that we need high skills and to see the impact of T-levels, and this Government are making that happen.

The hon. Member for Sheffield, Brightside and Hillsborough (Gill Furniss) spoke about Shaun and the mental health impact of the never-ending spiral of poverty, which was absolutely harrowing to hear. Our in-work progression focus will absolutely help people such as Shaun. Our work coaches transform the lives of people like Shaun every day, and we stand ready to help.

The hon. Member for Coventry North East (Colleen Fletcher) shared her shopping habits, which I very much enjoyed. It was very reassuring to hear that she really understood the value of the DWP to her community.

Virginia Crosbie Portrait Virginia Crosbie (Ynys Môn) (Con)
- Hansard - - - Excerpts

This debate is all about jobs. Does the Minister agree that the reopening of the Amlwch jobcentre will ensure that my constituents across Ynys Môn get access to hundreds of new jobs?

Mims Davies Portrait Mims Davies
- Hansard - -

I thank my hon. Friend, and she gives me the opportunity to speak about our unwavering support for the most vulnerable people in our society. Week in and week out, the doors of our jobcentres have remained open for the most vulnerable, but that particular jobcentre has been very difficult to get open safely. I am delighted it is opening imminently, and I know what an impact it has in her community and how much work she does to support that community.

To turn to the thoughtful contribution of my hon. Friend the Member for Penistone and Stocksbridge (Miriam Cates), she spoke about the hiring opportunities, the opportunities of rising wages and of course the challenges of raising a family, which we all know.

The hon. Member for Aberdeen North (Kirsty Blackman) rightly raised the cost of broadband. I am happy to say that at the DWP we have a social tariff available. We want to support people on low incomes who need specific help, and we have specific support through the benefits system and the flexible support fund. She should be reassured by that.

There is so much more I would like to say. There was the passionate contribution by my hon. Friend the Member for Newcastle-under-Lyme (Aaron Bell). There was the speech from the hon. Member for North East Fife (Wendy Chamberlain), who should please look at the strategy in the disability Green Paper and have a look at the impact of auto-enrolment, which I think will reassure her.

The hon. Member for Aberavon (Stephen Kinnock) mentioned the value of UC and how it had supported many people, and he asked about our plan. We have had a plan for jobs since last July, and I will go on to make further comments shortly.

We in this House engage weekly in our surgeries with constituents who are in times of need, and nobody could have foreseen how difficult the last 18 months or so were going to be for our society because of a global pandemic. Members have raised various challenges faced by their constituents in different sectors, and they are important matters, but it must be noted that many constituents on UC are working, which is exactly why we have a taper rate to support people. There is no cliff edge on UC—if you work hard, UC helps you to keep more of your money.

Through this pandemic the Government have recognised that people needed significant additional support and have stepped in to help pay the wages of millions of workers, investing over £400 billion in an unprecedented package of support, protecting jobs and safeguarding livelihoods, as we have heard throughout this afternoon. Our plan for jobs, which I have been delivering on behalf of the Department for Work and Pensions, is wide-ranging. The package includes kickstart, restart, doubling the number of our work coaches, job entry targeted support, job finding support, sector-based work academy programmes, our enhanced youth offer and new DWP youth hubs, and a significant expansion of our jobcentre network, allowing us to assist our claimants, some for the first time in their lives, with not only benefit support and advice but opportunities to progress or transition to a different sector and harness their skills in a new way.

Richard Holden Portrait Mr Holden
- Parliament Live - Hansard - - - Excerpts

Does the Minister agree that the best way to help people, especially those changing jobs, is to do everything we can through jobcentres? I thank the Consett, Stanley and Crook jobcentres for attending my recent “jobs, jobs, jobs” fair at Derwentside College in North West Durham, which the Pensions Minister, my hon. Friend the Member for Hexham (Guy Opperman), also kindly came along to. Does the Minister also agree that it is incumbent on all Members to do everything they can to help all their constituents get into new jobs given the record numbers of vacancies across the country?

Mims Davies Portrait Mims Davies
- Hansard - -

Absolutely: jobs, jobs, jobs is the right message, but very little of that has been heard in the Chamber this afternoon from those on the Opposition Benches. On jobs fairs, it is vital that people come through our doors and see what is out there, because it is time once again to be, as this Government are being, forward-thinking, pragmatic and responsible as we push to build back better. The reality is that it is unsustainable to carry on spending the amount that we have been on welfare measures during this pandemic without ongoing increases in public expenditure, which Opposition Members have complained about. Inevitably, that would also affect working people’s taxes—which is what the debate is about.

The extra provision this Government have provided during the pandemic was temporary, to deal with the pandemic head on. Now that public health restrictions have been relaxed, it is right that these temporary support measures come to an end. Of course we also have our successful vaccine roll-out, and pleasingly—we must remember this—we are no longer in the same situation we were in at the turn of the year, and nor is our labour market. We have been able to reopen society, and our economy is recovering strongly. Growth is forecast by the OECD to be 7.2% this year, reflecting the bounce back we are already seeing right across the UK. So it is a time to be bold and empower people to harness their opportunities and help them progress on to their next stage—to give people both the hope and the skills and training they need to thrive in this changing economy.

Kirsty Blackman Portrait Kirsty Blackman
- Hansard - - - Excerpts

What would the Minister say to the working parent who is already trying to juggle hours around childcare and who cannot simply pick up another few hours of work a week? How are they going to make up this shortfall?

Mims Davies Portrait Mims Davies
- Hansard - -

I would say, “Talk to your work coach.” We heard from two hon. Members from Liverpool today. I was in the Toxteth jobcentre meeting the first people taking the digital online level 3 programme, which people can earn a lot more money by taking part in. There are so many opportunities in jobcentres. I know that the hon. Lady has not been to her jobcentre recently, because I checked. Please do go and visit.

Mims Davies Portrait Mims Davies
- Hansard - -

I will make some progress, because I think it is important to talk about the 1 million vacancies that we have in our economy. We have jobs in growing and emerging sectors; we have green jobs, we have tech roles, and they can all be accessed through our jobcentres.

I am determined to help those with the biggest barriers to move closer to the labour market, to ensure that, as the hon. Lady says, people progress into work and see the reward for their efforts, and to help people increase their hours or get into work for the first time, like—I must correct the Chief Secretary to the Treasury, my right hon. Friend the Member for Middlesbrough South and East Cleveland (Mr Clarke)—the more than 69,000 young people who are now in kickstart roles, on that important first rung of the career ladder.

My message today to everyone in the Chamber and everyone looking in is: if you want to progress in this jobs market, whoever you are, wherever you are—at any age or any stage—we are here for you. We will get behind you. We have dedicated work coaches, and we have boosted them by 13,500 as part of our plan for jobs. We will give you tailored support and we will help you progress. We will not leave you behind.

We are directly investing in our young people most at risk of long-term unemployment with the £2 billion kickstart scheme, a life-changing scheme of a six-month work placement—a springboard into a future career. With over 188,000—I got it right this time—kickstart roles, young people must turn to their work coaches to hear about these amazing opportunities.

Meanwhile, I must let the House know that we have a new youth hub across every Jobcentre Plus district throughout England, Scotland and Wales. By Christmas, we will have 150 new youth hubs open. These are valuable new partnerships—interventions for direct life chances—with local councils, football clubs, charities such as the Prince’s Trust, and local training providers.

We are also seeing lives changed by our job entry targeted support programme, which is known as JETS, with over 25,000 people starting new jobs since our plan for jobs was launched. That is not forgetting our £2.9 billion restart scheme, which will, crucially, help those who are leaving furlough. We have also refreshed our “50 PLUS: Choices” offer, and we have stronger support for those who need any extra skills through our lifetime skills guarantee.

I am passionate—I hope the House has noticed it this evening—about getting people into jobs, but also about progressing people when they are in work. This Government’s longer-term ambition remains to build an economy that ensures that everyone, no matter what their background, has the opportunities to enter work and progress out of low pay.

We are absolutely taking action. The in-work progression commission was launched in March 2020 by the DWP. We will respond shortly to its report, but it is all about getting that understanding about the barriers that people in low pay face and, crucially, as we talked about this afternoon, ensuring that work remains the best route out of poverty.

Our plan for jobs programme is also helping claimants to gain the skills they need to progress in work. Our sector-based work academy programmes—SWAPs—are helping people get new skills to retrain and pivot into growing sectors, from viticulture to construction, infrastructure and social care. Haulage has been mentioned this afternoon; we have a programme in that, too. We also have DWP Train and Progress, which provides the ability to access the Department for Education skills bootcamps in growing sectors. With over a million—

Alan Campbell Portrait Sir Alan Campbell (Tynemouth) (Lab)
- Hansard - - - Excerpts

claimed to move the closure (Standing Order No. 36).

Question put forthwith, That the Question be now put.

Question agreed to.

Question put accordingly (Standing Order No. 31(2)), That the original words stand part of the Question.