Oral Answers to Questions

Nick Smith Excerpts

Monday 28th November 2011 Commons Chamber

[Maria Miller]

We of course always consider the availability of jobs for all people, and particularly for disabled people. Remploy’s employment services have been particularly successful in securing employment for disabled people, even over the past year in these difficult economic times.

[Nick Smith (Blaenau Gwent) (Lab)]

14. What steps he is taking to tackle youth unemployment.

[The Minister of State, Department for Work and Pensions (Chris Grayling)]

The measures that we announced on Friday build on the support that we have in place. There will be more intensive support for all 18 to 24-year-olds, including through the doubling of the work experience and sector-based work academy schemes. There will also be a wage incentive for any young person under the age of 24 who is placed in long-term employment, usually in the private sector, through the Work programme.

[Nick Smith]

In Blaenau Gwent, there has been a 70% rise in young people who have been on the dole for more than six months. The Government now acknowledge that high long-term youth unemployment is a slow-burning social disaster. How many of their private sector, subsidised work places for young people will be delivered in Wales next year?

[Chris Grayling]

Let us deal head-on with the issue of an increase in long-term youth unemployment. The only reason that the figures for long-term youth unemployment show an increase is that we no longer hide young unemployed people on Government schemes and training allowances, which created a totally misleading figure. The reality is that long-term youth unemployment on a like-for-like basis is now almost identical to what it was two years ago under the previous Administration. Every single young unemployed person in Blaenau Gwent will have access to a work experience placement through our work experience scheme or to the Work programme, through which they will receive a wage subsidy for any employer who takes them on and gives them a long-term job.

Oral Answers to Questions

Nick Smith Excerpts

Monday 24th October 2011 Commons Chamber

[Mel Stride (Central Devon) (Con)]

2. What steps he is taking to reduce youth unemployment.

[Nick Smith (Blaenau Gwent) (Lab)]

5. What his approach is to tackling youth unemployment.

[Karl MᶜCartney (Lincoln) (Con)]

13. What steps he is taking to reduce youth unemployment.

--- Later in debate ---

[Mr Duncan Smith]

My hon. Friend is right that youth unemployment rose from about 2004, regardless of a growing economy. One problem was that when the previous Government came to power, there was a guaranteed training place for all 16 to 18-year-olds, which they scrapped. That was one of the worst, most short-sighted decisions that any Government have ever made.

[Nick Smith]

Youth unemployment in Blaenau Gwent grew by a massive 12.8% last year. The Centre for Economic and Social Inclusion has highlighted the benefits of the future jobs fund, which helped 500 young people in my constituency. Will the Secretary of State look at bringing back the future jobs fund, given the current crisis of youth unemployment?

[Mr Duncan Smith]

As the hon. Gentleman should know, we made a commitment to complete the placements that had been committed to until March. That meant that there were nearly 64,000 additional places under the future jobs fund, bringing the total to 105,000 places. We believe that the future jobs fund was an expensive way to try to get people into employment. Almost half of those who went in have ended up back on benefits.

Oral Answers to Questions

Nick Smith Excerpts

Monday 13th June 2011 Commons Chamber

[Steve Webb]

My hon. Friend has raised this issue with me before in debate, and although he is correct that the savings do not fall in the comprehensive spending review period, I would draw his attention to one number. Under previous projections, the national debt at the end of this Parliament was £1.4 trillion. If we were to delay the change, we would have to add another £10 billion. Someone has to get a grip on the national debt.

[Nick Smith (Blaenau Gwent) (Lab)]

What notice does the Minister believe is required of changes to the state pension age?

[Steve Webb]

I am grateful to the hon. Gentleman for raising that question; indeed, we asked that very question in our Green Paper. We are looking at future changes to the state pension age, to 67 and 68, which are already legislated for. We believe that that needs to happen sooner. We are currently consulting and reflecting on the right balance between taking account of changes in longevity and giving people fair notice, and we would welcome the hon. Gentleman’s input on that point.

State Pension Age (Women)

Nick Smith Excerpts

Wednesday 11th May 2011 Westminster Hall

[Nick Smith (Blaenau Gwent) (Lab)]

I congratulate my hon. Friend the Member for Erith and Thamesmead (Teresa Pearce) on securing this debate. My constituents in Blaenau Gwent are worried about the Government’s plans. At a recent surgery in a supermarket, one constituent told me, “I am one of the people who are affected by the proposed change. Also, having recently lost my job, I am finding it difficult to get another job in the current climate.”

In an e-mail, another constituent said:

“I have worked all my life. I have never been a burden to this county and I have always paid my own way. I was widowed 14 years ago so I have no-one else to support me, therefore, I’m dependent on my pension. I work for the Local Authority, so am unlikely in the current economic climate to retain my job until I’m 64.”

These women are fearful of what their future holds and angry that the goalposts have been moved.

The House of Commons Library estimated that about 800 women in my constituency will be affected by the proposals. Age Cymru said:

“These proposals are unfairly discriminating against women of this age group, as they are not providing them with an adequate amount of time to plan for these changes.”

I hope that the Minister listens to those important concerns today.

--- Later in debate ---

[Steve Webb]

I accept entirely that although what we propose is a lot simpler in a sense than what came before, that is not massively well understood because pensions are so complex. As we refine the proposition, we will have a lot of communicating to do. However, it stands to reason, for example, that paying a flat-rate state pension rather than an earnings-related one will, on average, benefit women. It must, because women earn less on average. Crediting years at home with kids towards the full pension, not just the basic pension, will and must benefit women on average. There can be no doubt that the options presented in the Green Paper would substantially benefit women, on average, out of the overall pensions budget. I look forward to the hon. Lady’s help in communicating that to her constituents.

[Nick Smith]

Given that the Minister is confirming that the Government are determined to ram through the proposals, what important measures will he take to raise awareness of the measures with that group of women so that they can plan for their retirement?

Oral Answers to Questions

Nick Smith Excerpts

Monday 19th July 2010 Commons Chamber

[Maria Miller]

I reassure the right hon. Gentleman that we will be working quickly on this and we will be involving specialist disability lobbies. As he is no doubt aware, these are complex matters and we need to ensure that, whatever actions we take to unravel the problems that we have been left with, our solutions have long-term and sustainable merit.

[Nick Smith (Blaenau Gwent) (Lab)]

My question is on pensioner poverty. Parts of my constituency are more than 1,200 feet above sea level and in the winter they can be very cold, so will the Minister guarantee not to cut the cold weather payments in the coming five years?

[Steve Webb]

As the hon. Gentleman knows, the underlying level of cold weather payments has been £8.50, which was increased to £25 for the past two winters. We are considering the rate for the coming winter, but we take representations each year on cold weather stations to make sure that they match the exact geography of local areas, for the sort of reasons that he gives.

Jobs and the Unemployed

Nick Smith Excerpts

Wednesday 7th July 2010 Commons Chamber

[Nick Smith (Blaenau Gwent) (Lab)]

I want to talk about jobs in south Wales, and the future jobs fund in particular. I do not believe the Government’s Budget will help boost employment in my constituency and in Wales. Instead, there is a great danger of the Budget reducing growth and increasing unemployment. Jobs are important in Blaenau Gwent. My constituency has the high unemployment rate of almost 12%. We used to rely on coal and steel, but those days are gone; now we need to develop a more balanced economy. We need green jobs, digital jobs and better services. We need to help those who have been unemployed back into work. We need the future jobs fund or a similar employment initiative, and, most importantly, we need it now.

Before I elaborate on my argument, however, I want to talk about an important event that took place in Blaenau Gwent last week. On Monday 28 June we commemorated the 50th anniversary of the Six Bells mining disaster. That commemoration was a tremendous event; thousands were there, including many relatives of the men killed that day. I met a Mrs Evans, a former senior nursing officer of the National Coal Board in Wales, who said that, apart from Aberfan, helping attend to the bodies taken from the pit that night was the worst evening of her career. Wayne Thomas, secretary of the south Wales National Union of Mineworkers told me that the wonderful steel and stone memorial is the biggest mines memorial in the country. I encourage Members to visit the Six Bells memorial, as it is a terrific reminder of the importance of coal and how it has sometimes left a tragic mark on our communities. It is a wonderful, evocative and powerful piece of art, and it is also a reminder that while coal is still part of the south Wales valleys, it will never again be the big employer it once was.

I had hoped that the Minister would talk today about policy plans that I would have found encouraging for Blaenau Gwent, but I have been disappointed by what I have heard. For me, the Government’s plans must include those that will deliver the programme. While Ministers have been quick to attack the future jobs fund, many important lessons have been learned from that project. That is certainly the case in Blaenau Gwent: that important initiative has been managed by our borough council and it has led to our streets being cleaner, our environment being cleaned up and our youngsters being kept out of trouble. Furthermore, the local people given work include redundant workers, those who find it hard to keep down a job and young teenage mums and dads. All those are groups that I would hope the Government would want to support back into employment and, in Blaenau Gwent, more than 500 people have, or will have, benefited from this initiative in recent months.

I must also say that I believe the Government have made a big mistake with their austerity Budget. At this difficult time, a better judgment would be to recognise that the best way to boost employment is to grow the economy, not cut it back. In south Wales, it is likely that the Government will find that the private sector is too weak to pick up the slack after Con-Dem cuts in the public sector. In the Financial Times last Wednesday it was reported that the private sector is not ready to employ the hundreds of thousands of public sector workers likely to be laid off as a result of Budget cuts. There was a study of 12 companies employing more than 375,000 people in various sectors, including household names like Morrisons, Jaguar, the Co-op and Arriva, and those companies said they had no plans to grow as the state shrinks.

Several companies have said that the financial situation is still too uncertain to consider recruiting. Experts such as Tim Leunig of the London School of Economics believe the economy is too frail for the private sector to grow and absorb jobs in the way it has in the past. That fatally undermines the Government’s argument. Mr Leunig has said:

“If the government thinks the private sector is automatically going to step into the gap left by the public sector, it is sadly mistaken.”

While there may be regional growth in the south-east, and the home counties may prosper early as we come out of recession, we need investment in Wales through the Assembly Government and local councils. We do not need a hope-and-a-prayer policy that somehow assumes the private sector will ride to the rescue, as all our experience in recent years has been that that will not happen.

I understand that the Government’s programme is not set to start until next summer. Also, it appears to include no guarantees that everyone will get work or training regardless of how hard to help they may be. Given what we know so far, it seems that this is an untested experiment on a large scale and carries considerable risk to the country and constituencies such as mine.

All this compares badly with Labour’s employment record. There are about half the number of young people signing on now than in the recessions under the Tories. Long-term youth unemployment is under a third of what it was when Labour came into office. Furthermore, because of Labour’s welfare reforms, investment in child care and family-friendly working policies, 365,000 more lone parents are in work now than in 1997. That good and important record will be undermined by the Government’s Budget.

Losing the future jobs fund is a mistake. It looks as though it will be followed by another initiative in the medium term, but in the meantime we will lose important momentum and delivery, and hundreds, if not thousands, of people will miss out. The Government should listen now to the agencies that are doing the hard yards on job delivery. The indications are that employment growth in the economy is still in the balance and that there is a real danger of much higher unemployment in the months ahead. I am grateful that the Under-Secretary of State for Wales has agreed to come to Blaenau Gwent in the coming months to talk about employment. That is generous of him, but if he is to make good on the Prime Minister’s recent fine words about this fantastic work programme, he has much to deliver on. In the meantime, some very good work and much good will is being squandered.