Closure of Sovereign House, Newport

Nick Thomas-Symonds Excerpts

Wednesday 19th July 2017 Westminster Hall

[Paul Flynn (Newport West) (Lab)]

I beg to move,

That this House has considered the closure of Sovereign House in Newport.

It is a special pleasure to meet under your chairmanship, Sir Roger. We know of your great contributions to debates in this House, in the Council of Europe and elsewhere, but it is the first time that I have had the chance to serve under your chairmanship.

The closure of Sovereign House in Newport is causing great anxiety in the city and elsewhere, because there is a threat to other jobs. We are not Luddites in Newport. We are very proud of the civil servants we have there, who have behaved magnificently over the past 50 or 60 years. They are of growing importance in the economy of Newport because of the collapse of much of our manufacturing industry. They have done marvellous work and we are greatly proud of the contribution they have made. They are certainly at the heart of the Newport community.

Our civil servants turned out to be absolutely right on one of the few things on which they disagreed with the Government. They were very supportive of shared services, which was a disruptive but very successful Government move to concentrate services in Newport, but when there was a move to privatise services, the people involved quite rightly objected. They were absolutely right to do so, because we went from a position of having saved the country £120 million to one in which there was a loss.

As I have said throughout my time in Parliament, having watched the civil service grow, prosper and provide a marvellous service for the country, the concern is based not on any Luddite proposal or unbalanced view, but on the fact that the civil service goes through various stages in which there is a holy grail. It used to be the Next Steps agencies, and then it was outsourcing, and now we are in the era of the super-hub—people take “super-hubism” up with an almost religious fervour. I am sure that young civil servants are told, “If you want to have a successful career, go into hubism, because that’s the way we are going.” The momentum takes over.

[Nick Thomas-Symonds (Torfaen) (Lab)]

I congratulate my hon. Friend on securing the debate. What the move to super-hubs neglects is the importance of having the jobs in local communities and the support they give to local communities. It also disregards the needs of workers, particularly those with caring and family responsibilities, who have the advantage of jobs close to home.

[Paul Flynn]

My hon. Friend makes his point with great force. That is precisely the position. People are attracted to super-hubs because they want their career to leave a legacy. If they can think that they have built super-hubs—great phallus symbols—in various places, they can relax when they eventually retire to their haciendas in Spain. It is something to be achieved, but it is not always rational or right.

I thank the Minister for having met my hon. Friend the Member for Newport East (Jessica Morden) and myself to discuss the matter. We want to see a clear, practical exposition of why this decision is the right one. To my knowledge, Sovereign House has been operating since the early ’60s and has provided jobs right in the heart of the city for all that time. There are 182 people working there now, but there is capacity for 400. It is a great asset to the city. One point that is not always taken into account is that the vibrancy of the city centre depends on the workers who are there. They have their lunch in the city, use the shops and so on, so they add to it. If a city is to thrive and survive, we need that working population at its heart. Where does that point come into the calculations of those who make the decisions?

--- Later in debate ---

[The Minister for Employment (Damian Hinds)]

That is something we share, Mr Bailey. It is a delight to see you in the Chair. I congratulate the hon. Member for Newport West (Paul Flynn) on securing this important debate about the closure of Sovereign House—an office of the Department for Work and Pensions—in his constituency. I thank him for his powerful words about the contribution made by the civil servants who work in Newport and elsewhere.

The Government are committed to building a country that works for everyone. We seek to protect the most vulnerable while supporting everyone to fulfil their potential and play their full part in society. That includes reforming the welfare system to make work pay, and examining our assets to ensure we are deploying our resources effectively.

As colleagues know, the private finance initiative contract with Telereal Trillium expires in March 2018. That gives us the opportunity—in fact, the imperative—to review which offices we will need in the future and how our estate will be managed. We have sought to deliver value for the taxpayer and make best use of the space available, while continuing to provide vital support to claimants and pursuing our reform agenda. In January, we announced proposals to rationalise the DWP estate. Those proposals encompassed most of our Jobcentre Plus offices and processing centres.

[Nick Thomas-Symonds]

My Torfaen constituency is adjacent to the two Newport constituencies. As the Minister is aware, there is a proposal to relocate the jobs that are currently at the Cwmbran pension centre down to Treforest. Can the Minister confirm whether any assessment has been undertaken of the effect on the Torfaen economy of the removal of those jobs from Cwmbran? If one has been, is he willing to share it with me?

[Damian Hinds]

If the hon. Gentleman will forgive me, I will come on in due course to the rationale for creating the new facility, which, as he said, will be at a site in the Treforest area, and the effect on the five places whose staff will feed into it, including Newport.

The announcement on 5 July finalised the plans to rationalise the DWP estate, which include merging some smaller and underutilised jobcentres, moving some to new buildings or shared Government premises, and creating larger strategic back-office sites. The changes will enable the Department to offer a more efficient service while delivering value for the taxpayer, and will save more than £140 million a year over the next 10 years.

Eight out of 10 claims for jobseeker’s allowance, and 99% of applications for universal credit full service, are now made online. That, together with the lower unemployment rates, means that there are fewer face-to-face initial meetings, and that some of the space is under-utilised. Our plans reflect how customers interact with the Department today. The changes are not about a reduction in frontline jobcentre staff. On the contrary, jobcentres are actively recruiting staff. The changes are being made in consultation with DWP employees and the trade unions. That will help preserve the important local knowledge and community understanding held by our staff, with customer service being maintained.

We plan to maintain the vast majority of jobcentres in Wales. Three are merging into nearby sites. Upon consultation, the moves have been received positively by some staff, who will join larger teams in which they can gain new skills and experiences. I believe that in itself will result in better service for customers. We want our back-office operations to reflect the Government’s hub strategy, which aims to consolidate the delivery sites of departmental functions. However, in Wales in particular, we considered it important to retain offices away from Cardiff to preserve and grow employment in places where it is needed. It is worth mentioning that we are also growing our back-office presence at our Swansea site, which will grow to around 460 people, and at Bridgend, where our staff will eventually total around 350. All in all, our back-of-house processing presence in Wales will increase by about 20%.

Of course, the change of most significance to the hon. Member for Newport West is the opening of the large DWP office in the Treforest area, just south-east of Pontypridd, in 2020-21. That strategically placed site will enable us to merge functions from five nearby smaller processing centres, including Sovereign House in his constituency. We intend to expand services at the new site and eventually grow it to around 1,600 staff, boosting employment in the area. The building will be a modern, digitally enabled working environment.

I understand that the relocation and consolidation of offices in south Wales will cause some disruption to staff. To maximise the number of staff at those five offices who could transfer to the new site, we studied their home postcodes to help determine that site’s location. We were determined to retain staff who had built careers with us and minimise the loss of their valuable experience and expertise.

[Nick Thomas-Symonds]

When that postcode analysis was done, was analysis also done of the public transport options between those postcodes and the new centre?