Compulsory Jobs Guarantee

Oliver Heald Excerpts

Wednesday 11th February 2015 Commons Chamber

[Nigel Adams]

I am not prepared to concede that. I am happy with the numbers that I have. I will go away and check them. I promise to write to the hon. Lady and apologise if I have got my figures wrong, but I think they are fairly robust.

Thankfully, Government Members know a little bit about employment. One or two of us have run businesses that have employed people. We also know what it is like to be made redundant. I was interested in the Secretary of State’s remarks on that. I know from my experience how unpleasant it can be and how difficult it is for families. I started a businesses when I was 26 with Government help under the enterprise allowance scheme, which is helping many thousands of businesses now. Back in 1993, £20 a week was not a lot of money, but it was enough to fill up my car with fuel, which enabled me to grow a business that was eventually acquired by a public limited company.

Let us see what we have done so far. The number of jobs is about 1.75 million higher than in 2010. Thanks to our plan, the economy is stable and there is no reason to believe that job numbers will not continue to rise. Some 80% of employment is full time. Since this Government took office, 1,000 jobs have been created every day. The youth unemployment claimant count has fallen to its lowest level since the ’70s. In the last year alone, there was a fall of 34% in young people claiming jobseeker’s allowance, and the claimant count has fallen every month for the past three years. The Work programme has helped almost a third of a million people into long-term employment since 2011.

[Sir Oliver Heald (North East Hertfordshire) (Con)]

Does my hon. Friend agree that it is very telling that the number of part-timers who would like to have full-time work has fallen by 140,000? That is a clear indication that full-time work is back.

[Nigel Adams]

My hon. and learned Friend is absolutely correct. There are people who enjoy working part time and feel that it suits their lifestyle. The figure that he mentioned is encouraging.

In my constituency, the number of young people claiming JSA has dropped by almost 40% in the last year alone. We have introduced a couple of schemes that are helping people into work or back into work. The Work programme is helping 1.75 million unemployed people. As of September last year, it had helped a third of a million people into lasting work. Help to Work, the scheme for long-term unemployed young people who have been in the Work programme for a couple of years, is providing community work placements. The Government have pledged to fund Help to Work with £700 million over four years, and it is helping 200,000 people.

The number of apprenticeships has more than doubled in this Parliament. Since the coalition came to office, 2 million apprenticeships have been started, which means that this Government have overseen the biggest ever boost to apprenticeships and fulfilled their commitment that there would be 2 million apprenticeship starts in this Parliament. The apprenticeship grant for employers has provided for 92,500 apprenticeship starts, with 8,000 more in the pipeline. My constituency has seen almost 1,000 apprenticeship starts. I thank all the employers who have taken up the scheme and the excellent colleges that are delivering the training, including York college and Selby college. Apprenticeships give young people an opportunity to get on the work ladder.

The Chancellor has announced that from April 2016, employers will not have to pay employer’s national insurance contributions for apprentices under the age of 25. That will ensure that even more apprentices are taken on. We have delivered more apprenticeships in two years than the last Government delivered in five. The Prime Minister has announced that a future Conservative Government would make a £1 billion commitment to deliver 3 million apprenticeships by 2020.

Those results show that we are on the right track, but there is plenty more to do. I am not minded to support a compulsory jobs guarantee scheme. It appears to be modelled on the Jobs Growth Wales scheme, which has helped only one in three of the young people who has applied and therefore comes nowhere near guaranteeing a job for all young people who are out of work for a year or more. I urge all right hon. and hon. Members to oppose the motion.

--- Later in debate ---

[Sheila Gilmore (Edinburgh East) (Lab)]

In all the debates on this issue, sweeping statements are made about how Labour Governments have higher unemployment at the end of their term than, it is implied, Tory Governments do. The Tory Government of 1979 to 1997 inherited an unemployment rate of 5.2% and left an unemployment rate of 7.4%, and in 13 out of 18 years unemployment was over 10%. We really should not take lessons from a party that produced those kinds of results during one of its longest periods in government in recent years.

I was slightly wrong when I intervened on the hon. Member for Selby and Ainsty (Nigel Adams). Unemployment rose slightly between 1997 and 2010, in the midst of a world economic recession—it was 0.4% higher in 2010 than it was in 1997, and that is after a major recession. Between 1945 and 1951 unemployment fell, so I hope we will hear slightly less of that generalisation.

One of the other generalisations made by the Secretary of State was meant to frighten people outside this place with the notion that Labour creates a situation in which nobody works. He said that under Labour 20% of households had never worked. That is one in five of all households. If someone heard that, they would think it shocking and dreadful, but what he did not say was that 48% of those—nearly half—were students who had never worked because they were students, 14% were carers, 18% were sick or disabled and only 10% were unemployed.

The number of workless households has fallen slightly under this Government, but it has gone back to where it was in 2008. After the recession, there has finally been a slight fall in the number of households not in work, but, again, many are not in work because of caring responsibilities, because they have children or because they have taken early retirement. We must be realistic about the figures.

Conservative Members always throw figures at us to show how unemployment has fallen in our constituencies, but they always use the claimant count. The gap between the claimant count and the unemployment rate has been very high under this Government and that is something that we must consider. What is happening to those people who are unemployed but not receiving any benefit? Who are they, what is happening to them and how are they living? Are they getting any of the help that we are so often told about and that they are supposed to be given? I know that many of those people are living on much reduced incomes and many are not getting benefits, either because they have lost them in some way or because they have a partner in what might be only part-time work.

[Sir Oliver Heald]

Listening to the hon. Lady is reminding me of Nicola Sturgeon’s speech. She is arguing for more borrowing, more spending and more tax, so is the hon. Lady buying into the SNP agenda?

[Sheila Gilmore]

We say that there is a different way to tackle the budget deficit. We said that we would do it differently in 2010. Of course, the Conservatives went to the electorate and said that they knew the answer and would eliminate the deficit in five years. They set about trying to do that and have manifestly failed. We said that we wanted to stimulate the economy rather than depress it as they did month after month in their first three years when growth fell. Despite all the measures in the so-called emergency Budget, the Conservative party has not achieved what it said it would.

We always have an argument about work experience, and the counterpoint to anything we propose is that the work experience scheme is, to use the words of the Secretary of State, unbelievably successful. As he constantly says, half the people who go through the work experience scheme get a job. What he did not say is that nearly half those who did not go through work experience in a matched cohort, according to the DWP’s own research, did not get a job. Being in the work experience programme did have an effect, but it was not the type of effect the Government suggest.

After 21 weeks, 50% of those who had been through work experience were back on benefits, but those who did not go through the scheme did not do much worse. There is no point in exaggerating these schemes. A real and proper job, which involves real training and will get people into permanent employment, is worth much more than a short-term work experience scheme, which is not to say that there should not be work experience. We are proposing that particularly for young people because they need it.