Oral Answers to Questions Debate
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Main Page: Pat McFadden (Labour - Wolverhampton South East)Department Debates - View all Pat McFadden's debates with the Department for Work and Pensions
(1 day, 9 hours ago)
Commons Chamber
James Asser (West Ham and Beckton) (Lab)
The number of youth apprenticeship starts has fallen by 40% over the past decade. Because we want to give more young people the chance of apprenticeships, we are fully funding youth apprenticeships for small businesses, introducing a £2,000 hiring incentive for non-levy-paying employers, and expanding foundation apprenticeships in hospitality and retail. All that is aimed at more opportunity and more work for young people.
James Asser
I very much welcome the work being done to prioritise and expand apprenticeships, but all too often their image is dated and the modern situation is not fully understood. While my local university tells me that good work on promoting apprenticeships is being done in private and grammar schools, that is not always reflected across the wider state sector. Will the Government consider how we might tackle the issue, working with apprenticeship bodies, industry organisations and the unions, to ensure that modern apprenticeships are fully known about and the opportunities they provide are fully understood?
My hon. Friend is right to say that promoting apprenticeships must start in schools. Our brilliant apprenticeship ambassador network brings together about 3,000 employers and apprentices, who go into schools and colleges and share stories about how apprenticeships can transform young lives. Those ambassadors have now reached 97% of the state-funded secondary schools and colleges in England—nearly 3,500 in the past three years—but, for the reasons that my hon. Friend has given, we have got to do more work to make information about apprenticeships as clear and easy to use as possible.
I raised with the Prime Minister at PMQs a couple of weeks ago the case of Twentyfour Hair, a salon in Princes Risborough in my constituency, which for the first time in 21 years cannot afford to take on a new apprentice. That message is echoed by businesses across my constituency. In order to improve uptake in new apprenticeship starts, which I entirely support, what steps is the Secretary of State taking with the Chancellor to get rid of this punitive level of business taxation, which is preventing businesses from taking them on?
I referred in my previous answer to the step I am taking, which is to put in place a £2,000 hiring incentive for small businesses taking up a new apprentice. If it is someone who has been unemployed and on universal credit for six months, there is the potential for an additional £3,000 hiring incentive on top of the £2,000. We want to incentivise small businesses to take on apprentices, for reasons that I think are shared right across the House and because of the great opportunities that they entail.
Amanda Martin (Portsmouth North) (Lab)
This month I launched a space apprenticeship pilot in Portsmouth North, bringing together Airbus and the Solent Growth Partnership to ensure that candidates who narrowly miss out on an Airbus apprenticeship are matched directly with defence and space SMEs in the area. Following the failure of the last Government, does the Secretary of State agree that this Labour Government’s reforms are finally delivering high-value opportunities in aerospace and cyber, and will he work with me to look at how we can extend this initiative across other sectors, such as maritime and construction?
May I congratulate my hon. Friend on what sounds like a fantastic initiative? She puts her finger on something very important: sometimes people who narrowly lose out on a particular apprenticeship could benefit from one elsewhere. I did refer to the work that we are doing to try to improve the information, and the initiative she has taken is a great example of what can be done. Just because people do not get their first choice should not mean that they lose out on the opportunity of an apprenticeship entirely.
Caroline Voaden (South Devon) (LD)
Apprenticeships offer young people a great pathway into rewarding careers, so I very much welcome the Government’s ambition to create more of them, but a report published last week by the Social Security Advisory Committee highlighted the so-called apprenticeship penalty, whereby low-income families can lose up to £330 a week in child benefit and universal credit the moment a 16-year-old takes up an apprenticeship. What is the point of creating more apprenticeships if a cliff edge like this discourages young people from taking them up? Will the Minister commit to urgently fixing this penalty, so that no family are left worse off simply because their child chooses an apprenticeship over full-time education?
I am always grateful for the work of the Social Security Advisory Committee, and I am grateful to the hon. Lady for her question, but one thing that she missed out is that apprenticeships are paid, so a young person taking up an apprenticeship opportunity will be earning money that contributes to the family’s income. We have to take that into account, as well as all the other sources of the family’s income.
I really welcome my right hon. Friend’s work in this area, given that so many young people are unemployed, but what is he doing to evaluate how many apprentices get proper, long-term, full-time jobs as a result? Clearly, that is the end goal that we all want to see.
My hon. Friend will know that when people complete an apprenticeship, their chances of employment are very high. I am pleased to report that apprenticeship achievement rates are up in the latest figures, as are the apprenticeship start numbers.
Shockat Adam (Leicester South) (Ind)
Leicester college, a further education college, is facing a funding crisis that is putting apprenticeships at risk. The Government have a noble commitment to building 1.5 million homes and training 60,000 construction workers, but young people wanting construction apprenticeships are being turned away. No bricklayers, no electricians and no plumbers means no homes. In Leicester, the rate of young people who are not in education, employment or training is nearly 6%—five times higher than the national average. We have the employers and we have the demand, but without proper funding, we cannot deliver the skilled workforce that this country desperately needs. What real-terms funding increase will the Secretary of State commit to in order to ensure that young people have the opportunity to access skills via the apprenticeship scheme?
We always listen to representations that ask for more funding for many good causes. On the issue of construction, a specific construction sector skills package was announced last year. It is aimed precisely at training the bricklayers, electricians and plumbers we need to meet our construction targets, not only in housing but in the many investment projects around the country that are being supported by this Government.
Mr Peter Bedford (Mid Leicestershire) (Con)
With the number of young people not in education, employment or training hovering at the 1 million mark, apprenticeships now more than ever are key to supporting opportunity and aspiration for so many of our young people. Conservative Members fundamentally believe that the best path out of poverty is being in work and contributing to society, with all the economic freedoms that a job brings. Given that the number of apprenticeships in the Secretary of State’s own Department dropped from 5,000 in 2024 to 3,500 in 2025, is it not the case that the Government’s message to business is, “Do as we say, but not as we do”?
I agree with the shadow Minister that work is the answer. As I said a moment ago, apprenticeship starts are up on the latest figures and apprenticeship achievement rates are up. The reforms that we are putting in place will mean more youth apprenticeship starts, and that is where the money should be directed, because that is where the need is greatest.
Steve Darling (Torbay) (LD)
A recent Guardian report highlighted how young people from more deprived communities are facing discrimination through the apprenticeship system. As my hon. Friend the Member for South Devon (Caroline Voaden) alluded to, there is a penalty if someone’s family also receives child benefit. How can the Minister intervene to support the most vulnerable families?
It is important to remember that apprenticeships are paid and that the people undergoing them get a wage. When we are considering the overall economic impact on a family’s income, we have to take that into account. Frankly, if the hon. Member pushes me and asks me whether it is better for that income to come from benefits or the constructive work of an apprenticeship, I know which one I would pick.
Yuan Yang (Earley and Woodley) (Lab)
I believe my hon. Friend will welcome the changes the Government have made to statutory sick pay, which came into force earlier this month. For the first time ever, we have removed the lower earnings limit for statutory sick pay, as well as the waiting period so that people can access sick pay as soon as they need it. These changes will mean that up to 1.3 million more people will be covered, helping the low paid and those who work for more than one employer in particular.
Yuan Yang
I am indeed very proud of this Labour Government’s historic Employment Rights Act 2025, which, from this month, means that workers will get statutory sick pay from the first day they are ill, rather than having to wait till the fourth. Too many people in Reading—even those working in health and care settings—are working through their illnesses; this measure will protect them, their clients and patients and improve the productivity of their workplaces.
While the ERA is an important step forward, does the Secretary of State accept that the current flat rate of statutory sick pay—at four fifths of average earnings—remains a barrier to those on low incomes, and thus remains a barrier to tackling illness in the workplace?
I believe that removing the three-day limit and giving access to statutory sick pay from day one, as well as making it available to those who work for multiple employers, should decrease the pressure on workers to have to work through illness.
My hon. Friend will be aware that the “Keep Britain Working” review led by Charlie Mayfield also aims to work with employers to help keep people in jobs while they cope with some of the long-term sickness issues that can develop as workers get older.
Ben Coleman (Chelsea and Fulham) (Lab)
Mr Andrew Snowden (Fylde) (Con)
The latest unemployment figures published last week show a fall to 4.9% in February, which I am sure the whole House will welcome. Along with growth figures of 0.5% earlier this year, that is more evidence that the economy was heading in the right direction at the beginning of the year. But I have to warn the House that external effects caused by the war in Iran and the rise in energy prices may affect jobs as well as prices in the coming months.
Mr Snowden
Fylde’s stunning coastline and countryside mean that the hospitality, tourism and leisure industry is at the heart of our local economy. But I have met many businesses that, following the changes to national insurance, have let go so many young people from that industry and are simply not taking on new seasonal staff. Could the Secretary of State update the House on the current trends of unemployment among 18 to 24-year-olds?
I recently joined a successful jobs fair close to the hon. Gentleman’s constituency, where the industries that he mentioned were hiring more people—it was one of the most successful such events that we have seen. I hope that he will welcome the fact that 330,000 more people are in work this year than at this time last year. When it comes to young people, he will of course know that there is a national insurance exemption for employees under 21.
Adam Thompson (Erewash) (Lab)
Because of the previous Government’s actions, the number of people not in employment, education or training rose by nearly 250,000 between 2021 and 2024, leaving many hundreds of my constituents among the almost 1 million young people in that situation today. I am glad to see, then, that the Secretary of State is taking action to support young people in Erewash through the youth guarantee. Further to that, will the Secretary of State please explain the measures that his Department is taking to address the decade-long trend of growing youth unemployment?
My hon. Friend will know that the number of young people not in education, employment or training rose by about a quarter of a million in the last three years of the Conservative party’s time in power, but that Government did nothing about it. We are putting in place a youth guarantee that offers training, work experience, subsidised employment and hiring incentives to small and medium-sized employers for both regular jobs and apprenticeships. That is all part of the effort to make sure that young people do not graduate from education to a life on benefits, and that they get the chance in life that a decent job brings.
I was disappointed that the Secretary of State did not answer the question put by my hon. Friend the Member for Fylde (Mr Snowden), so let me help him. Unemployment among 18 to 24-year-olds is at 14.3%—that means that one in seven young people is unemployed. There are thousands fewer jobs and thousands fewer vacancies under the right hon. Gentleman’s Government. I speak to young people across the country, who tell me that it is desperately difficult to get a job, and it is no wonder. His Government have made it much harder for businesses to employ people, especially young people.
I appreciate that the Secretary of State may be trying his best with his plethora of work schemes, but they are just a sticking plaster for the damage that the Chancellor has wreaked. Governments do not create jobs; businesses do. His Government need to change tack and back businesses to create opportunities for the next generation. I am on their side—isn’t he? Will he help the Chancellor understand before it is too late?
The hon. Lady neglected to mention that youth unemployment never recovered to levels enjoyed under the last Labour Government at any point during the Conservative party’s time in power; it was exacerbated during their last few years in particular. The difference is that we are responding with the initiatives that I have set before the House today. That is because we believe that work is the best answer and the best opportunity for young people. I will keep going, to give young people hope and opportunity because that is what this Labour Government stand for.
Mr Lee Dillon (Newbury) (LD)
Since our last DWP oral questions, I have updated the House on the expansion of our youth employment offer, I have been to an excellent job fair in Glasgow, I have said that the latest unemployment figures show a fall, and last week I went back to university—it was the McDonald’s Hamburger University. My Big Mac was not perfect, but I welcome McDonald’s as the latest employer to support our youth guarantee. My right hon. Friend the Minister for Social Security and Disability has said that the “right to try” regulations have come into force and, as we have mentioned, we also have the changes on statutory sick pay, which significantly expand coverage and make it available from the first day of employment.
Mr Dillon
I worked at McDonald’s throughout my GCSEs and A-levels and while at university—it is a good employer for those who are studying. Newbury Soup Kitchen is a local charity that is supporting a constituent of mine, spending many hours on the phone to universal credit staff. However, they do not consistently accept the authority to discuss, demanded an in-person meeting despite the resident being wheelchair dependent, and offered a Teams meeting only for the resident to find out that Berkshire does not offer Teams meetings. Will a Minister meet me to discuss the case and the process failures?
I am happy to ensure that the hon. Member gets a meeting with a Minister from the Department to discuss his constituent’s case.
Rachel Blake (Cities of London and Westminster) (Lab/Co-op)
My hon. Friend is right that we need everyone—not just central Government—to be involved. I would like local authorities, businesses—all of us—to see the youth opportunity challenge as a national endeavour worthy of all our support. I am happy to work with her local authority to try to make it as successful as possible.
Mr Speaker,
“We cannot defend Britain with an ever-expanding welfare budget”.
That is the view of the author of the Government’s strategic defence review, the Labour peer, former Labour Defence Secretary and former Secretary-General of NATO Lord Robertson. Which will the Secretary of State choose: defending the country or paying people not to work?
The Conservative party failed to reform welfare and failed to back our defence forces—it left the armed forces at their smallest size since Napoleonic times—and it says that there is a choice. The truth is, the Conservatives did neither of those things; we are doing both. We are increasing defence spending to 2.5% of GDP—something they never achieved, despite inheriting that level from us when they took office—and we are reforming welfare by putting work and opportunity at the heart of everything we do.
Let us put some facts on the table, because it is time for the Government to confront the hard choices. We are spending less than 2.5% of GDP on defence, but 5.3% of GDP on welfare. Six million people of working age are living on benefits. Under the Secretary of State’s Government, over a million more people have gone on to universal credit and hundreds of thousands have gone on to sickness benefits—and the Government are choosing to spend even more by scrapping the two-child cap. We cannot go on like this. When will he and the current Prime Minister come forward with a plan to bring the welfare bill down? Or is it like with Sir Olly Robbins: another topic where his judgment and the Prime Minister’s differ?
The shadow Secretary of State said that she wanted some facts, so let me give her some facts. The Tories inherited spending on defence at 2.5% of GDP; they left office with it lower. They left the Army at its smallest in two centuries, and they cut the number of frigates and destroyers by 25%. It is the Labour Government who are increasing expenditure on defence. It is the Labour Government who are reforming welfare, including the changes in universal credit this month, and the youth employment initiatives that we have talked about throughout these questions.
Patrick Hurley (Southport) (Lab)
I thank my hon. Friend for a very good question. Here is another fact the shadow Secretary of State may not welcome: the truth is that before the pandemic, face-to-face interviews were the norm and after that, the numbers collapsed. Not only that, the previous Government signed off a new set of long-term contracts allowing most of the assessors to work from home, just a year before the general election. We are now increasing face-to-face interviews to provide a proper balance in the functional assessment process in the benefit system.
Charlie Dewhirst (Bridlington and The Wolds) (Con)
The policies that I am advocating are creating opportunity for young people, through offering employers hiring incentives, through promoting youth apprenticeship starts and through the other initiatives that we have set out. We do this because we agree that work is the best answer for young people, and I want to do everything I can to make sure that they have the maximum chance to get work.
Steve Yemm (Mansfield) (Lab)
Youth hubs are another part of the effort, and the advantage is that we can get the help that the jobcentre can give to where young people are in the community. This also means we can get help to people who are not necessarily signing on for benefits but who are looking for work, and it enables us to give a more flexible response across different services. We hope to expand these hubs to more than 360 locations, where they will be open to all 16 to 24-year-olds, whether or not they are on benefits.
Rupert Lowe (Great Yarmouth) (Restore Britain)
Dr Roz Savage (South Cotswolds) (LD)
I have discussed this subject a lot with hon. Members from right across the House, and the issue that the hon. Member raises about transport is raised quite a lot with me. It is important, and I am willing to look at anything that I can do on that front to help people take up available opportunities. We need to bring everything together to give young people the maximum employment opportunities.
As chair of the all-party parliamentary group for small and medium-sized enterprise house builders, I regularly hear about the growing skills shortage, and the urgent need to change perceptions about careers in construction, which is a highly skilled, rewarding industry that offers strong career progression, good wages and an opportunity to play a direct role in building the homes that our country needs. What steps is the Minister taking to invest in technical training for young people, so that SME house builders have the skilled workforce that they need to deliver the homes that this country urgently needs?
My hon. Friend is absolutely right to draw attention to the need for skills for house building. We support those skills through sector-based work academy programmes. Last year, the Government announced a £625 million construction skills package, in order to recruit 60,000 workers by 2029 to all the trades that we need for building and the other physical investment projects that the Government are supporting around the country.
Gregory Stafford (Farnham and Bordon) (Con)
As the Government’s reforms to special educational needs and disabilities provision focus on pushing children into mainstream education, they risk removing specialist support from many who need it and undermining successful work programmes, such as the Witherslack futures programme. Will the Secretary of State meet me and relevant groups to ensure that he does not allow SEND reforms to damage the chances of young people with special educational needs and disabilities to secure long-term, sustainable work?
Mr Bayo Alaba (Southend East and Rochford) (Lab)
I welcome the £2.5 million funding boost recently awarded to South Essex college; that will help equip even more residents from Southend and Rochford with the skills needed for fulfilling, lifelong careers. Following my conversations with Louisa Strachan, founder of Song School in Southend, on their desire for greater support for creative apprenticeships, can the Minister outline the steps that his Department is taking to support young people into the creative and music industries?
I thank my hon. Friend and sing a song of praise for the Song School in Southend. He is absolutely right to draw attention to the importance of the creative industries. Our creative industries sector plan provides £380 million of targeted investment, and, as part of the work on the youth guarantee, I was pleased to meet the film and TV industries at Pinewood Studios in January of this year to talk more about the opportunities that they offer young people in our fantastic creative industries sector.
Tom Gordon (Harrogate and Knaresborough) (LD)
Disabled people in England face a postcode lottery when it comes to the time in which they can use their bus passes. What conversations have been had with colleagues at the Department for Transport and the Treasury about removing those unfair time restrictions?
Our declining healthy life expectancy, as underlined in today’s Health Foundation report, is a real worry, but as Professor Sir Michael Marmot has shown, that is no surprise after 14 years of austerity and its impact on our public services. There is the potential for a significant knock-on effect on Department for Work and Pensions spending. What conversations has my right hon. Friend the Secretary of State had with the Health Secretary on this issue, and is it being considered in the Timms review?
I know that the Chair of the Select Committee cares deeply about health inequalities in this country, which, to be honest with the House, are deep seated and long term. As in many areas of our work, I believe that constructive and productive employment is a big part of the answer in tackling inequality and prosperity issues right around the country.
Katrina Murray (Cumbernauld and Kirkintilloch) (Lab)
BriggsAmasco in my constituency invests heavily in apprenticeships for the next generation of mastic asphalt tradespeople. According to BriggsAmasco, only 11 people in that part of Scotland are fully qualified in this work, and the only route to qualifying is through training programmes in England. The only training provider in Scotland stopped accepting apprentices last September. Will the Minister meet me to see if we can find a way to back employers that want to employ, and apprentices who want to train? There is a shortage of workers in that profession.
I thank my hon. Friend for being such a formidable champion for her constituency, and for opportunity within it. I would be very happy to talk with her further about this issue, but I point out that skills and apprenticeships are devolved in Scotland. The Scottish Government have received a record financial settlement—the greatest since devolution began—and I hope that opportunity for young people is part of their agenda.
Adam Dance (Yeovil) (LD)
My office has been waiting over six months for DWP replies to certain cases. Citizens Advice has reached out because it is not getting replies either. Will the Minister commit to getting us those responses this week, and will he commit to greater resourcing for responding to Members, particularly in relation to universal credit?
I know that responding to hon. Members’ inquiries—be they direct or on behalf of their constituents —is very important. I raise that with the Department constantly. If the hon. Gentleman sends me more details of the constituents in question, I will ensure that their cases are looked at right away.
Leigh Ingham (Stafford) (Lab)
We in Stafford welcome the announcement that Stafford college will become an advanced manufacturing technical hub, but we have a gap: more skilled jobs are needed than there are people to fill them. Will the Minister meet me to discuss the potential for Stafford to have a youth hub as soon as possible?
I know, because my constituency is not too far away, that advanced manufacturing is in the DNA of Staffordshire, so I warmly welcome what my hon. Friend said about her local college, and I will make sure that she gets a meeting with someone from the Department.
Earlier this year, I visited the High Speed 2 site in my constituency, where I had the privilege of speaking with several apprentices about the value of educational opportunities that offer a clear path into work. Given that there are nearly 1 million people not in education, employment or training, will the Minister outline what steps the Department is taking to promote such apprenticeship schemes?
We are promoting apprenticeships for young people in particular through the way that we prioritise the funding in the apprenticeship levy, and we are putting in place hiring incentives of £2,000 for small businesses that want to take on an apprentice. For small and medium-sized businesses, we will also fully fund the cost of apprenticeships for under-25s, because I agree with the hon. Gentleman that apprenticeships are a great opportunity for young people, and I want to do what I can to make sure that young people get more chances to avail themselves of those opportunities.
Lauren Edwards (Rochester and Strood) (Lab)
Can the Minister provide an update on the action plan to ensure that lessons are learned from the way that changes to the state pension age were communicated to women born in the 1950s?
Mike Reader (Northampton South) (Lab)
The potential rapid closure of St Andrew’s hospital in my constituency puts over 3,000 jobs at risk. Will the Secretary of State meet me to discuss what package of support we can put in place for those people to ensure they can find good quality work in my constituency?
As I have said a few times today, I will ensure that my hon. Friend gets a meeting with a Minister. I congratulate him on speaking up for his area and the workers within it.